Benefits of LIC Jeevan Labh plan
The LIC Jeevan Labh plan is a popular endowment savings plan offered by the Life Insurance Corporation of India (LIC). It is designed to provide financial security, guaranteed returns, and life insurance coverage, making it an ideal choice for individuals looking to achieve long-term financial goals. Whether it’s funding a child’s education, starting a business, or planning for a wedding, Jeevan Labh offers a structured and disciplined approach to savings with the added benefit of life cover. Below, we explore the key benefits of the LIC Jeevan Labh plan, the three options available, and how it can be tailored to meet specific financial milestones.
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Key Benefits of LIC Jeevan Labh Plan
Guaranteed Returns with High Safety
Jeevan Labh is a low-risk investment plan that offers guaranteed returns upon maturity. The plan is backed by LIC, a trusted and government-owned insurance provider, ensuring the safety of your investment. The returns are predictable and not subject to market fluctuations, making it a reliable option for risk-averse individuals.
Life Insurance Coverage
In addition to savings, the plan provides life insurance coverage throughout the policy term. In the unfortunate event of the policyholder’s demise, the nominee receives the sum assured along with accrued bonuses, ensuring financial protection for the family.
Tax-Free Returns
The maturity proceeds and death benefits under Jeevan Labh are tax-free under Section 10(10D) of the Income Tax Act, 1961. Additionally, premiums paid are eligible for tax deductions under Section 80C, making it a tax-efficient investment option.
Flexible Policy Terms
Jeevan Labh offers three policy term options: 16 years, 21 years, and 25 years. This flexibility allows policyholders to choose a term that aligns with their financial goals, such as funding a child’s education, starting a business, or planning for a wedding.
Bonus Accumulation
As a participating plan, Jeevan Labh is eligible for bonuses declared by LIC based on its performance. These bonuses are added to the policy and increase the overall maturity value, enhancing the returns over time.
Loan Facility
Policyholders can avail of a loan against the Jeevan Labh policy, providing liquidity in times of financial need. This feature ensures that the policyholder has access to funds without disrupting their long-term savings plan.
Three Policy Term Options
The LIC Jeevan Labh plan offers three policy term options, each catering to specific financial goals:
16-Year Term
This option is ideal for parents planning to fund their child’s higher education. The policy matures after 16 years, providing a lump sum amount that can be used to cover college fees, tuition, or other educational expenses. The guaranteed returns and bonuses ensure that the funds are available when needed.
21-Year Term
The 21-year term is perfect for individuals looking to start a business or invest in a venture. The maturity proceeds can serve as seed capital for a new business or be used to expand an existing one. The long-term nature of the plan allows for significant bonus accumulation, ensuring a substantial payout at maturity.
25-Year Term
The 25-year term is well-suited for long-term goals such as planning a child’s wedding or building a retirement corpus. The extended policy term ensures higher bonus accumulation and a larger maturity amount, providing financial security for major life events.
Best for Child Education and Other Milestones
The LIC Jeevan Labh plan is particularly beneficial for parents planning for their child’s future. Here’s how the plan can be tailored to meet specific milestones:
Higher Education at the 16th Year
The 16-year policy term ensures that funds are available when the child is ready for higher education. The maturity proceeds can be used to cover tuition fees, accommodation, or other educational expenses, ensuring that the child’s academic aspirations are not hindered by financial constraints.
Starting a Business at the 21st Year
The 21-year policy term provides a lump sum amount that can be used to start a business or invest in a venture. This option is ideal for individuals who want to achieve financial independence or support their child’s entrepreneurial ambitions.
Marriage at the 25th Year
The 25-year policy term ensures that funds are available for a child’s wedding or other significant life events. The maturity proceeds can be used to cover wedding expenses, purchase a home, or build a retirement corpus, providing financial security for the family.
100% Tax-Free Returns
One of the most attractive features of the LIC Jeevan Labh plan is its tax efficiency. The maturity proceeds and death benefits are entirely tax-free under Section 10(10D) of the Income Tax Act, provided the premium paid does not exceed 10% of the sum assured (for policies issued after April 1, 2023). Additionally, the premiums paid qualify for tax deductions under Section 80C, making it a tax-efficient investment option.
The LIC Jeevan Labh plan is a versatile and reliable financial product that combines savings, life insurance, and tax benefits. Its flexible policy terms, guaranteed returns, and bonus accumulation make it an excellent choice for achieving long-term financial goals such as funding a child’s education, starting a business, or planning a wedding. With 100% tax-free returns and the backing of LIC, the Jeevan Labh plan offers peace of mind and financial security for policyholders and their families. Whether you are a parent planning for your child’s future or an individual looking for a disciplined savings plan, Jeevan Labh is a smart and secure investment choice.