LIC Jeevan Labh Paid-Up Value Calculator

What is LIC Jeevan Labh Paid-Up Policy?

The paid-up policy of LIC new Jeevan Labh plan 736 means where a policyholder continues to get coverage even when they stop paying premiums after paying for at least one full year.

If you stop paying Jeevan Labh premiums before completing one full year, your policy will lapse after the grace period ends. This means you will not receive any benefits from the Jeevan Labh LIC plan. However, if you pay policy premiums for at least one full year and then stop paying, your LIC Jeevan Labh policy will continue as a paid-up policy. So, LIC Jeevan Labh Paid-Up policy means you will still have insurance coverage but the benefits will reduce.

The amount paid on death or maturity will be reduced as they are calculated on the basis of how many premiums you have paid in comparison to the number of premiums that were originally payable. The bonuses already earned during the premium payment period will be a part of the claim amount but no new bonuses will be added. If you have added any optional riders, they will end if the policy lapses and will also not have any paid-up value.

LIC Jeevan Labh Calculation for Paid-Up Value

For an LIC Leevan Labh paid-up policy, the total sum assured on death of the life assured or at the time of maturity is calculated based on the total period for which the policyholder has paid the premiums in comparison to the originally payable maximum period.

Here are the formula to calculate the Paid-Up Sum Assured at death and at maturity for the LIC Jeevan Labh plan:

Death Paid-Up Sum Assured = Sum Assured on Death X (Total Period for which Premium is Paid / Maximum Period for which Premiums were Originally Payable)

Maturity Paid-Up Sum Assured = Sum Assured on Maturity X (Total Period for which Premium is Paid / Maximum Period for which Premiums were Originally Payable)

Features of LIC Jeevan Labh Paid-Up Policy

• The settlement option for maturity benefit can be availed under paid-up policies.

• Simple reversionary bonuses remain attached to the reduced paid-up sum assured (only the bonuses acquired during the time when premiums were being paid).

• A paid-up policy can not participate in future profits.

• Any optional rider(s) if added with the Jeevan Labh LIC plan do not acquire any paid-up value

• Loan facilities are also applicable under a paid-up policy. However, it is 40% of the acquired surrender value before payment of two full years’ premiums and 70% after 2 years.

• The death benefit can also be availed as installments under policies that have acquired a paid-up value.

What is the LIC Jeevan Labh Plan?

LIC Jeevan Labh Plan 736 (previously known as LIC Jeevan Labh 936) is a participating endowment plan that offers both life insurance protection and savings. This means that in addition to the death benefit, the policyholder gets a one-time maturity benefit if the life assured survives the policy term. As a participating plan, policyholders may receive bonuses declared by LIC based on its profits.

The life insurance plan features a limited premium payment term and allows you to choose the premium payment frequency that suits your needs. With life cover, savings, and the potential for bonus-based returns at affordable premiums, LIC Jeevan Labh can be a suitable option for people looking for a comprehensive insurance-cum-savings plan.

A primary feature that makes it a popular option is the loan facility that can be availed by policyholders to fund financial emergencies. Flexible policy terms, limited premium paying terms, and benefit options make LIC Jeevan Labh one of the best-selling plans by LIC.

LIC Jeevan Labh Calculator for Paid-Up Value

LIC Jeevan Labh calculator is used to calculate the premiums or sum assured at the time of death or maturity. If a policyholder stops paying premiums after paying for at least one full year, then that Jeevan Labh LIC plan becomes a paid-up policy. The calculations for a paid-up policy are dependent on the period for which the premium has been paid.

The death or maturity paid-up sum assured is equal to the sum assured on death/maturity multiplied by the ratio of the duration for which premiums have been paid to the original period for which premiums were payable. The LIC Jeevan Labh Paid-Up Value Calculator works similar to other LIC calculators by giving accurate and quick results based on the details you enter.

Sample Illustration for LIC Jeevan Labh Calculation of Paid-Up Value

Let's assume a sample profile of a person who has assured a sum of Rs.10 Lakhs on death for a policy term of 21 years. Therefore, the corresponding premium paying term is 15 years. We will now calculate the death paid-up sum assured based on the calculation discussed above across different policy years.

The last column represents the benefit payable by the insurer on the death of the life assured on the policy acquiring a paid-up value.

LIC Jeevan Labh Policy Details

• Death Benefit - Assigned nominees are entitled to receive the sum assured on death of the life assured. Further, the life assured also has the option to choose to receive this amount in monthly, quarterly, half-yearly, and yearly installments. For a paid-up policy, the death sum assured is based on the number of premiums paid by the policyholder.

