The Complete Guide to LIC Jeevan Labh Plan 936
Everything you need to know about India's most popular limited-premium endowment plan — how premiums are calculated, what benefits you receive, who should buy it, and how to maximize your returns.
What Is LIC Jeevan Labh Plan 936?
LIC Jeevan Labh (Plan 936) is a non-linked, with-profits, limited premium paying endowment assurance plan offered by the Life Insurance Corporation of India. Launched in 2015, it has become one of the most popular savings-cum-protection plans in the country because of one compelling feature: you pay premiums for only a portion of the policy term, but your life cover and savings benefits continue until the full policy matures. In practical terms, if you opt for the 25-year policy term, you only pay premiums for 16 years — and then sit back as the policy grows for another 9 years without a single rupee leaving your pocket.
The plan is designed to serve two simultaneous financial objectives. First, it provides meaningful life insurance protection to your family throughout the entire policy term. Second, it functions as a disciplined, long-term savings instrument that returns a tax-free lump sum on maturity — making it particularly attractive for medium-to-long-term financial goals like children's education, marriage, home purchase, or retirement corpus building.
Plan 936 At a Glance — Key Parameters
Before diving into calculations, it's important to understand the structural parameters of this plan. The entire calculation framework — premium rates, benefits, and eligibility — flows from these foundational numbers.
| Parameter | Details |
|---|---|
| Plan Name & Number | LIC Jeevan Labh — Table No. 936 |
| Plan Type | Non-Linked, With-Profits, Limited Premium Paying Endowment Assurance |
| Policy Terms Available | 16 Years / 21 Years / 25 Years |
| Premium Paying Term (PPT) | 10 Years (for 16-yr term) · 15 Years (for 21-yr term) · 16 Years (for 25-yr term) |
| Minimum Entry Age | 8 years (last birthday) |
| Maximum Entry Age | 59 yrs (16-yr term) · 54 yrs (21-yr term) · 50 yrs (25-yr term) |
| Maximum Maturity Age | 75 years |
| Minimum Sum Assured | ₹2,00,000 |
| Maximum Sum Assured | No limit (in multiples of ₹10,000) |
| Premium Payment Modes | Yearly / Half-Yearly / Quarterly / Monthly (SSS/NACH) |
| Loan Facility | Available after 3 years of premium payment |
| Surrender Value | Available after 3 full years of premiums paid |
Plan 936 Policy Benefits — Fully Explained
Plan 936 delivers benefits through two core mechanisms: the maturity benefit (paid when the policyholder survives the full term) and the death benefit (paid to the nominee if the policyholder passes away during the policy term). Both are augmented by LIC's bonus system.
✔ Maturity Benefit
If the policyholder survives the full policy term, they receive: Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (FAB). This lump sum is paid on the policy anniversary coinciding with or following the maturity date. Under current Section 10(10D) rules, this amount is entirely tax-free in the hands of the policyholder.
✔ Death Benefit
If the policyholder dies during the policy term (even after the premium paying term ends), the nominee receives: Sum Assured on Death + Vested Bonuses + FAB. The "Sum Assured on Death" is the higher of 10 times the annualized premium or 125% of the Basic Sum Assured. This ensures meaningful protection even for lower-premium policies.
✔ Loan Facility
After paying at least 3 full years of premiums, the policyholder becomes eligible for a policy loan. Loans can be taken for up to 90% of the Surrender Value for in-force policies and 80% for paid-up policies. The loan interest rate is set by LIC periodically (currently around 9–10% p.a. for Plan 936).
✔ Surrender Value
If the policyholder wishes to exit early (after 3 years), a Guaranteed Surrender Value (GSV) is available. GSV equals 30% of all premiums paid (excluding the first year's premium and rider premiums). LIC also offers a Special Surrender Value (SSV), which is typically higher and is set by LIC's actuarial assessments. The higher of GSV and SSV is paid.
