LIC Jeevan Labh offers 2 core benefits of insurance and savings to policyholders. This savings plan also offers bonuses that increase the final returns that a customer is entitled to. This LIC policy not only provides a financial safety net for you in the future but also takes care of the financial needs of your family in your absence.Read more
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LIC Jeevan Labh Plan 936 (previously known as LIC Jeevan Labh 836) is an endowment plan that comes with a maturity benefit if you survive the policy term. Its participating nature allows customers to earn a percentage of the profits made by LIC of India. This makes it an ideal choice for savings, increased returns, and insurance protection, all in one product.
Customers have to pay premiums for a limited period to enjoy long-term protection.
Policyholders can avail of loan facilities on this plan, after paying a regular premium for 2 years. It is limited to 90% of the surrender value.
The plan offers the option to avail of the death and maturity benefit in installments across 5, 10, or 15 years.
If the plan is bought for a child, parents can add the LIC’s Premium Waiver Benefit Rider with the policy. If the parent dies, LIC waives future premiums so that the child does not have to bear the burden of keeping the policy in force.
One can enjoy rebates on the premium amount if the sum assured is Rs.5 lakhs and above.
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).
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).
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.
Let’s understand this with the help of an example.
Say that Ravi (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
LIC Bonus Rate 2020-21 for Jeevan Labh 936 – Rs.44 per Rs.1000 BSA
Using the LIC Jeevan Labh Calculator, the annual premium comes to be Rs.54,707.
Death benefit to the family if Ravi 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 Ravi 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.
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/-|
Let’s take a look at the eligibility criteria of the policy.
|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|
Under LIC Jeevan Labh Policy, there are five optional riders, which can be availed by the policyholder by paying an additional premium. Rider benefits can be purchased along with the base plan to increase the coverage of the policy.
A grace period of 15-30 days is offered to the insured to pay any unpaid due premium.
In case the policyholder is not satisfied with the terms and conditions of the policy then they cancel it within the first 15 days.
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.
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
To avail of the benefits offered by the LIC Jeevan Labh plan, these documents should be kept handy -
Other KYC Documents: Adhaar Card, PAN Card, Tax Details, etc.
Properly filled proposal form/ application form
Medical diagnosis reports as required
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.
More Useful Resources
LIC Online Services
LIC Investment Plans
LIC Other Plans
|Policy term (premium paying term)||16(10), 21(15), 25(16)|
|Sum assured(in Rs.)||Above 2,00,000|
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