Jeevan Labh

LIC’s Jeevan Labh is a Non-Linked, Participating, individual, Life Assurance saving plan which offers an attractive combination of protection and savings features. This combination provides financial support for the family of the deceased policyholder in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. This plan ‘also takes care of liquidity needs through its loan facility.

10% Rebate Under Online Purchase

10% Rebate Under Online Purchase

Lifetime Risk Cover

Lifetime Risk Cover

Guaranteed Additions

Guaranteed Additions

Regular / Flexi Income Benefits Throughout Life

Regular / Flexi Income Benefits Throughout Life

Flexible Premium Paying Term

Flexible Premium Paying Term

Optional Rider Benefits

Optional Rider Benefits

LIC Jeevan Labh- An Overview

LIC Jeevan Labh Plan 936 (previously known as LIC Jeevan Labh 836) is a popular non-linked, limited premium paying, with-profit endowment plan offered by the Life Insurance Corporation of India (LIC). It is designed to provide financial protection against death during the policy term and offers maturity benefits if the insured survives the policy term. This makes it an ideal choice for savings, increased returns, and insurance protection, all in one product.

Key Features of LIC Jeevan Labh

Plan type

Non-linked endowment plan with limited premium paying term

Plan basis

Individual

Premium paying terms (PPT)
  • 10 years
  • 15 years
  • 16 years

Policy term
  • 16 years (10 years PPT)
  • 21 years (15 years PPT)
  • 25 years (16 years PPT)

Premium payment frequency
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly (payment only through ECS mode)
  • SSS (salary savings scheme) mode

Loan

Loans can be availed against this policy. Loans are available provided if at least 3 full years’ premiums have been paid and the policy has acquired a Surrender Value.

Revival

Policy can be revived any time within 2 years from the date of first unpaid premium by paying all the premium arrears along with interest and other expenses.

Free look period

15 days from the date of receiving policy documents. Premium amount already deposited will be returned after deducting proportional risk premium for cover period, medical examination expenses, reports, stamp duty etc.

Nominations

Nomination facility provided as per the Insurance Act

Basic Sum Assured
  • Minimum – Rs.2 lakh
  • Maximum – No limit

Policy coverage

Maturity Benefit, Death Benefit, Simple Reversionary Bonus and Final (Additional) Bonus (if any)

Jeevan Labh LIC Policy Benefits

  1. Death Benefit

    The death benefit is paid by the insurer to the beneficiary in case of death of the insured person during the tenure of the policy. The death benefit under LIC Jeevan Labh will be either of the following –

    • Basic sum assured amount

    • 7 times the annualized premium

    The final death benefit on the death of the policyholder will include the highest of these two plus a vested simple reversionary bonus and a final additional bonus (if any).

  2. Maturity Benefit

    If the insurance holder survives the entire policy tenure and has been paying due premiums till the end, he/she gets the maturity benefit. It is equal to the basic sum assured plus a vested simple reversionary bonus and final additional bonus (if any).

  3. Tax Benefits

    The premium paid towards the policy up to the maximum limit of Rs.1.5 lakh in a financial year and the maturity proceeds are tax exempted under Section 80C and 10(10D) of the Income Tax Act.

 

How Does LIC Jeevan Labh 936 Work?

Let’s understand this with the help of an example.

             Say that Evvi (30 years old) wants to purchase the policy with the following coverage options –

  • Basic Sum Assured (BSA) – Rs.10 Lakhs

  • Policy Term – 21 years

  • Premium Paying Term – 15 years

  •  Using the LIC Jeevan Labh Calculator, the annual premium comes to be Rs.54.7K.

Death benefit to the family if Evvi dies in the 10th year of the policy

  • Higher of (7 x 54,707 = Rs.3.82 Lakhs) or the BSA (Rs.10 lakhs), which means the nominee will receive the latter.

  • Over 10 years, the bonus will be equal to Rs (44 x 10,00,000/1,000) x 10 = Rs. 4.4 Lakhs.

  • The total death benefit will be equal to Rs (10,00,000 + 4,40,000) = Rs. 14,40,000.

Maturity benefit if Evvi survives the entire policy term of 21 years

  • He will get the BSA (Rs.10 lakhs) plus accrued bonuses.

  • The total bonus amount for 21 years will be equal to Rs (44 x 10,00,000/1,000) x 21 = Rs.9.24 Lakhs.

  • The final maturity value at the end of 21 years will be equal to Rs.19.24 lakhs.

Sample Illustration of LIC Jeevan Labh 936 Premium

Here we have shown a sample illustration of the annual premium rate for Rs.2 lakhs basic sum assured amount for standard lives. For a clearer picture, you should use the LIC Jeevan Labh premium calculator.

Age Policy Tenure (Premium Paying Tenure)
  16 (10) 21 (15) 25 (16)
20 16,699 /- 10, 682/- 9,006/-
30 16,758/- 10,770 /- 9,134/-
40 17,013/- 11,133/- 9,584/-
50 17,826/- 12,123 /- 10,741/-

LIC Jeevan Labh Plan Eligibility Criteria

Let’s take a look at the eligibility criteria of the policy.

Criteria Minimum Maximum
Entry Age 8 years 59 years for PT 16 years
54 years for PT 21 years
50 years for PT 25 years
Sum Assured Rs.2,00,000 No upper limit
Maturity Age N/A 75 years
Policy Term 16, 21& 25 years
Premium Paying Term 10, 15 & 16 years

LIC Jeevan Labh Riders

Under LIC Jeevan Labh Policy, there are five optional riders, which the policyholder can avail by paying an additional premium. Rider benefits can be purchased along with the base plan to increase the policy coverage.

  1. Accidental Death and Disability Benefit Rider

  2. Accidental Benefit Rider

  3. Term Assurance Rider

  4. Critical Illness Rider

  5. Premium Waiver Benefit

Other Details of LIC Jeevan Labh Plan

  1. Grace Period

    A grace period of 15-30 days is offered to the insured to pay any unpaid due premium.

  2. Free-look Period

    In case the policyholder is not satisfied with the terms and conditions of the policy then they cancel it within the first 15 days.

  3. Policy Surrender

    LIC Jeevan Labh Plan acquires a surrender value if the premiums are paid for a minimum of two full policy years. Policyholders will receive either the Guaranteed Surrender Value or the Special surrender value, whichever amount is higher. It depends on the total premium paid, the year of surrendering, and the policy term.

  4. Paid-Up Value

    If the life assured fails to pay premiums after regularly paying it for at least 2 years, the policy acquires a paid-up value. The sum assured then reduces based on the premiums paid.
    The reduced paid-up sum assured is equal to:
    Number of premiums paid/ total number of premiums to be paid X sum assured on death or maturity

Required Documents for LIC Jeevan Labh Plan

             To avail of the benefits offered by the LIC Jeevan Labh plan, these documents should be kept handy –

  • Address Proof

  • Other KYC Documents: Adhaar Card, PAN Card, Tax Details, etc.

  • Age Proof

  • Properly filled proposal form/ application form

  • Medical diagnosis reports as required

  • Medical history

Policy Exclusions of LIC Jeevan Labh

              The LIC Jeevan Labh policy rejects any claim filed in case of the suicide of the life assured.

  • If the life assured commits suicide within 1 year of the policy’s initiation, 80 % of the premiums paid to date are returned to the beneficiary.

  • If the life assured commits suicide after completion of 1 year from the date of policy revival, acquired surrender value or 80% premiums paid to date is offered based on whichever is higher.