LIC Jeevan Labh (736) Calculator

LIC Jeevan Labh (736) Calculator

What this calculator does

LIC's Jeevan Labh (Table No. 736) is a non-linked, participating (with-profits), individual, limited premium payment endowment plan. Unlike plans that let you pick any Policy Term within a range, Jeevan Labh is sold in exactly three fixed combinations of Policy Term and Premium Paying Term - you stop paying premiums well before the policy matures, but your life cover and bonus accrual continue for the full term:

Policy Term	Premium Paying Term
16 years	10 years
21 years	15 years
25 years	16 years

If the life assured dies during the policy term, the plan pays a single lump sum death benefit (plus bonus accrued to date) right away - there is no ongoing income stream after that, which is what distinguishes Jeevan Labh from goal-linked plans that pay a lump sum and a running annual income. At the end of the chosen term, the Maturity Benefit (Basic Sum Assured plus all vested bonuses plus a Final Additional Bonus, for the two longer plan options) is paid to the life assured.

This calculator gives you an indicative estimate of:

• the annual premium for your chosen plan option, plus the per-installment premium for your chosen payment mode, and the Accident Benefit Rider premium if you opt for it
• the guaranteed minimum death benefit (before any bonus), and a year-by-year schedule showing premiums paid to date, accrued bonus, and the actual benefit payable - including the 105%-of-premiums-paid floor that protects the death benefit in the early policy years
• the Simple Reversionary Bonus that vests every policy year, and the Final Additional Bonus (FAB) paid only at maturity for the 21-year and 25-year plan options
• the total maturity benefit - Basic Sum Assured plus all vested bonuses plus the FAB

based on your entry age, Basic Sum Assured, chosen plan option, payment mode, and whether you add the Accident Benefit Rider.

Formula Used

Eligibility. Entry age must be between 8 and 59 years, and the age at maturity (entry age plus the chosen plan's Policy Term) cannot exceed 75 years:

$$MaturityAge = EntryAge + PolicyTerm \le 75$$

Premium. The illustrative tabular annual premium rate (₹ per ₹1,000 Sum Assured) combines a savings component that shrinks as the Premium Paying Term lengthens with a mortality component that grows with entry age:

$$BaseRate(age, ppt) = \frac{1000}{ppt} \times 0.82 + \big(2.0 + age \times 0.045\big)$$

Policies with a larger Sum Assured earn a small per-mille rebate on the tabular rate - a "High Sum Assured Rebate":

$$Rebate(SumAssured) = \begin{cases} 3 & SumAssured \ge 10{,}00{,}000 \\ 2 & SumAssured \ge 5{,}00{,}000 \\ 0 & \text{otherwise} \end{cases}$$ $$AnnualPremium = \frac{SumAssured}{1000} \times \big(BaseRate(age, ppt) - Rebate(SumAssured)\big)$$

If you opt for the Accident Benefit Rider, an additional ₹0.50 per ₹1,000 of Sum Assured (capped at a Sum Assured of ₹50,00,000 for the rider) is added:

$$RiderPremium = \frac{\min(SumAssured,\ 50{,}00{,}000)}{1000} \times 0.50$$

The total is then split by your chosen payment mode (yearly, half-yearly, quarterly, or monthly), using LIC's standard modal factors (yearly 1.00, half-yearly 0.510, quarterly 0.260, monthly 0.0875), and paid only for the Premium Paying Term:

$$InstallmentPremium = (AnnualPremium + RiderPremium) \times ModeFactor$$ $$TotalPremiumPayable = InstallmentPremium \times InstallmentsPerYear \times PremiumPayingTerm$$

Death benefit. If death occurs during the policy term, the Sum Assured on Death is the highest of three floors - the Basic Sum Assured itself, 7 times the annualized premium, or 105% of total premiums paid up to the date of death (capped once premiums stop at the Premium Paying Term) - plus the bonus accrued so far:

$$PremiumsPaidToDate(year) = AnnualPremium \times \min(year,\ PremiumPayingTerm)$$ $$SumAssuredOnDeath(year) = \max\Big(SumAssured,\ 7 \times AnnualPremium,\ 1.05 \times PremiumsPaidToDate(year)\Big)$$ $$DeathBenefit(year) = SumAssuredOnDeath(year) + VestedBonus(year)$$

The year-by-year schedule below shows how this floor shifts as premiums accumulate - in the early years the 105%-of-premiums-paid floor is usually the lowest of the three, but it can overtake the Sum Assured floor in policies with a short Premium Paying Term and a high premium rate.

