LIC Jeevan Vaibhav is a close ended plan with guaranteed return with liquidity and maturity benefits. LIC Jeevan Vaibhav is a non - linked endowment plan that offers a return of sum assured on death or on maturity. Also, any loyalty additions is payable to the policyholder upon maturity or during the last policy year. This plan is an ideal combination of returns and insurance benefits. Policyholders can immensely benefit from the high liquidity of this policy and can avail loan on policy just after one year.
LIC Jeevan Vaibhav - Single Premium Endowment Assurance Plan is an ideal insurance plan for all age groups as it is designed to meet diverse needs like wealth creation, liquidity, insurance, maturity benefits and loyalty addition benefits.
Eligibility Criteria for LIC Jeevan Vaibhav Plan
The eligibility criteria and other important conditions associated with LIC Jeevan Vaibhav - Single Premium Endowment Assurance Plan is described below. To know more about a particular clause related to this plan, you can get in touch with LIC or a registered insurance agent of LIC.
|Minimum age of entry||8 years (completed)|
|Maximum Entry Age||65 years (nearest birthday)|
|Maximum Sum Assured||No Limit|
|Minimum Sum Assured||Rs. 2 lakhs|
|Sum Assured Amount||Sum Assured is available in multiples of Rs. 10, 000|
|Premium Payment Mode||Single premium Only|
|Term of Policy||10 years|
|Minimum Single Premium Amount||Rs. 95, 210|
Key Features of LIC Jeevan Vaibhav
LIC Jeevan Vaibhav is designed for people looking for a variety of benefits from a guaranteed insurance plan. This policy scheme is designed to meet the financial requirements of all age groups like savings, insurance and loyalty benefits. The key features of LIC Jeevan Vaibhav - Single Premium Endowment Assurance Plan is given below.
- High Sum Assured Rebate
The policyholder must pay the premium for sum assured at one go as single premium. Based on the sum assured, mode rebates will be offered to the policyholders as given below.
|Up to Rs. 3. 9 lakhs||NA|
|Rs. 4 lakhs to Rs. 5. 9 lakhs||2% on sum assured|
|Rs. 6 lakhs and above||3% on sum assured|
- Loyalty Additions
Based on the experience of LIC, this policy will be eligible for loyalty additions for last year of the policy. The loyalty additions will depend on rate and other terms which will be decided by the Corporation. On maturity of the policy or upon death of the policyholder during the last policy year, the sum assured along with loyalty addition will be payable to the policyholder or the nominee, as applicable.
- Single Premium Endowment Plan Benefits
LIC Jeevan Vaibhav is a single premium endowment plan meaning the total premium is paid at the start of the policy and it is paid once. This plan is not linked to the market and offers bonuses and loyalty additions to the policyholder. The sum assured is offered to the policyholder at the end of term or to the nominee of the policy in unfortunate event of death of policyholder.
- Death Benefits
In case of unfortunate event of death of the policyholder within the end of policy term, the nominee will be paid single premium amount before commencement or risk and sum assured plus bonus after commencement of death.
- Policy Maturity Benefits
At the maturity of LIC Jeevan Vaibhav, the policyholder will be offered the sum assured plus the final addition bonus and accrued reversionary bonus as applicable.
Benefits / Advantages of LIC Jeevan Vaibhav
LIC Jeevan Vaibhav comes with countless benefits that will fulfill diverse needs of the policyholder. Given below are some of the advantages of LIC Endowment Assurance Plan.
- Income Tax Benefits
Insurance premiums up to Rs. 1 lakh paid for LIC Jeevan Vaibhav are allowed exemption from taxable income as per section 80 C every year. Also, the maturity benefit from LIC Jeevan Vaibhav is tax free as per section 10 (10) D provided all terms and conditions are satisfied.
- Surrender Value
LIC Jeevan Vaibhav offers guaranteed surrender value to the policyholders. If the policy is surrendered in year 1, 70% of the single premium paid will be returned. From year 2 onwards, 90% of the single premium paid including taxes and additional premium as applicable will be paid along with surrender value multiplied by "vested bonus" times.
- Loan Facility
LIC Jeevan Vaibhav policy offers high liquidity in a way that loan facility is available on the policy based on sum assured after completion of the first policy year. After completion of one policy year, the insured can take a loan of up to 70% of the surrender value. Even if there is a default in interest payment for the loan, no foreclosure action will be taken. Currently, the rate of interest for LIC Jeevan vaibhav Plan is 10. 25% per annum compounded on a half yearly basis.
How LIC Jeevan Vaibhav Policy Works?
In LIC Jeevan Vaibhav Policy, the premium has to be settled as a single premium by paying a lump sum. At the end of policy term, the policyholder will get a maturity benefit comprising of sum assured along with loyalty additions. If in case the policyholder dies before the maturity but before the last year of policy, as a death benefit the basic sum assured will be offered to the nominee and the policy would be terminated. In case the insured dies during the last year of policy, the loyalty additions and sum assured will be offered as death benefit and the policy will be terminated.
Premium Payment for LIC Jeevan Vaibhav
LIC Jeevan Vaibhav is a single premium plan meaning the premium is paid fully one time. The payment can be made online or at any of the LIC premium collection centres. Sample premium rates exclusive of service tax based on age of insured is given below for reference.
|Age||Premium in Rupees per Rs. 1000 of sum assured|
|20 years||Rs. 477. 35|
|30 years||Rs. 477. 75|
|40 years||Rs. 480. 55|
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017