LIC Jeevan Labh Calculator 2025 – Secure Bright Future

LIC

LIC Jeevan Labh Calculator 2025 – Secure Bright Future

Plan Details

Your Current Age (Years)

Policy Term (Years)

Sum Assured (₹)

10,00,000

Premium Payment Frequency

Add Accidental Death & Disability Benefit Rider

Premium Results

Estimated Annual Premium

₹ 0

(Payable Yearly)

Basic Premium ₹ 0

Rider Premium (if any) ₹ 0

GST (4.5%) ₹ 0

Total Premium Payment Term 16 Years

Policy Maturity Year 2048

Estimated Maturity Amount* ₹ 0

Key Benefits

Limited Premium Payment Term (PPT)
Life Cover for the entire policy term
Maturity Benefit on survival
Death Benefit payable to nominee
Bonus additions for participating profits
Loan facility available

What is Lic jeevan Labh Calculator?

LIC Jeevan Labh is a non-linked, participating endowment plan that provides a combination of protection and savings. It is a limited-premium paying plan. In addition to providing a life cover throughout the duration of the policy, it also offers a guaranteed lump payment amount (payment Assured plus incentives) upon maturity.

Key features include:

Limited Premium Payment: Premiums are paid for a shorter period (like 16 or 21 years) than the total policy term (like 21, 25, or 35 years).
Maturity Benefit: The Sum Assured on Maturity plus accrued bonuses.
Death Benefit: A guaranteed Sum Assured on Death plus bonuses are paid to the nominee.

An LIC Jeevan Labh Calculator is a web-based application that can be found on websites that consolidate insurance policies. It provides prospective purchasers with the ability to estimate the plan’s financial outcomes. Through the input of information such as age, policy term, premium payment period, and Sum Assured, the calculator produces an approximate picture of the following:

The maturity value.
The projected death benefit.
The annual premium amount.

This helps individuals make an informed decision by comparing the potential returns against the premiums paid. It’s important to remember that the calculator provides illustrations based on projected bonus rates, which are not guaranteed.

How the LIC Jeevan Labh Calculator Works (Step-by-Step)

A LIC Jeevan Labh calculator is a simplified tool that estimates your premium based on the key inputs you mentioned. It’s important to understand that the actual premium calculated by LIC will be more precise, but this gives you a very close estimate.

Here’s a breakdown of how it works internally, using only the variables you provided:

Age: Your current age.
Policy Term: The total duration for which the life cover is active (e.g., 16, 21, or 25 years for Jeevan Labh).
Premium Payment Term (PPT): The number of years you will pay the premium (e.g., for a 25-year policy term, the PPT might be 16 years).
Sum Assured: The guaranteed maturity/death benefit amount.
Premium Payment Frequency: How often you pay (Yearly, Half-Yearly, Quarterly, Monthly).

The Simplified Calculation Process

The calculator doesn’t just “add” these numbers. It uses them in a formula that is based on pre-defined Premium Rates.

Step 1: The Core Concept – The Rate per Thousand

The entire calculation hinges on a single, crucial number: the annual premium rate per ₹1,000 of Sum Assured. This rate is determined by LIC’s actuaries and is based primarily on your Age and the Policy/Premium Payment Term.

Example: Let’s say for a person of your age opting for a specific Policy Term and Premium Payment Term, LIC’s rate is ₹50 per ₹1,000 of Sum Assured per year.

Step 2: Calculate the Basic Annual Premium

The calculator uses this rate to find your basic yearly premium.

Formula:
Basic Annual Premium = (Sum Assured / 1000) * Rate per ₹1000

Example:

Sum Assured = ₹10,00,000 (10 Lakhs)
Rate per ₹1000 = ₹50
Basic Annual Premium = (10,00,000 / 1000) * 50 = (1000) * 50 = ₹50,000 per year.

Step 3: Adjust for Payment Frequency

The basic premium is for yearly payments. If you choose a more frequent mode, LIC charges a slightly higher total premium because of the administrative cost and the fact that they don’t get the full amount upfront.

The calculator applies standard multipliers:

Yearly: Premium = Basic Annual Premium ( multiplier of 1.00)
Half-Yearly: Premium = (Basic Annual Premium / 2) * (e.g., 1.02) -> You pay two installments that are slightly more than half of the annual premium.
Quarterly: Premium = (Basic Annual Premium / 4) * (e.g., 1.05)
Monthly (SSS): Premium = (Basic Annual Premium / 12) * (e.g., 1.10)

Example (Continuing):
If you choose Half-Yearly payments with a multiplier of 1.02:

Installment Amount = (50,000 / 2) * 1.02 = 25,000 * 1.02 = ₹25,500 per installment.
Total Annual Premium = 25,500 * 2 = ₹51,000 (which is ₹1,000 more than the yearly mode).

Step 4: Incorporate GST (The Hidden “Year” Factor)

This is where the “Year” input might be subtly used. The Goods and Services Tax (GST) is applicable on insurance premiums. The current rate is 4.5% for new policies (as of now). The calculator adds this tax to the final premium.