Understanding LIC's Bonus System for Plan 936
The bonus system is what makes LIC's with-profits plans significantly more valuable than their pure-protection equivalents. LIC invests policyholders' premiums across equities, bonds, and government securities and distributes a portion of the profits back to policyholders as bonuses. 🏛️ These bonuses are declared annually by the LIC Board and, once vested, cannot be taken away — they become a permanent part of your policy's value.
Simple Reversionary Bonus (SRB)
Declared annually as a fixed amount per ₹1,000 of Sum Assured. For Plan 936, LIC has historically declared ₹50–₹56 per ₹1,000 SA per year. These bonuses vest (are added permanently to the policy) at the end of each policy year and are paid out at maturity or claim settlement. They cannot be withdrawn mid-term.
Final Additional Bonus (FAB)
A one-time bonus paid when the policy matures or when a death claim is settled after the policy has been in force for 15+ years. FAB rates for Plan 936 range from approximately ₹535 to ₹955 per ₹1,000 SA depending on the policy term. This single addition can contribute ₹2–5 lakhs or more to a ₹5 lakh SA policy's maturity value.
Why Bonus History Matters
- ➤Not Guaranteed: Future bonuses depend on LIC's investment performance and are not contractually guaranteed. Our calculator uses recent historical rates as the best available estimate.
- ➤Remarkable Consistency: LIC has declared bonuses without interruption for over 60 years, including through market downturns, making them among the most reliable bonus payers globally.
- ➤Bonus on Full SA: Unlike some plans where bonuses are calculated on a reducing balance, Plan 936 bonuses are calculated on the full Basic Sum Assured every year — a significant structural advantage.
Who Should Buy LIC Jeevan Labh Plan 936?
Plan 936 is not for everyone — it is designed for a specific investor profile. Understanding whether you fit that profile will help you make the right decision.
✔ Conservative Long-Term Savers
If you prioritize capital safety over aggressive growth and want a guaranteed floor on your savings, Plan 936 delivers. The death benefit is guaranteed. The Basic Sum Assured at maturity is guaranteed. Only the bonus component carries variability — and even that has been rock-solid historically.
✔ Parents Planning for Children
A Plan 936 policy taken at the birth or early childhood of a child creates a disciplined savings mechanism that matures exactly when education or marriage funding is needed. The 21-year term is especially popular for this purpose: start at age 2–5, mature at the time the child turns 23–26.
✔ Taxpayers in High Brackets
For individuals in the 30% tax bracket, the Section 80C deduction on premiums combined with the 100% tax-free maturity under Section 10(10D) means the effective post-tax return is considerably higher than the nominal figure. A 5.5–6% nominal return becomes significantly more attractive after tax optimization.
✔ Mid-Career Professionals (30–45)
Those in their 30s and 40s have enough earning years ahead to sustain the premium payments comfortably while benefit from the plan's full compound-through-bonus growth. The limited premium paying feature is especially appealing — completing premium obligations by 45–55 and receiving a tax-free corpus at 55–65 creates a powerful pre-retirement windfall.
Who Should Look Elsewhere
- ➤Pure Equity Investors: If your goal is maximum wealth creation and you have a high risk appetite, instruments like mutual funds, NPS, or PPF may deliver higher inflation-adjusted returns. Plan 936 is not a market-linked instrument.
- ➤Short-Term Horizon Seekers: The plan's surrender value in the first 5–7 years is significantly below the total premiums paid. Anyone who may need the capital within a decade should evaluate other options.
- ➤Those Needing Pure Term Cover: For maximum life coverage per rupee of premium, a separate term insurance policy is far more efficient. Plan 936 bundles savings with protection, which means the effective cost of insurance within the plan is higher than standalone term plans.
Tax Benefits Under LIC Jeevan Labh Plan 936
The tax efficiency of Plan 936 is one of its most compelling selling points. Under the Old Tax Regime, it offers a complete tax-advantaged lifecycle — 💼 deductions on the way in and tax-free proceeds on the way out.
