LIC’s Jeevan Labh (Table No.836)-Features and Review

LIC is launching a new plan called Jeevan Labh Table No.836. This plan will be available from 4th January, 2016. This is a tax saving season. So targeting this, LIC is launching this new plan. Let us see what Labh (Profit) it gives you.

LIC's Jeevan Labh

Jeevan Labh (Table No.836) is a limited premium paying, non-linked, with-profits endowment plan that offers a combination of protection and savings. Therefore, this is a typical endowment plan. The only difference is the limited premium payment. This is a typical insurance cum investment plan of LIC.

Features of Jeevan Labh (Table No.836)

  • Minimum Sum Assured is Rs.2, 00,000. There is no maximum basic sum assured limit.
  • Policy term will be 16 years, 21 years of 25 years.
  • The premium paying term will be 10 Years (for 16-year policy term), 15 years (for 21-year policy term), and 16 years (for 25 year policy term).
  • Minimum age at entry is 8 Years.
  • Maximum age at entry is 59 Years (for 16-year policy term), 54 years (for 21 year policy term) and 50 Years (for 25 year policy term).
  • You can pay the premium as yearly, half-yearly, quarterly, or monthly mode.
  • If you pay yearly premium, then you will get rebates of 2% in premium payment and for half-yearly premium rebate will be 1%.
  • No rebate for quarterly or monthly payments.
  • If you have opted for sum assured of Rs.15 lakh or more, then the rebate will be 1.75%, for Rs.10 lakh to Rs.14, 90,000 the rebate is 1.5% and for Rs.5 lakh to Rs.9, 90,000 the rebate is 1.25%.
  • You can avail the loan facility also.
  • This plan offers two riders. One is Accidental Death and Disability Benefit Rider and another is New Term Assurance Rider.

Benefits of Jeevan Labh (Table No.836)

Maturity Benefit

The Sum Assured+Bonus+Final Additional Bonus will be payable at maturity as a lump sum.

Death Benefit

“Sum Assured on Death“, vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable.

Sum Assured on Death-Higher of 10 times of annualised premium or Absolute amount assured to be paid on death i.e. Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid as of the date of death.

Who can buy this plan?

  • You can buy this plan if you are satisfied with returns of around 5% to 6%. This leads to a negative real return. Real return means return on investments minus the inflation rate. If the return from this plan is 5% or 6% and inflation rate is 7%, then the real return will be -2% to -1%.
  • You can buy this plan if you feel your family depends can survive financially without you. Because this plan is a typical endowment plan where the concentration is neither an insurance nor investment need. Therefore, you lack the ideal life protection coverage. One must have life insurance of at least 15-20 times of his or her yearly income. Hard to buy that much of insurance coverage from this plan, as the premium will be high. So you satisfy yourself by investing the amount which is feasible for you. This leads to lower insurance coverage.
  • You can buy this plan if your agent is luring you for tax saving purpose. But do remember that the investment without financial goal is dangerous than no investment.
  • If your family member or someone who is dear to you is an agent, then to satisfy him (his business), you can definitely buy this plan. He will be happy as without a single rupee investment, he will earn around 35% first year commission and after that around 5% to 6% commission every year. So ultimately, he will be richer than you will.

My take on this plan

What is new in this plan? The only new part I can say is the limited premium payment option. Other than this, nothing special. It is a typical endowment plan where even by investing for long term, one can expect a negative real return.

Simply by buying a term plan (from LIC itself) and investing in a debt product like PPF will give you more return, same tax benefits, and flexibility than this product.

Apart from this, your agents may lure you by saying the riders available in this plan. Simply avoid it. Instead, I suggest you to buy the accidental insurance separately from general insurance companies than clubbing with this product as a rider.

There is nothing special to review it or concluded that this is one of BEST product LIC launched. This plan is especially launched in January month to target the tax saving salaried.