Simple Reversionary Bonus. An illustrative bonus of ₹48 per ₹1,000 Sum Assured vests at the end of every completed policy year, right up to maturity:

$$VestedBonus(year) = year \times \frac{SumAssured}{1000} \times 48$$

Final Additional Bonus (FAB). An illustrative one-time bonus of ₹1,600 per ₹1,000 Sum Assured, paid only at maturity, and only for the 21-year and 25-year plan options - the 16-year plan's shorter term does not qualify:

$$FAB = \begin{cases} \frac{SumAssured}{1000} \times 1600 & PolicyTerm \ge 21 \\ 0 & \text{otherwise} \end{cases}$$

Maturity Benefit (paid once, at the end of the policy term, to the life assured):

$$MaturityBenefit = SumAssured + VestedBonus(PolicyTerm) + FAB$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate table, which is IRDAI-approved and can change over time. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter your Age at Entry in years (8 to 59).
2. Enter your desired Basic Sum Assured (minimum ₹2,00,000, in multiples of ₹10,000).
3. Choose a Plan Option - this fixes both your Policy Term and Premium Paying Term together (16/10, 21/15, or 25/16 years). Remember entry age plus Policy Term cannot exceed 75.
4. Choose your Premium Payment Mode - yearly, half-yearly, quarterly, or monthly.
5. Choose whether to add the Accident Benefit Rider.
6. Click Calculate Benefits to see your premium, the guaranteed minimum death benefit, the premiums-paid/bonus schedule, and the total maturity benefit.

Worked Example

Suppose you are 35 years old, choose a Basic Sum Assured of ₹10,00,000, the 21-year Plan Option (15-year Premium Paying Term), yearly payment mode, and no rider.

$$BaseRate(35, 15) = \frac{1000}{15} \times 0.82 + (2.0 + 35 \times 0.045) = 54.67 + 3.575 = 58.24$$

Since the Sum Assured is ₹10,00,000, a rebate of 3 per mille applies:

$$AnnualPremium = \frac{10{,}00{,}000}{1000} \times (58.24 - 3) = 1000 \times 55.24 = ₹55{,}240 \text{ per year}$$

Over the 15-year Premium Paying Term, total premium payable is 55{,}240 \times 15 = ₹8{,}28{,}600.

By policy year 5, premiums paid to date are 55{,}240 \times 5 = ₹2{,}76{,}200, so the 105%-of-premiums-paid floor is 1.05 \times 2{,}76{,}200 = ₹2{,}90{,}010 - well below the \max(10{,}00{,}000,\ 7 \times 55{,}240) = ₹10{,}00{,}000 floor, so the Sum Assured on Death at year 5 is ₹10,00,000 plus the bonus accrued by then.

At maturity (year 21), the vested Simple Reversionary Bonus is 21 \times 1000 \times 48 = ₹10{,}08{,}000, and since the term is 21 years (≥ 21), a Final Additional Bonus of 1000 \times 1600 = ₹16{,}00{,}000 is also paid. The total maturity benefit is:

$$MaturityBenefit = 10{,}00{,}000 + 10{,}08{,}000 + 16{,}00{,}000 = ₹36{,}08{,}000$$

So if the life assured survives the full term, the family receives ₹36,08,000 at maturity. If the life assured instead passes away in, say, policy year 10, the family receives a single lump sum - the highest of the three death-benefit floors at that point, plus accrued bonus - with no further payments after that.