There is a choice of three policy periods in life benefit. The first 16 years, the second 21 years and the third 25 years.
The minimum sum assured in this is 2 lakh rupees.
In this article, you are going to tell about one life benefit (LIC Jeevan Labh) in the best selling policy of Life Insurance Corporation. It is a with profit policy in which LIC shares its earnings with the policy holder as a bonus. In this, the policy holder gets the benefit of two bonuses. First simple revisionary bonus and second file additional bonus. In this scheme, you will get a benefit of Rs 5.25 lakh on maturity at a premium of Rs 794.
Talking about eligibility, this policy can be purchased in the name of the child even after the completion of 8 years. Maximum entry age is 54 years. However, the maximum policy term for this would be 21 years. If the policy term is 25 years, then the maximum entry age is 50 years. In this way, the maximum maturity age is 75 years. The minimum basic sum assured is 2 lakh rupees. There is no limit for maximum sum assured.
Four riders and three policy periods
There is a choice of three policy periods in life benefit. The first 16 years, the second 21 years and the third 25 years. The premium paying term for this is 10 years, 15 years and 16 years. The policy holder has to pay the premium till the premium paying term. However, the benefit of maturity is given only after the end of the policy period. Apart from this, policy holders also have the option of Accidental Death and Disability, Accident Benefit, New Term Assurance and New Critical Illness Rider.
Monthly premium will be around 800 rupees
To understand as an example, if A’s age is 30 years and he has bought a sum assured of Rs 2 lakh, whose policy period is 25 years, then his monthly premium will be close to Rs 800. Here the premium paying term will be 16 years and during this time he will deposit a total of 1.5 lakh rupees as premium. If A bought this policy in 2020, then by 2036 premium will have to be paid and its maturity will be in 2045.
Waste Simple Revisionary Bonus Calculation
A will get many benefits when the policy matures. Talking about the Wasted Simple Revisionary Bonus, according to the data available on the website of LIC, it is Rs 47 per thousand equals for a person of 30 years. In this way, the total amount of bonus for 25 years will be 2.35 lakh rupees. (200000/1000 * 47 = 9400 * 25 = 235000 rupees)
Additional Bonus Calculation
Talking about the final additional bonus, A will get around 90 thousand rupees here. This is a bonus based calculation by LIC for 2020-21. The ALC has issued a bonus of 450 rupees per thousand Sum Assured. In this way, a total of 90 thousand (200000/1000 = 200 * 450 = 90000) will be given as additional bonus on 2 lakh sum assured. In this way A will get 200000 + 235000 + 90000 = 525000 rupees as maturity. He has deposited just 1.5 lakh rupees as premium. This maturity will be completely tax free.
Talking about the death benefit, if A dies during the policy period, the nominee will get a sum assured of Rs 2 lakh as well as benefit of revisionary bonus and additional bonus. How much bonus will be received depends on how long the premium has been deposited.
Tax Benefits and Surrender Policy
It can be surrendered till two years after the commencement of the policy. Loan facility is also available after depositing premium continuously for 2 years. The benefit of tax on premium is given under section 80C and on maturity, relief under the section 10 (10D).
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