LIC Jeevan Labh Plan (836)
LIC Jeevan Labh (Table No 836) is a non-linked ( Not dependent on share market) limited premium paying endowment assurance plan which means premium paying term is less than policy term, for example, if policy term 16 has been selected then premium will be paid for 10 years only and maturity will be paid after completion of 16 years. The benefit illustration given in this example is based on a simple reversionary bonus declared for 2015-16 (Latest).
Key Features:
- High Bonus Attracting Plan
- Premiums need to be paid for less number of years than Maturity year
- Ideal Plan for planning Child's Education and Marriage
- Options to avail accidental benefit and term riders
- Paid premiums are exempted from income tax under 80C
- Maturity amount is tax-free under 10 (10D)
Plan Parameters
| Minimum Age at Entry | 8 Years (Completed) |
|---|---|
| Maximum Age at Entry | 59 Years for 16 Year Term |
| 54 Years for 21 Year Term | |
| 50 Years for 25 Year Term Calculate Age | |
| Premium Paying Mode | Yearly, Half Yearly, Quarterly, Monthly (ECS Only) Calculate Your Premium |
| Policy Term (Premium Payment Term) | 16(10), 21(15), 25(16) |
| Basic Sum Assured | 2,00,000 and above (in multiple of 10,000) |
| Premium Mode Rebate | 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly |
| Rebate on High Sum Assured (Per 1000 of Sum Assured) | 0% up to 4,90,000 |
| 1.25% for 5,00,000 to 9,90,000 | |
| 1.50% for 10,00,000 to 14,90,000 | |
| 1.75% for 15,00,000 and above | |
| Loan | After 3 years |
| Surrender | After 3 years of full premium payment [ Surrender Value Calculator] |
Maturity Benefit:
On completion of the policy term, Sum Assured + Bonus + Final Addition Bonus will be paid at maturity.
Death Benefit:
In case of death during policy term of the plan, Bonus up to the year of death & FAB along with Sum Assured will be paid as Death claim to Policy holder's nominee.
Let us understand the LIC Jeevan Plan better with the help of an example
We have Sumit Roy,, age 35 who wishes to buy this plan. He goes in for the plan with the following:
Sum Assured - Rs. 2,00,000
Term - 25 years. Based on this the premium payment term gets decided
Premium Payment Term - 16 years
Based on these parameters, his annual premium is Rs. 9,290 + Taxes = Rs. 9,708. Here we have assumed the current tax rate of 4.5%
Death Benefit
Scenario 1: If Arvind dies after 3 policy years - The nominee would get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
Total Premiums Paid = Rs 29,124
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 3 years i.e. (Rs. 40 x 200 x 3) = Rs. 24,000. Here we have assumed that every year a bonus of Rs. 40 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this.
Final Addition Bonus - Nil. Usually, Final addition bonus is declared after a much longer premium payment term.
So nominee will get Rs. 2,00,000 + Rs. 24,000 = Rs. 2,24,000
Scenario 2: If Sumit dies after 15 policy years - The nominee would get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
Total Premiums Paid = Rs 1,45,620
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 15 years i.e. (Rs. 40 x 200 x 15) = Rs. 1,20,000. Here we have assumed that every year a bonus of Rs. 40 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this.
Final Addition Bonus - Rs. 20 per 1,000 Sum Assured i.e. (Rs. 20 x 200) = Rs. 4,000. Here we have assumed a one time Final Addition Bonus of Rs. 20 per 1,000 Sum Assured. This is just an assumption and it may be higher or lower than this.
So his nominee will get Rs. 2,00,000 + Rs. 1,20,000 + Rs. 4,000 = Rs. 3,24,000
Maturity Benefit
Scenario 3: If Sumit survives till the end of the policy term of 25 years - Arvind will get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
Total Premiums Paid = Rs. 1,55,328
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 15 years i.e. (Rs. 40 x 200 x 25) = Rs. 2,00,000. Here we have assumed that every year a bonus of Rs. 40 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this.