Take any example for any age; the return from this plan will not be more than 7%. Your agent may show you the benefit in such a way that it may be around 10%. How? He will include the benefit you availed by investing in this plan and then the maturity amount. This is very wrong. If that is the case, then PPF will be on the higher side with the same tax benefits.

I know many agents when it comes to investment they tilt their conversation towards the importance of insurance. When it comes to insurance, they tilt as an investment product, which gives you some returns. However, do remember the Govt launched Pradhan Mantri Jeevan Jyoti Bima Yojana is far better and serves the pure insurance need than this product.

Stay away..!!

109 thoughts on “LIC’s Jeevan Labh (Table No.836)-Features and Review”

  1. An agent has approached me with the New Jeevan Labh proposal. So I landed here in your page for a review, though I have made up my mind the conventional returns is not my cup of tea. But I found your calculations of 5-6% kind of misleading because I did my calculations when the agent shared the quotes based on current bonus rates. Of course, the bonus is variable, I understand. But word ‘guaranteed’ doesn’t exist in any asset class I suppose. Coming back to your calculations, let me know whether I am calculating the IRR the right way – put all premium payments in negative and the final returns in positive and apply IRR for the entire column. Given this, I was getting 6.74%, 7.14% and 7.8% for 16, 21 and 25 years respectively. Even without the one time final bonus, all the IRR were coming up to 6.8%. I am 35 years. Not a big fan of PPF mentioned by you as the returns are hopeless when I invest every month as I prefer SIP style of investment. Debt mutual funds in long term invite LTCG though inflation indexed. Not many bonds with good YTM and there is reinvestment risk. If at all, I choose to invest in Debt, do I have much options? Any private insurer with rates better than 6.8%?

    1. Dear Ram,
      If you are convinced with agents data and 6.8% returns, then fantastic opportunity and go ahead. Regarding the calculations, I don’t have enmity either with LIC or with other insurers. If you feel LIQUIDITY not an issue and 6.8% returns are BEST to beat the inflation then please go ahead.

  2. Dear Sir,
    took lic jeevan labh policy on 15march 2017..with 16 year pay period and 25 year maturity..Invested 3 years Rs 72000x3years premium = 2,16,000.. After 3 years payment..need to surrender now on 15march 2020…how much should i expect from lic as surrender value?? or please suggest when to surrender to atleast get invested amount…

    1. Dear Manoj,
      Regarding the values, approach the regional LIC Branch. Obviously if you try to surrender now, the value be less than what you paid. You may get small return along with what you paid if you pay for more than 5 years or so.

  3. Hi Basu
    i will be insured like on LIC’s Jeevan Labh (Table No.836). I will be paid on 5000 per month. My age is 35 which one is better to choose 16/10, 21/15, 25/16. Please need ur suggestion for me.

  4. Hi Basu
    How we will get 7% returns in the policy as it has been mentioned in most of the comments. I want to know the calculations. And if we get 7% tax free returns, it does not seem bad.

      1. Hi Basu
        I am not relying on anyone. I just want to know how come the calculation shows that the IRR is 7%.

  5. Please share what is commission %for plan jeevan labh 836 for premium paying term 10 years.and policy terms 16 year Please reply.

  6. subramanya gopal rao

    I want to buy jeevan lab for my daughter who is 21 year of age for Rs 36,000/annum for 16 years. At the age of 46 years she will get return of about Rs 21,46,500 with normal life cover Rs 20,27,250 and accidental life cove of Rs 28,22,250. She will be able to pay RS 3000/month by an RD and pay yearly premium when i am no more. The actual premium paid is about Rs 574048 for 16 years. The return percentage per annum is about 10.956. If inflation is considered about 7%then the gain is about 4%. This plus life cover for about Rs 20,27,250 and accidental cover of about Rs 2822250. The policy goes with life and investment for my future of my daughter. Please , advice can I go ahead or is there any alternative which is better then this ?

