Lic Jeevan Labh Benefits

 

LIC Jeevan Labh (Plan 936) – Full Details, Benefits, Features, Returns & Maturity Explained

LIC Jeevan Labh, also known as Plan 936, is one of the most trusted savings-cum-insurance plans offered by the Life Insurance Corporation of India. This plan is popular because it gives life insurance protection along with long-term savings. Unlike normal policies where you must pay premiums throughout the policy term, Jeevan Labh is a limited premium paying plan. That means you pay premiums only for smaller, fixed years, but you stay covered for the entire term. Many people choose this plan for children’s future, marriage, retirement savings, or simply as a safe and disciplined savings method. The plan is simple to understand, gives guaranteed security, and participates in LIC’s yearly bonus decisions, which increases your maturity value.

LIC Jeevan Labh (Plan 936) – Full Details, Benefits, Features, Returns & Maturity Explained

LIC Jeevan Labh is a popular savings-cum-insurance plan offering life cover, maturity benefits, bonuses, tax savings, and long-term financial security. Get complete details about eligibility, features, benefits, premiums, returns, surrender value, and more.

---

1. What Is LIC Jeevan Labh?

LIC Jeevan Labh is a non-linked, with-profits endowment plan. “Non-linked” means it is not linked to the stock market, and your returns are not affected by market ups and downs. “With-profits” means the policy participates in LIC’s bonuses declared every year. Over time, these bonuses get added to your basic sum assured and increase your maturity or death benefit. Jeevan Labh is mainly designed for people who want a safe, stable investment and life cover. This plan is suitable for people who want guaranteed protection plus long-term savings without the risks of market-linked products.

---

2. Key Features of Jeevan Labh

One of the biggest strengths of this plan is its clear structure. The premium paying period is shorter, but the policy continues until the full term is completed. Here are the main features explained simply:

2.1 Limited Premium Paying Term

You do not pay the premium throughout the policy. For example:

• For 16-year policy term → pay for only 10 years

• For 21-year term → pay for 15 years

• For 25-year term → pay for 16 years

This is useful for people who want a long-term savings plan but cannot commit to paying premiums for 20 or 25 years.

2.2 Guaranteed Life Cover

The moment you buy the policy, your family is protected financially. If the policyholder dies during the policy term, LIC pays the death benefit (sum assured + bonuses) to the nominee.

2.3 Bonus Benefits

As a with-profit plan, Jeevan Labh earns simple reversionary bonuses every year. At maturity or death, an additional final bonus may also be given. These bonuses significantly increase the total amount you receive.

2.4 Safe and Stable Investment

This is not a market-linked plan. So your money remains safe, your returns are stable, and you get predictable future value. Many families choose Jeevan Labh because they trust LIC and prefer safety.

2.5 Loan Facility

After paying the premium for at least two years, you can take a loan against the policy. This helps during emergencies without losing the policy benefits.

---

3. Eligibility and Conditions

The eligibility rules of the plan are simple:

• Minimum entry age: 8 years

• Maximum entry age: Depends on policy term (50–59 years)

• Minimum sum assured: ₹2,00,000

• Maximum sum assured: No limit

• Premium modes: Yearly, Half-yearly, Quarterly, Monthly

• Plan term options: 16, 21, or 25 years

• Premium paying term: 10, 15, or 16 years

These flexible options make it suitable for children, young adults, salaried employees, and senior professionals.

---

4. Benefits of LIC Jeevan Labh

Jeevan Labh provides two major financial benefits: a lump-sum maturity benefit and strong life insurance protection.

4.1 Maturity Benefit

If the policyholder survives the full policy term and all premiums have been paid, LIC pays:

• Basic Sum Assured

• Accumulated Simple Reversionary Bonuses

• Final Additional Bonus (if declared)

This lump-sum maturity amount becomes a powerful savings tool. Many parents use this for children’s education or marriage, while others use it for retirement savings.

4.2 Death Benefit

If the policyholder dies during the policy term, the nominee receives:

• Sum Assured on Death

• Simple Reversionary Bonus accumulated so far

• Final Additional Bonus (if declared)

Also, the death benefit is always at least 105% of all premiums paid, ensuring minimum protection even if the policyholder dies early.

