Last Updated: 11 Oct 2025 | By Keyur Tirgar, LIC Agent Code: 04699-102
Looking for a reliable life insurance plan that offers guaranteed returns with limited premium payment? LIC Jeevan Labh (Policy No. 936) is one of the most popular endowment plans from Life Insurance Corporation of India, combining life protection with assured maturity benefits.
In this comprehensive review, I'll break down everything you need to know about the LIC Jeevan Labh policy—features, benefits, eligibility, premium calculations, and whether it's the right choice for your financial goals.
What is LIC Jeevan Labh Policy?
LIC Jeevan Labh is a non-linked, participating, limited premium payment endowment plan that provides financial protection along with guaranteed returns. The unique selling point? You pay premiums for only 16 years but enjoy coverage for a full 25 years.
Launched to meet the long-term savings and protection needs of Indian families, this plan offers:
- Life insurance coverage for 25 years
- Limited premium payment (only 16 years)
- Guaranteed additions to sum assured
- Reversionary bonuses (declared annually)
- Tax benefits under Income Tax Act
Quick Facts About LIC Jeevan Labh
Parameter | Details |
---|---|
Policy Number | 936 |
Plan Type | Endowment, Limited Premium Payment |
Policy Term | 25 years (fixed) |
Premium Payment Term | 16 years |
Minimum Entry Age | 8 years |
Maximum Entry Age | 59 years |
Minimum Sum Assured | ₹2,00,000 |
Maximum Sum Assured | No limit |
Maturity Age | Maximum 75 years |
Key Features of LIC Jeevan Labh
1. Limited Premium Payment Period
The most attractive feature is that you pay premiums for only 16 years, while the policy covers you for 25 years. This means:
- Premium payment stops after 16 years
- Coverage continues for remaining 9 years at no cost
- Ideal for those planning retirement or children's education
- Financial flexibility in later years
2. Guaranteed Additions
Unlike many endowment plans where bonuses are uncertain, LIC Jeevan Labh provides guaranteed additions to your sum assured:
- Guaranteed additions accrue from the first policy year
- Fixed percentage added to sum assured annually
- Paid along with maturity benefit
- Provides certainty of returns
Current guaranteed addition rates (subject to change):
- ₹50 per ₹1,000 sum assured per year (approximately)
- Total guaranteed additions over 25 years: ₹1,250 per ₹1,000 sum assured
Example: For ₹10 lakh sum assured:
- Annual guaranteed addition: ₹5,000
- Total guaranteed additions after 25 years: ₹1,25,000
3. Reversionary Bonuses
In addition to guaranteed additions, the policy offers reversionary bonuses (also called loyalty additions):
- Declared by LIC annually based on company performance
- Typically range from ₹30-50 per ₹1,000 sum assured
- Not guaranteed but historically consistent
- Enhance overall maturity value
4. Death Benefit Coverage
Provides comprehensive death benefit to nominees:
- Death Benefit = Sum Assured + Guaranteed Additions + Accrued Bonuses
- Additional accidental death benefit (if rider added)
- Lump sum payment to family
- Tax-free under Section 10(10D)
5. Loan Facility
After paying premiums for 3 years, you can avail policy loan:
- Loan amount: Up to 80% of surrender value
- Interest rate: As per LIC norms (typically 9-10%)
- No questions asked about usage
- Policy continues even with outstanding loan
Eligibility Criteria for LIC Jeevan Labh
Age Requirements
Parameter | Minimum | Maximum |
---|---|---|
Entry Age | 8 years | 59 years |
Maturity Age | 33 years | 75 years |
Sum Assured
- Minimum: ₹2,00,000
- Maximum: No upper limit
- Multiples of ₹5,000 above minimum
Premium Payment Modes
- Yearly (annual)
- Half-Yearly (every 6 months)
- Quarterly (every 3 months)
- Monthly (through ECS only)
Tip: Annual payment mode offers best value (saves 2-4% compared to monthly)
Medical Examination
Medical tests required based on:
- Age of applicant
