LIC’s Jeevan Labh
It is a limited premium paying, non-linked, with-profits endowment plan which offers a combination of protection and savings. It means premium paying shall be less than the policy tenure and policyholder’s nominee will receive the maturity benefit together with any other benefits at the end of the policy term or on the death of the policy holder, whichever is earlier.
LIC Jeevan Labh is just like other Endowment Plan in the market with a simple differentiation of limited premium payment option.Though the policy offers guaranteed returns, but the returns are minimal. For someone who is in the higher age-bracket, due to high mortality rates, the returns will be low. But even for someone in the age of 25-30 years returns are in the range of 4-6%.
My Take :
No to LIC Jeevan Labh. If tax planning is not your only goal & you are looking for tax planning with wealth creation. Buy a term plan and investing in a debt product like PPF or an equity product like ELSS or a combination of Term Plan + PPF + ELSS will give you more return, same tax benefits, and flexibility than this product.