4.3 Tax Benefits

The policy comes with tax benefits:

• Premium paid is eligible for deduction under Section 80C

• Maturity amount and death benefit are generally tax-free under Section 10(10D)

4.4 Liquidity Through Loan

If you face an emergency, you can take a loan after paying at least two years’ premiums. This avoids breaking the policy and keeps your coverage intact.

---

5. How Jeevan Labh Works (Explained Simply)

Let’s understand the working process:

1. You choose the policy term (16/21/25 years).

2. You choose the premium paying period and sum assured.

3. You pay the premiums only for the chosen PPT (10/15/16 years).

4. LIC adds bonuses every year as long as the policy is active.

5. If you survive the full term, you get a lump sum at maturity.

6. If the policyholder dies during the term, the nominee gets the death benefit.

7. You can take loans after 2 years.

8. The policy earns bonuses until maturity or earlier death.

This clear structure makes the plan easy to understand and predictable.

---

6. Advantages of LIC Jeevan Labh

Here are the key strengths that make Jeevan Labh one of LIC’s most popular plans:

6.1 Safe and Risk-Free Savings

It is ideal for people who want long-term financial planning without taking stock market risks.

6.2 Life Cover + Savings Combo

Unlike pure term insurance, this plan gives both protection and maturity value.

6.3 High Bonus Potential

With LIC’s yearly bonuses, the maturity value can grow significantly over time.

6.4 Attractive for Long-Term Goals

People use it for:

• Children’s education

• Children’s marriage

• Buying a house

• Retirement corpus creation

• Future security

6.5 Limited Premium Burden

You need to pay premiums for only part of the plan, not the entire duration.

---

7. Disadvantages / Limitations

Like every investment, even Jeevan Labh has some limitations:

7.1 Returns Are Moderate

Since it is not market-linked, the returns are stable but not very high. You may get moderate growth compared to mutual funds or stocks.

7.2 Long Lock-In

Your money stays locked for a long period (16, 21, or 25 years). Early surrender gives very low returns.

7.3 Premium Amount Can Be Higher

Compared to term insurance, premiums of Jeevan Labh are higher because it also includes savings.

7.4 Bonus Not Guaranteed

Bonuses depend on LIC’s business performance; they are not fixed or guaranteed.

---

8. Who Should Buy Jeevan Labh?

Jeevan Labh is suitable for:

• Families looking for safe investment

• People wanting life cover + savings

• Parents planning for children’s future

• People approaching retirement

• Those who dislike market risk

• People who prefer guaranteed returns

• Anyone wanting tax benefits and disciplined savings

This plan is not ideal for someone looking for very high returns or someone who wants short-term liquidity.

---

9. Simple Example to Understand the Plan

Assume a person buys Jeevan Labh with:

• Sum Assured: ₹5,00,000

• Policy Term: 25 years

• Premium Paying Term: 16 years

• Premium paid each year

LIC declares bonuses every year (example values). At the end of 25 years, the maturity value may include:

• ₹5,00,000 Basic Sum Assured

• Accumulated Bonuses

• Final Additional Bonus

The total maturity amount becomes much higher than the basic sum assured.

In case of death during the term, the nominee receives a higher sum assured on death plus bonuses.

---

❓ Frequently Asked Questions (FAQ)

1. Is LIC Jeevan Labh and LIC Bima Labh the same?

No. LIC Jeevan Labh (Plan 936) and LIC Bima Labh are different. Jeevan Labh is an endowment plan with limited premium payment, while Bima Labh is a different savings plan with its own structure.

2. Is Jeevan Labh a good plan?

Yes, it is good for people who want safe, long-term savings along with life insurance protection. It is not a high-return product, but it is very stable and trustworthy.

3. How many years do I need to pay premium?

You pay either for 10, 15, or 16 years, depending on the policy term.

4. Is the plan market-linked?

No. It is a non-linked plan. Market ups and downs do not affect your money.

5. Is the maturity amount guaranteed?

Basic sum assured is guaranteed. Bonuses are not guaranteed but LIC has a strong record of declaring bonuses every year.

6. Can I take a loan?

Yes. After paying at least two full years of premiums, you can take a loan based on the policy’s surrender value.

7. Is the maturity amount tax-free?

Yes, maturity benefits are generally tax-free under Section 10(10D), subject to tax rules.

8. Who should avoid this plan?

People seeking high returns, short-term liquidity, or low-cost insurance may avoid it. Those people may prefer term insurance combined with mutual funds.

---