Formula:
Final Premium (per installment) = (Frequency-adjusted Premium) + GST

Example (Half-Yearly):

Half-Yearly Premium (before tax) = ₹25,500
GST @4.5% = 25,500 * 0.045 = ₹1,147.5
Final Half-Yearly Premium you pay = 25,500 + 1,147.5 = ₹26,647.5 (rounded off).

Summary: The “Black Box” View

In simple terms, the calculator works like this:

Inputs Received: It takes your Age, Policy Term, PPT, Sum Assured, and Frequency.
Rate Lookup: It matches your Age and Policy/PPT Term against a massive internal table of pre-set rates to find the “Rate per ₹1000”.
Basic Premium Calculation: It calculates (Sum Assured / 1000) * Rate.
Frequency Adjustment: It divides and multiplies this amount based on your payment Frequency.
GST Application: It adds the applicable GST percentage to get the final premium.

Crucial Limitations of Online Calculators

Estimates Only: They provide a very close estimate, but the final premium issued by LIC might differ slightly.
No Medical Underwriting: They assume you are a standard, healthy life. If you have a medical history that requires extra risk (e.g., diabetes, high blood pressure), the actual premium will be higher. This is called a “loading.”
No Guarantee: The quote is not a guarantee. Only the premium quoted by an LIC agent after a formal proposal is binding.

The key features of LIC Jeevan Labh

1. Limited Premium Payment Term

You are only required to pay premiums for a specific number of years (for example, 16 or 21 years), but the policy offers life insurance coverage for a longer period of time that has been predetermined (for example, 21, 25, or 35 years). Because of this, it is a commitment for the short term that will lead to a long term aim.

2. Combination of Savings and Protection

The plan is an endowment plan, which means that it combines a savings component with a life insurance insurance component. It enables you to save funds for a future objective while simultaneously assuring that your family will be financially secured in the event that you pass away unexpectedly.

3. Guaranteed Benefits with Bonuses

The plan provides rewards that are guaranteed upon maturity and upon death. In addition to this, it receives annual bonuses that are a portion of the profits that LIC makes. Once these incentives have been reported, they are assured to be included in the final payout for the player.

4. Maturity Benefit

If you survive the entire policy term, you receive the Sum Assured on Maturity along with all the accrued bonuses. This provides a substantial lump sum for milestones like retirement or a child’s education.

5. Death Benefit

The nominee is entitled to receive the Sum Assured on Death, which is greater than the maturity sum, in addition to all of the bonuses that have been declared up to that point in time in the event that the policyholder passes away during the life of the policy. The immediate financial security that this provides to the family is essential.

6. Loan Facility

On the condition that the insurance has reached its surrender value, you will be able to obtain a loan against it. In the event of a financial emergency, this makes it possible to quickly access funds without having to worry about canceling the policy.

7. Surrender Value

If you are unable to continue paying premiums, you can surrender the policy and receive a surrender value (a portion of the premiums paid and bonuses)

8. Tax Benefits

Individuals who have paid premiums for LIC Jeevan Labh are qualified to get tax deductions in accordance with Section 80C of the Income Tax Act, 1961. The proceeds from the maturity are likewise exempt from taxation under Section 10(10D), provided that the applicable tax requirements are met.

LIC Jeevan Labh is designed for individuals seeking a disciplined savings plan with a limited premium payment period, which culminates in a tax-free lump sum at maturity, all while providing essential life cover.

What is LIC Jeevan Labh Rider?

The Jeevan Labh Rider is not a standalone plan. It is a rider (an add-on benefit) that you can attach to a main LIC policy, specifically the Jeevan Labh plan.

Jeevan Labh (Base Plan): A plan that offers a limited premium payment, provides participation (with bonuses), and provides endowment assurance. You pay premiums for a certain term, and it offers a lump sum amount (Sum Assured plus Bonuses) at maturity, or it can be given to your nominee in the event that you experience an untimely death during the term of the policy.
Jeevan Labh Rider (Add-on): For the purpose of providing your family with an additional financial cushion, this rider will only pay an additional sum promised in the event that you pass away during the period of the policy. In the event that the base plan reaches its maturity, it does not pay anything.

The basic plan, which is called Jeevan Labh, can be compared to the process of purchasing a car. A rider is comparable to an additional, more robust insurance plan that can be purchased for that vehicle. It is not possible to purchase the insurance package without the vehicle.

The Accidental Death and Disability Benefit (ADDB) is a popular and cost-effective rider offered by LIC (and most other insurance companies). It provides an additional payout specifically if the policyholder’s death or disability is caused by an accident.

It’s a Rider: Like the Jeevan Labh Rider, it is an add-on to a main life insurance policy (e.g., Jeevan Anand, Jeevan Lakshya, or any other eligible plan). You cannot buy it alone.
Accident-Specific:It only pays out for claims arising from accidents. It does not cover death due to illness or natural causes.

Lic jeevan labh eligibilty criteria

Age at Entry (Minimum and Maximum)

Minimum Age: 8 years old. However, if the life assured (the person on whom the policy is taken) is a minor (below 18 years), the policy must be proposed by a parent or a legal guardian.
Maximum Age at Entry: 59 years old. This is calculated as: (Policy Term - 1). For example:
- For the 25-year term, the maximum entry age is 59 years (so that the policy matures at age 84, which is within the limit).
- The maximum maturity age is capped at 80 years.