LIC Jeevan Labh Plan 736: Features, Returns & Benefits
Explore LIC Jeevan Labh Plan 736. Understand its maturity benefits, tax savings under 80C, premium terms, and how it secures your family’s financial future.
INSURANCE
Sundhari S Mahila Career Adviser – LIC Tindivanam
7/13/20269 min read
LIC Jeevan Labh Plan 736: A Complete Guide to Benefits, Features, and Returns
Introduction
When it comes to securing your family’s future, the right balance between protection and savings is crucial. Life is unpredictable, and as a breadwinner, ensuring your loved ones are financially protected in your absence is a top priority. LIC Jeevan Labh Plan 736 offers this balance.
LIC Jeevan Labh Plan 736 is a popular limited-premium-paying endowment plan offered by the Life Insurance Corporation of India (LIC). It provides life cover and a lump-sum maturity amount. Whether you are a salaried employee looking to save taxes or a parent planning for your child’s higher education, it can strengthen your financial portfolio.
This guide breaks down the policy, its benefits, eligibility, and its fit within Indian middle-class households.
(Note: While Plan 736 is a classic and highly searched legacy version of the Jeevan Labh series, LIC updates its plan numbers periodically—such as Plan 936. However, the core structure, benefits, and philosophy discussed here remain foundational to the Jeevan Labh family.
What is LIC Jeevan Labh Plan 736?
LIC Jeevan Labh Plan 736 is a non-linked, with-profits, limited premium-paying endowment plan. “Non-linked” means your money is not tied to the stock market, making it a safe avenue for your savings. “Limited premium-paying” means you do not have to pay premiums for the entire policy term. You pay for a specific number of years, and the policy continues to cover you until maturity.
Purpose of the policy: To provide financial aid to the family in case of the unfortunate demise of the policyholder, while also building a substantial corpus for the policyholder if they survive the policy term.
Type of plan: Traditional Endowment Life Insurance Plan.
Main features: Death benefit, Maturity benefit, Participation in profits (Bonuses), and Limited premium payment terms.
Who it's for: It's ideal for people who want guaranteed returns and life insurance protection without taking on the high risks of market-linked investments like ULIPs or mutual funds.
Key Features
Understanding the features of a policy helps you align it with your life goals. With that in mind, here is what makes the LIC Jeevan Labh Plan 736 stand out:
Life Cover: Provides financial protection for your family throughout the policy term, helping them remain financially secure in your absence.
Savings Element: Serves as a disciplined savings tool, helping you build a substantial corpus over time for future needs like marriage, education, or retirement.
Maturity Benefit: Provides a lump-sum payout to the policyholder on surviving the policy term.
Death Benefit: Provides a guaranteed payout to the nominee if the policyholder dies during the policy term.
Bonus Eligibility: As a “with-profits” plan, it earns Simple Reversionary Bonuses and, if applicable, a Final Additional Bonus, which can increase Limited Premium Payment: You pay premiums for a shorter period than the policy's coverage period.Policy cover period.
Tax Benefits: Premiums paid and returns received may qualify for tax benefits under government rules.
Riders: Optional add-on covers can be attached for enhanced protection against accidents and disabilities.
Surrender Value: The policy accrues a surrender value after premiums have been paid for at least 2 to 3 consecutive years (depending on the specific term conditions).
Revival Options: Lapsed policies can be revived within a specified period (usually 2 to 5 years from the date of the first unpaid premium) by paying arrears with interest.
Benefits of the Policy
Investing in life insurance is a long-term commitment. With that perspective, here is a clear breakdown of the benefits you will receive with this plan:
Financial Security for Loved Ones: The death benefit helps cover your family’s daily expenses, outstanding loans, and future milestones if you are no longer around.
Stress-free premium payments: Because it is a limited-premium plan, your financial burden ends earlier. For example, you might pay premiums for only 16 years but enjoy life cover for 25 years.
Wealth Creation Without Market Risk: Because the returns are not linked to the stock market, you are protected from market fluctuations.
Liquidity Through Loans: In financial emergencies, this plan offers a loan facility so you can access cash without affecting your long-term savings.
Customizable Coverage: With available riders, you can tailor the policy to cover risks most relevant to your lifestyle or occupation.
Eligibility Criteria
Before you decide to purchase, it is important to know if you qualify for the plan. The LIC Jeevan Labh policy term options dictate the age limits and premium-paying terms.
