LIC Jeevan Labh Plan (Plan No. 736)
LIC Jeevan Labh Plan 736 (earlier called LIC Jeevan Labh 936) is a life insurance plan that also helps you save money. It is a non-linked, with-profit Endowment Assurance plan where you pay premiums for a limited time.
This plan gives you both life insurance protection and savings in one. It is a good choice if you want savings, higher returns, and insurance together. The plan offers high returns while keeping the premium lower compared to the sum assured you get.
Eligibility Criteria of LIC Jeevan Labh Plan
| Parameters | Criteria |
|---|---|
| Entry Age | Min: 8 yearsMax: 59 years (PT 16 yrs) 54 years (PT 21 yrs)50 years (PT 25 yrs) |
| Sum Assured | Min: Rs. 2,00,000Max: No upper limit |
| Maturity Age | 75 years |
| Policy Term | 16, 21, and 25 yrs |
| Premium Paying Term | 10, 15, and 16 yrs |
Key Features of LIC Jeevan Labh
- In this plan, you can pay premiums for a few years (10, 15, or 16 years) but get life cover for a longer time.
- You can choose how long you want life protection -16, 21, or 25 years.
- You can also pick a premium payment schedule that suits your budget.
- With this plan, you receive the death benefit either as a lump sum or in smaller installments.
- You can also add extra protection with riders like Accidental Death or Premium Waiver by paying a little more.
- You will get discounts on premiums if your sum assured is higher.
- You can also take a loan from your policy if you need money.
- You can easily check your premium and maturity amounts with LIC's online calculators.
Benefits of LIC Jeevan Labh 736 Plan
Death Benefit
If the insured person dies while the policy is active, the nominee will get a death benefit. The death benefit will be the higher of:
The Basic Sum Assured, or7 times the yearly premiumIn addition, the death benefit will include any Simple Reversionary Bonuses and a Final Additional Bonus (if applicable). The total death benefit will always be at least 105% of all premiums paid.
Maturity Benefit
If the policyholder survives until the end of the policy and has paid all premiums, they get the maturity benefit.
This includes the Basic Sum Assured,Plus any Simple Reversionary Bonuses,And a Final Additional Bonus (if applicable).
Option to Receive Death or Maturity Benefit in Instalments
The LIC Jeevan Labh plan lets you get the death benefit in smaller payments instead of one full amount.
This is available for both active and paid-up policies.The policyholder (or the life assured if 18 years or older) can choose to receive the benefit over 5, 10, or 15 years.Payments can be full or partial, either as a fixed amount or a percentage of the total claim.Payment Mode Minimum Amount Monthly Rs. 5,000 Quarterly Rs. 15,000 Half-Yearly Rs. 25,000 Yearly Rs. 50,000 
Profit Participation
The LIC Jeevan Labh plan is a participating policy, which means it shares in the profits of LIC. When the policy is active, policyholders receive Simple Reversionary Bonuses, which are added to the sum assured and grow over time. In addition, a Final Additional Bonus may be paid when a claim is made, either on death or at maturity, giving the policyholder extra benefits on top of the guaranteed amount.
Tax Benefits
The premiums you pay for the LIC Jeevan Labh policy are eligible for tax deduction up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act. Furthermore, the money you receive from the policy, whether as a maturity benefit or a death benefit, is tax-free under Section 10(10D). This makes the plan attractive not only for protection and savings but also for saving on taxes.
LIC Jeevan Labh Extra Riders
The LIC Jeevan Labh policy has four extra riders. These are optional, and you pay extra money to get them. You can only choose one of the two accident-related riders. Riders can be added to the main plan to make your coverage bigger.
- 1
LIC Accidental Death and Disability Rider
You can add this rider anytime if your main policy and this rider both have at least 5 years of payments left. You can get it until age 65, and it covers you until age 70.
If you die in an accident, your family gets a lump sum payment.If an accident makes you disabled within 180 days, you get the money in monthly payments for 10 years.Also, future payments for this rider and part of your main policy are waived. - 2
LIC Premium Waiver Benefit
You can add this rider to your active Jeevan Labh policy, but only on the policy anniversary and while you are still paying premiums. The main policy must have at least 5 years left.
This rider is only for minors (children) when you choose it.It cannot be taken if the rider term plus your age is more than 70.If the proposer dies, future premiums for the main policy are waived during the rider term.After the rider term ends, the life assured must pay any remaining premiums. If not, the policy becomes paid-up (no more benefits).The total premiums for all riders cannot be more than 30% of the main policy premiums. - 3
LIC Accidental Benefit Rider
You can buy this rider anytime while you are paying premiums for your Jeevan Labh policy, as long as your main plan has at least 5 years of payments left. This rider only gives benefits while you are still paying premiums. It only pays if you die in an accident, and it does not cover disability.
- 4
LIC Term Assurance Rider
You can only add this rider when you first buy the Jeevan Labh policy. Once added, it stays active for the whole policy term. If the policyholder dies during this time, the nominee gets a lump sum payment equal to the Term Rider Sum Assured on Death.
LIC Jeevan Labh Policy Details
Here are some important points about the Jeevan Labh policy to help you understand it better.
