Guide to LIC Jeevan Labh Plan 836 & Plan 936: Features, Returns, and Bonus Calculations
In the pantheon of life insurance and guaranteed savings instruments in India, LIC Jeevan Labh (Table No. 836 / 936) stands out as one of the most popular limited premium paying endowment plans ever introduced by the Life Insurance Corporation of India. Originally launched on 4th January 2016 as Table 836 and subsequently re-notified as Table 936 under revised IRDAI product regulations, this plan combines shorter premium paying durations with long-term compound participating reversionary bonuses and substantial Final Additional Bonuses (FAB).
Whether you hold an active policy under Table 836 or are planning a new wealth accumulation portfolio under Table 936, our LIC Jeevan Labh 836 Premium and Maturity Calculator enables precise actuarial calculations. It models all three policy term combinations (16-10, 21-15, 25-16), factors in high sum assured rebates, deducts first-year and renewal GST rates, calculates accidental rider additions, and projects your total tax-free maturity corpus under Section 10(10D) of the Income Tax Act.
Key Policy Parameters & Eligibility Criteria for Plan 836 / 936
The table below outlines the statutory eligibility requirements and tenure options available under LIC Jeevan Labh:
| Policy Parameter | Term: 16 Yrs (PPT: 10 Yrs) | Term: 21 Yrs (PPT: 15 Yrs) | Term: 25 Yrs (PPT: 16 Yrs) |
|---|---|---|---|
| Minimum Age at Entry | 8 Years (Completed) | 8 Years (Completed) | 8 Years (Completed) |
| Maximum Age at Entry | 59 Years (Nearer Birthday) | 54 Years (Nearer Birthday) | 50 Years (Nearer Birthday) |
| Maximum Maturity Age | 75 Years | 75 Years | 75 Years |
| Premium Paying Term (PPT) | 10 Years Only | 15 Years Only | 16 Years Only |
| Minimum Sum Assured | ₹2,00,000 | ₹2,00,000 | ₹2,00,000 |
| Maximum Sum Assured | No Limit (Multiples of ₹10k) | No Limit (Multiples of ₹10k) | No Limit (Multiples of ₹10k) |
| Declared Bonus Rate (Avg) | ₹40 / ₹1,000 SA / Year | ₹44 / ₹1,000 SA / Year | ₹46 / ₹1,000 SA / Year |
| Final Additional Bonus (FAB) | ₹20 – ₹25 / ₹1,000 SA | ₹75 – ₹100 / ₹1,000 SA | ₹200 – ₹450 / ₹1,000 SA |
The Mathematics of LIC Jeevan Labh Actuarial Calculations
The financial return of LIC Jeevan Labh is computed using classical participating actuarial valuation principles. The primary components include Tabular Net Premium, High Sum Assured Rebates, Frequency Rebates, Simple Reversionary Bonuses, and Final Additional Bonuses:
1. Maturity Benefit Calculation Formula
The total tax-free maturity payout payable at the end of the policy term is calculated as:
Where:
• Vested Bonus = $\text{Basic Sum Assured} \times \left(\frac{\text{Annual Bonus Rate}}{1000}\right) \times \text{Policy Term (Years)}$
• FAB = $\text{Basic Sum Assured} \times \left(\frac{\text{FAB Rate}}{1000}\right)$ (payable on maturity after $\ge 15$ years duration).
2. Annual Premium Computation Formula
Tabular premium is adjusted for mode discounts and high sum assured rebates before applying statutory GST:
3. Death Benefit Guarantee Formula
In the unfortunate event of the life assured's demise during the policy term, LIC pays the highest death sum assured to the nominee:
Where Sum Assured on Death is the highest of: 1) 7 times Annualized Premium; 2) 105% of all premiums paid till death; or 3) Basic Sum Assured. If the Accidental Death Benefit Rider (ADDB) is active, an additional 100% Sum Assured is paid immediately.
