LIC Jeevan Labh Plan

NRIs living in the USA can buy the Jeevan Labh plan if they’re looking for both insurance protection for their family and savings benefit.

LIC Jeevan Labh Plan 736 - Overview

LIC Jeevan Labh Plan 736 (formerly known as LIC Jeevan Labh 936) is an endowment plan combining the benefits of insurance protection and savings. It is a participating plan where LIC shares its profits in the payout (if declared). The Jeevan Labh plan comes with limited premium payment and the flexibility to choose the frequency of premium payment. LIC’s Jeevan Labh plan may be an ideal choice for NRIs as it provides insurance, savings and increased returns at low premiums, all in a single product.

LIC Jeevan Labh Plan Eligibility Criteria

NRIs living in the USA can purchase the Jeevan Labh policy of LIC if they have a valid passport issued by the government of India. The policyholder must not be a green card holder or should not have applied for it.

Following are the eligibility criteria for LIC Jeevan Labh Plan 736:

Key Features of LIC Jeevan Labh Plan 736

• Limited Premium Payment: Policyholders can pay premiums for a limited term (10, 15, 16 years) while still getting coverage for an extended period.

• Premium Payment Frequency: Get the flexibility to choose the premium payment frequency as per your convenience.

• Coverage Duration: You can choose the policy term for 16, 21, or 25 years based on your protection needs.

• Death Benefit Payout: You have the flexibility to choose how you receive the death benefit, either a lump sum or in instalments.

• Rider Benefits: Policyholders can enhance their insurance coverage by opting for Rider Benefits by paying an additional premium for the riders selected.

• Loan Options: LIC Jeevan Labh policy provides a loan facility to cater to liquidity needs of the policyholder.

• High Sum Assured Rebate: You get attractive and high sum assured rebates with Jeevan Labh plan. The bigger your basic sum assured, the greater will be your premium discount.

What are the Benefits of Jeevan Labh Plan 736?

LIC Jeevan Labh plan 736 (previously jeevan labh 936) is one of those policies that offer savings, protection, and high returns, all at the same time. Following are the benefits of the Jeevan Labh policy:

Death Benefit

If the policyholder passes away during the policy term, then LIC pays the death benefit to the beneficiary. The death benefit paid will be either of the following:

• Amount of the basic sum assured

• 7 times of the annualized premium

The final death benefit calculated will include the higher of the above two plus vested simple reversionary bonuses and final additional bonus (if any). The death benefit under Jeevan Labh plan 736 (earlier called LIC Jeevan Labh 936) shall not be less than 105% of the total premiums paid.

Maturity Benefit

If the policyholder survives the policy term, they get the maturity benefit if they have been paying their premiums regularly throughout the policy term. The maturity benefit is equal to the basic sum assured plus vested simple reversionary bonuses plus a final additional bonus (if any).

Settlement Option

The policyholder can choose to get the death or maturity benefit either as a one-time lump sum amount or as instalments. They can choose to receive the death claim amount either fully or partially over 5, 10, or 15 years. This can either be a fixed amount or a percentage of the claim amount.

Profit Participation

The LIC Jeevan Labh Plan 736 is a participating plan. This means if a jeevan labh plan is active, the policyholders may get the simple reversionary bonuses as mentioned by LIC. A final extra bonus is also added when a claim is filed for death or maturity.

LIC Jeevan Labh Calculator

LIC Jeevan Labh Calculator is a smart, online tool that helps policyholders calculate their premium amount or maturity amount based on their policy specific details. An LIC Jeevan Labh Premium Calculator helps calculate the annual premium. You can get an idea of the type of premium that you will have to pay against the basic sum assured of your policy. The calculator also helps you understand how the premiums may vary due to factors like age. On the other hand, the Jeevan Labh Maturity Calculator helps policyholders understand their maturity benefits as per their premium amount and the basic sum assured.

LIC Jeevan Labh Plan Additional Riders

The LIC Jeevan Labh policy offers four optional riders. Policyholders need to pay an additional premium along with the base plan. Adding rider benefits to the base plan enhances the policy coverage and is helpful to the policyholder during uncertainties. It is important to note that only one of the two accidental benefit riders can be availed under the LIC Jeevan Labh plan 736.

LIC’s Accidental Death and Disability Benefit Rider

Under this rider, if a policyholder dies in an accident, the nominee gets a lump sum along with the basic sum assured. In case an accident causes a disability to the policyholder (within 180 days), the benefit amount is paid in monthly instalments for 10 years. Also, payment for future premiums for both the rider and an equal portion of the base plan are waived. Jeevan Labh policy is available until 65 years and the coverage lasts until the policyholder turns 70. You can purchase this additional rider with your active Jeevan Labh plan at any time as long as there are 5 years remaining for both the rider and the base plan.

LIC’s Accident Benefit Rider

Policyholders can purchase this rider at any time as long as the base Jeevan Labh plan has at least five years of premium payment term remaining. For this particular rider, the benefits are available only during the period of premium payment. Unlike the above rider, this one covers only accidental death and not any disability caused due to an accident.

LIC’s New Term Assurance Rider

The new term assurance rider can be added only at the time when you purchase the base LIC Jeevan Labh Plan 736. Once added, this rider remains active throughout the policy term. If the policyholder passes away during the policy term, the nominee receives a lump sum equal to the term rider sum assured on death.

