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LIC Jeevan Labh 936 – Indepth analysis and maturity calculator

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LIC’s Jeevan Labh – Plan 936 (revised with effect from 01/02/2020) – All details with premium and maturity benefit calculators. The initial version of the Jeevan Labh plan having plan number 836 was revised with effect from 1st February and was renamed as Jeevan Labh 936. LIC’s Jeevan Labh (T 936) is an endowment type of plan with a shorter or limited premium payment period.  

One of the reasons behind the popularity of LIC’s Jeevan Labh (Plan 836) is the high maturity returns and low ‘total premium payment‘ compared to the Sum Assured. The plan becomes even more attractive with optional riders like Accident and Disability Benefit,  Additional Term Insurance, Critical Illness Rider Benefit, etc.

ConditionPlan 836
(Withdrawn on 31/01/2020)
Plan 936
Sum Assured on DeathHigher of basic Sum Assured or 10 times annualized premiumHigher of basic Sum Assured or 7 times annualized premium
RidersAD & D rider, Term Assurance Rider, Critical Illness RiderIn addition to all the existing riders of Plan 836, a) LIC’s Accident Benefit Rider b) LIC’s Premium waiver benefit rider allowed.
Settlement option on maturity and death benefitNot allowedAllowed
Revival Period2 Years5 Years
Surrender value Three year premium payment requiredOnly two year premium payment required
LoanAfter 3 year premium paymentafter 2 year premium payment
Grace periodOne calendar month but not less than 30 days(yearly, Half yearly and quarterly premium paying mode)30 days for (yearly, Half yearly and quarterly premium paying mode)

LIC's Jeevan Labh - 936 -Important points to remember

  • LIC’s Jeevan Labh (836) is an Endowment type of plan, where the maturity amount is given as a single lump sum amount after completion of the term.
  • Maturity amount of Jeevan Labh includes Sum Assured, Vested Bonus and Final Addition Bonus (if any).
  • Normal insurance coverage will be the sum of ‘Basic Sum Assured‘, plus the ‘Bonus Accrued‘ in the policy.
  • Loan facility shall be available after the completion of three years and on payment of three full years premium.

Jeevan Labh 936 - eligibility conditions, restrictions, and rebates.

LIC's Jeevan Labh plan - 936 How it works?

Jeevan Labh 936 - Benefits at a glance

The premium of the plan is determined based on three key factors

  1. Term of the policy (higher the term – lower the premium)
  2. Sum Assured (Higher the sum assured – higher the premium)
  3. Age of the policyholder ( The premium increases with the age at entry of the policy holder).
Jeevan Labh – Term and Premium Paying Term
Term/Period of policy –>25 Year21 Year16 Year
Premium Paying Term–>16 Year15 Year10 Years

The Term and Premium Paying Term for the plan can be selected as per your needs. Benefits such as insurance coverage, bonus, etc. shall be available throughout the term of the policy. But you need to pay the premium only for the limited premium period mentioned above.

LIC's Jeevan Labh 936 - Premium and benefit calculator

Jeevan Labh – premium and benefit Calculator is a powerful online calculator to provide a complete idea on premium, maturity and insurance coverage benefits, in a simple and user-friendly manner. Riders such as Critical Illness Benefit Rider (CIR), and Accident and Disability Benefit (DAB) has been incorporated into this calculator.

*Note: The latest bonus rates declared for Jeevan Labh 836 plan is used to show the approximate maturity benefit of the plan. Actual returns can vary based on the experiences of the corporation.

Jeevan labh 936 - Maturity Benefits

The maturity benefit of the LIC’s Jeevan Labh policy in various situations is explained here.

Fully paid policies

On completion of the policy term, Sum Assured along with vested bonus + Final Addition Bonus (if any) shall become payable provided all the premiums for premium paying term have been paid fully.

Premium has been paid for less than three years

For policies where at least 3 full year premiums are not paid, nothing will become payable as maturity benefit.
In other words, a lapsed Policy should have acquired paid-up status by paying at least 3 full years premium to become eligible for maturity benefit.

Lapsed policy, but the premium paid for more than three years

Such policies are called paid-up policies and shall be eligible for reduced benefits based on the paid-up value of the policy. Paid-up value can be calculated using the formula given below.

Paid-Up Value = Sum Assured * Number of premiums paid / No of premiums payable

  • Sum Assured = 10,00,000
  • Term /PPT = 25/16 (Term 25 Yrs and Premium payment 16 Yrs)
  • Premium Paid= 4.5 Years
  • Paid up value = 10,00,000*4.5/16= 2,81,250

He will be eligible for a maturity benefit which includes the paid up value of 2,81,250 and accrued bonus at the time of maturity.

