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Overview of LIC Jeevan Labh and LIC Tech Term 2025
LIC Jeevan Labh (Plan 736)
LIC Jeevan Labh is a limited premium paying endowment plan that offers the dual benefit of insurance protection and savings. The latest version (Plan 736) provides guaranteed returns along with bonuses upon maturity. It’s designed for those looking to create a financial corpus while ensuring life coverage.
Endowment Plan Savings + Protection
LIC Tech Term 2025
LIC Tech Term 2025 is a pure term insurance plan offering high coverage at affordable premiums. It provides financial protection to your family in case of your unfortunate demise during the policy term. Unlike endowment plans, it doesn’t offer any maturity benefits if you survive the policy term.
Term Plan Pure Protection
Coverage Benefits Comparison
| Benefit Type | LIC Jeevan Labh | LIC Tech Term 2025 |
| Death Benefit | Higher of: Basic Sum Assured or 7 times annualized premium or 105% of total premiums paid | Sum Assured (minimum ₹50 lakh) paid as lump sum |
| Maturity Benefit | Basic Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus (if declared) | No maturity benefit |
| Surrender Value | Available after paying premiums for 1 year | Available only for single premium option |
| Loan Facility | Available after paying premiums for 1 year | Not available |
| Tax Benefits | Under Section 80C for premiums and Section 10(10D) for maturity benefits | Under Section 80C for premiums and Section 10(10D) for death benefits |
Policy Duration and Eligibility Criteria
LIC Jeevan Labh
- Minimum Entry Age: 8 years
- Maximum Entry Age: 59 years (16-year term), 54 years (21-year term), 50 years (25-year term)
- Policy Term Options: 16, 21, or 25 years
- Premium Payment Term: 10 years (for 16-year term), 15 years (for 21-year term), 16 years (for 25-year term)
LIC Tech Term 2025
- Entry Age: 18 years to 65 years
- Policy Term: 10 years to 40 years
- Maximum Maturity Age: 80 years
- Premium Payment Options: Single premium or regular premiums throughout the policy term
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Additional Riders and Bonuses
LIC Jeevan Labh Riders
- Accidental Death & Disability Benefit Rider: Provides additional sum assured in case of accidental death and monthly payouts for 10 years in case of permanent disability.
- Accident Benefit Rider: Offers lump sum benefit in case of accidental death.
- New Term Assurance Rider: Increases life cover by adding additional term assurance sum assured.
- Premium Waiver Benefit Rider: Future premiums are waived if the proposer passes away during the premium payment term.
Bonus Structure
- Simple Reversionary Bonus: Declared annually based on company performance (40-47 per 1000 sum assured).
- Final Additional Bonus: One-time bonus paid at maturity (varies from 2.5% to 45% of sum assured depending on policy term).
LIC Tech Term 2025 Riders
- Accidental Death Benefit Rider: Additional sum assured paid in case of death due to accident.
- Critical Illness Rider: Lump sum benefit if diagnosed with any of the covered critical illnesses.
- Premium Waiver Benefit: Waives future premiums in case of critical illness or disability.
Plan Options
- Level Sum Assured: Consistent coverage throughout the policy term.
- Increasing Sum Assured: Coverage amount increases over time to counter inflation.
- Income Benefit Option: Provides monthly income to the family in addition to lump sum payment.
Pros and Cons Analysis
LIC Jeevan Labh Advantages
- Combines insurance protection with savings benefits
- Guaranteed returns plus bonuses upon maturity
- Limited premium payment term (pay for 10-16 years, get coverage for 16-25 years)
- Loan facility available after paying premiums for 1 year
- Surrender value acquisition after just 1 year
- Participation in company profits through bonuses
- Settlement option available for maturity and death benefits
LIC Jeevan Labh Limitations
- Higher premium amounts compared to term plans
- Lower insurance coverage for the same premium amount
- Returns typically lower than market-linked investment options
- Less flexibility to adjust coverage as needs change
- Early surrender results in significant financial loss
LIC Tech Term 2025 Advantages
- High coverage (minimum ₹50 lakh) at affordable premiums
- Flexible policy terms (10-40 years)
- Option for increasing sum assured to counter inflation
- Lower premium rates for women policyholders
- Income benefit option for family’s financial security
- Digital-first approach with simplified issuance
LIC Tech Term 2025 Limitations
- No maturity benefits if you survive the policy term
- No loan facility available
- No surrender value (except for single premium option)
- No investment component or savings benefits
- Premium increases with age at entry
Comprehensive Comparison Table: LIC Jeevan Labh vs LIC Tech Term 2025
| Parameter | LIC Jeevan Labh | LIC Tech Term 2025 |
| Plan Type | Endowment Plan | Pure Term Plan |
| Premium Cost (30-year-old, ₹50 lakh coverage) | Approx. ₹2.5-3 lakh annually | Approx. ₹8,000-12,000 annually |
| Returns/Maturity Value | Sum Assured + Bonuses (approx. 5-6% returns) | No maturity value |
| Risk Coverage | Moderate (typically 10-15 times annual premium) | High (50-100 times annual premium) |
| Surrender Value Rules | Available after 1 year of premium payment | Only for single premium option |
| Premium Payment Term | Limited (10, 15, or 16 years) | Regular throughout policy term or single |
| Policy Revival Period | 5 years | 5 years |
| Minimum Sum Assured | ₹2,00,000 | ₹50,00,000 |
Which Plan Is Better For You?