Final Addition Bonus - Rs. 20 per 1,000 Sum Assured i.e. (Rs. 20 x 200) = Rs. 4,000. Here we have assumed a one time Final Addition Bonus of Rs. 20 per 1,000 Sum Assured. This is just an assumption and it may be higher or lower than this.
So Sumit will get Rs. 2,00,000 + Rs. 2,00,000 + Rs. 4,000 = Rs. 4,04,000
Sum Assured - Rs. 2,00,000
Term - 25 years. Based on this the premium payment term gets decided
Premium Payment Term - 16 years
Based on these parameters, his annual premium is Rs. 9,290 + Taxes = Rs. 9,708. Here we have assumed the current tax rate of 4.5%
Death Benefit
Scenario 1: If Arvind dies after 3 policy years - The nominee would get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
Total Premiums Paid = Rs 29,124
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 3 years i.e. (Rs. 40 x 200 x 3) = Rs. 24,000. Here we have assumed that every year a bonus of Rs. 40 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this.
Final Addition Bonus - Nil. Usually, Final addition bonus is declared after a much longer premium payment term.
So nominee will get Rs. 2,00,000 + Rs. 24,000 = Rs. 2,24,000
Scenario 2: If Sumit dies after 15 policy years - The nominee would get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
Total Premiums Paid = Rs 1,45,620
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 15 years i.e. (Rs. 40 x 200 x 15) = Rs. 1,20,000. Here we have assumed that every year a bonus of Rs. 40 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this.
Final Addition Bonus - Rs. 20 per 1,000 Sum Assured i.e. (Rs. 20 x 200) = Rs. 4,000. Here we have assumed a one time Final Addition Bonus of Rs. 20 per 1,000 Sum Assured. This is just an assumption and it may be higher or lower than this.
So his nominee will get Rs. 2,00,000 + Rs. 1,20,000 + Rs. 4,000 = Rs. 3,24,000
Maturity Benefit
Scenario 3: If Sumit survives till the end of the policy term of 25 years - Arvind will get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
Total Premiums Paid = Rs. 1,55,328
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Rs. 40 per 1,000 Sum Assured for 15 years i.e. (Rs. 40 x 200 x 25) = Rs. 2,00,000. Here we have assumed that every year a bonus of Rs. 40 per 1,000 Sum Assured is being declared every year. This is just an assumption and it may be higher or lower than this.
Final Addition Bonus - Rs. 20 per 1,000 Sum Assured i.e. (Rs. 20 x 200) = Rs. 4,000. Here we have assumed a one time Final Addition Bonus of Rs. 20 per 1,000 Sum Assured. This is just an assumption and it may be higher or lower than this.
So Sumit will get Rs. 2,00,000 + Rs. 2,00,000 + Rs. 4,000 = Rs. 4,04,000
Check the Bonus Rate of LIC Jeevan Labh Plan
CHECK HERE YOUR PREMIUM:
CHECK HERE YOUR MATURITY:
Surrender Value Factors applicable to the premiums paid:
| Policy Term | ||||
| 16 years | 21 years | 25 years | ||
| No. of years of premiums payment | 1 | 0.00% | 0.00% | 0.00% |
| 2 | 0.00% | 0.00% | 0.00% | |
| 3 | 30.00% | 30.00% | 30.00% | |
| 4 | 50.00% | 50.00% | 50.00% | |
| 5 | 50.00% | 50.00% | 50.00% | |
| 6 | 50.00% | 50.00% | 50.00% | |
| 7 | 50.00% | 50.00% | 50.00% | |
| 8 | 53.75% | 52.30% | 51.80% | |
| 9 | 57.50% | 54.60% | 53.50% | |
| 10 | 61.25% | 56.90% | 55.30% | |
| 11 | 65.00% | 59.20% | 57.10% | |
| 12 | 68.75% | 61.50% | 58.80% | |
| 13 | 72.50% | 63.80% | 60.60% | |
| 14 | 76.25% | 66.20% | 62.40% | |
| 15 | 80.00% | 68.50% | 64.10% | |
| 16 | 80.00% | 70.80% | 65.90% | |
| 17 | 73.10% | 67.60% | ||
| 18 | 75.40% | 69.40% | ||
| 19 | 77.70% | 71.20% | ||
| 20 | 80.00% | 72.90% | ||
| 21 | 80.00% | 74.70% | ||
| 22 | 76.50% | |||
| 23 | 78.20% | |||
| 24 | 80.00% | |||
| 25 | 80.00% | |||
The Bonus which accrued in the plan also gets a Surrender Value.
