LIC Jeevan Labh is consistently cited as one of LIC’s strongest endowment plans, largely because of its limited-pay structure: you stop paying premiums years before the policy actually matures, while your money keeps growing in the background. Here’s exactly how it works, what a real maturity payout looks like, and a genuinely important recent change to what you’ll actually pay.
What Is LIC Jeevan Labh?
Jeevan Labh (Plan 736) is a limited premium payment, non-linked, with-profits endowment assurance plan. “With-profits” means it earns variable bonuses declared by LIC based on the company’s performance, rather than a fixed guaranteed rate. “Limited premium payment” means your payment period is shorter than the full policy term, a structural feature that’s central to why this plan is often recommended over LIC’s standard endowment options.
What Are the Actual Premium and Policy Term Combinations?
This is worth getting exactly right, since you’ll find some inconsistency across comparison sites. Jeevan Labh offers three fixed combinations:
| Policy Term | Premium Payment Term | Maximum Entry Age |
|---|---|---|
| 16 years | 10 years | 59 years |
| 21 years | 15 years | 54 years |
| 25 years | 16 years | 50 years |
Entry age starts as low as 8 years, making this usable as a child’s savings plan as well as an adult’s. Notice the gap between your premium payment term and the full policy term, for the 21-year policy term option, for example, you pay for 15 years, then the policy continues growing for a further 6 years with no more payments required from you before maturity.
How Much Coverage Can You Get?
The minimum Basic Sum Assured is ₹2,00,000, with no fixed upper cap, LIC offers rebates on the premium rate once you cross ₹5,00,000 in sum assured, so higher cover levels get comparatively better pricing.
What Do You Actually Get at Maturity?
If you survive the full policy term, your maturity benefit is:
Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (if applicable)
The Simple Reversionary Bonus is declared annually by LIC as a rate per ₹1,000 of sum assured. For 2025-26, this has been reported at approximately ₹54 per ₹1,000 of sum assured per year, though bonus rates are reviewed and can change each year, so treat this as indicative rather than fixed for the life of your policy. A Final Additional Bonus may also apply at maturity, but published rates for this specific component vary significantly across sources, so rather than quote a specific figure that may not hold up, it’s worth getting a current personalised illustration from LIC directly if this matters to your decision.
What Happens If You Die During the Policy Term?
The death benefit is the highest of:
- The Basic Sum Assured, or
- 7 times your annualised premium, or
- 105% of all premiums paid up to the date of death
Plus any vested Simple Reversionary Bonuses and Final Additional Bonus accrued up to that point. This “highest of three” structure is a standard feature across most LIC endowment plans, designed to ensure the death benefit doesn’t fall below a reasonable multiple of what’s actually been paid in, even early in the policy.
A Worked Example
LIC’s own calculators commonly illustrate this plan using a 30-year-old choosing a ₹5,00,000 sum assured over a 25-year policy term (16-year premium payment term). Using the approximate current bonus rate, total premiums paid over 16 years, combined with 25 years of accumulated reversionary bonus, would bring the maturity benefit to a figure meaningfully above the base sum assured, commonly cited in the range of ₹8-9 lakh, though this depends on the specific bonus rates declared in the years your policy is actually active. Treat any maturity projection you see, including this one, as an estimate based on historical bonus trends, not a guaranteed figure. For an exact number based on your own age and sum assured, use LIC’s official premium calculator or speak with a licensed LIC agent.
What Riders Can You Add?
A few optional riders let you extend coverage:
- Accidental Death and Disability Benefit Rider, adding extra payout if death or disability results from an accident
- LIC’s New Term Assurance Rider, adding extra pure term cover on top of the base plan
- Premium Waiver Benefit, specifically useful if you’re buying this policy for a child, since it waives future premiums if the paying parent dies, keeping the child’s policy active without further payment
What Has Changed Recently: The GST Cut
This is worth knowing if you’re comparing current costs against older quotes or articles. Following the 56th GST Council meeting, GST on individual life insurance premiums, including Jeevan Labh, dropped to 0% from September 22, 2025, down from the 18% that applied to some plan structures previously. If you’re comparing a quote from before this date against a current one, expect the current premium to be meaningfully lower purely from this tax change, independent of anything else.
Can You Take the Payout in Instalments Instead of a Lump Sum?
Yes, this is a genuinely flexible feature worth knowing about. Instead of taking your death or maturity benefit as a single lump sum, you can choose to receive it in instalments spread over 5, 10, or 15 years, useful if you’d rather have a structured income than a large one-time payout.
Loan and Surrender Terms
You can take a loan against the policy once you’ve paid premiums for at least 2 full years. The policy also acquires a surrender value after the same 2-year mark, paid as the higher of the Guaranteed Surrender Value or Special Surrender Value, though surrendering early generally means a real loss relative to what you’d have received by staying invested, so it’s worth treating this as a last resort rather than a routine option.
To know more about the different LIC plans types that may suit your needs, have a look at our complete LIC plans guide here.
Frequently Asked Questions
What are the premium payment terms for LIC Jeevan Labh?
Three fixed combinations: pay for 10 years with a 16-year policy term, 15 years with a 21-year policy term, or 16 years with a 25-year policy term.
What is the minimum sum assured for Jeevan Labh?
₹2,00,000, with no fixed upper limit. LIC offers premium rebates once your sum assured crosses ₹5,00,000.
Is GST charged on LIC Jeevan Labh premiums?
No, not since September 22, 2025. GST on individual life insurance premiums, including Jeevan Labh, was reduced to 0% following the 56th GST Council meeting, replacing the earlier rate.
How is the maturity benefit calculated?
Basic Sum Assured plus any Vested Simple Reversionary Bonuses accrued over the policy term, plus a Final Additional Bonus if applicable. The exact bonus rate is declared annually by LIC and can vary year to year.
What is the death benefit under Jeevan Labh?
The highest of the Basic Sum Assured, 7 times the annualised premium, or 105% of all premiums paid to date, plus any bonuses accrued up to the date of death.
Can I get the maturity benefit paid out over time instead of as a lump sum?
Yes. Jeevan Labh allows you to choose instalment payouts over 5, 10, or 15 years for both the death and maturity benefit, instead of a single lump sum.
Last Updated on 31 minutes ago by Team Paisaseekho
