Life Insurance Corporation of India (LIC) has always been one of the most trusted names when it comes to life insurance and savings plans. Among its many offerings, LIC Jeevan Labh is a unique policy that combines protection and savings, providing financial security along with guaranteed returns at maturity. Many people are curious about how a small investment, such as ₹2,000 per month, can grow into a large corpus. Let us understand in detail how LIC Jeevan Labh works and how a disciplined investment can fetch you returns of nearly ₹13.12 lakh.
Overview of LIC Jeevan Labh Policy
LIC Jeevan Labh is a limited premium paying, non-linked, and with-profits endowment plan. Being a non-linked policy means that the returns are not subject to market fluctuations, making it a safe and reliable choice for risk-averse investors. The plan provides both insurance coverage and maturity benefits, making it suitable for those who want a mix of security and savings.
Key Features of LIC Jeevan Labh
- Limited premium payment option, where you do not need to pay for the entire policy term
- Guaranteed maturity benefits along with bonus additions declared by LIC
- Life cover throughout the policy term, ensuring financial security for the family
- Tax benefits under Section 80C and 10(10D) of the Income Tax Act
- Loan facility available against the policy after a certain period
How ₹2,000 Monthly Investment Works
If you decide to invest ₹2,000 per month in LIC Jeevan Labh, your annual premium will be around ₹24,000. Based on the chosen policy term and premium paying term, you continue to deposit the premium for a limited number of years. At the end of the policy, you receive a lump sum that includes the sum assured and accumulated bonuses.
For example:
- Policyholder deposits ₹2,000 per month
- Premium payment continues for the selected premium term (say 16 years)
- At maturity, including bonuses, the payout can reach approximately ₹13.12 lakh
This shows how a disciplined small contribution can build a sizeable corpus over time.
Policy Terms and Options
LIC Jeevan Labh offers flexibility in terms of policy duration. The available options are:
- Policy term of 16 years with premium paying term of 10 years
- Policy term of 21 years with premium paying term of 15 years
- Policy term of 25 years with premium paying term of 16 years
The choice depends on your financial goals and how long you wish to stay invested. Longer terms usually fetch higher maturity amounts due to additional bonus accumulation.
Maturity Benefits Explained
At the end of the policy term, the maturity benefit includes:
- Basic Sum Assured (the guaranteed amount chosen at the start of the policy)
- Simple Reversionary Bonuses declared by LIC from time to time
- Final Additional Bonus (if applicable)
Together, these make up the maturity amount, which in this case can reach around ₹13.12 lakh for a consistent ₹2,000 monthly investment.
Death Benefit Coverage
One of the most important aspects of LIC Jeevan Labh is the life cover it provides. If the policyholder passes away during the policy term, the nominee receives the death benefit, which includes:
- Sum Assured on Death (higher of 10 times the annual premium or basic sum assured)
- Vested bonuses and additional bonuses if applicable
This ensures financial security for the family even in the absence of the breadwinner.
Loan Facility
Another advantage of LIC Jeevan Labh is the availability of a loan against the policy after it has acquired a surrender value. This can be very useful during emergencies as it allows you to access funds without breaking your long-term savings.
Tax Benefits
Premiums paid under LIC Jeevan Labh qualify for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh annually. Moreover, the maturity amount and death benefit received are exempt from tax under Section 10(10D), making this policy tax-efficient.
Why Choose LIC Jeevan Labh?
- It combines protection, savings, and guaranteed returns in one plan
- Helps create long-term wealth with disciplined small savings
- Provides peace of mind with life cover and financial security for dependents
- Government-backed and trusted by millions of Indians for decades
- Ideal for individuals who prefer safe investments over market risks
Who Should Consider This Policy?
LIC Jeevan Labh is suitable for:
- Young earners who can start early with small monthly contributions
- Families looking for life insurance along with savings
- Risk-averse investors who want assured and stable returns
- Individuals planning for future expenses like children’s education or marriage
Conclusion
LIC Jeevan Labh is more than just an insurance policy—it is a long-term financial planning tool. By investing just ₹2,000 per month, policyholders can accumulate a maturity amount of approximately ₹13.12 lakh, along with insurance coverage and tax benefits. Its guaranteed returns, coupled with LIC’s trust, make it a reliable choice for anyone looking to secure their financial future.
Disclaimer
This article is for informational purposes only. The maturity amount mentioned (₹13.12 lakh) is an approximate figure and may vary based on age, sum assured, bonus rates, and policy term. Investors are advised to consult LIC’s official resources or an advisor before purchasing the policy.
FAQs
1. What is the minimum premium for LIC Jeevan Labh?
The minimum premium depends on the age of the policyholder and sum assured, but it can start from just a few thousand annually.
2. Does LIC Jeevan Labh provide loan facility?
Yes, you can avail a loan against the policy once it acquires surrender value.
3. Is the maturity amount guaranteed?
Yes, the maturity amount includes the guaranteed sum assured along with bonuses declared by LIC.
4. Can I claim tax benefits on this policy?
Yes, you can claim deductions under Section 80C and exemptions under Section 10(10D).
5. Is Jeevan Labh suitable for retirement planning?
Yes, it can be used for retirement planning as it provides a lump sum at maturity, though it is primarily a savings and protection plan.
