What is the policy term and PPT structure for LIC Jeevan Labh Plan 936?

LIC Jeevan Labh (Plan 936) is a limited premium paying policy with three rigid term-to-PPT configurations: a 16-year policy term requires paying premiums for 10 years; a 21-year policy term requires paying for 15 years; and a 25-year policy term requires paying for 16 years. During the remaining gap years, you pay nothing but your policy continues to accrue bonuses.

What is the minimum and maximum Sum Assured under Jeevan Labh Plan 936?

The minimum basic Sum Assured is strictly ₹2,00,000 to purchase the policy. There is no maximum limit on the Sum Assured, allowing you to choose high coverage slabs which also qualify for premium discounts (rebates) up to ₹1.75 per thousand SA.

Is the maturity payout from LIC Plan 936 completely tax-free?

Yes. The maturity proceeds consisting of the Sum Assured, vested reversionary bonuses, and Final Additional Bonus are 100% tax-free under Section 10(10D) of the Income Tax Act, provided the annual premium is less than 10% of the basic Sum Assured.

What are the entry age requirements for LIC Jeevan Labh?

The minimum entry age for all terms is 8 years completed. The maximum entry age varies based on the term chosen: 59 years for a 16-year term, 54 years for a 21-year term, and 50 years for a 25-year term.

Does Plan 936 offer accidental risk protection?

Yes, policyholders can attach the Accidental Death and Disability Benefit (AD&DB) Rider by paying a nominal extra premium. In the event of accidental permanent demise during the policy term, the nominee receives an additional sum assured equal to the basic Sum Assured, effectively doubling the risk cover payout.

LIC Plan 936 Calculator: limited PPT Jeevan Labh Premium & Maturity

Understanding LIC Plan 936 (Jeevan Labh): The Limited Premium Savings framework

The LIC New Jeevan Labh Plan (Plan 936) stands as one of the most popular, high-yielding, limited premium paying traditional savings policies designed by the Life Insurance Corporation (LIC) of India. Tailored strictly to combine secure wealth building with powerful, multi-layered risk cover protection, Plan 936 (formerly Table 836) is highly favored by parents, corporate professionals, and conservative savers. Unlike standard endowment policies where premiums are payable throughout the entire policy term, Jeevan Labh features a shortened premium payment term (PPT), allowing investors to enjoy complete bonus growth for up to 25 years while paying premiums for only 10, 15, or 16 years.

As a traditional participating policy, Plan 936 distributes LIC's valuation profits in the form of annually declared Simple Reversionary Bonuses and a substantial Final Additional Bonus (FAB) paid at contract completion. By limiting regular premium liability years, Jeevan Labh provides massive financial leverage, generating exceptionally high compound yields compared to total premiums paid, while sheltering the final corpus under strict tax-exemption structures.

Rigid Policy Terms & Premium Paying Term (PPT) Combinations

LIC Plan 936 operates strictly under three defined configurations. Proposers cannot customize other terms, ensuring maximum compounding efficiencies:

Policy Term (PT)	Premium Paying Term (PPT)	Minimum Entry Age	Maximum Entry Age	Maximum Maturity Age
16 Years	10 Years	8 Years (Completed)	59 Years	75 Years
21 Years	15 Years	8 Years (Completed)	54 Years	75 Years
25 Years	16 Years	8 Years (Completed)	50 Years	75 Years

Tabular High Sum Assured Rebates (Premium Discounts)

LIC rewards savers opting for higher coverage layers by offering structured discounts on the basic premium rate per ₹1,000 Sum Assured. The rebates are applied directly as rate reductions:

Sum Assured ₹2,00,000 to ₹4,90,000: Nil rebate.
Sum Assured ₹5,00,000 to ₹9,90,000: ₹1.25 discount per ₹1,000 Sum Assured on tabular premiums.
Sum Assured ₹10,00,000 to ₹14,90,000: ₹1.50 discount per ₹1,000 Sum Assured on tabular premiums.
Sum Assured ₹15,00,000 and above: ₹1.75 discount per ₹1,000 Sum Assured on tabular premiums.

Opting for higher Sum Assured slabs comfortably lowers your baseline premium cost, maximizing the compound yield efficiency of your saved capital.

Core Actuarial Mathematics of Plan 936

The financial illustration projections under LIC Plan 936 are computed using three main components: Basic Sum Assured, vested reversionary bonuses, and Final Additional Bonus.

