LIC Jeevan Labh Calculator
Calculate Premium, Maturity Amount & Benefits for Plan 936
Policy Details
Calculation Results
LIC Jeevan Labh Plan 936: Comprehensive Overview
The LIC Jeevan Labh Calculator is an essential tool for understanding one of India's most popular endowment insurance plans. Life Insurance Corporation of India introduced the Jeevan Labh Plan 936 as a limited premium payment endowment plan that offers the perfect combination of insurance coverage and investment returns.
This comprehensive insurance solution allows policyholders to pay premiums for a limited period while enjoying life coverage until maturity. The LIC Jeevan Labh Calculator helps potential investors make informed decisions by providing accurate premium calculations, maturity projections, and benefit analysis.
Key Insight: Jeevan Labh 936 is designed for individuals who want guaranteed returns with limited premium payment terms, making it ideal for long-term financial planning.
The plan operates on the principle of limited premium payment, where you pay premiums for 10, 15, or 16 years depending on your chosen policy term, but receive life coverage for the entire policy duration. This unique feature makes the LIC Jeevan Labh Calculator particularly valuable for comparing different premium payment scenarios and their corresponding benefits.
What sets this plan apart is its dual benefit structure: it provides substantial life insurance coverage during the premium paying term and beyond, while also building a corpus through bonuses that enhance the maturity amount. The calculator helps visualize these benefits through detailed projections and interactive charts.
Key Features & Benefits of Jeevan Labh Plan 936
Limited Premium Payment
Pay premiums for only 10, 15, or 16 years while enjoying coverage till maturity
Guaranteed Maturity Benefits
Receive sum assured plus accumulated bonuses at maturity
Death Benefit Protection
Comprehensive life cover with bonus additions for nominees
Loan Facility Available
Borrow against your policy after acquiring surrender value
Bonus Participation
Earn simple reversionary and final additional bonuses
Tax Benefits
Enjoy tax deductions under Section 80C and 10(10D)
Flexible Payment Options
Choose from yearly, half-yearly, quarterly, or monthly premiums
Settlement Options
Receive maturity amount as lump sum or in installments
The LIC Jeevan Labh Calculator incorporates all these features to provide comprehensive benefit projections. Understanding these features is crucial for making informed investment decisions and maximizing the returns from your insurance investment.
One of the most significant advantages of using the LIC Jeevan Labh Calculator is its ability to demonstrate how the limited premium payment feature works. For instance, if you choose a 25-year policy term with 16 years of premium payment, you'll enjoy 9 years of free coverage while your investment continues to grow through bonus additions.
The calculator also helps you understand the impact of different policy terms on your overall returns. Longer policy terms generally result in higher bonus accumulations, as demonstrated through our interactive charts and detailed calculations. This feature is particularly useful when comparing this plan with other investment options available in the market.
Eligibility Criteria and Age Limits
Before using the LIC Jeevan Labh Calculator, it's essential to understand the eligibility requirements for Plan 936. These criteria ensure that the plan remains viable and beneficial for all stakeholders involved.
Age and Term Requirements
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age | 8 years | 59 years |
| Maturity Age | 18 years | 75 years |
| Policy Term | 16 years | 25 years |
| Premium Paying Term | 10 years | 16 years |
| Sum Assured | ₹1,00,000 | No limit |
The LIC Jeevan Labh Calculator automatically validates these eligibility criteria to ensure accurate calculations. The wide age range from 8 to 59 years makes this plan suitable for various life stages, from parents planning for their children's future to individuals approaching retirement.
It's important to note that the combination of entry age and policy term determines the maturity age, which cannot exceed 75 years. Our calculator incorporates this logic to prevent invalid combinations and guide users toward suitable options. For example, a 55-year-old person can choose a maximum policy term of 20 years to ensure maturity before age 75.
Important: Medical examination requirements may vary based on age and sum assured. Higher sum assured amounts typically require more comprehensive medical tests.
The flexibility in premium paying terms is a standout feature that the LIC Jeevan Labh Calculator helps optimize. You can choose to pay premiums for 10 years with a 16-year policy term, giving you 6 years of free coverage, or opt for longer premium paying terms for potentially higher bonuses.
Maturity Benefits and Calculation Formula
The maturity benefit is the most significant advantage of the LIC Jeevan Labh Calculator, as it shows the total amount you'll receive when your policy matures. Understanding this calculation helps you evaluate the plan's effectiveness as an investment vehicle.
Maturity Benefit Formula
Maturity Amount = Sum Assured + Simple Reversionary Bonus + Final Additional Bonus
Components of Maturity Benefit
1. Basic Sum Assured
This is the guaranteed amount you selected when purchasing the policy. The LIC Jeevan Labh Calculator uses this as the foundation for all benefit calculations. This amount is guaranteed and will be paid regardless of the company's financial performance.
