LIC Jeevan Labh is like a trusty piggy bank with a built-in safety net. It not only protects your family financially if something happens to you but also helps you save for future goals.
Let’s take a closer look:
What It Offers:
- Death Benefit: A lump sum payout to your nominee if you pass away during the policy term.
- Maturity Benefit: A lump sum payment (sum assured + bonuses) if you survive the policy term.
- Limited Premium Payment: You pay premiums for a shorter period than the policy term (10, 15, or 16 years).
- Bonuses: Potential to earn simple reversionary bonuses and a final additional bonus, enhancing your returns.
- Loan Facility: You can avail of loans against the policy after a few years.
- Riders: Add riders for additional protection like Accidental Death and Disability Benefit.
Who It’s For:
- Individuals Seeking Savings and Protection: If you want a plan that combines life insurance with the potential to accumulate savings for your future goals.
- Those Looking for Limited Premium Payment: If you prefer to pay off your premiums in a shorter timeframe and enjoy coverage for a longer duration.
Potential Drawbacks:
- Lower Sum Assured: The death benefit might be lower compared to pure term plans with similar premiums.
- Non-Guaranteed Returns: The bonuses are not guaranteed and depend on LIC’s performance.
- Longer Policy Term: The policy terms are relatively longer, ranging from 16 to 25 years.
The Verdict:
LIC Jeevan Labh is a good choice for individuals who prioritize both protection and savings. It offers a balanced approach, providing financial security for your loved ones while also helping you build a corpus for future needs.
However, keep in mind that the returns are not market-linked and might not beat inflation over the long term.
Additional Tips:
- Evaluate your needs: Determine if a plan with both protection and savings aligns with your financial goals.
- Understand the bonus structure: LIC’s bonus rates can vary, so research and understand the potential returns before you buy.
- Consider the policy term: Choose a term that aligns with your long-term financial planning.
