LIC Jeevan Labh Policy-736

LIC Jeevan Labh- An Overview

LIC Jeevan Labh Plan 736 (previously known as LIC Jeevan Labh 936) is a non-linked endowment plan with a limited premium paying frequency that combines the benefits of life protection and savings. The plan comes with maturity benefits if you survive the policy term. The plan participates in the profits and 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.

LIC Jeevan Labh Policy Features

• The premium paying frequencies are yearly, half-yearly, quarterly, monthly (can be paid only through ECS mode), and SSS (salary savings scheme) mode.

• 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. The loan is limited to 90% of the surrender value.

• The plan offers the option of paying the death and maturity benefit in installments over 5, 10, or 15 years.

• If the plan is bought for a child, parents can add the LIC's Premium Waiver Benefit Rider to the policy. If the parent dies, LIC waives future premiums, so 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.

LIC Jeevan Labh Plan Eligibility Criteria

Let’s take a look at the eligibility criteria of the policy.

Jeevan Labh LIC Policy Benefits

1. Death Benefit

   The insurer pays the death benefit to the beneficiary in case of the insured person's death during the policy's tenure. 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 policyholder's death will include the highest of these two plus a vested simple reversionary bonus and a final additional bonus (if any).

2. Maturity Benefit

   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 equals the basic sum assured plus a vested simple reversionary bonus and final additional bonus (if any).

3. Tax Benefits

   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-exempt under Section 80C and 10(10D) of the Income Tax Act.

How Does LIC Jeevan Labh 936 Work?

Let’s understand this with the help of an example.

Say that Ravi (30 years old) wants to purchase the LIC 736 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.

Sample Illustration of LIC Jeevan Labh Premium Chart

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.

Checkout the LIC Jeevan Labh premium chart for better understanding of the premiums payable under the plan.

LIC Jeevan Labh Riders

Under LIC Jeevan Labh Policy, there are five optional riders, which the policyholder can avail by paying an additional premium. Rider benefits can be purchased along with the base plan to increase the policy coverage.

1. Accidental Death and Disability Benefit Rider

   You can purchase this rider by paying an additional premium with the base premium. If you come accross a total or a partial disability, this rider will pay out 10 equal instalments in 10 years.

2. Accidental Benefit Rider

   You can buy this rider at any point during the premium payment term of the base plan, on the condition that the base plan has at least five years remaining in its premium paying term. The benefits of this rider are available only during the premium paying period.

3. Term Assurance Rider

   You can increase your base cover of death benefit. It can be chosen at the time of policy beginning by paying an additional premium.

4. Premium Waiver Benefit

   You can add this rider at any time during the policy anniversary period, within the base plan's premium paying duration, provided both the base plan and rider have at least five years remaining. The insured must be a minor to avail of this rider.

5. Critical Illness Rider

   You must purchase this rider whennyour policy starts. Under this rider, if you are diagnosed with a critical illness, a sum assured will be paid out.

LIC Jeevan Labh Policy Details

Below are some LIC Jeevan Labh policy details that will help the policyholder understand the plan better.

1. Grace Period

   A grace period of 15-30 days is offered to the insured to pay any unpaid due premium.

2. Free-look Period

   In case the policyholder is not satisfied with the terms and conditions of the policy then they cancel it within the first 15 days.

3. Policy Surrender

   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.

   Guaranteed Surrender Value Factor
   Policy Year	PPT 16 years	PPT 21 years	PPT 25 years
   3	30%	30%	30%
   4	50%	50%	50%
   5	50%	50%	50%
   6	50%	50%	50%
   7	50%	50%	50%
   8	53.75%	52.30%	51.80%
   9	57.50%	54.60%	53.50%
   10	61.25%	56.90%	55.30%
   11	66.00%	59.20%	57.10%
   12	68.75%	61.50%	58.80%
   13	72.50%	63.80%	60.60%
   14	76.25%	66.20%	62.40%
   15	80.00%	68.50%	64.10%
   16	80.00%	70.80%	65.90%
   17		73.10%	67.60%
   18		75.40%	69.40%
   19		77.70%	71.20%
   20		80.00%	72.90%
   21		80.00%	74.70%
   22			76.50%
   23			78.20%
   24			80.00%
   25			80.00%

4. Paid-Up Value

   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

Required Documents for LIC Jeevan Labh Plan

To avail of the benefits offered by the LIC Jeevan Labh plan, these documents should be kept handy -

• Address Proof

• Other KYC Documents: Adhaar Card, PAN Card, Tax Details, etc.

• Age Proof

• Properly filled proposal form/ application form

• Medical diagnosis reports as required

• Medical history

Policy Exclusions of LIC Jeevan Labh

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 the completion of 1 year from the date of policy revival, acquired surrender value or 80% of premiums paid to date is offered based on whichever is higher.

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