• Maturity Benefit - The maturity benefit offered by this policy further entitles the life assured to receive the sum assured if they survive the policy term. This amount can also be received in installments by opting for the settlement option. For a paid-up policy, the maturity sum assured is based on the number of premiums paid by the policyholder.

• Rider Benefits - The life assured can enhance their protection under LIC Jeevan Labh cover through riders against accidental deaths, disability, and critical illnesses. For a paid-up Jeevan Labh LIC plan, riders are not applicable as they do not acquire the paid-up value.

• Bonuses - Owing to the participating nature of the policy, it entitles policyholders to a percentage of the profits made by the company. The bonus amounts are subject to change every year based on the company’s valuation. For a paid-up policy, only the bonuses acquired during the premium payment term are added to the total sum assured.

• Loan Facility - In case of urgent liquidity needs policyholders of LIC Jeevan Labh can avail the policy’s loan facility. The maximum amount of loan that one can avail of is subject to the surrender value acquired by the policy. The percentage differs for in-effect policy and a paid-up policy.

• Premium Payment - You can pay your LIC Jeevan Labh premiums annually, half-yearly, quarterly, or monthly. Monthly premium payments are available only through NACH (auto-debit) or the Salary Savings Scheme (SSS) during the premium payment term.

• Grace Period - If you miss a premium due date, LIC provides a grace period to make the payment without losing policy benefits. The grace period is 30 days for annual, half-yearly, and quarterly payment modes, and 15 days for monthly payments. It starts from the due date of the first unpaid premium.

• Free-Look Period - If you are not satisfied with the policy's terms and conditions, you can return the policy within 30 days of receiving the policy document (physical or electronic) and request a cancellation, subject to LIC's free-look provisions.

• Policy Revival - If your LIC Jeevan Labh policy lapses due to non-payment of premiums, you can revive it within 5 years from the date of the first unpaid premium, provided the policy has not matured. Revival is subject to LIC's applicable terms and conditions.

• Premium Rebate - LIC Jeevan Labh Plan 736 (previously known as Plan 936) offers premium rebates based on the mode of premium payment and the chosen Basic Sum Assured, helping reduce the overall premium cost.

Rebate based on premium payment mode:

• Annual: 2%

• Half-yearly: 1%

• Quarterly: Nil

• Monthly: Nil

Rebate based on Basic Sum Assured:

• ₹2 lakh to ₹4.99 lakh: Nil

• ₹5 lakh to ₹9.99 lakh: 2%

• ₹10 lakh to ₹14.99 lakh: 3%

• ₹15 lakh and above: 3.5%

• Policy Surrender Value - The LIC Jeevan Labh policy acquires a surrender value after at least two full years' premiums have been paid. If you surrender the policy after this period, LIC will pay either the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV), whichever is higher. The surrender value depends on factors such as the premiums paid, the policy term, and the policy year in which the surrender is made.

LIC Jeevan Labh Plan 736 vs 836 vs 936

How to Buy LIC Jeevan Labh Plan from LIC?

Life Insurance Corporation (LIC) of India provides online purchase of many of its Life Insurance plans through their website. However, currently the LIC Jeevan Labh Plan is not available for online purchase. You can purchase it offline through LIC by visiting their local branch office or through licensed LIC agents and brokers.

However, you can initiate the process online by requesting a call back from LIC. Go to the official LIC website and look for an option to register a call back. An LIC representative or agent will call you and guide you to fill the offline proposal form. They will guide you through the further procedure as well.

Once you have purchased the LIC Jeevan Labh plan, you can then manage it online through the LIC Customer Portal to pay online premiums, track maturity and check for bonus accumulations. v

How to Buy LIC Plans from Policybazaar?

You can buy the LIC Jeevan Labh plan 736 conveniently through the Policybazaar platform:

Step 1: Visit the LIC page at Policybazaar

Step 2: Enter your name and contact number to fill the form and then click on ‘View Plans’

Step 3: Answer the questions about age, city of residence and annual income

Step 4: Select the investment amount and the tenure at the top of the screen

Step 5: Select the plan you wish to purchase and click on “View Details”

Step 6: Review the policy details and premium amount, then customize the coverage and policy term according to your needs. Once you're satisfied with the details, proceed to make the payment online.

Summing Up!

The paid-up option proves to be an extremely useful feature when one finds that their life cover is not up to their requirements or if their financial commitments do not allow them to pay premiums anymore. Therefore, if you find yourself in the same situation you should continue your premium payments for at least one year to acquire a paid-up value. This ensures that you do not lose out on the entire sum assured.

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