Rebates & Discount Structure under LIC Plan 836 / 936
LIC provides structured discounts for higher coverage amounts and annual payment frequencies:
| Basic Sum Assured Slab | Term 16 Yrs Rebate (per ₹1k SA) | Term 21 Yrs Rebate (per ₹1k SA) | Term 25 Yrs Rebate (per ₹1k SA) |
|---|---|---|---|
| ₹2,00,000 to ₹4,90,000 | Nil | Nil | Nil |
| ₹5,00,000 to ₹9,90,000 | ₹1.25 per ₹1,000 SA | ₹1.50 per ₹1,000 SA | ₹1.50 per ₹1,000 SA |
| ₹10,00,000 to ₹14,90,000 | ₹1.50 per ₹1,000 SA | ₹1.75 per ₹1,000 SA | ₹1.75 per ₹1,000 SA |
| ₹15,00,000 and Above | ₹1.75 per ₹1,000 SA | ₹2.00 per ₹1,000 SA | ₹2.00 per ₹1,000 SA |
Comprehensive Return Illustration: ₹10,00,000 Sum Assured across Terms
The table below projects the premium outgo, bonus accumulation, and final maturity corpus for a 30-year-old individual purchasing ₹10 Lakhs Sum Assured across all three policy terms:
| Illustration Parameter | Term 16 Yrs (Pay 10 Yrs) | Term 21 Yrs (Pay 15 Yrs) | Term 25 Yrs (Pay 16 Yrs) |
|---|---|---|---|
| Basic Sum Assured | ₹10,00,000 | ₹10,00,000 | ₹10,00,000 |
| Annual Premium (Yr 1 incl 4.5% GST) | ₹89,282 / yr | ₹56,419 / yr | ₹48,228 / yr |
| Annual Premium (Renewal incl 2.25% GST) | ₹87,361 / yr | ₹55,204 / yr | ₹47,189 / yr |
| Total Premium Outgo over PPT | ₹8,75,531 (over 10 yrs) | ₹8,29,275 (over 15 yrs) | ₹7,56,063 (over 16 yrs) |
| Accrued Simple Reversionary Bonus | ₹6,40,000 (@ ₹40/k/yr) | ₹9,24,000 (@ ₹44/k/yr) | ₹11,50,000 (@ ₹46/k/yr) |
| Final Additional Bonus (FAB) | ₹25,000 (@ ₹25/k) | ₹1,00,000 (@ ₹100/k) | ₹4,50,000 (@ ₹450/k) |
| TOTAL TAX-FREE MATURITY PAYOUT | ₹16,65,000 | ₹20,24,000 | ₹26,00,000 |
| Net Wealth Gain (Maturity − Premiums) | + ₹7,89,469 | + ₹11,94,725 | + ₹18,43,937 (3.4x Total Outgo!) |
Distinct Benefits & Features of LIC Jeevan Labh
1. Limited Premium Paying Flexibility
Unlike standard whole life or lifetime endowment policies where premiums are payable throughout the term, Jeevan Labh relieves policyholders from long-term liability. Paying for just 10, 15, or 16 years guarantees uninterrupted life insurance coverage for 16, 21, or 25 years respectively.
2. 100% Sovereign Guarantee
Under Section 37 of the Life Insurance Corporation Act 1956, all sum assured payouts, accrued bonuses, and maturity claims carry a 100% sovereign guarantee from the Government of India, offering absolute capital security unmatched by private insurers or mutual funds.
3. Comprehensive Optional Riders
- Accidental Death & Disability Benefit Rider (ADDB): In case of accidental death, an additional sum equal to the Basic Sum Assured is paid. In case of permanent disability, future premiums for the rider are waived and the rider sum assured is paid in monthly installments over 10 years.
- New Term Assurance Rider: Provides additional pure life cover at nominal cost.
- Critical Illness Rider: Provides lump sum coverage against 15 specified critical illnesses.
- Premium Waiver Benefit Rider (PWB): Essential when buying the policy for minor children. Upon the proposer's death, all future premiums are waived while the child receives the full maturity corpus at term end.
4. Liquidity: Policy Loan & Surrender Facility
Policyholders can avail loans against their Jeevan Labh policy after 2 consecutive years of premium payment. Loan limits are up to 90% of the surrender value for in-force policies and up to 80% for paid-up policies. The policy can also be surrendered after 2 years, receiving the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).
