State insurer Life Insurance Corporation of India (LIC) offers 'Jeevan Labh' - a limited premium paying, non-linked, with-profits endowment plan which offers a combination of protection and savings.
This plan provides financial support for the family in case of the unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its loan facility.
Here are the benefits of LIC's Jeevan Labh policy: Death benefit
In case of death during the policy term, provided all due premiums have been paid, death benefit, defined as the sum of 'sum assured on death', vested simple reversionary bonuses and final additional bonus, if any, will be payable.
Here, 'Sum Assured on Death' is defined as the higher of 10 times of annualized premium or absolute amount assured to be paid on death i.e. basic sum assured. This death benefit will not be less than 105 percent of all the premiums paid as of the date of death.
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Premiums will not include any taxes, extra amount chargeable under the policy due to underwriting decision, and rider premium(s), if any, according to LIC.
'Sum Assured on Maturity' is equal to basic sum assured, along with vested simple reversionary bonuses and final additional bonus, if any, will be payable in a lump sum on survival to the end of the policy term provided all due premiums have been paid.
Participation in profits
The policy will participate in profits of the corporation and will be entitled to receive simple reversionary bonuses declared as per the experience of the corporation, provided the policy is in full force.
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A final (additional) bonus may also be declared under the policy in the year when the policy results in a claim either by death or maturity.
In this case, the rider sum assured cannot exceed the basic sum assured.
The policyholder has the option of availing the following rider benefits:
LIC's Accidental Death and Disability Benefit Rider
LIC's New Term Assurance Rider