- Sum assured amount
- Health declaration
Typically, medical exam mandatory if:
- Age above 50 years, or
- Sum assured above ₹50 lakhs
LIC Jeevan Labh Premium Calculator
Premium depends on multiple factors:
Factors Affecting Premium:
- Age at entry - Younger age = lower premium
- Sum assured - Higher coverage = higher premium
- Payment mode - Annual is cheapest
- Gender - Females typically get slightly lower rates
- Riders added - Increases premium proportionately
Sample Premium Illustrations
Example 1: 30-Year-Old Male
- Sum Assured: ₹10,00,000
- Policy Term: 25 years
- Premium Payment: 16 years
- Annual Premium: Approximately ₹42,000
- Total Premium Paid: ₹6,72,000
Estimated Maturity Benefit: ₹14-16 lakhs (including guaranteed additions and bonuses)
Example 2: 40-Year-Old Male
- Sum Assured: ₹10,00,000
- Policy Term: 25 years
- Premium Payment: 16 years
- Annual Premium: Approximately ₹48,000
- Total Premium Paid: ₹7,68,000
Estimated Maturity Benefit: ₹14-16 lakhs
Example 3: 25-Year-Old Female
- Sum Assured: ₹5,00,000
- Policy Term: 25 years
- Premium Payment: 16 years
- Annual Premium: Approximately ₹19,500
- Total Premium Paid: ₹3,12,000
Estimated Maturity Benefit: ₹7-8 lakhs
Note: Actual premiums vary. Contact me for personalized quote: +91 9784309640
Maturity Benefit Calculation
At the end of 25 years, you receive:
Maturity Benefit = Sum Assured + Guaranteed Additions + Reversionary Bonuses
Detailed Example:
Let's calculate maturity benefit for ₹10 lakh sum assured:
Components:
- Basic Sum Assured: ₹10,00,000
- Guaranteed Additions: ₹1,25,000 (₹5,000 × 25 years)
- Reversionary Bonuses: ₹10,00,000 (estimated, assuming ₹40 per ₹1,000 sum assured annually)
Total Maturity Benefit: ₹21,25,000
Effective Returns:
- Total Premium Paid: ₹6,72,000 (for 30-year-old)
- Maturity Received: ₹21,25,000
- Absolute Return: 216%
- CAGR (Compound Annual Growth Rate): Approximately 5-6%
Plus Tax Benefits on Premiums Paid!
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Tax Benefits of LIC Jeevan Labh
One of the strongest reasons to invest in LIC Jeevan Labh is the triple tax benefit:
1. Section 80C - Premium Deduction
- Deduction up to ₹1.5 lakh per year on premiums paid
- Available for self, spouse, and children's policies
- Reduces taxable income
- Available every year you pay premium (16 years)
Tax Saving Example:
- If you're in 30% tax bracket
- Premium paid: ₹50,000/year
- Tax saved: ₹15,000/year
- Total tax saved over 16 years: ₹2,40,000
2. Section 10(10D) - Maturity Benefit Tax-Free
- Entire maturity proceeds are tax-free
- No TDS deducted
- Conditions: Premium should not exceed 10% of sum assured (for policies issued after 1 April 2012)
- LIC Jeevan Labh typically meets this condition
3. Section 10(10D) - Death Benefit Tax-Free
- Death claim amount is 100% tax-free
- No tax liability on nominees
- Entire amount available for family use
Net Effect: Tax-free wealth creation!
Riders Available with LIC Jeevan Labh
Enhance your coverage with optional riders at minimal additional cost:
1. Accidental Death Benefit Rider (ADB)
- Additional sum assured if death is due to accident
- Benefit: 2× basic sum assured (subject to conditions)
- Minimal additional premium
2. Accidental Death and Disability Benefit Rider (ADDB)
- Covers death and permanent disability due to accident
- Lump sum + waiver of future premiums
- Comprehensive accident protection
3. Term Assurance Rider
- Additional pure term cover
- Increases overall death benefit
- Very affordable
4. Critical Illness Rider
- Lump sum on diagnosis of critical illness
- Covers 15+ critical illnesses (cancer, heart attack, kidney failure, etc.)
- Early payout for treatment
5. Premium Waiver Benefit Rider
- Waives future premiums on critical illness/disability
- Policy continues without payment
- Family remains protected
My Recommendation: Add at least Accidental Death Benefit Rider for comprehensive protection.