LIC’s Premium Waiver Benefit Rider

The premium waiver benefit rider can be added to an active Jeevan Labh policy on the policy anniversary, as long as at least 5 years of premium payments are still left. It is available when the life assured is a minor. However, the rider term is limited based on the remaining premium term, the child's age, and the proposer's age (the proposer must not be over 70 by the end of the rider term).

If the proposer dies during the rider term, future premiums for the base policy are waived until the rider ends. If the base policy continues beyond the rider term, the life assured must pay the remaining premiums or else the policy will become paid-up. Please note that the total premiums for all the riders together can not exceed 30% of the base plan’s premiums.

LIC Jeevan Labh Plan 736 - Policy Details

Following are the policy details for the LIC Jeevan Labh Plan 736 (earlier called Jeevan Labh 936):

Premium Payment

Policyholders can pay their premiums yearly, half-yearly, or quarterly as per their convenience. Monthly payment can be done only through NACH or through salary deductions (SSS) during the premium paying policy term.

Grace Period

If a policyholder fails to pay their premium before the due date, they get a grace period of 30 days for yearly, half-yearly, and quarterly modes to pay their due premiums. For monthly premium payment mode, the grace period is 15 days. The grace period starts from the date of the first unpaid premium.

Free-Look Period

You have the option to return the LIC Jeevan Labh policy to the company if you’re not satisfied with the terms and conditions. However, you must return the policy within 30 days from the receipt date of the policy documents (whether physical or electronic copy).

Paid-Up Value

If you stop paying premiums before completing one full year, the policy will lapse once the grace period ends and you will not receive any benefits. If you have paid premiums for at least one full year and then stop paying, the policy will continue as a paid-up policy. This means you will still have coverage but with reduced benefits. The amount paid on death or maturity will be reduced based on how many premiums you paid. Any bonuses already earned will still be included in the claim amount but no new bonuses will be added. Any optional riders will end if the policy lapses and will not have any paid-up value.

Policy Revival

The LIC Jeevan Labh Plan 736 gives policyholders the opportunity to revive their lapsed policy within 5 years from the date of their first unpaid premium and also before maturity (may be subject to additional terms and conditions).

Loan Facility

After you have successfully paid Jeevan Labh policy premiums for at least one year, you can avail the loan facility. This makes the LIC Jeevan Labh plan a reliable financial support during emergencies.

The maximum loan available is as follows:

For Active Policies:

• 50% before payment of two full year’s premiums

• 80% after payment of two full year’s premiums

For Paid-Up Policies:

• 40% before payment of two full year’s premiums

• 70% after payment of two full year’s premiums

Rebate

The LIC Jeevan Labh Plan 736 (formerly known as the LIC Jeevan Labh Plan 936) offers premium rebates to enhance the value of the policy. The Jeevan Labh policy is a combination of savings and protection that also offers cost-saving benefits.

Following is the rebate given based on premium frequency:

• 2% for Annual Premiums

• 1% for Half-yearly Premiums

• Nil. for Quarterly and Monthly Premiums

Following is the rebate given based on sum assured:

• Nil. for ₹2 - 4.9 lakh

• 2% rebate for ₹5 - 9.9 lakh

• 3% rebate for ₹10 - 14.9 lakh

• 3.5% rebate for ₹15 lakh and above

Policy Surrender Value

If the policyholder pays premiums for the LIC Jeevan Labh Plan 736 (formerly plan number 936) for at least two years, the policy acquires a surrender value. The policyholder gets either the Guaranteed Surrender Value or the Special Surrender Value (the higher of the two is selected). The amount received is based on the total premium paid, the policy term, and the year of policy surrender.

Policy Surrender

The LIC Jeevan Labh Plan 736 shall terminate instantly on the occurrence of the following events:

• When the death benefit lump sum or the last instalment of the death benefit has been paid.

• When the surrender benefits are settled as per the policy.

• On the maturity date (in case the settlement option was not opted) or when final instalment is paid under the Settlement option..

• If there is any default in the payment of loan interest.

• If the policy is not under the paid-up status and has not been revived within the revival time period.

• When the payment of free look cancellation amount is completed.

• In case of forfeiture.

LIC Jeevan Labh Policy Exclusions

In case of the suicide of the life assured under the Jeevan Labh Plan, the LIC rejects any claim filed. If the life assured dies by suicide within one year of the policy start date, the beneficiary will receive 80% of the total premiums paid. If the life assured dies by suicide within one year after the policy is revived, the beneficiary will receive either the acquired surrender value or 80% of the total premiums paid, whichever is higher.

Documents Required for LIC Jeevan Labh Plan

NRIs from the USA should have the following documents if they need to purchase the LIC Jeevan Labh Plan 736 (earlier LIC plan number 836):

• Valid passport issued by the Government of India

• Address proof

• Date of birth proof

• Completely filled policy application form

• Medical reports (if required)

• Medical History

How to Buy LIC Jeevan Labh Plan for USA from India?

NRIs living in the USA can buy the Jeevan Labh Plan 736 from India. There are two ways for NRIs to buy LIC policies from India:

• The NRI may visit India and complete all the formalities during their stay. In this case, the NRI will be treated at par with an Indian citizen getting insurance.

• If the NRI can not visit India, they may complete the formalities from the USA via the ‘Mail Order Business’ process. This process requires the policyholder to verify their passport and then fill the form and sign it in the presence of any one of the following:

  • Designated official of the local Indian embassy

  • Other Indian diplomatic representative

  • Medical examiner (if applicable)

  • Notary Public or Justice of Peace

  • If the NRI is a student, by the Dean/Principal of their college/university

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