Key Features at a Glance
3 Term/PPT Options — Which One to Choose?
PPT: 10 years
Premium-free: 6 years
PPT: 15 years
Premium-free: 6 years
PPT: 16 years
Premium-free: 9 years!
💡 Key advantage: In Option 3 (25/16), you pay for only 16 years but the policy runs for 25 years. That's 9 years of free coverage — no premiums, but life cover and bonus accrual continue. Bonus accrues for all 25 years, making the maturity amount significantly higher.
Worked Example — ₹10L SA, Age 25, Term 25/PPT 16
| Sum Assured | ₹10,00,000 |
| Entry Age | 25 years |
| Policy Term / PPT | 25 years / 16 years |
| Annual Premium (approx.) | ~₹60,000 |
| Total Premium (16 yrs) | ~₹9,60,000 |
| Sum Assured | ₹10,00,000 |
| Bonus (₹45 × 1000 × 25 yrs) | ~₹11,25,000 |
| FAB (approximate) | ~₹80,000 |
| Loyalty Addition (approx.) | ~₹50,000 |
| TOTAL MATURITY | ~₹22,55,000 |
*Approximate estimates. Bonus at ₹45/1000/yr for 25 years. Loyalty Addition amount is declared by LIC and may vary. Actual amounts depend on LIC's declared rates.
📊 The result: You invest approximately ₹9.6L over 16 years and receive approximately ₹22.6L at maturity — that's ~2.35x your investment. The 9 years of free bonus accrual significantly boost your returns.
Loyalty Addition — The Extra Bonus
Loyalty Addition is an extra bonus paid at maturity — on top of the regular bonus and FAB. It is unique to certain LIC plans including Jeevan Labh. The amount depends on LIC's investment performance and is declared at maturity. Think of it as a reward for staying with the policy till the end.
Most other endowment plans (714, 715) do NOT have Loyalty Addition — this is a key advantage of Jeevan Labh.
Labh vs Anand vs Endowment
- Want to stop paying early — limited PPT is the core benefit
- Children's future planning — buy at age 8, pay till 24
- Higher maturity seekers — Loyalty Addition boosts returns
- Long-term savings — 25-year option for maximum growth
- Need life cover after maturity — choose Jeevan Anand
- Budget below ₹2L SA — min SA is higher than other plans
- Want periodic payouts — choose Money Back plans
💡 Expert Tip (Haresh Hirapara): Jeevan Labh is my favourite LIC plan for pure maturity value. The combination of limited PPT + Loyalty Addition makes it one of the best-returning endowment plans. I especially recommend the 25/16 option — 9 years of free bonus accrual significantly boosts returns. For children, buy at age 8 with Term 25/PPT 16 — the child gets a large maturity at age 33, perfect for buying a house or starting a business. Consult a financial advisor for the right SA and term for your family.
🧮 Calculate Jeevan Labh Premium →
Frequently Asked Questions
This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. Premium, maturity, and Loyalty Addition amounts are approximate estimates based on publicly available information. Actual amounts depend on LIC's declared bonus and loyalty addition rates. For official rates, visit licindia.in.
This is not financial advice. Please consult a certified financial advisor before making insurance decisions.