LIC Jeevan Labh Plan 736: Features, Benefits, Eligibility, Maturity Calculator & Premium Details
LIC Jeevan Labh (Plan No. 736, UIN: 512N304V02) is one of the most popular and high-returning endowment plans offered by the Life Insurance Corporation of India (LIC). It is a limited premium paying, non-linked, with-profit life insurance plan. Being non-linked, it is not attached to the stock market, ensuring complete risk-free returns and capital safety for policyholders.
The standout feature of LIC Jeevan Labh is its Limited Premium Payment Term (PPT). This means you pay premiums for a shorter duration than the total policy tenure, but your life insurance cover continues for the full policy term. It provides a perfect blend of financial protection for your family and long-term wealth creation for milestones like children's higher education, marriage, or retirement planning.
Key Highlights of LIC Jeevan Labh Plan 736
- Capital Protection: Being a non-linked plan, your investment remains 100% safe from stock market volatility.
- Limited Premium Payments: Pay premiums for only 10, 15, or 16 years for policy durations of 16, 21, or 25 years respectively.
- Profit Participation: Policyholders share in LIC's profits through Simple Reversionary Bonuses and Final Additional Bonuses (FAB).
- Dual Protection: Offers a lump sum maturity amount on survival, and comprehensive death benefits to the nominee if the policyholder passes away.
- Tax Exemption: Premium payments are eligible for tax deductions under Section 80C, and maturity proceeds are tax-free under Section 10(10D).
- High Sum Assured Rebates: LIC offers attractive discounts (rebates) on premiums if you choose a higher basic sum assured.
Eligibility Criteria & Plan Specifications
Before purchasing the LIC Jeevan Labh Plan, review the entry age limits, policy terms, and minimum sum assured rules:
| Parameter | Eligibility Details |
|---|---|
| Plan Number & UIN | Table No. 936 (UIN: 512N304V02) |
| Minimum Entry Age | 8 Years (Completed) |
| Maximum Entry Age | 59 Years (for 16-yr term), 54 Years (for 21-yr term), 50 Years (for 25-yr term) |
| Maximum Maturity Age | 75 Years |
| Minimum Sum Assured | ₹2,00,000 (2 Lakhs) |
| Maximum Sum Assured | No Upper Limit (Subject to income verification) |
| Payment Frequencies | Yearly, Half-Yearly, Quarterly, Monthly (via NACH/Autopay) |
Policy Term vs Premium Payment Term Options
LIC Jeevan Labh offers three combinations of policy terms and premium payment terms:
| Option | Policy Term (Total Years) | Premium Payment Term (PPT) | Maximum Entry Age Allowed |
|---|---|---|---|
| Option 1 | 16 Years | 10 Years | 59 Years |
| Option 2 | 21 Years | 15 Years | 54 Years |
| Option 3 | 25 Years | 16 Years | 50 Years |
Maturity Benefit & Calculation Example
If the policyholder survives till the end of the chosen policy term, LIC pays a guaranteed lump sum maturity benefit.
Maturity Formula:
Maturity Amount = Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (FAB)
Illustration Example:
Let us consider Mr. Rajesh (Age 35) who buys the LIC Jeevan Labh Plan 936 with the following parameters:
- Basic Sum Assured: ₹5,00,000
- Policy Term: 21 Years
- Premium Payment Term (PPT): 15 Years
- Annual Premium (without tax): Approx. ₹28,572
- Total Premium Paid in 15 Years: Approx. ₹4,28,580
Calculation at Maturity (After 21 Years):
- Basic Sum Assured: ₹5,00,000
- Estimated Simple Reversionary Bonus: Assuming LIC declares a bonus rate of ₹44 per ₹1,000 Sum Assured annually:
(₹5,00,000 / 1000) x 44 x 21 Years = ₹4,62,000 - Final Additional Bonus (FAB): Approx. ₹20 per ₹1,000 Sum Assured = ₹10,00,000 / 1000 x 20 = ₹10,000
- Total Estimated Maturity Amount: ₹5,00,000 + ₹4,62,000 + ₹10,000 = ₹9,72,000 (Tax-Free)
Death Benefit Rules
If the policyholder passes away unexpectedly during the policy term, LIC ensures complete financial security for the nominee by providing the death benefit:
- Sum Assured on Death: Defined as the higher of:
- Basic Sum Assured (₹5 Lakhs)
- 7 times the Annualized Premium
- Vested Simple Reversionary Bonuses: Bonuses accumulated up to the year of death.
- Final Additional Bonus (if declared): One-time additional bonus.
- Minimum Guarantee: Total death benefit will never be less than 105% of all total premiums paid up to the date of death.
Optional Riders Available in Plan 936
You can enhance the coverage of your LIC Jeevan Labh plan by opting for additional riders by paying a nominal extra premium:
- LIC's Accidental Death and Disability Benefit Rider: Pays an additional lump sum amount equal to the accident sum assured in case of accidental demise or permanent disability.
- LIC's Accident Benefit Rider: Provides additional cover in case of death due to an accident.
- LIC's New Term Assurance Rider: Provides extra life insurance protection over and above the base sum assured.
- LIC's New Critical Illness Benefit Rider: Pays a lump sum amount upon diagnosis of any of the 15 pre-defined critical illnesses.
- LIC's Premium Waiver Benefit Rider: Ideal when buying a policy for a child. If the parent/proposer dies, future policy premiums are waived off completely.
Key Features & Additional Flexibility
1. Policy Loan Facility
Policyholders can avail of a loan facility after completing at least 1 year of premium payments. The loan amount is usually up to 90% of the surrender value for in-force policies.
2. Surrender Value
The policy can be surrendered at any time after paying premiums for at least 1 full year. However, surrendering early may result in a lower payout than the total premiums paid.
3. Grace Period
LIC allows a grace period of 30 days for yearly, half-yearly, and quarterly modes, and 15 days for monthly modes to pay unpaid premiums without interest.
4. Settlement Option for Maturity & Death Claim
Instead of taking a single lump-sum payout at maturity or death, policyholders or nominees can choose to receive instalments over 5, 10, or 15 years.
Tax Benefits under Indian Income Tax Act
- Section 80C: Premiums paid under LIC Jeevan Labh qualify for annual tax exemption up to ₹1,50,000.
- Section 10(10D): Maturity proceeds and death claim payouts are completely exempt from income tax, subject to government tax rules.
Frequently Asked Questions (FAQs)
Q1: Is LIC Jeevan Labh Plan 936 market-linked?
No. LIC Jeevan Labh is a 100% traditional, non-linked endowment plan. Your returns and sum assured are completely secure and guaranteed by LIC.
Q2: Can I take a loan on my Jeevan Labh policy?
Yes, you can take a loan against your Jeevan Labh policy after paying premiums for at least 1 full year.
Q3: What is the minimum age to start LIC Jeevan Labh?
The minimum entry age is 8 years completed.
Q4: Is the maturity amount tax-free?
Yes, under Section 10(10D) of the Income Tax Act, the maturity amount and death benefit received from LIC Jeevan Labh are fully tax-free.
Conclusion
LIC Jeevan Labh Plan 936 is one of the most reliable and high-yielding savings insurance plans available in India. Its limited premium payment structure, combined with bonus additions and tax-free maturity benefits, makes it an ideal choice for anyone seeking disciplined wealth accumulation alongside robust insurance protection. Visit your nearest LIC branch or contact an authorized LIC advisor to start your plan today.
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