LIC Jeevan Labh Plan 736
LIC Jeevan Labh Plan 736 is a limited premium endowment plan offering both savings and life insurance. It’s designed for individuals who want to secure their family’s future in case of an untimely death while also saving for long-term goals.
Who Should Consider LIC Jeevan Labh Plan 736?
- Those looking for life insurance with savings benefits.
- Long-term investors with policy options of 16, 21, or 25 years.
- Individuals seeking tax benefits on premiums and payouts.
- Families need financial protection for dependents in case of a loss.
LIC Jeevan Labh Plan 736 Features
| Feature | Description |
|---|---|
| Plan Type | Limited Premium Payment Endowment Plan |
| Entry Age | Minimum: 8 Years; Maximum: 59 Years |
| Policy Term | 16, 21, or 25 Years |
| Premium Payment Term (PPT) | 10, 15, or 16 Years, based on the policy term |
| Basic Sum Assured | Minimum: ₹2,00,000; Maximum: No Limit |
| Death Benefit | Higher of Basic Sum Assured or 7 times the annual premium |
| Maturity Benefit | Sum Assured on Maturity plus Bonuses |
| Bonus | Simple Reversionary Bonuses + Final Additional Bonus |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, Monthly |
| Loan Facility | Available once the policy acquires surrender value |
| Riders Available | Accidental Death & Disability, Accident Benefit, Term Assurance, Premium Waiver |
| Grace Period | 30 Days for Yearly, Half-Yearly, and Quarterly; 15 Days for Monthly mode |
| Surrender Value | Available after paying at least one full year’s premium |
| Tax Benefits | Tax deductions on premiums and benefits under prevailing tax laws |
| Policy Revival | Within 5 years from the date of first unpaid premium |
| Free Look Period | 30 Days |
Rebates on LIC Jeevan Labh Plan 736
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly & Salary deduction – NIL
High Sum Assured Rebate (on Premium):
| Basic Sum Assured (B.S.A.) | Rebate (Rs.) |
|---|---|
| Rs. 2,00,000 to less than Rs. 5,00,000 | Nil |
| Rs. 5,00,000 to less than Rs. 10,00,000 | 2.00% of B.S.A. |
| Rs. 10,00,000 to less than Rs. 15,00,000 | 3.00% of B.S.A. |
| Rs. 15,00,000 and above | 3.50% of B.S.A. |
LIC Jeevan Labh Plan 736 : Premium and Maturity Calculator
To better understand how the LIC Jeevan Labh Plan 736 works, let’s look at an example involving Rajiv.
Policy Details
- Policyholder: Rajiv
- Sum Assured: ₹18,00,000
- Policy Term: 16 Years
- Premium Payment Term (PPT): 10 Years
- Age at Purchase: 35 Years
- Death Sum Assured: ₹18,00,000
- Basic Sum Assured: ₹18,00,000
Premium Payment Details
1st Year Premium (Including GST @4.5%):
- Yearly: ₹1,61,348
- Half-Yearly: ₹81,531
- Quarterly: ₹41,194
- Monthly (ECS): ₹13,731
- Daily Equivalent for Yearly Mode: ₹442
2nd Year Premium Onwards (Including GST @2.25%):
- Yearly: ₹1,57,874
- Half-Yearly: ₹79,775
- Quarterly: ₹40,307
- Monthly (ECS): ₹13,436
- Daily Equivalent for Yearly Mode: ₹432
Total Approximate Paid Premium over 10 Years: ₹15,82,214
Maturity Calculation Details:
At the end of the 16-year policy term, Rajiv will receive the following maturity benefits:
- Basic Sum Assured: ₹18,00,000
- Accumulated Bonus: ₹18,00,000 × 40/1000 × 16 = ₹11,52,000
