LIC Jeevan Labh 936
LIC Jeevan Labh 936 is a savings plan where payments happen for a short period. Not connected to the stock market but still offers profits. It provides both safety and money-saving options. What happens if the person passes away early? Their family gets financial help from the Jeevan Labh plan.
If the person stays alive until the policy ends, they receive the money. This plan offers higher returns compared to other LIC policies and is really popular among LIC’s options.
Let’s look at Jeevan Labh 936 LIC plan chart:
Age | Min. age – 8 yrs. Max. age -59 yrs. |
Policy Term | 16 Years, 21 Years, 25 Years |
Premium Term | 16(10), 21(15), 25(16) |
Sum Assured | Min. Sum Assured – Rs. 2, 00,000/- Max. Sum Assured – No Limit (Depends on your income) |
Maturity Age | 75 Years (Max.) |
Premium Paying Mode | Monthly, Quarterly, Half-Yearly and Yearly |
Riders (Optional) | a) Accidental Death and Disability Benefit Rider b) Accident Benefit Rider c) New Term Assurance Rider d) New Critical Illness Benefit Rider e) Premium Waiver Benefits Rider
|
Tax Benefits | Premium is exempted (80c) and Maturity/Death Claim is Tax-Free 10(10D) |
Maturity Amount | Basic Sum Assured + Accumulated Simple Reversionary Bonus during Policy Term + Final Additional Bonus |
Death Claim | Death Sum Assured + Accumulated Simple Reversionary Bonus (Bonus) till the time of Death + Final Additional Bonus (FAB) + Riders (Optional) |
Death Sum Assured | Basic Sum Assured or 7 times the Annualized Premium, whichever is higher. |
LIC Jeevan Labh 936 policy detalis and benefits:
Death Benefit
In LIC Jeevan Labh 936 plan, if someone dies while the insurance is still running,. In that situation, the insurance company gives money. This money includes a fixed sum called the “Sum Assured on Death” plus any bonuses earned. The “Sum Assured on Death” is either the biggest basic coverage or 7 times the yearly premium, depending on which one is higher.
The amount paid out after death is always at least 105% of all the paid premiums. These premiums do not cover taxes, extra charges, or any other additional options you possibly added to the plan.
Maturity Benefit
A policyholder will get a maturity benefit, given to him at the time of the policy’s maturity, only if he has paid all premiums. The major factor of the policy is that it allows you to receive the “Maturity Benefit,” which will be paid in installments for 5, 10, or 15 years or in lumpsum amounts as chosen by the policyholder.
The policyholder has to inform at least 3 months before the maturity claim. If maturity benefits are paid in installments, the policyholder will get interest on the unpaid amount.
Maturity Benefit = Basic Sum Assured + Accumulated Simple Reversionary Bonus during Policy Term + Final Additional Bonus
Tax Benefits
Under section 80C of the Income Tax Act, the premiums paid for the LIC Jeevan Labh 936 plan are not taxed. Also, section 10(10D) of the same act says that money received from maturity or death claim is not taxed.
Rider Option
Five optional rider are available in the LIC plan 936. However, the policyholder has a choice between the Accident Benefit Rider and the Accidental Death and Disability Benefit Rider offered by the LIC. Therefore, a policy may only offer a maximum of 4 rider.
- Rebate: Accidental Death and Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
- New Critical Illness Benefit Rider
- Premium Waiver Benefits Rider
In the above rider Sum Assured cannot exceed the basic Sum Assured under the Basic plan.
Rebate
Jeevan Labh policy offers rebates based on premium paying terms and the sum-assured rebate that we have chosen.
Premium paying terms:
Yearly – 2% of Tabular Premium
Half-yearly – 1% of Tabular premium Quarterly.
Monthly – NIL
High Sum Assured Rebate:
|
BASIC SUM ASSURED |
REBATE |
|
Rs. 2,00,000/- to Rs. 4,90,000/- |
– |
|
Rs. 5,00,000/- to Rs. 9,90,000/- |
1.25% of Basic Sum Assured |
|
Rs. 10,00,000/- to Rs. 14,90,000 /- |
1.50 % of Basic Sum Assured |
|
Rs. 15,00,000/- and above |
1.75 % of Basic Sum Assured |
Loan Facility
A loan may be obtained after two full year under this plan at any time. 90% of the surrender value is the maximum loan amount available in this plan. Periodically, it will be decided what interest rate will be applied to the policy loan and how it will apply for the full length of the loan.
Grace Period
There will be a grace period of 30 days for yearly, half-yearly, or quarterly payments and 15 days for monthly payments beginning on the date of the first unpaid premium.
The grace period mentioned above also applies to rider premiums, which must be paid in addition to the base insurance premium.
Revival Period
The policy will expire if premiums are not paid within the grace period. If necessary, lapsed insurance may be revived within five years, starting on the first unpaid premium date and before the date of maturity.
Surrender Value
The policy can be surrendered at any time provided at least two years premiums have been paid.
On surrender of the policy, the Surrender Value equal to the higher Guaranteed Surrender Value or Special Surrender Value will be paid by LIC.
Free Look Period
If a policyholder is dissatisfied with the terms and conditions of the insurance policy. In that case, they have 15 days from receipt to return it and get a full refund after deducting examination charges, stamp duty, and any other charges, if any.
You can find more details about LIC of India Jeevan Labh plan in LIC official site.
Jeevan Labh Policy Example
Plan: LIC Jeevan Labh 936 Premium and Maturity Calculation.
Age:35
Term:21
Principal Paying Term:15
Sum Assured Taken:1000000
1st-year Premium With TAX 4.5% :
Yearly: (54238 + 2441)=56679
Half-yearly: (27397 + 1233)=28630
Quarterly: (13838 + 623)=14461
Monthly(ECS) : (4613 + 208)=4821
Note: Remember, tabular rebate comes into play when you choose yearly, half-yearly, quarterly, or monthly into the premium.
From 2nd year Premium With TAX 2.25% :
Yearly: (54238 + 1220)=55458
Half-yearly: (27397 + 616)=28013
Quarterly: (13838 + 311)=14149
Monthly(ECS) : (4613 + 104)=4717
Return at Maturity Time :
Sum Assured: 1000000
Bonus: 924000
Final Additional Bonus:100000
Total Approximate Return at Maturity Time: (1000000+924000+100000)=2024000
The total approximate premium we paid in these 15 years: 833091
In the Case of Death Before Maturity:
(100% of Basic Sum Assured)
Total Payable to Nominee (Tax-Free):1000000
Note: The premium shown here is indicative but not exact. Actual premium may vary as per underwriting rules. However, the maturity calculation shown here is accurate per the current bonus rate.