LIC Jeevan Labh insurance plan not only provides the policyholder with comprehensive life insurance cover, but also has a maturity benefit if the life insured survives till plan maturity. The plan offers both death and maturity benefits along with profit participation bonuses. ************************************************* Both LIC Jeevan Labh and PPF offer the scope of increasing one's savings corpus. While your PPF account is a traditional savings scheme with a high-interest rate, LIC Jeevan Labh offers life cover with additional returns as a means for increased earnings. However, the rate of return for LIC policies is lower. ************************************************** Let’s use an example to understand how Jeevan Labh LIC plan works: Say that Ravi (30 years old) wants to purchase the LIC Jeevan Labh 736 plan with the following coverage options - Basic Sum Assured (BSA) – Rs. 10 Lakhs Policy Term - 21 years Premium Paying Term - 15 years LIC Bonus Rate 2020-21 – Rs. 44 per Rs. 1000 BSA Using the LIC Jeevan Labh Calculator, the annual premium comes to Rs. 54,707. Death benefit to the family if Ravi dies in the 10th year of the policy Higher of (7 x 54,707 = Rs. 3.82 Lakhs) or the BSA (Rs. 10 lakhs), which means the nominee will receive the latter. Over 10 years, the bonus will be equal to Rs (44 x 10,00,000/1,000) x 10 = Rs. 4.4 Lakhs. The total death benefit will be equal to Rs (10,00,000 + 4,40,000) = Rs. 14,40,000. Maturity benefit if Ravi survives the entire policy term of 21 years He will get the BSA (Rs. 10 lakhs) plus accrued bonuses. The total bonus amount for 21 years will be equal to Rs (44 x 10,00,000/1,000) x 21 = Rs. 9.24 Lakhs. The final maturity value at the end of 21 years will be equal to Rs. 19.24 lakhs.
