LIC Jeevan Labh Calculator
What LIC's Jeevan Labh (plan 736) pays at maturity with your bonus rate, and the yearly return that really is.
In LIC's own Jeevan Labh example, ₹10,025 a year for 16 years (₹1,60,400 in all) on a ₹2 lakh, 25-year policy pays ₹3,70,000 at maturity if bonuses run at ₹30 per ₹1,000 a year with a ₹100 final bonus. That is 4.8% a year. The same premiums at PPF's 7.1% would grow to ₹5,59,778.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Sum assured
- The basic amount your policy promises, printed as Basic Sum Assured on the policy bond. Bonuses are worked out as rupees per ₹1,000 of it.
- Policy term
- The number of years until the policy matures and pays out.
- Simple reversionary bonus
- The bonus LIC adds to a policy each year it is in force, stated per ₹1,000 of sum assured. A rate of ₹40 on a ₹2 lakh policy adds ₹8,000 a year. Once added it is yours, but it is paid only at maturity, on death or, at a lower value, on surrender.
- Final additional bonus
- A one-time bonus LIC may add when a policy matures or a claim is paid, per ₹1,000 of sum assured. It is not guaranteed and is not paid on a paid-up policy.
- Yearly return
- The steady yearly rate that would turn your premiums, each paid at the start of a year, into the maturity amount. It is the fair number to compare with an FD or PPF.
- PPF (Public Provident Fund)
- A government savings scheme. You deposit up to ₹1.5 lakh a year for 15 years at an interest rate the government sets, and both the interest and the final amount are tax-free.
Jeevan Labh is an LIC endowment plan where you pay premiums for fewer years than the policy runs: 10 years for a 16-year policy, 15 for 21 years and 16 for 25 years. At maturity it pays the sum assured plus the bonuses added every year. Enter the numbers on your policy bond and your bonus rate to see the maturity amount and the yearly return it works out to.
Jeevan Labh terms
| Policy term | You pay premiums for |
|---|---|
| 16 years | 10 years |
| 21 years | 15 years |
| 25 years | 16 years |
Maturity amount = sum assured + yearly bonus × policy term + final additional bonus. LIC adds the yearly bonus for every year the policy is in force, including the years after premiums stop.
What a different bonus does
| LIC's example: ₹2 lakh, 25 years, ₹10,025 a year | Maturity | Yearly return |
|---|---|---|
| ₹20 per ₹1,000 | ₹3,20,000 | 3.9% |
| ₹30 per ₹1,000 | ₹3,70,000 | 4.8% |
| ₹40 per ₹1,000 | ₹4,20,000 | 5.5% |
To match PPF the policy would need a bonus of about ₹68 per ₹1,000 a year. The policy also carries life cover, which PPF does not.
Where to find your bonus rate
LIC adds a bonus every year, stated per ₹1,000 of sum assured: a rate of ₹40 on a ₹2 lakh policy adds ₹8,000 a year. LIC announces the rates once a year, and they change. Your bonus so far is on your LIC bonus statement and in the LIC customer portal; your agent or branch can tell you this year's rate for your plan and term.
This page does not fill in a rate for you, because LIC does not publish its yearly rates on its website. The example rates are the ones LIC's own brochures use to illustrate an 8% investment return, not declared rates.
Key takeaways
- Premiums for 10, 15 or 16 years; the policy runs 16, 21 or 25 years.
- Maturity = sum assured + yearly bonuses + final bonus.
- LIC's own example at its 8% scenario returns 4.8% a year.
Frequently asked questions
How is Jeevan Labh maturity calculated?
Sum assured + the yearly bonus for every year of the policy term (rate per ₹1,000 × sum assured ÷ 1,000) + any final additional bonus. Enter your bonus rate in the calculator.
How many years do I pay premiums in Jeevan Labh?
10 years for a 16-year policy, 15 years for 21 years, and 16 years for 25 years.
What return does LIC Jeevan Labh give?
In LIC's own brochure example at an 8% investment return, 4.8% a year. Your return depends on the bonus LIC declares.
Can I surrender Jeevan Labh early?
Yes, after two full years of premium. The surrender value calculator gives the guaranteed amount from LIC's Jeevan Labh tables.