LIC Jeevan Labh Plan (736)

LIC Jeevan Labh Plan (736) – Introduction

LIC’s Jeevan Labh (Plan No. 736) is a participating, non-linked, individual savings plan that offers an attractive combination of protection and savings. It is designed to provide financial security to the family in case of the unfortunate death of the policyholder, along with a lump sum benefit on maturity.

A key feature of this plan is its limited premium payment structure, where the premium paying term is significantly shorter than the overall policy term. The policyholder can choose the duration of protection as 16, 21, or 25 years, while premiums are paid for a much shorter period, making the plan easier to manage financially.

If the life assured survives the policy term, a lump sum maturity benefit consisting of the Basic Sum Assured along with accrued bonuses is payable. In case of death during the policy term, a death benefit is paid to the nominee, ensuring continued financial support for the family.

The plan also provides flexibility to choose the premium payment frequency, option to receive benefits in instalments, and the ability to enhance coverage through optional rider benefits. Additionally, it offers attractive High Sum Assured Rebates and liquidity support through a loan facility.

Eligibility – LIC Jeevan Labh Plan (736)

• Policy Term / Premium Paying Term: (16 / 10), (21 / 15) and (25 / 16) years
• Minimum Age at Entry: 8 years (completed)
• Maximum Age at Entry:
  • 59 years (nearer birthday) for Policy Term 16 years
  • 54 years (nearer birthday) for Policy Term 21 years
  • 50 years (nearer birthday) for Policy Term 25 years
• Maximum Maturity Age: 75 years (nearer birthday)
• Minimum Basic Sum Assured: ₹2,00,000
• Maximum Basic Sum Assured: No limit

Maturity Benefit

LIC Jeevan Labh (Plan 736) offers the advantage of limited premium payment with a longer policy term. If the policyholder survives till the end of the policy term and pays all due premiums, the Maturity Benefit is paid as a lump sum, consisting of: Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (if any).

For example, if a policyholder chooses a policy term of 25 years with a premium paying term of 16 years, premiums are payable only for the first 16 years, while the policy continues for the full 25 years. The maturity benefit is payable at the end of 25 years, even though premiums stop much earlier.

Death Benefit

In the event of the death of the Life Assured during the policy term, provided the policy is in force, the Death Benefit is payable to the nominee as a lump sum, consisting of: Sum Assured on Death + Accrued Simple Reversionary Bonuses + Final Additional Bonus (if any).

Optional Benefit Riders

A Rider is an optional add-on benefit that provides additional protection over and above the base policy benefits, in return for an extra premium. Riders enhance the scope of coverage but cannot be purchased separately; they are available only along with the main policy.

• Accidental Death and Disability Benefit Rider (AD & DB): Provides additional financial support in case of accidental death or permanent disability during the rider term.
• Accidental Benefit Rider: Pays an extra amount equal to the rider Sum Assured if death occurs due to an accident.
• New Term Assurance Rider: Provides an additional term insurance cover, increasing the overall life cover during the rider term.
• Premium Waiver Benefit (PWB) Rider: In case of the death of the proposer during the policy term, all future premiums of the base policy are waived while the policy continues with full benefits.

Surrender

The policy may be surrendered after completion of the minimum required premium payments. On surrender, the policyholder receives the Surrender Value as per LIC rules in force.

Loan

A loan can be availed under the policy once it acquires a surrender value. The loan amount is sanctioned as a percentage of the policy’s surrender value, subject to LIC norms.

Grace Period

A grace period of 30 days from the premium due date is allowed, during which the policy continues to remain in force.

Free Look Period

The policyholder is allowed a 15-day free look period from the date of receipt of the policy document to review the terms and conditions and return the policy if not satisfied.