What is Jeevan Labh?
LIC Jeevan Labh (Plan No. 736) is a participating, non-linked, limited premium paying endowment plan. The key advantage is that you pay premiums for fewer years than the policy term, but enjoy insurance coverage and bonus accumulation for the entire term. It also provides a Loyalty Addition at maturity — making it one of the best-returning LIC plans in terms of CAGR.
Key Features
- Limited Premium Paying Term (PPT): Pay premiums for only 10, 15, or 16 years while the policy covers you for 16, 21, or 25 years respectively. This significantly reduces your premium burden while maximizing returns.
- Bonus: Simple Reversionary Bonus at approximately ₹45 per ₹1,000 SA per year
- Loyalty Addition: An additional amount added at maturity for qualifying policies, boosting overall returns beyond just bonus
- Final Additional Bonus (FAB): One-time bonus at maturity for long-term policies
- Best CAGR: Due to limited PPT and loyalty addition, Jeevan Labh often gives the best compound annual growth rate among LIC endowment plans
- Tax Benefits: Premiums qualify for Section 80C deduction. Maturity proceeds tax-free under Section 10(10D) if premium ≤ 10% of SA
- Loan Facility: Loan available after policy acquires surrender value (3 years)
Limited PPT Options — Explained
Term 16 years → PPT 10 years — Pay for 10 years, covered for 16 years (6 premium-free years)
Term 21 years → PPT 15 years — Pay for 15 years, covered for 21 years (6 premium-free years)
Term 25 years → PPT 16 years — Pay for 16 years, covered for 25 years (9 premium-free years!)
The 25-year term with PPT 16 is particularly popular because you get 9 premium-free years — the longest gap between premium payment and maturity. This allows your money to compound longer, resulting in better overall returns.
Eligibility Criteria
- Minimum Entry Age: 8 years (completed)
- Maximum Entry Age: 59 years (nearest birthday) — varies by term
- Maximum Maturity Age: 75 years
- Minimum Sum Assured: ₹2,00,000
- Maximum Sum Assured: No upper limit
- Policy Term: 16, 21, or 25 years
- Premium Paying Term: 10, 15, or 16 years (fixed per term)
Maturity Benefit
Maturity = Sum Assured + Accrued Bonus + Final Additional Bonus (FAB) + Loyalty Addition
Example: For ₹10,00,000 SA, age 30, 25-year term (PPT 16):
- Sum Assured at maturity: ₹10,00,000
- Accrued Bonus (₹45 × 1000 × 25): ₹11,25,000
- Final Additional Bonus: ~₹2,85,000
- Loyalty Addition: ~₹1,50,000
- Total Estimated Maturity: ~₹25,60,000
You paid premiums for only 16 years but get maturity after 25 years — allowing 9 extra years of compounding!
Death Benefit
- During policy term: "Sum Assured on Death" + Accrued Bonus + FAB (if applicable). Sum Assured on Death = Higher of (10 × Annual Premium) or (1.25 × Basic SA) or (7 × Annual Premium)
- Minimum Death Benefit: 105% of total premiums paid up to the date of death
Premium Payment Modes
- Yearly: Base rate (no loading)
- Half-Yearly: ~51.3% of annual premium
- Quarterly: ~25.8% of annual premium
- Monthly (ECS/NACH): ~8.7% of annual premium
Sum Assured Rebates
- ₹2,00,000 to ₹4,99,999: Rebate of ₹1.50 per ₹1,000 SA
- ₹5,00,000 and above: Rebate of ₹2.00 per ₹1,000 SA
Jeevan Labh vs Other LIC Plans
- vs Jeevan Anand (715): Jeevan Labh offers better CAGR due to limited PPT and loyalty addition. But Jeevan Anand provides unique post-maturity life cover that Labh doesn't. Choose Labh for returns, Anand for lifelong protection.
- vs New Endowment (714): Both are endowment plans but Labh has limited PPT (pay fewer years) while Endowment has regular PPT (pay throughout). Labh gives better returns due to longer compounding period.
- vs Jeevan Lakshya (733): Both have limited PPT. Lakshya provides annual income benefit on death (10% SA/year), while Labh provides Loyalty Addition for better maturity returns. Lakshya is better for protection; Labh for savings.
Who Should Buy Jeevan Labh?
- People looking for the best returns among LIC plans
- Those who want to finish premium payments early and enjoy coverage for longer
- Investors who prefer guaranteed, safe returns over market-linked products
- People planning for long-term goals like children's education or retirement