Grace Period
If you forget to pay a premium on time, LIC gives you extra days to make the payment so your policy doesn't stop. If you pay yearly, half-yearly, or quarterly, you get 30 extra days. If you pay monthly, you get 15 extra days. This means your policy stays active while you catch up on the payment.
Free Look Period
When you buy a LIC Jeevan Labh policy, you can check the policy documents. If you don't like the rules or terms, you can return the policy to LIC. You must do this within 30 days of receiving the documents, either physically or electronically. LIC will cancel the policy and give your money back.
Paid-up Value
If you stop paying premiums after paying for at least 1 year, your policy doesn't completely stop. Instead, it becomes paid-up. This means the insurance amount is reduced based on how many premiums you actually paid.
The formula is simple: the paid-up sum = (number of premiums paid ÷ total premiums to be paid) × sum assured.
A paid-up policy will not get future profits, but any bonuses that have already been added to the policy will stay. Extra riders you may have added to the policy do not get paid-up value, and their benefits will stop if the policy lapses.
Loans
With the Jeevan Labh policy, you can take a loan from LIC after paying the first year's premium. This helps you get money when you need it, making the policy more useful.
If your policy is active (in-force):Before you pay two full years of premiums, you can borrow up to 50% of the policy's value.After paying two full years of premiums, you can borrow up to 80%.
If your policy is paid-up:Before paying two full years, you can borrow up to 40%.After paying for two full years, you can borrow up to 70%.
Policy Revival
If your policy stops because of missed payments (lapses), you can restart it within 5 years from the first missed premium, as long as the policy hasn't matured yet and you follow LIC's rules.
LIC Jeevan Labh Plan - Rebate
The LIC Jeevan Labh plan gives rebates (discounts) on premiums, which makes the policy cheaper. There are two types of rebates:
Premium Frequency Rebate: You get a discount depending on how often you pay premiums.
Condition Rebate Annual payment 2% Half-yearly payment 1% Quarterly or Monthly payment 0% High Sum Assured Rebate: You get a discount if your sum assured is high.
Condition Rebate Rs. 2 - 4.9 lakh 0% Rs. 5 - 9.9 lakh 2% Rs. 10 - 14.9 lakh 3% Rs. 15 lakh and above 3.5% Policy Surrender Value
In the LIC Jeevan Labh plan, you can surrender (close) the policy after paying premiums for at least 2 full years. When you surrender the policy, LIC will give you money. You will get whichever amount is higher:
Guaranteed Surrender Value, orSpecial Surrender Value
The amount you receive depends on:
How much premium you paidWhen you surrender the policyThe total policy term
Policy Termination
The LIC Jeevan Labh policy ends automatically in the following situations:
When the full death benefit or the last death benefit installment is paid.When the surrender value is paid after you close the policy.If you don't choose a settlement option on the maturity date.When the last installment of the settlement option is paid.If you don't pay the loan interest on the policy loan.If the policy has not become paid-up and is not revived during the revival period.When the policy is cancelled during the free-look period.In case of forfeiture (policy benefits are lost).
Sample Premiums for LIC Jeevan Labh
The table below shows example annual premiums for a basic sum assured of ₹2 lakh for different ages. The numbers show how much you pay depending on the policy term (total years) and the premium paying term (years you actually pay).
| Age (years) | Policy 16 years / Pay 10 years | Policy 21 years / Pay 15 years | Policy 25 years / Pay 16 years |
|---|---|---|---|
| 20 | Rs. 16,699 | Rs. 10,682 | Rs. 9,006 |
| 30 | Rs. 16,758 | Rs. 10,770 | Rs. 9,134 |
| 40 | Rs. 17,013 | Rs. 11,133 | Rs. 9,584 |
| 50 | Rs. 17,826 | Rs. 12,123 | Rs. 10,741 |
LIC Jeevan Labh Policy Exclusions
The LIC Jeevan Labh policy does not pay any claim if the policyholder commits suicide.
- 01If suicide happens within 1 year of buying the policy, the nominee gets 80% of the premiums paid so far.
- 02If suicide happens after 1 year from the start or revival of the policy, the nominee gets the higher of:The surrender value of the policy, or80% of premiums paid so far.
Disclaimer: Squareinsurance.in does not endorse or recommend any specific insurance company or insurance plan. For more details about this plan, please check the plan brochure or the policy document.
FAQs
It is a life insurance plan that also helps you save money. You pay premiums for a limited time, but get life cover for a longer time. It gives both insurance protection and savings in one plan.
You can choose a policy term of 16, 21, or 25 years. You pay premiums for 10, 15, or 16 years, depending on your choice.
If you don't like the policy terms, you can return the policy within 30 days of getting the documents and get your money back.
The calculator helps you know your premium and maturity amount. It uses your age, policy term, premium paying term, and sum assured to calculate the amounts.
Yes, you can buy this policy for your child if they are 8 years or older. You will pay the premiums, and your child will be the life assured. If your child survives till the end of the policy, LIC will pay the maturity amount to them.
You can get rebates (discounts) if you pay your premiums yearly or half-yearly instead of monthly or quarterly.