LIC Jeevan Labh (Plan 936): The Complete Investment Guide
LIC's Jeevan Labh is a limited premium paying, non-linked, with-profits endowment plan. It offers a unique combination of high returns and life cover, making it a favorite for Indian families planning for child education or retirement. Our **TrendCart Jeevan Labh Studio** helps you decode the numbers behind this policy.
The Logic of Limited Premium Paying (LPP)
One of the biggest advantages of Plan 936 is that you don't pay for the entire policy duration:
- 16-Year Term: Pay premiums for only 10 years.
- 21-Year Term: Pay premiums for only 15 years.
- 25-Year Term: Pay premiums for only 16 years.
How is Maturity Calculated?
The final payout is the sum of three distinct parts: Maturity = Basic Sum Assured + Accumulated Vested Bonus + Final Additional Bonus. The **Simple Reversionary Bonus** is declared per ₹1,000 of Sum Assured annually.
Tax Benefits and Protection
Under Section 80C, the premiums are deductible from your taxable income. More importantly, the Maturity and Death claims are generally tax-free under Section 10(10D). In terms of protection, the plan provides a death benefit which is the higher of 7 times the annual premium or the Basic Sum Assured, plus bonuses.
Historical Bonus Trends
While past performance does not guarantee future results, Jeevan Labh has consistently offered attractive bonuses. For the 25-year term, bonus rates have historically hovered around ₹40 to ₹50 per thousand of Sum Assured.
Frequently Asked Questions (FAQ)
Yes, after paying premiums for at least 2 full years, you can avail of loan facilities against the surrender value of the policy.
Final Additional Bonus (FAB) is a one-time bonus paid by LIC if the policy runs for a longer duration, usually at maturity.
Need Financial Advice?
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