  7. Hi,

    I have received a quotation from LIC Agent for Jeevan Labh where I have to pay 70k premium per annum for 16 years and a term of 25 years with total payment being 11lakhs. The return is shown as 45 lakhs after 25 years. This is a 12% return and not 6-7% as mentioned above. Can you please guide on this? I can share the forecast if you want.

      1. Problem is as mentioned above, they don’t give you that level of details. What is mentioned is –

        Premium- Your Yearly premium under this policy is Rs. 70,981. In 16 years you will pay a total of Rs. 11,16,451.
        Maturity Benefit – A total of Rs.44,98,500(estimated) can be expected through the term of this policy.
        Life Cover – In this policy your life cover will start at Rs. 15,75,000. By virtue of bonus getting added every year, your risk cover will grow to Rs. 44,95,500 when your age will be 58.

        If you calculate the rate of return, it comes to close to 12%.

          1. It is on the basis of Rs 47 to Rs 50 bonus per Rs 1000 of SA. This way for 12 lac (Just as an example) SA and 25 years policy term you get Rs 15 lac bonus apart from Rs 12 lac SA. You actually pay only Rs 8.5 lac premium.
            Is this valid numbers and whether bonus is really that high?

  8. I did MBA- Finance from reputed B-school.
    Insurance & wealth creation two separate things. thanks for educating people.

    I (27) just had one thought & want cross check with you before implementing.

    My Mom age is 51, thinking to take LIC Jeevan Labh policy.
    She is home maker & carries no responsibility.
    Dad is Rtd. state Govt. employee, so they have medical insurance up to 5 Lk.

    “I want to make sure that she(MOM) have backed up assert (insured amount/maturity benefit), & that she can use as instrument to give boost to surrounded people take care of her in future.”
    It doesn’t mean that I don’t want to take care, But it is good to have some assert in her hand to nominate for nominee.

    It’s kind of power in her hands & not much security is required to protect that.

    I am ready to pay premium. 15 Years premium & 21 settlement. Please let me know thought & backed up with strong logic.
    let me know, If you know any alternative .
    Thanks in advance.

      1. I am very clear with my requirement.
        My question is, can this policy is used as per my requirement. Do we have any other option.
        Please dont get into concepts of when insurance is required & why & how much.

  9. Raviaknth Tadepally


    I was a victim of Aviva Freedom Life insurance which I believed to be an investment option as suggested by an agent.
    I am paying my premium of 60,000 every year for past 4 years. Policy have a locking period of 5 years. I tried reaching out to AVIVA for surrender accepting a loss of 25 K. Still I was forced to continue paying on the name of locking period.

    It kept me in losses even after 4 years and have no options other than to continue. I am wondering how come IRDA stay silent when these people continue their loot.

    Thanks so much for your time as you are saving many keeping us away from their trap…..!!!

    Appreciate your good work.


      1. Raviaknth Tadepally

        Can you please suggest if I can go for stop payments options and take the amounts once the locking period is complete.
        Please help me with the better term policies available if you have it handy.

          1. Amazingly quick response.. Thanks so much ..!!!

            As suggested I will go for ICICI or HDFC.

            Regarding below Mutual Funds and I use FUNDS India for transactions,

            — BNP Paribas LT Equity Fund(G) — INR 5000
            — Franklin India Ultra Short Bond Fund-Super Inst(G) — INR: 15,000
            — ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth — INR: 10,000

            I am planning for an investment of 50,000 more.
            Can you please suggest me if I can add it to Franklin and ICICI or any other better options with 2-3 years locking.


  10. helloo sir can u please tell me …how lic will calculate their premium…like for 814 new endowment plan ….///

  11. Hi Raj,

    My baby was born last year , she is turned 1 year in march 2016 , i am looking for some nice policy which helps her in her education and for her marriage in future after certain age,
    is there any policy so , if not guide me with some nice policy please.