LIC Jeevan Labh is Better For:
- Disciplined Savers: If you want forced savings with insurance protection and struggle to invest regularly.
- Goal-Based Planning: When you need a guaranteed corpus for specific future goals like children’s education or retirement.
- Conservative Investors: If you prefer guaranteed returns over market-linked investments with higher risk.
- Loan Requirements: When you might need to access loans against your policy in the future.
- Dual Benefits: If you want both protection and maturity benefits from a single policy.
LIC Tech Term 2025 is Better For:
- Pure Protection Needs: When your primary goal is maximum life coverage at minimum cost.
- Young Families: If you have dependents and need high coverage during your earning years.
- Budget Constraints: When you want substantial coverage but have limited budget for premiums.
- Separate Investment Strategy: If you prefer to keep insurance and investments separate for better returns.
- Home Loan Protection: When you need to cover large liabilities like home loans.
“The best insurance plan is not about choosing between endowment and term plans, but about finding the right balance between protection and investment based on your unique financial situation and goals.”
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Frequently Asked Questions
Which plan has higher returns – LIC Jeevan Labh or LIC Tech Term 2025?
LIC Jeevan Labh offers returns in the form of sum assured plus bonuses upon maturity (approximately 5-6% annual returns), while LIC Tech Term 2025 has no maturity benefits or returns as it’s a pure protection plan. However, the money saved on premiums with Tech Term 2025 can be invested separately for potentially higher returns.
Is LIC Tech Term 2025 renewable after the policy term ends?
No, LIC Tech Term 2025 is not automatically renewable after the policy term ends. You would need to apply for a new policy, which would be subject to medical underwriting and age-based premium rates at that time. It’s advisable to choose an appropriate policy term initially to cover your protection needs.
Can I surrender my LIC Jeevan Labh policy before maturity?
Yes, you can surrender your LIC Jeevan Labh policy after paying premiums for at least one year. However, early surrender results in lower returns as you’ll receive either the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV), whichever is higher. It’s generally not advisable to surrender endowment policies in the early years.
What happens if I stop paying premiums for LIC Jeevan Labh?
If you stop paying premiums after at least two years, your LIC Jeevan Labh policy becomes paid-up with reduced benefits. The paid-up sum assured is calculated proportionately based on the number of premiums paid. A paid-up policy remains eligible for previously accrued bonuses but doesn’t participate in future bonuses.
Can I increase the sum assured in LIC Tech Term 2025 later?
No, the sum assured in LIC Tech Term 2025 cannot be increased after policy issuance. However, you can opt for the “Increasing Sum Assured” option at the time of purchase, where the coverage amount increases over time to counter inflation. Alternatively, you can purchase an additional policy if you need more coverage later.
Which plan offers better tax benefits?
Both plans offer similar tax benefits under Section 80C of the Income Tax Act for premium payments (up to ₹1.5 lakh annually). The maturity benefits from LIC Jeevan Labh and death benefits from both plans are tax-exempt under Section 10(10D), subject to conditions. However, since Tech Term 2025 premiums are lower, you can invest the difference in other tax-saving instruments.
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Conclusion: Making the Right Choice
When comparing LIC Jeevan Labh vs LIC Tech Term 2025, there’s no one-size-fits-all answer. Your choice should depend on your financial goals, protection needs, and budget constraints. If you’re looking for a combination of insurance and savings with guaranteed returns, LIC Jeevan Labh is worth considering. On the other hand, if maximum protection at minimum cost is your priority, LIC Tech Term 2025 is the better option.
The ideal approach is often to combine both types of policies – a term plan like Tech Term 2025 for adequate life coverage and separate investment instruments for wealth creation. This strategy typically provides better protection and potentially higher returns compared to relying solely on endowment plans.
Remember to assess your financial situation, protection needs, and long-term goals before making a decision. Consulting with a financial advisor can provide personalized guidance based on your specific circumstances.
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