Surrender Value Factors for Bonus in the LIC Jeevan Labh Plan
| Policy Term | ||||
| 16 years | 21 years | 25 years | ||
| No. of years of premiums payment | 1 | 0.00% | 0.00% | 0.00% |
| 2 | 0.00% | 0.00% | 0.00% | |
| 3 | 17.58% | 15.93% | 15.28% | |
| 4 | 17.66% | 16.22% | 15.42% | |
| 5 | 17.85% | 16.58% | 15.55% | |
| 6 | 18.16% | 17.03% | 15.72% | |
| 7 | 18.60% | 17.58% | 15.93% | |
| 8 | 19.18% | 17.58% | 16.22% | |
| 9 | 19.93% | 17.66% | 16.58% | |
| 10 | 20.85% | 17.85% | 17.03% | |
| 11 | 21.99% | 18.16% | 17.58% | |
| 12 | 23.38% | 18.60% | 17.58% | |
| 13 | 25.05% | 19.18% | 17.66% | |
| 14 | 27.06% | 19.93% | 17.85% | |
| 15 | 30.00% | 20.85% | 18.16% | |
| 16 | 35.00% | 21.99% | 18.60% | |
| 17 | 23.38% | 19.18% | ||
| 18 | 25.05% | 19.18% | ||
| 19 | 27.06% | 20.85% | ||
| 20 | 30.00% | 21.99% | ||
| 21 | 35.00% | 23.38% | ||
| 22 | 25.05% | |||
| 23 | 27.06% | |||
| 24 | 30.00% | |||
| 25 | 35.00% | |||
Let us understand how this works with the help of an example:
Suppose Gurdeep has taken the Jeevan Labh plan with a cover of 5 lakhs and a policy term of 25 years. His Annual Premium was Rs. 21,000 + taxes. Each year, a bonus of Rs. 40 per 1,000 Sum Assured was declared. The bonus declared is an assumption to show how the surrender value is calculated.
He paid the premium for 7 years. Now due to a financial crunch, he decided to surrender the plan. This is the amount he will get on surrendering the plan.
Premium Paid so far = 7 x 21,000 = Rs. 1,47,000
Surrender Value Factor for premiums = 50% (marked in the blue in the 1st table)
Bonus received in the plan in 7 years = (40 x 5,00,000 / 1,000) x 7 = Rs. 1,40,000
The Guaranteed Surrender Value of the Jeevan Labh would be as follows:
Surrender Value of Premiums = Rs. 1,47,000 x 50% = Rs. 73,500
Surrender Value of Bonus = Rs. 1,40,000 x 15.93% = Rs. 22,302
So Gurpreet will get Rs. 73,500 + Rs. 22,302 = Rs. 95,802 if the plan is surrendered after 7 years.
This is the Guaranteed Surrender Value. A Special Surrender Value maybe paid by LIC - this value can only be known at the time of actual surrender.
He paid the premium for 7 years. Now due to a financial crunch, he decided to surrender the plan. This is the amount he will get on surrendering the plan.
Premium Paid so far = 7 x 21,000 = Rs. 1,47,000
Surrender Value Factor for premiums = 50% (marked in the blue in the 1st table)
Bonus received in the plan in 7 years = (40 x 5,00,000 / 1,000) x 7 = Rs. 1,40,000
The Guaranteed Surrender Value of the Jeevan Labh would be as follows:
Surrender Value of Premiums = Rs. 1,47,000 x 50% = Rs. 73,500
Surrender Value of Bonus = Rs. 1,40,000 x 15.93% = Rs. 22,302
So Gurpreet will get Rs. 73,500 + Rs. 22,302 = Rs. 95,802 if the plan is surrendered after 7 years.
This is the Guaranteed Surrender Value. A Special Surrender Value maybe paid by LIC - this value can only be known at the time of actual surrender.
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