Surrender Value and Loan Options
Surrender Value
If you need to exit the policy before maturity:
Guaranteed Surrender Value (GSV):
- Available after paying 3 years' premium
- Approximately 30% of premiums paid (varies by policy year)
Special Surrender Value (SSV):
- Declared by LIC periodically
- Usually higher than GSV
- Higher of GSV or SSV is paid
Important: Surrendering means losing substantial benefits. Avoid unless absolutely necessary.
Policy Loan
Better alternative to surrender:
- Available after 3 policy years
- Up to 80% of surrender value
- Interest rate: ~9-10% per year
- Repay anytime, no prepayment charges
- Policy continues with full benefits
Advantages of LIC Jeevan Labh
✓ Proven Track Record
- Backed by LIC's 75+ years legacy
- Highest claim settlement ratio (98%+)
- Government-owned, zero insolvency risk
✓ Guaranteed Returns
- Fixed guaranteed additions eliminate uncertainty
- Reversionary bonuses add to returns
- No market risk unlike ULIPs
✓ Limited Premium Payment
- Pay for 16 years, covered for 25 years
- 9 years premium-free coverage
- Financial flexibility in later years
✓ Dual Benefit
- Life insurance protection
- Savings and investment combined
- One plan, two purposes
✓ Tax Efficiency
- Triple tax benefits (80C, 10(10D), 10(10D))
- Maximize post-tax returns
- Reduce tax liability every year
✓ Liquidity Options
- Policy loan facility
- Surrender value after 3 years
- Financial flexibility when needed
✓ Comprehensive Coverage
- Death benefit for family
- Maturity benefit for self
- Optional riders for enhanced protection
Disadvantages to Consider
✗ Lower Returns Compared to Market
- CAGR of 5-6% is modest
- Equity mutual funds historically give 10-12%
- Better for safety than aggressive growth
✗ Long Lock-in Period
- 25-year commitment
- Surrender in early years results in loss
- Not suitable for short-term goals
✗ Inflation Impact
- Fixed guaranteed additions don't account for inflation
- Real returns may be lower
- Purchasing power erosion over 25 years
✗ Opportunity Cost
- Money locked for 25 years
- Could potentially earn more elsewhere
- Trade-off: Safety vs Returns
✗ Premium Commitment
- Must pay for 16 years continuously
- Lapse can result in benefit loss
- Ensure affordability before buying
Who Should Buy LIC Jeevan Labh?
Ideal For:
✓ Risk-Averse Individuals
- Don't want market exposure
- Prefer guaranteed returns
- Value safety over high returns
✓ Long-Term Planners
- Planning for retirement (25 years away)
- Children's higher education
- Wealth accumulation with insurance
✓ Tax-Conscious Investors
- Want to maximize 80C deductions
- Seek tax-free maturity benefits
- In high tax brackets
✓ LIC Loyalists
- Trust government-backed insurance
- Value LIC's claim settlement record
- Prefer traditional plans
✓ Disciplined Savers
- Need forced savings mechanism
- Struggle with investment discipline
- Want automatic wealth creation
Not Ideal For:
✗ Short-term investors (need money within 10 years) ✗ High-return seekers (expecting 10%+ returns) ✗ Those comfortable with market-linked products ✗ Individuals needing high liquidity ✗ Those who may struggle with 16-year premium commitment
LIC Jeevan Labh vs Other LIC Plans
Comparison with Similar Plans:
Feature | Jeevan Labh | Jeevan Anand | New Endowment |
---|---|---|---|
Policy Term | 25 years | Whole life | 10-35 years |
Premium Payment | 16 years | Regular | Regular |
Maturity Benefit | Yes | Yes | Yes |
Guaranteed Additions | Yes | No | Yes |
Flexibility | Low | Moderate | High |
Best For | Limited payment | Lifetime cover | Short-medium term |
How to Buy LIC Jeevan Labh Policy
Option 1: Through Me (Recommended)
Why choose me?