Premium Details
The flexibility in premium payments is highly convenient for middle-class families and salaried employees.
Premium Payment Options: You can choose to pay premiums yearly, Half-yearly, Quarterly, or Monthly (through NACH/ECS).
Grace Period: A 30-day grace period is allowed for yearly, half-yearly, and quarterly modes, and a 15-day grace period for monthly payments.
Factors Affecting Premium: Your age, chosen Sum Assured, policy term, and health condition at the time of purchase will determine your exact premium amount.
Rebates: LIC offers attractive rebates on premiums if you choose a higher Sum Assured (e.g., above ₹5,00,000) or if you opt for the yearly premium payment mode.
Policy Benefits Explained
To fully appreciate the value of this policy, it is important to look at how the core benefits are calculated and paid out. With that in mind, let us examine them more closely.
Death Benefit: If the policyholder dies during the policy term, the nominee receives the “Sum Assured on Death” along with accrued Simple Reversionary Bonuses and the Final Additional Bonus, if any. The “Sum Assured on Death” is typically the higher of 7 times the annualised premium or the absolute amount assured on death. This provides strong financial support.
Maturity Benefit: If the policyholder survives to the end of the policy term, LIC pays the Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus. This can create a substantial corpus, subject to applicable tax rules.
Bonus (Participation in Profits): LIC declares a bonus every financial year based on its valuation. The bonus accumulates in your policy and is paid at maturity or upon death.
Final Additional Bonus (FAB): For policies that have run for a long duration, usually 15 years or more, LIC may pay a one-time bonus upon maturity or death, increasing the final return.
Riders Available
To make your policy more comprehensive, you must understand the LIC Jeevan Labh riders and add-on covers. These are optional benefits you can buy for a small additional premium.
LIC’s Accidental Death and Disability Benefit Rider: If the policyholder dies in an accident, the nominee gets an additional Sum Assured. If permanent disability results from an accident, future premiums are waived, and the rider sum assured is paid in monthly instalments over 10 years.
LIC’s New Term Assurance Rider: This adds extra life cover. If the policyholder dies, the nominee receives an additional amount equal to the Term Rider Sum Assured.
LIC’s New Critical Illness Benefit Rider: On the first diagnosis of any of the 15 specified critical illnesses, a lump-sum amount is paid, helping the family manage heavy medical expenses.
Tax Benefits
One of the biggest reasons for the popularity of this plan is the LIC Jeevan Labh tax benefits under Section 80C.
Tax Exemption on Premiums: Premiums paid toward this policy are eligible for deduction under Section 80C of the Income Tax Act, up to ₹1.5 Lakhs per financial year.
Tax-Free Returns: The death benefit and the maturity amount you receive may be tax-free under Section 10(10D) of the Income Tax Act, provided the premium does not exceed 10% of the Sum Assured in any year.
(Disclaimer: Tax laws are subject to change. Always consult your financial advisor or tax expert for the most current rules.
How to Buy the Policy
Purchasing the policy is a simple process. To make it easier, here is how you can proceed.
Through an LIC Agent (Recommended): The best way to buy is by consulting a certified LIC agent who can assess your financial needs, explain the terms in your local language, and assist with the paperwork. You can connect with trusted advisors, such as Sundhari S at Nila Safe Life Solutions, for personalised assistance.
Documents Required: You will need basic KYC documents (Aadhaar Card, PAN Card), address proof, age proof, recent passport-size photographs, and income proof.
Medical Examination: Depending on your age and the Sum Assured chosen, LIC might require you to undergo a basic medical test to assess your health risk. For younger individuals with standard cover amounts, medical tests are often waived.
Real-Life Example and Maturity Calculation
Let’s look at a practical scenario using a conceptual LIC Jeevan Labh maturity calculator approach in India.
Customer Profile: Rahul, a 30-year-old salaried employee.
Goal: Saving for his newborn child’s higher education.
Policy Chosen: LIC Jeevan Labh Plan 736
Basic Sum Assured: ₹ 10,00,000
Policy Term: 21 Years
Premium Paying Term (PPT): 15 Years
Premium Payment: Rahul pays a yearly premium of approximately ₹54,000 (excluding taxes) for just 15 years.
Total Investment: Over 15 years, Rahul invests roughly ₹8,10,000.
Policy Wait Time: For the next 6 years (Years 16 to 21), Rahul pays nothing, but his life cover of ₹10,00,000+ continues.