2. Simple Reversionary Bonus
This bonus is declared annually by LIC and is calculated as a percentage of the sum assured. Current bonus rates for Jeevan Labh 936 typically range from ₹40-45 per ₹1,000 sum assured. The calculator uses current bonus rates to project future accumulations, though actual rates may vary.
Example Calculation:
Sum Assured: ₹5,00,000
Bonus Rate: ₹42 per ₹1,000
Policy Term: 21 years
Total Bonus = (500 × 42 × 21) = ₹4,41,000
3. Final Additional Bonus (FAB)
This is a terminal bonus declared at the time of claim settlement. It typically ranges from ₹10-20 per ₹1,000 sum assured for policies that have completed their full term. The LIC Jeevan Labh Calculator includes an estimated FAB based on historical trends, though the actual amount depends on LIC's performance at the time of maturity.
Settlement Options
The LIC Jeevan Labh Calculator also helps you understand the different ways you can receive your maturity benefit:
Lump Sum Payment
Receive the entire maturity amount in one go. This is the default option and most commonly chosen by policyholders.
Settlement Option
Receive payments in installments over 5, 10, or 15 years. This option provides guaranteed income post-maturity.
When using the settlement option, LIC provides an additional guaranteed return on the money held with them. The calculator can help you compare the benefits of lump sum versus installment payments based on your financial needs and goals.
For comprehensive financial planning, consider using our retirement savings calculator to see how the maturity benefits from Jeevan Labh can contribute to your overall retirement corpus.
Death Benefits and Coverage Details
The death benefit feature is a crucial component that the LIC Jeevan Labh Calculator helps analyze. This plan provides comprehensive life coverage that extends beyond the premium paying term, offering financial security to your family throughout the policy duration.
Death Benefit Calculation
Death Benefit = Sum Assured + Vested Bonus + Final Additional Bonus (if applicable)
The LIC Jeevan Labh Calculator incorporates different scenarios for death benefit calculations based on when the unfortunate event occurs during the policy term. This comprehensive coverage ensures that your nominees receive substantial financial support regardless of when the claim arises.
Coverage Scenarios
Death During Premium Paying Term
If death occurs while premiums are still being paid, the nominee receives the full sum assured plus all vested bonuses accumulated up to that point. The calculator shows year-wise death benefit amounts, which increase annually due to bonus additions.
Example: For a ₹5,00,000 policy in the 8th year with accumulated bonus of ₹1,68,000, the death benefit would be ₹6,68,000.
Death After Premium Paying Term
Even after you stop paying premiums, the life coverage continues until maturity. The death benefit during this period includes the sum assured plus all accumulated bonuses, providing extended protection without additional premium payments.
Post-Maturity Death Benefit
If the policyholder survives to maturity and receives the maturity benefit, a unique feature of Jeevan Labh is that it continues to provide life coverage equal to the original sum assured for the rest of the policyholder's life, without any additional premium.
Additional Death Benefits
The LIC Jeevan Labh Calculator also accounts for optional riders that can enhance the death benefit coverage:
Accidental Death Benefit Rider
Provides additional coverage in case of death due to accident, typically equal to the sum assured amount.
Disability Benefit Rider
Waives future premiums in case of permanent disability while keeping the policy active.
Important: The death benefit is always higher than the premiums paid, ensuring that your family receives meaningful financial support regardless of when the claim occurs.
This comprehensive death benefit structure makes the LIC Jeevan Labh Calculator an excellent tool for family financial planning. The extended coverage feature ensures that your investment continues to provide value even after you've stopped paying premiums, making it superior to many other investment options in terms of insurance coverage.
Understanding the Bonus System
The bonus system is the heart of wealth creation in the LIC Jeevan Labh Calculator. Understanding how bonuses work and accumulate over time is crucial for appreciating the true value of this insurance plan and making informed investment decisions.
Types of Bonuses in Jeevan Labh
Simple Reversionary Bonus
This is the primary bonus component that the LIC Jeevan Labh Calculator uses for projections. It's declared annually by LIC and added to your policy account. The bonus rate is expressed as rupees per thousand sum assured.
Historical Bonus Rates for Jeevan Labh 936:
16-year term: ₹40 per ₹1,000
21-year term: ₹44 per ₹1,000
25-year term: ₹48 per ₹1,000
Final Additional Bonus (FAB)
This terminal bonus is declared at the time of claim settlement for policies that have completed their full term. The LIC Jeevan Labh Calculator estimates this bonus based on historical trends and current performance indicators.
FAB Calculation Factors:
- • Policy term completion
- • LIC's financial performance
- • Investment returns achieved
- • Mortality experience
- • Expense management efficiency
Bonus Accumulation Process
The LIC Jeevan Labh Calculator demonstrates how bonuses accumulate over the policy term. Unlike compound interest where the interest earns interest, simple reversionary bonuses are added to the policy annually but don't earn additional bonuses themselves.