    Maheeratan Reddy

  12. I have one son and one daughter 3yrs n 10 yrs resp.i want to take short term or 15 yrs policy whose ppt is 10 yrs so plz suggest me which policy is good?

  13. i want to know about jeevan labh 15/21 term plan if 500000 sum insured age 35 then return amount in figure

    please tell about this

      1. I don’t know
        but other endowment plans
        return less then jeewan labh
        500000 insure sum according return will be 1075000 its right please tell me

  14. soumya ranjan mohanty

    Dear Sir,
    I want to invest money in SBI SUKANYA SAMRIDDHI ACCOUNT for my daughter.My daughter age is 2years 2 months now. Is this the good plan & I want to invest money for my daughter education.Which plan is best for my daughter.

    1. Soumya-I suggest PPF over this scheme. Because lot of political issues attached with it. We don’t know how the next Govt take it forward. Also, this is a debt product. You must have equity exposure to beat an inflation and meet your daughter’s goal.

  15. Very very informative and exposing information Mr Basu. I am myself a financial planner and I agrees to almost everything what Mr Basu says. Thanks for creating awareness amongst the people Basu Sir.

  16. P Rathnakar Babu

    Hi sir,

    This is Rathnakar working in Hubli HP gas Plant as Officer i`m 23 years old i’m planning to take a policy from LIC please suggest a good and better policy with more outcome.

  17. Hi,
    I am looking for a policy for my 5 year old daughter. I would like to invest 4-5 Lakhs upfront and wait for the return after 15-17 years. Please advise me the best plan if we pay the policy amount upfront.


  18. R u all reader’s check who is this basavraj!!! Why all viewers see his compliments… If u bye any investment plan so you go a financial consultant and consult directly with him or her and nxt time take your decision… Please dont take any consult in online from any other unknown person… Thank you….

  19. Sir i m intersted in this policy and want to know that how much money i will get after 25 yr as i want SA 1000000 for 25 year my age is 40 year.pls help me.regard

      1. Life cover+ saving
        & it is a new policy so i m unable to calculate.actually i m a singl mother working in a small pvt firm so want to save some money for my child marrige as well as life cover

        1. Pinky-Then stay away from this plan or any product which combines Insurance+Investment. But term insurance immediately for your life risk. Then invest based on your goals. Let us say you bought this plan. Think of for how long your dependents survive in case your sudden demise? May be a year or two right? What after that?

  20. Hi Basu,

    I am regular following up of your reviews of Lic plans, here I want to draw attention that Plan 836 for term 25 year will provide 10% return which will be more than FD, PPF. I calculated on the basis of current bonus rate & fab. It may be higher if Lic increased bonus rates in future.
    You never mentioned in your blog that Lic give more than 8% if plan Chosen for more than 25 year.

    1. Pankaj-Eager to hear about how you arrived at 10% return. Please do share of that information. In such low-interest rate cycle, I promote it as BEST PRODUCT IN INDIA. Please share of how you calculated. In my view, it will not cross more than 8% 🙂

      1. I calculated on the basis of sum assured 500000 & age 30, term 25 years. Total premium payable will be 3.72 lacs & bonus calculation as below:-
        Bonus rate- 50/1000=500000*50/1000*25=625000
        So total maturity will be 1350000.
        Effective Return=978000(net return)/372000(cost)=262.90/25(no of year)=10.51%.

        1. One more thing, I want to say, at the time of calculation of return, why don’t you consider the cost of pure insurance because risk started from the policy commencement. So if we remove the insurance cost from the premium, return will be far better as equal to market. Please explain.

          1. Pankaj-Whether you are buying this product as INSURANCE or INVESTMENT? When there is an investment part in this, I consider the whole premium as cost. Also, reducing the mortality amount and doing calculation is not a BIG game changer in return part. I think even it will not raise the return to more than 1%. Mortality amount is small compared to total premium.

          1. Premium calculated on the basis of 30 year @ 23688 in first year & 23273 onwards on 500000. I calculated only simple interest rate which will provide us annual rate. Everyone are not best in mathmatics. Please provide us only annual rate.