- Personalized consultation and needs analysis
- Compare with other suitable plans
- Help choose optimal sum assured
- Assistance with form filling and documentation
- Policy servicing and claims support
- Lifetime relationship
Contact Keyur Tirgar
- Phone/WhatsApp: +91 9784309640
- Email: tirgarkuriya@gmail.com
- LIC Agent Code: 04699-102
Option 2: LIC Branch
- Visit nearest LIC branch
- Meet branch development officer
- Submit application and documents
- Premium payment and policy issuance
Option 3: LIC Website
- Visit www.licindia.in
- Online proposal submission
- Limited support
- Self-service approach
Documents Required:
- Duly filled proposal form
- Age proof (birth certificate, Aadhaar, passport)
- Identity proof (PAN card, Aadhaar)
- Address proof (Aadhaar, utility bill)
- Income proof (for high sum assured)
- Passport-size photographs
- Medical reports (if required)
Frequently Asked Questions
Q1: What is the minimum premium for LIC Jeevan Labh?
A: Minimum sum assured is ₹2 lakhs. Premium varies by age, typically starting from ₹8,000-10,000 annually for younger ages.
Q2: Can I increase sum assured later?
A: No, sum assured cannot be increased after policy issuance. Choose adequately from start.
Q3: What happens if I miss a premium payment?
A: You get 30 days grace period (for annual/half-yearly/quarterly) or 15 days (for monthly). Policy lapses if not paid within grace period.
Q4: Can I revive a lapsed policy?
A: Yes, within 2 years of first unpaid premium. Pay all outstanding premiums with interest and submit health declaration.
Q5: Is medical test mandatory?
A: Depends on age and sum assured. Generally required if age >50 or sum assured >₹50 lakhs.
Q6: What is the guaranteed addition rate?
A: Currently ₹50 per ₹1,000 sum assured per year (subject to change by LIC).
Q7: Can NRIs buy this policy?
A: Yes, NRIs can purchase during India visit. Premium payment through NRO account or during India visits.
My Expert Opinion on LIC Jeevan Labh
As an insurance adviser with 5+ years of experience, here's my honest assessment:
LIC Jeevan Labh is an excellent choice if:
- You prioritize safety and guaranteed returns over high growth
- You want a disciplined savings mechanism
- Tax benefits are important to you
- You trust LIC's legacy and stability
- You're planning for a goal 20-25 years away
Consider alternatives if:
- You're comfortable with market-linked returns
- You want higher growth potential (10%+)
- You need liquidity or flexibility
- You can manage investments independently
My Recommendation: For balanced portfolio, consider:
- 60-70% in LIC Jeevan Labh (safety and guaranteed returns)
- 20-30% in equity mutual funds (growth)
- 10% in liquid funds (emergency)
This provides safety, growth, and liquidity—best of all worlds!
Conclusion: Is LIC Jeevan Labh Worth It?
Yes, LIC Jeevan Labh is worth considering if you value:
- Guaranteed returns with zero market risk
- Life insurance protection combined with savings
- Tax-efficient wealth creation
- LIC's unmatched credibility and claim settlement record
- Limited premium payment period (16 years for 25-year coverage)
With guaranteed additions, reversionary bonuses, triple tax benefits, and the backing of India's most trusted insurance company, LIC Jeevan Labh remains a solid choice for conservative investors seeking long-term financial security.
Ready to secure your family's future with LIC Jeevan Labh?
Get Personalized Quote & Expert Guidance
Contact Keyur Tirgar
LIC Agent Code: 04699-102
Phone/WhatsApp: +91 9784309640
Email: tirgarkuriya@gmail.com
Free Services: ✓ Premium calculation for your age and requirement ✓ Comparison with other suitable plans ✓ Tax benefit analysis ✓ Documentation assistance ✓ Lifetime policy servicing support
Serving all over Rajasthan - Jaipur, Jodhpur, Udaipur, Kota & all cities
Disclaimer: Premium rates and policy features mentioned are indicative and subject to change by LIC. Guaranteed addition rates are as per current LIC norms. For latest rates and complete terms and conditions, please refer to official LIC policy document or contact me for personalized advice. Investment decisions should be based on individual financial situation and goals.
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Published by: Keyur Tirgar | IRDA Certified Insurance Adviser | LIC Agent Code: 04699-102
Last Updated: 11 Oct 2025