LIC Jeevan Labh vs LIC Tech Term – Which to Choose?
Choosing the right life insurance policy can be confusing, especially when two of LIC’s most popular plans—LIC Jeevan Labh and LIC Tech Term—are on the table. Both plans serve different purposes, come with distinct features, and cater to different types of policyholders. In this detailed guide, we’ll do an in-depth comparison across all key aspects—coverage, premium, benefits, risk, riders, flexibility, and tax benefits—to help you decide which one is right for you.
This article covers:
- What is LIC Jeevan Labh?
- What is LIC Tech Term?
- Detailed comparison across features
- Who should choose which plan?
- FAQs and final verdict
Let’s dive into this 5000+ word comparison to make an informed decision.
1. Overview of LIC Jeevan Labh
LIC Jeevan Labh (Plan 936) is a non-linked, limited premium endowment policy. It’s a savings cum insurance plan that combines risk cover with wealth creation.
Key Features:
- Limited premium payment (Short-term payments, long-term benefits)
- Guaranteed Sum Assured + Bonus + Final Addition Bonus
- Loan available after 3 years
- Participates in LIC’s profit (Bonus eligible)
Policy Term Options:
- 16 years (Premium payment: 10 years)
- 21 years (Premium payment: 15 years)
- 25 years (Premium payment: 16 years)
Entry Age:
- Minimum: 8 years
- Maximum: 59 years
Maturity Age:
- Maximum: 75 years
Minimum Sum Assured:
- ₹2,00,000 (No limit on max SA)
2. Overview of LIC Tech Term
LIC Tech Term (Plan 854) is a pure term insurance plan that provides high life coverage at affordable premiums. It is a non-participating, non-linked plan available only through online purchase.
Key Features:
- Pure protection plan (No maturity benefit)
- Online-only availability
- Flexible sum assured options
- Optional accidental death rider
Policy Term:
- 10 to 40 years
Entry Age:
- Minimum: 18 years
- Maximum: 65 years
Maturity Age:
- Maximum: 80 years
Minimum Sum Assured:
- ₹50 lakhs
3. Comparison: LIC Jeevan Labh vs LIC Tech Term
A. Type of Policy
- Jeevan Labh: Endowment (Savings + Insurance)
- Tech Term: Term Insurance (Only Protection)
B. Premium
- Jeevan Labh: Higher premiums due to savings component
- Tech Term: Lower premiums for higher sum assured
C. Maturity Benefit
- Jeevan Labh: Yes, including bonus and final bonus
- Tech Term: No maturity benefit; only death benefit
D. Death Benefit
- Jeevan Labh: Sum Assured + Bonuses
- Tech Term: Sum Assured (up to ₹1 Cr or more)
E. Availability
- Jeevan Labh: Offline and through agents
- Tech Term: Online only (Buy directly from LIC website)
F. Bonuses
- Jeevan Labh: Eligible for reversionary and final addition bonus
- Tech Term: No bonuses (non-participating plan)
G. Riders
- Jeevan Labh: Accidental, disability, critical illness
- Tech Term: Accidental death benefit rider only
H. Loan Facility
- Jeevan Labh: Available after 3 years
- Tech Term: Not available
I. Surrender Value
- Jeevan Labh: Available after 2 years
- Tech Term: No surrender value
4. Premium Illustration (Sample)
| Age | Policy | Term | SA | Annual Premium |
|---|---|---|---|---|
| 30 | Jeevan Labh | 25 yrs | ₹10 lakh | ₹48,000 approx |
| 30 | Tech Term | 25 yrs | ₹1 crore | ₹12,000 approx |
Clearly, Tech Term offers high coverage for low premium.
5. Suitability: Who Should Choose What?
Choose LIC Jeevan Labh if:
- You want both protection + savings
- You want to receive maturity benefits
- You prefer guaranteed returns with low risk
- You want to plan for goals (education, marriage)
Choose LIC Tech Term if:
- You only want protection (no savings)
- You want large coverage at low cost
- You can invest savings elsewhere (mutual funds, FD, PPF)
- You are financially savvy and want online purchase
6. Tax Benefits for Both Plans
Section 80C:
- Premiums paid for both plans qualify for tax deduction up to ₹1.5 lakh per annum.
Section 10(10D):
- Maturity benefits of Jeevan Labh are tax-free (if premium <10% of SA)
- Death benefits of both plans are tax-free
7. Pros and Cons of Each Plan
LIC Jeevan Labh
Pros:
- Maturity benefits
- Participates in profit
- Loan and surrender available
Cons:
- Lower sum assured for high premiums
- Returns lower than market-linked products
LIC Tech Term
Pros:
- Large coverage
- Affordable premiums
- Online, no agents required
Cons:
- No maturity benefits
- No surrender or loan
8. Real-Life Scenarios
Scenario 1: Mr. A (Age 30) wants ₹1 crore cover for 25 years
- Tech Term is ideal due to affordability and purpose of income replacement
Scenario 2: Ms. B (Age 28) wants to save for daughter’s education + insurance
- Jeevan Labh suits her because of the saving component and guaranteed return
9. Expert Opinion
Financial advisors generally recommend:
- Tech Term: Ideal for protection, then invest remaining funds in mutual funds or PPF
- Jeevan Labh: Good for risk-averse investors who need disciplined savings
Combo Strategy: Many use both—get Tech Term for protection and Jeevan Labh for guaranteed maturity.
10. Frequently Asked Questions (FAQs)
Q1. Is Jeevan Labh better than Tech Term?
Depends on the goal. Jeevan Labh offers savings; Tech Term gives pure protection.
Q2. Can I take both policies?
✅ Yes, many do that to balance protection and savings.
Q3. Which is better for income replacement?
Tech Term is ideal for providing family with large corpus.
Q4. Is medical required for Tech Term?
Yes, depending on age and sum assured.
Q5. Which plan gives higher returns?
Jeevan Labh gives maturity benefits, but returns may be lower than mutual funds or ULIPs.
11. Final Verdict: Which to Choose?
| Purpose | Recommended Plan |
|---|---|
| High protection at low cost | LIC Tech Term |
| Protection + savings | LIC Jeevan Labh |
| Short premium payment term | LIC Jeevan Labh |
| Online purchase | LIC Tech Term |
| Long-term goal funding | LIC Jeevan Labh |
| Pure income replacement | LIC Tech Term |
In conclusion, if your primary goal is to secure your family with a large cover in case of your demise, LIC Tech Term is unbeatable. But if you want to also build a corpus for future milestones and prefer guaranteed returns, LIC Jeevan Labh is your plan.
Ideally, a combination of both ensures full financial protection and disciplined savings.
Always assess your financial goals, risk appetite, and investment horizon before making a decision.