Sample Bonus Accumulation (₹5,00,000 Sum Assured, 21-year term)
| Year | Annual Bonus | Cumulative Bonus | Total Coverage |
|---|---|---|---|
| 1 | ₹22,000 | ₹22,000 | ₹5,22,000 |
| 5 | ₹22,000 | ₹1,10,000 | ₹6,10,000 |
| 10 | ₹22,000 | ₹2,20,000 | ₹7,20,000 |
| 15 | ₹22,000 | ₹3,30,000 | ₹8,30,000 |
| 21 | ₹22,000 | ₹4,62,000 | ₹9,62,000 |
Factors Affecting Bonus Rates
The LIC Jeevan Labh Calculator uses current bonus rates, but it's important to understand the factors that influence these rates:
Investment Performance
Returns from LIC's investment portfolio directly impact bonus declarations
Mortality Experience
Better than expected mortality rates contribute to higher bonuses
Expense Management
Efficient operations and controlled expenses allow for better bonuses
Regulatory Requirements
Solvency margins and regulatory compliance affect bonus distribution
Pro Tip: While bonus rates may fluctuate, LIC's track record shows consistent bonus declarations for with-profit plans like Jeevan Labh, making it a reliable long-term investment option.
The bonus system makes the LIC Jeevan Labh Calculator particularly valuable for long-term financial planning. The combination of guaranteed sum assured and participating bonuses provides a balanced approach to wealth creation while maintaining the security of life insurance coverage.
Tax Benefits and Savings
One of the significant advantages of using the LIC Jeevan Labh Calculator is understanding the substantial tax benefits this plan offers. These tax advantages can significantly improve your effective returns and reduce your overall tax liability.
Tax Benefits Under Section 80C
The premiums paid for Jeevan Labh Plan 936 qualify for tax deduction under Section 80C of the Income Tax Act. The LIC Jeevan Labh Calculator can help you optimize these deductions as part of your overall tax planning strategy.
Section 80C Benefits
Maximum Deduction
₹1,50,000
Per financial year for all 80C investments combined
Tax Savings (30% bracket)
₹46,800
Annual tax savings for highest tax bracket
Tax Benefits Under Section 10(10D)
The maturity proceeds and death benefits from Jeevan Labh are generally tax-free under Section 10(10D), subject to certain conditions. The LIC Jeevan Labh Calculator factors in these tax-free benefits when calculating your effective returns.
Tax-Free Maturity Benefits
The entire maturity amount (sum assured + bonuses) is tax-free if the annual premium doesn't exceed 10% of the sum assured. For most Jeevan Labh policies, this condition is easily satisfied.
Tax-Free Death Benefits
Death benefits paid to nominees are completely tax-free regardless of the amount, providing financial security without tax complications for your family.
Effective Tax Savings Calculation
Here's how the LIC Jeevan Labh Calculator helps you understand the true value of tax benefits:
Sample Tax Benefit Calculation
| Parameter | Amount | Tax Impact |
|---|---|---|
| Annual Premium | ₹50,000 | Deductible under 80C |
| Tax Savings (30% bracket) | ₹15,000 | Annual savings |
| Effective Premium Cost | ₹35,000 | After tax benefits |
| Maturity Proceeds | ₹12,00,000 | Completely tax-free |
Additional Tax Considerations
Benefits
- • No TDS on maturity proceeds
- • No wealth tax implications
- • Loan interest may be tax-deductible
- • No capital gains tax on surrender
Important Notes
- • Premium must not exceed 10% of SA
- • Benefits subject to tax law changes
- • Consult tax advisor for complex cases
- • Different rules for NRI policyholders
The tax efficiency of Jeevan Labh makes the LIC Jeevan Labh Calculator an excellent tool for holistic financial planning. When combined with other tax-saving instruments, it can significantly reduce your overall tax burden while building long-term wealth. For comprehensive tax planning, consider using our income tax calculator to see how Jeevan Labh premiums fit into your overall tax strategy.
How to Use the LIC Jeevan Labh Calculator
Using the LIC Jeevan Labh Calculator effectively requires understanding each input parameter and how it affects your policy benefits. This comprehensive guide will help you make the most of this powerful financial planning tool.
Step-by-Step Usage Guide
Enter Your Age at Entry
Input your current age (8-59 years). This is crucial as it determines premium rates and policy term options. Younger ages generally result in lower premiums but longer commitment periods.
Tip: Starting early can save thousands in premiums over the policy term.
Select Sum Assured Amount
Choose your desired coverage amount (minimum ₹1,00,000). This forms the base for premium calculation and bonus computation. The LIC Jeevan Labh Calculator will show how different amounts affect your premiums and benefits.