Premium Vs Sum Assured

The total premium paid by the policyholder of the Jeevan Labh plan is considerably lower compared to the sum assured of the plan. A comparison of total premium paid and sum assured vs maturity benefit is provided below.

Insurance Coverage

Insurance benefits in the plan will commence immediately on the date of issuance of the policy. Death coverage available in the policy is the sum of “Sum Assured on death” the “vested simple reversionary bonus” and the Final Additional Bonus.

Sum assured on death is the higher of

  1. Basic Sum Assured
  2. 7 times the annualized premium
  3. 105 % of all the premiums paid as on date of death.

Jeevan labh 936 - Riders available

Accidental death and disability benefit rider

AD & D rider can be opted at the time of purchase or at any time within the premium paying term, provided, the outstanding premium paying term is at least 5 Years. As this rider is not available for a minor he can add this rider after attaining 18 years of age. Maximum sum assured under accident rider shall be one crore or Sum Assured of the policy whichever is lower.


An amount equal to AB Sum Assured is payable for death due to accident.

In case of accidental permanent disability, an amount equal to AB Sum Assured will be paid in equal installments spread over 10 years.


In case of accidental permanent disability, all future premiums will be waived off.

Accident benefit rider

AB rider can be opted at the time of purchase or at any policy anniversary thereafter, provided, the outstanding premium paying term is at least 5 Years. 

If this rider is opted for and the policyholder dies in an accident an amount equal to the AB Sum Assured is paid along with the death claim.

Term assurance rider

Term rider provides, “add-on coverage” over and above the sum assured of the policy, equal to the opted term rider sum assured. Maximum Term rider sum assured shall be less than 25 lakhs or sum assured, whichever is lower.

Critical Illness rider

On opting CIR rider, the policyholder gets a coverage equal to CIR Sum Assured for fifteen pre-specified critical illnesses. Read complete details of LIC’s Critical illness Rider with Critical Illness Rider (CIR) calculator. 

Critical illness rider shall be available during the entire policy term even if the premium paying term is shorter.

Premium waiver benefit rider

This rider is allowed only if the life assured is a minor. The rider term shall be the outstanding premium paying term.

In case of the unfortunate death of the proposer with whom the PWB has opted for, all the future premiums shall be waived.

LIC 's Jeevan Labh 936 - Surrender value

Jeevan Labh 936 - Paid up and surrender value

The policy can be surrendered any time before maturity provided at least two full-year premiums have been paid and the policy has acquired a paid-up value. It is advisable to consider the following facts before surrendering a policy.

  • You are losing valuable insurance coverage and that too taken at a lower premium as the policy was started several years ago.
  • Surrendering of the Jeevan Labh plan can bring in a loss as the surrender value can be lower, especially if the premium paid period is for a shorter period.
  • If your policy has lapsed and you are unable to revive your policy, a better option is to keep the policy as paid up and get the maturity amount after the end of the term. You will be eligible for an insurance coverage equal to the paid-up value and a full accrued bonus. Paid-up sum assured along with the vested bonus on the policy can be availed at the time of maturity.

Jeevan Labh 936 - Infogram

In order to understand the benefits of the plan, an info-gram is provided here. Bonus rates shown are as per the latest rates declared for plan number 836. In this example, the Sum Assured considered is 20 lakhs and Plan and term considered are 25/16. Download LIC Jeevan Labh Infogram shown below.

Bonus rates of Jeevan Labh Plan

Bonus rates for Jeevan Labh 936 have not been declared so far. As there is not much difference between 836 and 936 plans, the bonus rates for Jeevan Labh 836 is shown here.

LIC Jeevan Labh – Latest bonus rates
Term of PolicyPremium Paying TermSimple reversionary BonusFinal addition Bonus
16Years10 Years40 Per 1000 Sum Assured25 per 1000 SA (2.5% of SA)
21 Years15 Years44 Per 1000 Sum Assured100 per 1000 SA (10% of SA)
25 years16 Years47 per 1000 Sum Assured450 per 1000 SA (45% of SA)

Jeevan Labh - Internal rate of returns

Labh means ‘Profit’. And naturally, everyone will be curious to know how much rate of returns Jeevan Labh policy can offer. I have calculated the internal rate of returns of the Jeevan Labh plan based on current bonus rates.

LIC's Jeevan Labh 936 - Internal Rate of Returns IRR

Normal premium and premium after removing the risk premium was used to calculate the internal rate of returns separately. The term rider premium of Jeevan Labh was used to arrive at the risk premium of the plan.

Smart – All In One Calculator – Android app to calculate premium and benefits of all in-force policies.

If you need any clarifications or have any doubts, please feel free to use the comment section provided below.

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.