- Final Additional Bonus (FAB): ₹18,00,000 × 25/1000 = ₹45,000
Total Maturity Amount: ₹18,00,000 + ₹11,52,000 + ₹45,000 = ₹29,97,000
Year-Wise Policy Details
| Year | Age | Paid Premium (₹) | Normal Life Cover (₹) | Accidental Life Cover (₹) |
|---|---|---|---|---|
| 2024 | 35 | 1,61,348 | 18,00,000 | 18,00,000 |
| 2025 | 36 | 1,57,874 | 18,72,000 | 18,72,000 |
| 2026 | 37 | 1,57,874 | 19,44,000 | 19,44,000 |
| 2027 | 38 | 1,57,874 | 20,16,000 | 20,16,000 |
| 2028 | 39 | 1,57,874 | 20,88,000 | 20,88,000 |
| 2029 | 40 | 1,57,874 | 21,60,000 | 21,60,000 |
| 2030 | 41 | 1,57,874 | 22,32,000 | 22,32,000 |
| 2031 | 42 | 1,57,874 | 23,04,000 | 23,04,000 |
| 2032 | 43 | 1,57,874 | 23,76,000 | 23,76,000 |
| 2033 | 44 | 1,57,874 | 24,48,000 | 24,48,000 |
| 2034 | 45 | 1,57,874 | 25,20,000 | 25,20,000 |
| 2035 | 46 | 1,57,874 | 25,92,000 | 25,92,000 |
| 2036 | 47 | 1,57,874 | 26,64,000 | 26,64,000 |
| 2037 | 48 | 1,57,874 | 27,36,000 | 27,36,000 |
| 2038 | 49 | 1,57,874 | 28,08,000 | 28,08,000 |
| 2039 | 50 | - | Maturity Amount: ₹29,97,000 | - |
Understanding Year-Wise Death Claim
If Rajiv passes away in 2035 (Age 46):
- Total Paid Premium till 2035: ₹15,67,066 (approx.)
- Normal Life Cover: ₹25,92,000
- Accidental Life Cover: ₹25,92,000
- Total Payable to Nominee (Tax-Free): ₹25,92,000
Plan Benefits for Nominee
| Benefit Category | Amount (₹) |
|---|---|
| On Death Before Maturity | |
| - Guaranteed Sum Assured | 18,00,000 |
| - Bonus at Death | 7,68,000 |
| Total Payable to Nominee | ₹25,68,000 |
| If Accidental Death | |
| - Accidental Death Benefit | 18,00,000 |
| Total Payable | ₹25,68,000 |
FAQs on LIC Jeevan Labh Plan 736
Q1: What is the minimum entry age for LIC Jeevan Labh Plan 736?
The minimum entry age is 8 years.
Q2: What is the maximum maturity age?
The maximum maturity age is 75 years.
Q3: How long is the premium paying term
The premium paying term is limited, ranging from 10, 15, and 16 years.
Q4: Is there a loan facility available under this plan?
Yes, loans are available after the payment of at least 1 year’s premium.
Q5: What happens if I miss a premium payment?
A grace period of 30 days (or 15 days for monthly mode) is provided to pay the premium.
Q6: Can the policy be surrendered?
Yes, after paying at least one year’s premium, the policy acquires a surrender value.
Q7: What tax benefits can I avail of with this plan?
Premiums paid are tax-exempt under Section 80C, and maturity benefits are tax-free under Section 10(10D).
Q8: What is the death benefit under the plan?
The death benefit is the higher of the Basic Sum Assured or 7 times the annual premium, plus bonuses.
Q9: Is there a rider option available with this plan?
Yes, optional riders like Accidental Death and Disability, Term Assurance, and others are available
Q10: What is the free look period?
You have 30 days to return the policy if you are not satisfied.
Q11: Can the policy be revived after it lapses?
You have 30 days to return the policy if you are not satisfied.
Q11: What happens if I stop paying premiums after a few years?
If you stop paying after one year, the policy becomes paid-up and continues with reduced benefits.