LIC New Jeevan Labh Plan 736 – LIC Jeevan Labh has long been the cornerstone of Life Insurance Corporation of India’s (LIC) offerings, known for providing a unique blend of high insurance cover with relatively low premiums. With IRDAI’s recent master circular, the plan has been revised and its plan number has been changed to 736, which was earlier known as Plan No. 936. This policy is widely considered to be one of the most popular and best-selling plans, comprising almost 50% to 60% of LIC entire portfolio. In this article, we will explore all the key features, benefits, and modifications of LIC Jeevan Labh Plan 736 in detail.
Key Highlights of LIC Jeevan Labh Plan 736
The Jeevan Labh Plan has undergone significant changes as per IRDAI’s master circular, and it is now classified under Plan Number 736. Despite these changes, the fundamental ethos of the policy remains the same—offering a high maturity benefit at a lower premium. Let’s take a deep dive into its essential features.
Eligibility Criteria and Entry Age
One of the key aspects of the LIC Jeevan Labh Plan is its flexibility in terms of eligibility. The minimum entry age remains 8 years, which has not changed from the earlier version. This ensures that the plan is open for both children and adults. However, the maximum entry age has been capped at 59 years, allowing individuals in this age bracket to benefit from this policy. The plan’s maturity age is set at 75 years, ensuring that individuals who enter the policy at age 59 will have the policy mature when they reach 75 years of age.
Policy Term and Premium Paying Term (PPT)
The Jeevan Labh Plan offers three different policy terms to cater to varying financial needs:
- 16-year Policy Term with a 10-year Premium Paying Term (PPT)
- 21-year Policy Term with a 15-year PPT
- 25-year Policy Term with a 16-year PPT
These flexible options make the plan ideal for individuals seeking both short-term and long-term insurance coverage. This structure has been retained in the revised plan, making it easier for policyholders to select a tenure that aligns with their financial goals.
Sum Assured and Premiums
The Jeevan Labh Plan 736 starts with a minimum sum assured of ₹2,00,000, which remains unchanged from the earlier version of the plan. The absence of a maximum limit on the sum assured makes this plan an attractive option for high-net-worth individuals looking for substantial insurance coverage. As per the mandate circular of LIC, policyholders can choose the sum assured based on their income and financial capacity.
Risk Cover
Like all LIC plans, Jeevan Labh offers risk cover that is equal to the sum assured. For instance, if a policyholder opts for insurance coverage of ₹5,00,000, the risk cover will be exactly equal to that amount. For individuals looking for additional protection, LIC provides various rider options such as:
- Accident Disability Rider
- New Term Rider
- Accident Death Rider
These riders can be added to the base policy to enhance the overall risk cover. The policyholder can also opt for the Premium Waiver Rider, which is specifically available for children aged between 8 and 17 years. This rider ensures that in case of an unfortunate event involving the proposer (typically the parent), the child does not have to bear the burden of paying the remaining premiums, yet they continue to enjoy the policy’s full benefits at maturity.
Guaranteed Surrender Value (GSV)
A significant revision in the Jeevan Labh Plan 736 is the introduction of the new Guaranteed Surrender Value (GSV) scheme. Previously, policyholders who surrendered their policies after one year received only a small fraction of the premiums paid. However, under the revised scheme, the surrender value now includes the vested bonus, making it much more lucrative for those who wish to exit the policy early. This feature provides a significant advantage, especially for policyholders who decide to quit the policy due to mis-selling or other reasons.
- One-Year Completion: If a policyholder decides to surrender the policy after completing one year, they will receive the premiums paid along with the vested bonus.
- Surrender after Multiple Years: If the policy is continued for a few more years (2, 3, or more), the surrender value will also include the vested bonus, although the Final Additional Bonus (FAB) will not be granted in the case of surrender.
Loan Facility
Another important feature of the Jeevan Labh Plan 736 is the provision for loans against the policy. Policyholders become eligible for loans after one year, although the loan amount is subject to certain limitations. For instance:
- After Two Years of Premium Payment: Policyholders can avail of loans up to 50% of the premium amount.
- From the Third Year Onwards: The loan amount increases to 80% of the premium amount, providing additional financial flexibility.
