The LIC Jeevan Calculator is a tool designed to estimate the financial benefits provided by the LIC Jeevan Labh policy, a popular life insurance plan offered by the Life Insurance Corporation of India. This policy is aimed at offering both protection and savings, making it a comprehensive choice for individuals looking to secure their family’s future and build a financial safety net.
Understanding the Calculator’s Purpose and Functionality
The LIC Jeevan Labh policy combines the security of life insurance with the benefits of an investment plan. The calculator specifically helps policyholders understand potential returns in terms of maturity benefits, death benefits, and bonuses. The inputs required to operate this calculator include:
- Policy Term (T): The total duration for which the insurance coverage is provided.
- Premium Payment Term (PPT): The period during which the insured must pay premiums.
- Sum Assured (SA): The guaranteed payout upon the policy’s maturity or the policyholder’s death.
- Premium Amount (PA): The periodic payment made by the policyholder.
The calculator processes these inputs to provide two main financial outputs:
- Maturity Benefit (MB): The total amount received upon the policy reaching its maturity, assuming the insured survives the term.
- Death Benefit (DB): The sum paid to the nominee if the policyholder passes away during the term.
Step-by-Step Examples
Example:
- Policy Term: 20 years
- Premium Payment Term: 15 years
- Sum Assured: $100,000
- Premium Amount: $5,000 annually
Calculations:
- Maturity Benefit (MB): If the policyholder survives the 20-year term, the maturity benefit would be calculated as follows:MB=SA+(SimpleReversionaryBonus)+(FinalAdditionalBonus) if anyMB = SA + (Simple Reversionary Bonus) + (Final Additional Bonus) \text{ if any}MB=SA+(SimpleReversionaryBonus)+(FinalAdditionalBonus) if anyAssuming a simple reversionary bonus of 4% per annum:MB=$100,000+($100,000×4%×20)=$180,000MB = \$100,000 + (\$100,000 \times 4\% \times 20) = \$180,000MB=$100,000+($100,000×4%×20)=$180,000
- Death Benefit (DB): If the policyholder dies within the term, the death benefit would be similar, assuming no final additional bonus is applicable.
Relevant Information Table
| Input | Description | Example Value |
|---|---|---|
| Policy Term (T) | Duration of insurance coverage (years) | 20 years |
| Premium Payment Term (PPT) | Period for premium payments (years) | 15 years |
| Sum Assured (SA) | Guaranteed payout (on death or maturity) | $100,000 |
| Premium Amount (PA) | Annual premium payment | $5,000 |
| Maturity Benefit (MB) | Expected return at the end of the policy term | $180,000 (estimated) |
| Death Benefit (DB) | Payout on the policyholder’s death during the term | $180,000 (estimated) |
Conclusion: Benefits and Applications of the Calculator
The LIC Jeevan Calculator is an invaluable tool for anyone holding or considering the LIC Jeevan Labh policy. It not only helps in understanding the potential financial benefits of the policy but also aids in financial planning by providing clear insights into the returns from life insurance investments. This makes it easier for policyholders to make informed decisions about their investments and insurance purchases. By using this calculator, individuals can plan their finances better, ensuring security and stability for their family’s future.