Understanding the LIC 836 Plan: Features, Benefits, and Key Features

The LIC 836 plan, also known as the LIC Jeevan Shree plan, is a non-linked, limited premium paying endowment plan offered by the Life Insurance Corporation of India (LIC). This comprehensive plan combines protection and savings, providing life insurance coverage alongside the benefit of savings. In this article, we will delve into the various features, benefits, and key details of the LIC 836 plan. It is essential to check the latest details from LIC or a financial advisor for any updates or additional benefits.

Key Features of the LIC 836 Plan

Type of Plan

The LIC 836 plan is a combination of protection and savings, offering life insurance coverage along with the benefit of savings. This makes it an appealing choice for individuals seeking to secure their financial future while also providing a safety net in case of unforeseen events.

Premium Payment

The policyholder pays premiums for a limited number of years after which the policy matures. The plan offers three premium payment options (yearly, half-yearly, quarterly, and monthly), providing flexibility depending on the policyholder's financial goals. The policy can also be paid through ECS (Electronic Clearing Services).

Sum Assured

If the policyholder passes away during the policy term, the nominee receives a sum assured, which is determined by the highest of the following: the basic sum assured, 10 times the annualized premium, or 105% of all premiums paid as on the date of death. This ensures that the policyholder's beneficiaries are adequately compensated.

Maturity Benefit

On survival until the end of the policy term, the policyholder receives the sum assured along with any bonuses that may be due. This provides a substantial financial benefit to the policyholder at the maturity of the plan.

Loan Facility

Policyholders can avail of a loan against the policy after a certain period. This feature provides an additional financial safety net and can be particularly useful in emergency situations.

Tax Benefits

Premiums paid under the LIC 836 plan are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity proceeds are tax-free under Section 1010D, making this plan an attractive investment option from a tax perspective.

Flexibility

The plan offers flexibility in terms of premium payment terms and policy terms. This allows policyholders to choose options that align with their financial goals and preferences. For example, policyholders can choose to pay premiums over a 10-year term but secure coverage for 16 years, or pay premiums over a 15-year term with coverage for 21 years.

The Jeevan Labh Variants

The policy comes in three variants with different terms: 10/16, 15/21, and 16/25. The first number represents the number of years the premium is to be paid, while the second number represents the policy term. For example, in the 10/16 term, you pay for 10 years and receive benefits for 16 years.

LIC 836 Plan as Jeevan Labh Policy

The LIC 836 plan is also referred to as the Jeevan Labh policy 836. This plan is a limited premium paying, non-market-linked plan that offers protection benefits in the form of a sum assured plus simple revisionary bonuses and a final bonus if any, payable to the nominee or policyholder. This plan provides the policyholder with flexibility to pay premiums during their best earning years and receive the best benefits at maturity.

Premium Payment Mode

The premium payment modes for the Jeevan Labh policy include yearly, half-yearly, quarterly, and monthly. Policyholders can choose the most convenient mode based on their financial planning and lifestyle.

Jeevan Labh Policy Term and Premium Paying Term

The LIC Jeevan Labh policy offers very flexible premium payment options. There are three options available, making this plan affordable for people of all ages:

16 years term but pay for 10 years only 21 years term but pay for 15 years only 25 years term but pay for 16 years only

The minimum age of entry is 8 years, and the maximum age is 59 years. The maximum maturity age is 75 years, and the minimum sum assured under the Jeevan Labh policy is Rs.200,000 with no upper limit for sum assured or premium payment.

Accidental Death and Disability Benefits

The Jeevan Labh policy offers a maximum accidental death and disability benefit rider up to the age of 70. This rider provides additional protection against accidental events, ensuring that the policyholder and their family remain secure in such unforeseen circumstances.

LIC Jeevan Labh Policy Benefits

On Death

Basic Sum-Assured OR 10 times of Annualized Premium OR 105% of all Premiums paid as on death, whichever is higher

On Survival

Basic Sum-Assured plus Reversionary Bonus plus Final Additional Bonus

Surrendered Value

The policy can be surrendered at any time during the policy term, provided at least three full years of premiums have been paid. This provides policyholders with a safety net and allows for greater flexibility.

Loan Facility

A loan facility is available under this plan after the payment of premiums for at least three full years. This feature can be particularly useful for policyholders facing financial emergencies or wanting to leverage the policy's value.

Income Tax Benefits

Premium paid under this plan is eligible for tax relief under Section 80C of the Income Tax Act Maturity under this plan is tax-free under Section 1010D