Formula: Higher sum assured = Higher premiums but proportionally higher bonuses
Choose Premium Paying Term
Select from 10, 15, or 16 years. Shorter terms mean higher annual premiums but quicker completion of payment obligations. The calculator will show the trade-offs between different options.
Select Policy Term
Choose from 16, 21, or 25 years. Longer terms generally provide better bonus rates and higher overall returns, as demonstrated by the calculator's projections.
Analyze Results
Review the comprehensive results including premiums, bonuses, maturity amount, and tax benefits. Use the interactive charts to visualize your investment growth over time.
Optimizing Your Calculations
To get the most accurate results from the LIC Jeevan Labh Calculator, consider these optimization strategies:
Compare Multiple Scenarios
Try different combinations of age, sum assured, and terms to find the optimal mix for your financial goals and budget constraints.
Consider Cash Flow
Ensure the premium amount fits comfortably in your monthly budget, leaving room for other essential expenses and investments.
Factor in Inflation
Consider how inflation might affect the real value of your maturity proceeds and adjust your sum assured accordingly.
Review Regularly
Use the calculator periodically to reassess your insurance needs as your income and family situation change.
Understanding Calculator Limitations
While the LIC Jeevan Labh Calculator provides accurate estimates, it's important to understand its limitations:
- Bonus rates are projections based on current rates and may vary in the future
- Actual premiums may differ based on medical examination and underwriting
- Tax benefits are subject to current tax laws and may change
- Final Additional Bonus is not guaranteed and depends on LIC's performance
Despite these limitations, the LIC Jeevan Labh Calculator remains an excellent tool for initial planning and comparison. Always consult with a qualified insurance advisor or LIC agent for final policy selection and to clarify any specific conditions that may apply to your situation.
For additional financial planning tools that complement your Jeevan Labh investment, explore our SIP calculator to see how you can diversify your investment portfolio alongside your insurance plan.
Frequently Asked Questions
What is LIC Jeevan Labh Plan 936?
LIC Jeevan Labh Plan 936 is a limited premium payment endowment plan that offers life insurance coverage with investment benefits. You pay premiums for a limited period (10, 15, or 16 years) but get coverage until maturity (16, 21, or 25 years). The LIC Jeevan Labh Calculator helps you understand the premium requirements and maturity benefits of this plan.
How accurate is the LIC Jeevan Labh Calculator?
The calculator provides highly accurate estimates based on current premium rates and bonus structures. However, actual values may vary due to medical examination results, underwriting decisions, and future bonus declarations. The tool uses the most recent available data to ensure realistic projections for your financial planning.
What happens if I stop paying premiums early?
If you stop paying premiums after completing at least 3 policy years, your policy acquires a surrender value. You can either surrender the policy for immediate cash or continue it as a paid-up policy with reduced benefits. The LIC Jeevan Labh Calculator can help you understand the implications of early discontinuation.
Are the bonuses guaranteed?
Simple Reversionary Bonuses, once declared and added to your policy, become guaranteed. However, future bonus rates are not guaranteed and depend on LIC's financial performance. The Final Additional Bonus is discretionary and declared only at the time of claim settlement. The calculator uses current rates for projections.
Can I take a loan against my Jeevan Labh policy?
Yes, you can take a loan against your policy after it acquires surrender value (typically after 3 years). The loan amount can be up to 90% of the surrender value. Interest is charged on the outstanding loan amount, and the policy remains active as long as the loan doesn't exceed the surrender value.
What tax benefits does Jeevan Labh offer?
Jeevan Labh premiums are eligible for tax deduction up to ₹1,50,000 under Section 80C. The maturity proceeds and death benefits are tax-free under Section 10(10D), provided the annual premium doesn't exceed 10% of the sum assured. The LIC Jeevan Labh Calculator factors in these tax benefits when showing effective returns.
How does the limited premium payment feature work?
You pay premiums only for the selected premium paying term (10, 15, or 16 years), but the life insurance coverage continues until the policy matures. During the premium-free years, your policy continues to earn bonuses and provides full death benefit protection without any additional payments from your side.
Can I increase my sum assured later?
You cannot increase the sum assured of an existing Jeevan Labh policy. However, you can purchase additional policies if you need more coverage. It's important to use the LIC Jeevan Labh Calculator to determine adequate coverage from the beginning to avoid this situation.
What happens to the policy after maturity?
At maturity, you receive the sum assured plus accumulated bonuses. Additionally, Jeevan Labh provides continued life coverage equal to the original sum assured for the rest of your life without any additional premium payments. This makes it unique among endowment plans.
Is medical examination required for all ages?
Medical examination requirements depend on your age and the sum assured amount. Generally, basic medical tests are required for higher ages and sum assured amounts. Young applicants with lower sum assured may only need to fill a health declaration. The exact requirements will be determined during the application process.