            1. We are only discussing about product feature. So premium include mortality charge & DAB rider also. So if we exclude these part, can you show the actual picture.

            2. Pankaj-This is how agents shows the wrong way. Check with IRDA or LIC circular of how to calculate returns on Life Insurance products. You will get an idea. If you are comfortable with simple interest then it does not meant that whole world must follow YOU. There are some set of rules followed to calculate returns on investment. Returns over a year must be in terms of CAGR or IRR. Also, why the premium changes from second year? Premium must be same throughout the policy period right?

              1. Hey dear I am also an agent of lic. As per circular, govt. Charged service tax @ 3.625% in first year & 1.81% fr 2nd year onwards. I am not sure about rate of mortality but it will be around 2026.00 per year on 500000. DAB will not impact so much. I have to refer recknor for calculating it. Insurance will consider these charges also to decide the premium. So, if not a bad deal as you show in your blog. I just want from you please provide complete information with depth analysis about particular product. I prefer to sell Plan 830 & 836 which is better products in traditional plan. I know term plan is far better for protecting your family prospective in case of sudden death. But traditional plan gives better option for salaried person within bracket of 4-5 lacs.

                    1. Pankaj-Now why you changed name from earlier comment of PANKAJ RAWAR to ANONYMOUS? Do you know there is something called IP address in internet world? I replied that you go through my video to understand. You claim to be an agent, you must know FIRST before selling to your client. Otherwise, don’t know the faith of those buyers under YOU.

    2. Hi Basu

      It was mistakenly wrong spell in name. I calculated as per your way, using IRR function, it giving me 15% return.

  21. Subrata Gangopadhyay

    I m 41 yrs. How will be the LIC Jeevan Labh policy, for 16yrs tenure, and premium to be paid upto 10yrs?

  22. Dear
    Basu sir
    I want to take a policy of total matured benefit amount Rs.100000,with a abilty of 20-25 thousand rupees anually.My age is 7 years.I want the policy life 20 year.Please advice me.Thanking you

  23. Basu,

    Currently I have 1 LIC Jeevan Anand Policy and 1 term plan from AEGON but still have not invested upto 1.5Lac in 80CC 2015.
    Since you discouraging me to go for LIC’s Jeevan Labh, could you please advise on best policy in terms of investment, benefits and features. So that this will also help me to investment under 80CC. Thanks.

    – Gen

  24. Hi Sir,

    Its nice of you on explaining or briefing the LIC Policies and its Terms.

    Can you throw some light on Choosing Rider with S.A and not choosing the Rider with S.A. I am asking this Question to few Agents, but non of the agent had a clear view on Rider.

    1. Shekhar-Riders with life insurance products have some limitation than standalone products. Hence, don’t combine. Instead buy accidental and critical insurance products from general insurance companies.

    1. Joy-So sorry…. and beg to pardon me. Wishing you and your family a happy new year 🙂 You are one of the quality commentator of my blog. I always appreciate the way you comment and we discuss. Thanks for it.

  25. Joydeep Choudhury

    Bsu Sir,

    Some info you wrote are fallacious. You said that by taking this product one would actually benefit the Agent more
    A person aged 20 yes takes Table no 836 for 21 yrs with 15 years Premium paying term. SA 200000. His first year premium would be Rs 11328 inclusive of Service taxes. that means Basic premium would be Rs 10917.