Who Needs This Tool?
- ➤Section 80C Deduction: Annual premiums paid are deductible from your taxable income under Section 80C, up to a total 80C limit of ₹1.5 lakh per year. The premium must not exceed 10% of the Sum Assured (for policies issued after April 2012) to qualify for this deduction.
- ➤Section 10(10D) Maturity Exemption: The full maturity proceeds (SA + bonus + FAB) are completely exempt from income tax under Section 10(10D), provided the annual premium does not exceed 10% of the Sum Assured throughout the policy term.
- ➤Death Benefit — Unconditional Exemption: Death benefits paid to nominees are unconditionally exempt under Section 10(10D) — there is no premium-to-SA ratio condition for death claims.
- ➤New Tax Regime Note: Under the New Tax Regime (opted under Section 115BAC), Section 80C deductions are not available. However, Section 10(10D) exemption for maturity and death proceeds continues to apply.
Key Features of Our Advanced Plan 936 Calculator
Built for accuracy, transparency, and genuine usefulness — the only Plan 936 calculator that shows you the complete financial picture.
Actuarially Accurate Premiums
Uses LIC's official tabular premium rates with full interpolation for every age between 8 and 59. Automatically applies SA rebates, mode rebates, and correct GST percentages — so the figure you see mirrors what your agent would quote within a marginal tolerance.
Complete Year-Wise Projection
Generates a year-by-year policy statement showing cumulative premiums paid, annual bonus accrual, total accumulated bonus, death benefit at every stage, and approximate surrender values at key milestones — the kind of transparency that most agents don't provide upfront.
100% Private — No Data Stored
All calculations happen locally in your browser. Your age, Sum Assured, and policy details never leave your device. There are no accounts, no server calls, and no data retention. Your financial information stays completely private — always.
Downloadable Policy Summary
Export a complete plain-text policy summary including all premiums, benefits, tax notes, and the year-wise projection. Share it with your family, financial advisor, or CA. The copy-to-clipboard feature lets you paste key figures directly into Excel or any financial planning document.
Pro Tips for Using the Plan 936 Calculator Effectively
Run this calculator with the same Sum Assured for all three policy terms (16, 21, 25 years). You'll quickly see the trade-off: shorter terms have higher annual premiums but lower total outgo; longer terms have lower annual premiums but more total premium paid. The 21-year term often hits the sweet spot of reasonable premium and maximum bonus accumulation.
Work backwards from the ₹1.5 lakh Section 80C limit. If your annual premium is ₹60,000, only that amount qualifies for deduction (not more). But if you can set your SA so that the annual premium is close to ₹1.5 lakh, you maximise your 80C utilization through this policy alone — potentially saving ₹45,000 or more in taxes per year in the 30% bracket.
The projection table shows surrender values at each year. Since you can borrow up to 90% of this as a policy loan at ~9–10% interest (far below personal loan rates), Plan 936 effectively doubles as an emergency credit line. Planning for known future expenses — renovations, vehicle purchase — against the projected surrender value is a smart use of this feature.
Walking into an agent meeting with a pre-calculated policy summary empowers you to have a data-driven conversation. You can verify the agent's quotes against your own calculations, ask pointed questions about discrepancies, and avoid being oversold on riders or add-ons you may not need.
Frequently Asked Questions
Conclusion
LIC Jeevan Labh Plan 936 occupies a unique and valuable niche in the Indian financial planning landscape. It is not the highest-returning instrument available, nor is it purely about life protection. It is a disciplined, guaranteed, tax-efficient savings-plus-protection vehicle that rewards patience and long-term commitment. For conservative Indian savers who want to know exactly what they will receive at maturity — with zero market risk and complete tax-free status — Plan 936 remains one of the most compelling products LIC has ever offered. Use this calculator to explore exactly what the plan can do for your specific situation, download your personalised projection, and walk into your next LIC conversation fully informed.
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