LIC New Jeevan Labh Plan 736 – LIC Jeevan Labh has long been the cornerstone of Life Insurance Corporation of India’s (LIC)
offerings, known for providing a unique blend of high insurance cover with relatively low premiums. With IRDAI’s recent master circular,
the plan has been revised and its plan number has been changed to 736, which was earlier known as Plan No. 936.
This policy is widely considered to be one of the most popular and best-selling plans, comprising almost 50% to 60% of LIC entire portfolio.
In this article, we will explore all the key features, benefits, and modifications of LIC Jeevan Labh Plan 736 in detail.
Key Features
Combination of Savings and Protection:
- Offers financial security to the family in case of the policyholder's demise during the term.
- Provides a lump sum amount on maturity for wealth creation.
Limited Premium Payment Term:
- Premiums are paid for a limited period, but the benefits continue throughout the policy term.
- Premium payment terms: 10, 15, or 16 years based on the chosen policy term.
Flexibility in Policy Term:
- Policy terms available: 16, 21, or 25 years.
Death Benefit:
- In case of the policyholder’s demise during the policy term, the nominee receives a lump sum amount.
Maturity Benefit:
- Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus (if any).
Loan Facility:
- Loans can be availed against the policy after it acquires a surrender value.
Tax Benefits:
- Premiums paid and maturity proceeds are eligible for tax benefits under Section 80C and 10(10D) of the Income Tax Act.
Optional Riders:
- Accidental Death and Disability Benefit Rider.
- New Term Assurance Rider.
Benefits
Death Benefit
- Sum Assured on Death + Simple Reversionary Bonuses + Final Additional Bonus (if any) is paid to the nominee.
- Sum Assured on Death = Higher of:- 7 times of Annualized Premium
- The death benefit will be at least 105% of the total premiums paid up to the date of death.
Maturity Benefit
- On survival till the end of the policy term:
- Basic Sum Assured + accrued Simple Reversionary Bonuses + Final Additional Bonus (if any) is paid to the policyholder.
- The policy participates in the profits of LIC and earns Simple Reversionary Bonuses during the policy term.
- A Final Additional Bonus (FAB) may also be declared upon maturity or death.
- Loan up to 90% of the surrender value (for paid-up policies) and 80% (for in-force policies).
- Guaranteed Surrender Value: Available after 2 full years’ premiums are paid.
- Special Surrender Value: May be higher than the guaranteed value and depends on the policy duration.