    First year commission include bonus= 25 % of Basic premium + Bonus commission 40 % = Rs Rs 3821
    Second and third year commission (7. 5%) = Rs 1634
    Rest 12 yrs commission @ 5 %= 6552
    Total commission = Rs 12007. If I am wrong, pls forgive me………

  26. Joydeep Choudhury

    Dear basu Sir,

    In India we have two modes of imparting education…one in the English medium and the other in the Local medium….. In our state , educationists have instructed The education department to give emphasize on importance of LOCAL LANGUAGE SCHOOLS as only 11 countries in the world speak English….. They opine that if LOCAL MEDIUM SCHOOLS are not given importance, the language would suffer and may in the long run, become obsolete…… But further analysis suggest that 99 per cent of these educationists send their wards to English medium schools…….
    Now a days people do a lot of shopping from Tele shopping ………Now the products as shown on TVs have interesting prices Rs 2999, Rs 1999, Rs 999………

  27. Hey Basavaraj,

    I am buying endowment plan “Jeevan Labh” from LIC from known LIC agent back in hometown. I hear some of the agents will pay first premium? If so, should I ask him to pay the first premium?

    Regards, Gen

    1. Gen-Whether you read my views about this plan? If you feel that it is still a best choice to buy, then go ahead. Sharing commission by agents is illegal. If they are doing so then it is against the rule. But many do such bad practices to get the customers. So stay away from such bad practices. for you it is like ASKING BRIBE.

      1. It’s not a bribe I would say rather business tactics. If an online portal or credit card company gives you cashback, or discount, it is not a bribe? Mind your words sir and respect insurance agents. They are doing this because they want to earn meal for their families and you people made their lives worst by giving biased opinion without asking. If you don’t have any vested interest, who asked you to write this article? Show me how many agents are reach? Yes, I see all so called financial advisers living in bungalows and driving Benz. If you have guts, you will allow this to be online. But I know, you will want to be coward.

        1. Ashvin-You are comparison is wrong. IRDA itself claims that sharing commission is wrong. However, there is no such restriction on cash back or discounts. Everyone does for their meal. But it does not mean that we do whatever interests US. For your information, this comment is LIVE and during these four years, I saw many more worst comments than your’s. So don’t say that your words makes me to hide your comment. Let readers decide who is right and who is for buyers and who not.

  28. Dear Basu….You are deadly against of LIC plans…..;)
    But yes it is true that you are presenting real picture & hidden truth of LIC plans…

    Keep it up and educating your readers..:)

  29. Hi Basu,

    I want start for investing in equiteis, can you please suggest, what different type of account and what would be best vendor and what needs to take for investing in equties.

    I don’t want to do regular trading , just to invest in good shares for long term.

    Also, i think your blog doesn’t have equties section as per my knowledge, any plan for that in future? 🙂

    Can you suggest what will be better option follow regular good shares.

  30. Dear sir
    One lic agent approached me regarding term insurance policy for one crore but he insisted me take jeevan labh for one crore sum assurance but it is costing me nearly 380000 rupees per annum .but it is not possible for me to pay that much amount But another option he told me term policy for one cr with returns costing me 154000 per annum
    He shown so many evidences how private insurers reject claims is it true private insurars will reject like that I would like to have best advice from u shall I go private operators or lic for one cr policy
    Thanks in advance

    1. Vishwanath-No term insurance of LIC will cost you Rs.1,54,000 a year. He is again selling you one more endowment. Beware of such agents. If your intention is to buy term insurance, then why can’t buy online? I want to remind you that whether it is LIC or private insurers, all will come under IRDA. It is just a gimmick these agents creates to buy one more endowment plan. Let me know what information he shared to prove his point.

      1. Sir please check the claim settlement ratio of LIC & Other private insurance companies. You will get the answer. I read your replies & I genuinely feeling that you are biased about LIC.

        1. Dear Anand,
          Can you check out the average sum assured the LIC settled? It is less than Rs.3 lakh sum assured policies. Hence, don’t be so much fan of LIC just because it shows 100% claim settlement. CSR is a raw data.

  31. Basu sir,
    Does this policy give income tax benefit under 80 cc, beyond the 1.5 Lakhs provided by other investments?

  32. Dheeraj Srivastava

    Hi I want some advice to invest in which of the mutual funds for a 10 yr term to get a corpus of 20 lacs for my son’s education.

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