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LIC’s Jeevan Labh Plan 736: Complete Guide, Benefits,
Eligibility, Premium, and Returns
Introduction
Life insurance is not only about protection against
uncertainty but also about disciplined long-term savings. In India, many
individuals prefer traditional life insurance plans that combine life cover,
guaranteed benefits, and maturity returns. One such popular plan from the
Life Insurance Corporation of India (LIC) is LIC’s Jeevan Labh Plan 736.
LIC’s Jeevan Labh (Plan No. 736) is a non-linked,
participating, limited premium payment endowment plan. It is designed for
individuals who want financial protection for their family along with assured
returns at maturity, without exposure to market risks.
In this detailed article, we will explain LIC’s Jeevan
Labh Plan 736 in simple language, covering its features, benefits,
eligibility, premium structure, returns, tax advantages, and frequently asked
questions. This guide is intended for educational purposes and helps readers
make informed financial decisions.
What is LIC’s Jeevan Labh Plan 736?
LIC’s Jeevan Labh Plan 736 is a traditional
savings-cum-insurance plan. Under this plan:
- The
policyholder pays premiums for a limited period
- The
policy continues for a longer term
- Life
cover remains active throughout the policy term
- On
maturity, the policyholder receives Sum Assured + Bonuses
- In
case of death during the policy term, the nominee receives enhanced
death benefits
This plan is especially suitable for individuals looking for
long-term financial planning, such as children’s education, marriage, or
retirement corpus, with guaranteed life insurance protection.
Key Features of LIC’s Jeevan Labh Plan 736
1. Limited Premium Payment
One of the main highlights of Jeevan Labh Plan 736 is that
premiums are paid only for a shorter duration, while benefits continue
for a longer period.
2. Participating Plan
This is a with-profits (participating) plan, meaning
policyholders are eligible for Simple Reversionary Bonuses and possibly Final
Additional Bonus, as declared by LIC from time to time.
3. Guaranteed Life Cover
The policy provides life insurance coverage throughout
the policy term, ensuring financial security for the family.
4. Fixed Maturity Date
The maturity amount is payable at the end of the policy
term, making it suitable for goal-based planning.
5. Loan Facility
After completion of the premium payment term, policyholders
can avail of a loan against the policy, subject to LIC’s rules.
Policy Terms and Premium Payment Options
LIC’s Jeevan Labh Plan 736 offers multiple combinations of
policy term and premium payment term.
Available Policy Terms
|
Policy Term |
Premium Payment Term |
|
16 years |
10 years |
|
21 years |
15 years |
|
25 years |
16 years |
This structure allows policyholders to finish premium
payments early while enjoying coverage for a longer duration.
Eligibility Criteria
Minimum and Maximum Age
- Minimum
Age at Entry: 8 years
- Maximum
Age at Entry: 59 years (depending on policy term)
Maturity Age
- Maximum
Age at Maturity: 75 years
Minimum Sum Assured
- ₹2,00,000
There is no upper limit on the maximum Sum Assured,
subject to underwriting norms.
Premium Payment Modes
Premiums under LIC’s Jeevan Labh Plan 736 can be paid
through the following modes:
- Yearly
- Half-Yearly
- Quarterly
- Monthly
(via ECS / NACH)
Premium amount depends on factors such as:
- Age
of the policyholder
- Sum
Assured
- Policy
term
- Premium
payment mode
Death Benefits under Jeevan Labh Plan 736
In case of death of the policyholder during the policy term,
the nominee receives the Death Benefit, which is the highest of
the following:
- Sum
Assured on Death
- 125%
of Basic Sum Assured
- 7
times the annualized premium
Additionally:
- Vested
Simple Reversionary Bonuses
- Final
Additional Bonus (if any)
The death benefit is paid as a lump sum, providing
immediate financial support to the family.
Maturity Benefits
If the policyholder survives till the end of the policy
term, the Maturity Benefit payable is:
- Basic
Sum Assured
- Accumulated
Simple Reversionary Bonuses
- Final
Additional Bonus (if applicable)
This amount can be used for long-term goals such as
education, marriage, or retirement planning.
Bonuses in LIC’s Jeevan Labh Plan
Simple Reversionary Bonus
LIC declares bonuses annually based on its valuation. Once
declared, these bonuses become guaranteed and are added to the policy.
Final Additional Bonus (FAB)
FAB may be payable at maturity or death, provided the policy
has been in force for a specified duration and depending on LIC’s surplus.
Note: Bonus rates are not fixed and depend on LIC’s
performance.
Tax Benefits
LIC’s Jeevan Labh Plan 736 offers tax advantages under
Indian Income Tax laws, subject to prevailing rules:
Section 80C
- Premiums
paid are eligible for deduction up to the prescribed limit under Section
80C.
Section 10(10D)
- Death
and maturity proceeds are generally tax-free, subject to conditions
specified in the Income Tax Act.
Tax laws may change over time. It is advisable to consult a
tax advisor for updated information.
Loan and Surrender Benefits
Loan Facility
- Loan
can be availed after completion of the premium payment term.
- Loan
amount depends on the surrender value of the policy.
Surrender Value
- Policy
acquires surrender value after payment of premiums for a minimum number of
years.
- Surrendering
early may result in lower returns.
Who Should Consider LIC’s Jeevan Labh Plan 736?
This plan may be suitable for:
- Individuals
looking for guaranteed savings with life cover
- Risk-averse
investors who prefer non-market-linked returns
- Salaried
professionals planning for long-term goals
- Parents
planning for children’s future expenses
- People
seeking tax-efficient investment options
Who Should Avoid This Plan?
- Investors
seeking high returns like equity-linked products
- Individuals
needing short-term liquidity
- Those
who want flexible premium structures
Comparison with Market-Linked Plans
|
Feature |
Jeevan Labh 736 |
ULIP / Mutual Funds |
|
Risk |
Low |
High |
|
Returns |
Stable |
Market-linked |
|
Guarantees |
Yes |
No |
|
Tax Benefits |
Yes |
Yes |
|
Transparency |
Moderate |
High |
Important Points to Consider Before Buying
- Returns
are moderate, not high
- Long-term
commitment is required
- Suitable
for conservative financial planning
- Bonuses
are not guaranteed in advance
Frequently Asked Questions (FAQs)
1. Is LIC’s Jeevan Labh Plan 736 safe?
Yes. LIC plans are backed by the Government of India, making
them one of the safest insurance options in India.
2. Can I stop paying premiums after a few years?
Premiums must be paid as per the chosen term. Early
discontinuation may reduce benefits.
3. Is Jeevan Labh better than FD?
Jeevan Labh offers life insurance + savings + tax benefits,
while FD only offers fixed returns.
4. Can NRIs buy this plan?
Yes, subject to LIC’s prevailing NRI guidelines.
5. Are returns guaranteed?
The Sum Assured is guaranteed, but bonuses depend on
LIC’s performance.
Disclaimer
This article is for educational and informational
purposes only. Policy terms, benefits, and tax rules are subject to change
as per LIC and Government regulations. Readers should refer to the official LIC
brochure or consult a licensed insurance advisor before making a purchase
decision.
Final Thoughts
LIC’s Jeevan Labh Plan 736 is a balanced traditional
insurance plan that combines protection, savings, and stability. While it
may not deliver high market-linked returns, it provides peace of mind,
guaranteed benefits, and disciplined long-term financial planning.
For individuals who value security over aggressive growth,
this plan can be a suitable component of a diversified financial portfolio.