About the LIC Jeevan Labh Calculator

The LIC Jeevan Labh (Plan No. 936) is a popular non-linked, participating, individual, life assurance savings plan from the Life Insurance Corporation of India (LIC). It offers a combination of protection and savings. This calculator helps you estimate the yearly premium you need to pay and the approximate maturity amount you could receive at the end of the policy term.

Our calculator provides an instant illustration of benefits based on your age, desired sum assured, and policy term, making financial planning simpler and more transparent.

How are the Maturity Benefits Calculated?

The maturity amount for LIC Jeevan Labh is not just the sum assured; it also includes accrued bonuses declared by LIC. The formula is:

• Sum Assured: The guaranteed amount you receive upon maturity or that your nominee receives in case of an unfortunate event.
• Vested Simple Reversionary Bonus: This bonus is declared by LIC annually per thousand of Sum Assured, based on its profits. It accrues during the policy term and is paid out at maturity.
• Final Additional Bonus (FAB): This is a one-time bonus paid upon maturity for policies that have been active for a long duration (typically 15 years or more). Its rate also varies.

Important: Bonus rates are not guaranteed and depend on LIC's performance. This calculator uses assumed current rates for estimation purposes.

How is the Premium Calculated?

The premium is determined by the Tabular Premium Rate, which is set by LIC based on the policyholder's age, the chosen policy term, and the sum assured. The yearly premium is calculated as:

GST is applied to the premium amount at the prevailing rates (currently 4.5% for the first year and 2.25% for subsequent years).

Frequently Asked Questions (FAQ)

What is LIC Jeevan Labh (Plan 936)?

LIC Jeevan Labh is a limited premium paying, endowment assurance plan. This means you pay premiums for a shorter period than the full policy term, but the life cover continues for the entire duration. For example, in a 25-year plan, you only need to pay premiums for 16 years.

What are the eligibility criteria for this plan?

The key eligibility conditions are:

• Minimum Age at Entry: 8 years
• Maximum Age at Entry: 59 years (for 16-year term), 54 years (for 21-year term), 50 years (for 25-year term)
• Minimum Sum Assured: ₹2,00,000
• Maximum Sum Assured: No upper limit

What happens if the policyholder passes away during the term?

In case of the unfortunate demise of the policyholder, the nominee receives the "Sum Assured on Death," along with any vested bonuses. The Sum Assured on Death is defined as the higher of 7 times the annualized premium or the Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid.

Can I take a loan against this policy?

Yes, a loan facility is available under this plan after the policy has acquired a surrender value, which typically happens after two full years of premium payments.

Is the maturity amount from Jeevan Labh taxable?

Generally, the maturity proceeds from an LIC policy, including the sum assured and bonuses, are exempt from income tax under Section 10(10D) of the Income Tax Act, 1961. This is subject to the condition that the annual premium does not exceed 10% of the sum assured.