LIC Jeevan Labh — Overview
LIC Jeevan Labh is one of the most popular endowment plans in India. It is a limited premium payment plan, meaning you pay premiums for a shorter period than the policy term — so you stop paying early but the policy continues growing. The plan offers guaranteed additions, loyalty additions, and the possibility of a final additional bonus at maturity.
Plan Number: 936. This is a non-linked, participating endowment plan.
Plan Options
- Option 1: Premium payment term: 16 years | Policy term: 25 years
- Option 2: Premium payment term: 21 years | Policy term: 28 years
- Option 3: Premium payment term: 25 years | Policy term: 32 years
In all options, you stop paying premiums several years before the policy matures. During the free period (after premiums end), the policy continues accumulating bonuses and growing your corpus — essentially your money keeps working for you even after you stop contributing.
Key Benefits
- Guaranteed additions — ₹78 per ₹1,000 sum assured per year for the first 6 years (Option 1) or first 7 years (Options 2 and 3). These are guaranteed regardless of LIC profits
- Loyalty additions — Added from the 7th/8th year onwards based on LIC performance. Not guaranteed but LIC has a strong track record of declaring bonuses
- Final additional bonus — A one-time bonus added at maturity based on policy term and LIC performance
- Death benefit — Sum assured + all accumulated bonuses + guaranteed additions. Minimum 105% of total premiums paid or 7x annual premium (whichever is higher)
- Maturity benefit — Sum assured + guaranteed additions + loyalty additions + final additional bonus (if any)
- Tax benefit — Premium qualifies under Section 80C (₹1.5 lakh limit). Maturity proceeds tax-free under Section 10(10D)
Premium Examples (Approximate)
- Age 25, Sum Assured ₹10 lakh, Option 1 (16-year pay, 25-year term) — Annual premium: approximately ₹42,000-45,000. Total premium paid: ₹6.72-7.2 lakh. Expected maturity: ₹14-17 lakh (depending on bonuses)
- Age 30, Sum Assured ₹10 lakh, Option 2 (21-year pay, 28-year term) — Annual premium: approximately ₹35,000-38,000. Total premium paid: ₹7.35-7.98 lakh. Expected maturity: ₹17-20 lakh
- Age 25, Sum Assured ₹5 lakh, Option 1 — Annual premium: approximately ₹21,000-23,000. Affordable entry point for young professionals
Note: These are indicative figures. Actual premiums depend on your age, gender, and chosen options. For exact premium calculation, contact our LIC agent for a free quote.
Should You Buy LIC Jeevan Labh?
- Buy if — You want guaranteed returns with zero market risk, you prefer the discipline of limited premium payment, you want life cover along with savings, you want tax-free maturity proceeds, you are conservative with investments
- Skip if — You want maximum returns (mutual funds give 12-15% vs 5-7% from endowment plans), you already have adequate life cover through term insurance, you understand equity investing and are comfortable with market risk
- Balanced approach — Buy LIC Jeevan Amar (term insurance) for protection + invest separately in SIP for growth. This gives you better coverage AND higher returns compared to endowment alone
Want a personalized comparison? Our LIC agent provides free consultation — we show you exact numbers for both approaches so you can make an informed decision.