Case Studies: Financial Planning with Jeevan Labh 836
Case Study 1: Child Education & Higher Studies Fund (Term 21-15)
- Profile: Rajesh, Age 32, planning a college fund for his 3-year-old daughter.
- Selection: Policy Term 21 Years, PPT 15 Years, Basic Sum Assured ₹15,00,000.
- Premium: Pays approximately ₹82,800 annually for 15 years (Total Investment: ~₹12.4 Lakhs).
- Maturity at Daughter's Age 24: Basic SA (₹15L) + Bonus (₹13.86L) + FAB (₹1.5L) = ₹30,36,000 (Tax-Free Lump Sum).
- Protection: Throughout the 21 years, Rajesh's family has a life cover of ₹15 Lakhs to ₹30 Lakhs, ensuring her education is fully secured even in his absence.
Case Study 2: Retirement Wealth Building (Term 25-16)
- Profile: Sunita, Age 35, IT Professional in Hyderabad.
- Selection: Policy Term 25 Years, PPT 16 Years, Basic Sum Assured ₹25,00,000.
- Premium: Pays approximately ₹1,17,900 annually for 16 years (Total Investment: ~₹18.9 Lakhs).
- Maturity at Age 60: Basic SA (₹25L) + Bonus (₹28.75L) + FAB (₹11.25L) = ₹65,00,000 (₹65 Lakhs Tax-Free Retirement Corpus)!
Frequently Asked Questions (FAQs)
What is the difference between LIC Plan 836 and LIC Plan 936?
LIC Jeevan Labh was originally launched as Plan 836 in January 2016. In February 2020, following revised IRDAI product regulations, LIC re-notified the plan with minor modifications as Plan 936. The policy terms (16-10, 21-15, 25-16), bonus structure, and high return ratios remain virtually identical across both tables.
What are the three policy term options available in LIC Jeevan Labh 836?
LIC Jeevan Labh 836 offers three limited premium paying combinations: 1) Policy Term 16 Years with 10 Years Premium Paying Term (PPT); 2) Policy Term 21 Years with 15 Years PPT; and 3) Policy Term 25 Years with 16 Years PPT.
What is the declared bonus rate for LIC Jeevan Labh Plan 836 / 936?
As per LIC's latest actuarial valuation, the declared Simple Reversionary Bonus rates are: ₹40 per ₹1,000 Sum Assured per year for the 16-year term; ₹44 per ₹1,000 Sum Assured per year for the 21-year term; and ₹46 per ₹1,000 Sum Assured per year for the 25-year term.
What is Final Additional Bonus (FAB) and how is it calculated?
Final Additional Bonus (FAB) is a one-time loyalty bonus paid upon maturity or death for policies of 15 years or longer duration with a minimum Sum Assured of ₹2,00,000 (with substantial payouts for ₹5 Lakhs and above). For the 25-year term, FAB can add ₹200 to ₹450 per ₹1,000 Sum Assured to the maturity corpus.
Are LIC Jeevan Labh 836 maturity and death benefits tax-free?
Yes. Premiums paid qualify for annual income tax deduction up to ₹1.5 Lakhs under Section 80C. All maturity proceeds, survival bonuses, and death claim payouts are 100% tax-exempt under Section 10(10D) of the Income Tax Act.
Can I avail a policy loan on LIC Jeevan Labh Plan 836?
Yes. Policy loans can be availed after completing at least 2 full policy years with premium payment. You can borrow up to 90% of the surrender value for in-force policies and up to 80% for paid-up policies at competitive interest rates.
What happens if I stop paying premiums after 2 or 3 years?
If premiums have been paid for at least 2 consecutive years, the policy acquires a Paid-Up status. The Paid-Up Sum Assured is calculated proportionally as: (Number of Premiums Paid / Total Premiums Payable) × Basic Sum Assured. The policyholder or nominee receives this reduced sum along with accrued bonuses at maturity or death.
Can I choose to receive maturity proceeds in installments (Settlement Option)?
Yes. Under LIC's Settlement Option, you can choose to receive your maturity or death claim proceeds in monthly, quarterly, half-yearly, or annual installments over a chosen period of 5, 10, or 15 years, earning interest throughout the payout tenure.
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