Maturity Outcome: At age 51, when his child needs funds for college, Rahul receives his Basic Sum Assured (₹10,00,000) + Accrued Bonuses (approx. ₹9,87,000 based on historical rates) + Final Additional Bonus (approx. ₹1,00,000).
Total Estimated Maturity: Roughly ₹20,87,000 (Tax-Free).
Advantages and Limitations
When comparing LIC Jeevan Labh with other endowment plans, it is crucial to consider both sides of the coin to avoid investment mistakes (such as surrendering too early).
Who Should Buy This Policy?
This policy is incredibly versatile and suits various demographic profiles in India:
LIC Jeevan Labh for salaried employees: Employees who want a forced savings mechanism that automatically deducts from their monthly budget, offering them deep tax cuts under 80C.
LIC Jeevan Labh for family financial planning: Parents aiming to sync the maturity of the 21-year or 25-year term with their young children’s college admission or marriage expenses.
Young Professionals: Starting a 25-year term plan in your 20s can build a substantial corpus by the time you reach your late 40s, right when major life expenses peak.
Self-employed individuals: Businessmen who face income fluctuations appreciate the limited premium-paying term, as they can pay off their liabilities early.
Women and Homemakers: A secure, zero-risk instrument to build independent financial standing.
Important Points to Consider Before Buying
To make a fully informed decision, keep these functional rules in mind:
LIC Jeevan Labh surrender value rules: A policy acquires a guaranteed surrender value only if premiums have been paid for at least two consecutive years (for policies with terms less than 10 years, though Jeevan Labh’s minimum is 10 years PPT, so generally 2 to 3 years depending on the specific update). Surrendering a policy before maturity is one of the biggest investment mistakes because the penalty is heavy, and you will likely receive less than what you paid.
LIC Jeevan Labh loan facility explained: Once your policy acquires a surrender value, you can take a loan against it. The loan amount is usually up to 90% of the surrender value for in-force policies and 80% for paid-up policies. The interest rates are determined by LIC periodically.
Commitment is Key: Remember that endowment plans yield the best results when held until maturity due to compounding bonuses. Only opt for a premium amount that you can comfortably pay over the next 10 to 16 years.
Frequently Asked Questions
Is LIC Jeevan Labh linked to the share market?
No, it is a traditional, non-linked endowment plan. LIC guarantees your returns, and they are not subject to stock market volatility.
Can I stop paying premiums after a few years?
If you stop paying premiums after completing the minimum required years (usually 2 or 3), the policy becomes “paid-up.” Your life cover continues but at a reduced Sum Assured, and you will not accumulate future bonuses.
What happens if I miss my premium due date?
LIC provides a grace period (30 days for yearly/half-yearly/quarterly and 15 days for monthly). If you fail to pay within this period, the policy lapses. However, you can revive it within a specific revival period by paying the pending dues with interest.
Is it suitable for a 50-year-old?
Yes, a 50-year-old can opt for the 16-year policy term, with a maturity age of 66, which serves as a great retirement corpus.
Can I change my premium payment mode later?
Yes, LIC allows you to alter your premium payment frequency (e.g., from monthly to yearly) on policy anniversary dates.
Conclusion
The LIC Jeevan Labh Plan 736 is a popular choice among Indian households because it combines safety, savings, and life protection. Its limited premium-paying structure relieves you of lifelong financial burdens, while its steady bonus accumulation ensures a large, tax-free payout at the end. For salaried employees, business owners, and parents seeking disciplined, risk-free wealth creation, this endowment plan is a strong pillar of support. Your Family’s Financial Future Today
Choosing the right insurance plan requires understanding your family’s unique financial goals, current liabilities, and future aspirations. You do not have to navigate this journey alone.
Get expert, trustworthy, and transparent guidance tailored to your specific needs. From detailed maturity calculations to step-by-step application assistance and government scheme advisory, we are here to support you at every stage of your financial planning.
Reach out to a certified expert today:
Agent: Sundhari S
Designation: Mahila Career Advisor – LIC Tindivanam
Phone / WhatsApp: 9865822106
Website: Nila Safe Life Solutions
Disclaimer: The information provided in this article is for educational and informational purposes only. Insurance is a subject matter of solicitation. Readers are advised to consult with a certified financial advisor or LIC expert before purchasing insurance policies or making any financial investments.
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