LIC Jeevan Labh Yojna (Plan No. 936)

(A Non- Linked, Participating, Individual Life Assurance Savings Plan)

LIC's Jeevan Labh is an unconnected, participating, individual, life insurance savings plan. It offers an attractive combination of savings and safety features. The plan provides financial support for the family of the deceased policyholder in case of unfortunate death of the policyholder before maturity and a lump sum amount on maturity for the survival of the policyholder. The scheme also meets the liquidity requirements through its loan facility.

Death Benefit-

Death benefit payable in case of death of the Life Assured before the stipulated Date of Maturity provided the policy is in-force, shall be “Sum Assured on Death” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 7 times of Annualized Premium.

This Death Benefit shall not be less than 105% of the total Premiums paid (excluding any extra premium, any rider premium and taxes) upto the date of death.

Maturity Benefit-

On Life Assured surviving the stipulated Date of Maturity provided the policy is in-force, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

Eligibility Conditions And Other Restrictions-

Rider Benefits-

The following five riders are available under this policy-

• Accidental Death and Disability Benefit Rider
• LIC’s New Term Assurance Rider
• LIC’s Accident Benefit Rider 
• New Critical Illness Benefit Rider 
• Premium Waiver Benefit Rider

However, the eligible Life Assured can opt between either of the LIC’s Accidental Death and Disability Rider or LIC’s Accident Benefit Rider.

Accidental Death and Disability Benefit Rider / Accident Benefit Rider-

Under an in-force policy either of these riders can be opted for at any time within the Premium Paying Term of the Base Policy provided, the outstanding Premium Paying Term of the Base Policy is at least five years. Under the policy on the life of minors, this rider will be available from the policy anniversary following completion of age 18 years on receipt of specific request.

Premium Waiver Benefit Rider-

Under an in-force policy, this Rider can be opted for on the life of Proposer of policy ( as the Life Assured is minor) at any time coinciding with the Policy Anniversary but within the Premium Paying Term of the Base Policy provided, the outstanding premium paying term of the Base Policy and rider is at least five years. Further this rider shall only be allowed under the policy wherein the Life Assured is Minor at the time of opting this rider. The Rider term shall be outstanding premium paying term of Base policy as on date of opting this rider or (25 minus age of the minor Life Assured at the time of opting this rider), whichever is lower.

If this rider is opted for, on death of proposer, payment of premiums in respect of Base Policy falling due after the date of death till the expiry of Rider Term shall be waived. However, in such case, if the Premium Paying Term of the Base Policy exceeds the rider term , all the further premiums due under the Base Policy from the date of expiry of this Premium Waiver Benefit Rider Term shall be payable by the Life Assured. On non- payment of such premium the policy would become paid-up.

New Term Assurance Rider/New Critical Illness Benefit Rider-

These riders are available only at the inception of the policy on payment of additional premium.

Conditions of rider(s), if opted, are enclosed as endorsement to this policy.

Vesting of Policy on the Life of a Minor-

If the Life Assured is alive on the Date of Vesting and if a request in writing for surrendering the policy has not been received by Corporation before such Date of Vesting from the person entitled to the policy moneys, this policy shall automatically vest in the Life Assured on such date of vesting.

Participation in Profits-

Provided the policy is in-force, depending upon the Corporation’s experience the policy shall participate in profits in accordance with the applicable provisions of LIC Act, 1956, as amended from time to time and shall be eligible for a Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.

Simple Reversionary Bonuses shall be declared annually at the end of each financial year provided the policy is in-force. Once declared, they form part of the guaranteed benefit of the plan. Simple Reversionary Bonuses will be added from the date of commencement of policy until the selected policy term or till death, if it occurs earlier.

In case the premiums are not duly paid, the policy shall cease to participate in future profits irrespective of whether or not the policy has acquired paid up value.

In the event of policy being surrendered, the Surrender Value of vested bonuses, if any, as applicable on the date of surrender, will be payable as specified in Condition 4 of Part D of this Policy Document.

Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.

Final Additional Bonus shall not be payable under paid up policies.

Payment of Premiums-

1. The policyholder has to pay the Premium on the due dates as specified in the Schedule of this Policy Document along with applicable taxes, if any from time to time.
2. In case of death of Life Assured under an in-force policy wherein all the premiums due till the date of death have been paid and where the mode of payment of premium is other than yearly, balance premium(s), if any, falling due from the date of death and before the next policy anniversary shall be deducted from the claim amount.

The Corporation does not have any obligation to issue a notice that premium is due or for the amount that is due.

Grace Period-

A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. If the premium is not paid before the expiry of the days of grace, the Policy lapses.

If the death of the Life Assured occurs within the grace period but before the payment of the premium then due, the policy will still be valid and the benefits shall be paid after deductions of the said unpaid premium as also the balance premium (s), if any, falling due from the date of death and before the next policy anniversary.

The above grace period will also apply to rider premiums which are payable along with premium for base policy.

Rebates-

Revival of Lapsed Policies-

An Insurance Policy would lapse on non payment of due premium within the days of grace. A policy in lapsed condition may be revived during the life time of the Life Assured, but within the Revival period and before the Date of Maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.

The Corporation however, reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation.

Revival of Rider(s), if opted for, will only be considered along with the revival of the Base Policy and not in isolation.

Policy Loan-

Loan shall be available under the Policy subject to the following terms and conditions, within the surrender value of the policy for such amounts and on such further terms and conditions as the Corporation may fix from time to time-

1. Loan can be availed provided at least two full years’ premiums have been paid.
2. The maximum Loan that can be granted shall be as under
• For in-force policies : upto 90% of Surrender Value
• For paid-up policies : upto 80% of Surrender Value
3. The loan during the minority of Life Assured can be availed by the Proposer provided the loan is raised for the benefit of the minor Life Assured.
4. The Policy shall be assigned absolutely to and held by the Corporation as security for the repayment of Loan and of the interest thereon.
5. Interest on Loan shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the Corporation at the time of taking loan under this policy. The applicable interest rate shall be based on the method approved by IRDAI. The first payment of interest is to be made on the next Policy anniversary or on the date six months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned and every half year thereafter.
6. In the event of default in payment of loan interest on the due dates as herein above mentioned above, and when the outstanding loan along with interest is to exceed the surrender value, the Corporation would be entitled to foreclose such policies. Such policies when being foreclosed shall be entitled to payment of the difference of surrender value and the loan outstanding amount along with interest, if any.
7. In case the policy shall mature or surrendered or become a claim by death, the Corporation shall become entitled to deduct the amount of the Loan or any portion thereof which is outstanding, together with all interest from the policy moneys.
8. Corporation is entitled to recover or recall the amount of the Loan with all due interest by giving 3 month notice.