This facility ensures that policyholders have access to emergency funds if needed, without having to terminate the policy prematurely.
Free-Look Period
The free-look period for LIC Jeevan Labh Plan has been extended from 15 days to 30 days, providing policyholders with additional time to review the policy terms and conditions. If, for any reason, they decide not to continue with the policy within this period, they can cancel the plan and get a full refund of the premiums paid, minus certain deductions.
Settlement Options
Another beneficial feature of the Jeevan Labh Plan is its settlement option. Policyholders can opt to receive their maturity benefits in installments instead of a lump sum, thus creating a regular income stream. This feature is particularly useful for individuals who are nearing retirement and are looking for steady, guaranteed income post-retirement.
Changes in NACH Mode
With the introduction of the revised plan, a few changes have been made to the NACH (National Automated Clearing House) payment mode as well. Policyholders now need to deposit three months’ worth of premiums upfront when opting for this mode. This change ensures that the premium payment process remains smooth and prevents potential lapses in the policy due to missed payments.
Agent’s Commission Changes
The revised Jeevan Labh Plan has introduced modifications to the agent’s commission structure. Traditionally, LIC agents would receive their commission for the first three years of the policy. However, under the new guidelines, agents will now receive an extended commission for five years. This extended commission is expected to motivate agents to provide better service and ensure that policies remain in force for a longer duration.
Maturity Benefits and Death Benefits
The maturity benefits of the Jeevan Labh Plan 736 remain one of its most attractive features. Upon policy maturity, the policyholder will receive the sum assured along with any simple reversionary bonuses or final additional bonuses (FAB), if applicable. In the unfortunate event of the policyholder’s death during the policy term, LIC will pay the death claim amount, which includes the sum assured, along with all applicable bonuses, to the nominee.
For the death benefit, the nominee will receive an amount that is either 105% of all premiums paid or seven times the annual premium, whichever is higher. This ensures that the family is financially secure, even in the policyholder’s absence.
Tax Benefits
As with all LIC policies, Jeevan Labh provides tax benefits under Sections 80C and 10D of the Income Tax Act. This means that the premiums paid towards the policy are eligible for tax deductions, and the maturity or death benefits received are exempt from tax, subject to certain conditions. Additionally, LIC policies come with a Government of India-backed solvent guarantee, providing an added layer of security to policyholders.
Conclusion
LIC Jeevan Labh Plan 736 remains a highly attractive option for individuals seeking comprehensive life insurance with robust benefits. With its revisions, including the extended surrender value scheme, flexible loan options, and enhanced agent commission structure, this plan continues to cater to a wide range of financial needs. Whether you are planning for your child’s future, retirement, or seeking financial security for your family, this plan offers a perfect blend of affordability and high returns, making it a preferred choice for millions of Indians.
FAQs about LIC New Jeevan Labh Plan 736
What is the minimum and maximum entry age for LIC Jeevan Labh Plan 736?
The minimum entry age for the plan is 8 years, and the maximum entry age is 59 years. The policy matures when the policyholder reaches 75 years of age.
How many policy terms are available in LIC Jeevan Labh Plan 736?
There are three policy terms available: 16 years (with a 10-year premium paying term), 21 years (with a 15-year PPT), and 25 years (with a 16-year PPT).
What is the minimum sum assured in LIC Jeevan Labh Plan 736?
The minimum sum assured in the plan is ₹2,00,000, with no upper limit, allowing policyholders to choose based on their financial capacity.
Does LIC Jeevan Labh Plan 736 offer any rider options?
Yes, the plan offers several riders including the Accident Disability Rider, New Term Rider, Accident Death Rider, and Premium Waiver Rider for children between the ages of 8 and 17.
When can I take a loan against my LIC Jeevan Labh Plan 736 policy?
You can apply for a loan after one year of premium payment. After two years, you can take up to 50% of the premium amount as a loan, and from the third year onwards, up to 80%.
Disclaimer: The information provided in this article about LIC Jeevan Labh Plan 736 is for general informational purposes only. It is not intended to serve as financial or insurance advice. Policyholders are advised to review official documents and consult with LIC agents or financial advisors to ensure the plan meets their specific needs and circumstances.