Vested Reversionary Bonus: Declared annually by LIC following its actuarial valuation. Vested bonuses accumulate in the policy every year. Our calculator models conservative standard metrics: ₹40 per ₹1,000 SA per year for 16-year term, ₹44 for 21-year term, and ₹47 for 25-year term.
Formula: Annual Bonus = (Basic Sum Assured × Bonus Rate ÷ 1000)
Final Additional Bonus (FAB): A one-time participating loyalty dividend rewarded upon maturity. For Plan 936, FAB scales significantly for policies active for 15+ years and SA sizes ₹2 Lakh and above.
Formula: FAB Amount = (Basic Sum Assured × FAB Rate ÷ 1000)
Tax Application (GST): The government levies GST on the premium portion. The GST rate is 4.5% in the 1st policy year, and drops to 2.25% in all renewal paying years, making renewal premiums slightly cheaper.

Survival Maturity & Death Benefit Formulas

The payout structures under Jeevan Labh are highly secure, determined by the following actuarial formulas:

Maturity Benefit (Survival Payout): Payable upon surviving the complete policy term, provided all premiums are fully paid.
Maturity Payout = Basic Sum Assured + Vested Reversionary Bonuses + Final Additional Bonus (FAB)
Death Benefit (Risk Payout): In the unfortunate event of the policyholder's demise during the term:
Death Payout = Sum Assured on Death + Accrued Reversionary Bonuses + Final Additional Bonus (FAB)
*Sum Assured on Death is defined as the higher of the Basic Sum Assured or 7 times the annualized premium.
Accidental Death & Disability Benefit (AD&DB) Rider: If the policyholder has opted for this rider and passes away in an accident, the nominee receives an additional Sum Assured equal to the basic Sum Assured, effectively doubling the core cover payout.

Tax Exemptions: Section 80C & Section 10(10D) Security

LIC Jeevan Labh (Plan 936) provides massive dual tax benefits under the Income Tax Act, 1961:

Premium Deductions (Section 80C): Premiums paid towards the policy are fully deductible from your taxable income up to a maximum limit of ₹1,50,000 per financial year.
100% Tax-Free Payouts (Section 10(10D)): The complete final maturity corpus—including the Sum Assured, vested reversionary bonuses, and FAB—is completely exempt from Income Tax at receipt, provided the annual premium is less than 10% of the Sum Assured.

⚖️ Professional Actuarial Disclaimer: Projections, premium valuations, and bonus simulations shown by this online tool are illustrative in nature and based on standard historical bonus trends declared by the Life Insurance Corporation (LIC) for Plan 936. Reversionary bonuses and Final Additional Bonuses (FAB) are declared annually at each fiscal year-end by LIC of India based on valuation profits. BimaCalculator.com is an independent platform and has no legal affiliation with LIC of India. Please consult a licensed insurance advisor before purchasing.

LIC Jeevan Labh Plan 936 - Frequently Asked Questions

Q1: What is the Limited PPT structure under Plan 936?

Jeevan Labh features three rigid combinations: a 16-year term has a 10-year premium term; a 21-year term has a 15-year premium term; and a 25-year term has a 16-year premium term. You pay nothing during the remaining gap years.

Q2: What is the minimum and maximum entry age?

The minimum entry age is 8 years completed. The maximum entry age is 59 years for a 16-year policy term, 54 years for a 21-year policy term, and 50 years for a 25-year policy term.

Q3: Are maturity and death benefits taxable?

No. The maturity proceeds and death payouts are completely free of GST and fully exempt from Income Tax under Section 10(10D) of the Income Tax Act. GST is only applicable on regular premium payments.

Q4: Can I take a loan against my LIC Plan 936 policy?

Yes. Policy loan facilities are available after completing at least 2 full years of premium payments. You can secure a loan of up to 90% of the accrued surrender value for in-force policies, providing excellent liquidity.

Q5: What happens if I surrender the policy?

Surrenders are allowed after completing at least 2 full years of premium payments. Upon surrender, you receive a Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV), whichever is higher, though exiting early reduces overall yield.

Q6: How does the AD&DB Rider benefit me?

If you attach the AD&DB Rider and pass away due to an accident during the term, the nominee receives an additional sum assured equal to the basic Sum Assured, effectively doubling the cover. Permanent accidental disability waives all future premium payments.