LIC Jeevan Anand vs Jeevan Labh. Which Endowment Plan Wins in 2026?

The 30-Second Summary

Pick Jeevan Anand (715) if you want life cover that continues for free after maturity (a unique feature in the LIC stable). Pick Jeevan Labh (736) if you want a shorter premium paying term and the highest maturity returns among LIC endowments. Both pay simple reversionary bonuses every year.

• •Jeevan Anand: Lifetime cover even after maturity. Pay premiums for the full policy term.
• •Jeevan Labh: Pay premiums for 10, 15, or 16 years only. Highest bonus rates in LIC.

Premium Comparison (Age 30, ₹10 Lakh Sum Assured, 20-Year Term)

Indicative annual premiums based on the official LIC sales brochures. Actual rates depend on underwriting:

• •Jeevan Anand (Plan 715, 20-year term, 20-year PPT): approximately ₹47,000 to ₹50,000 per year.
• •Jeevan Labh (Plan 736, 21-year term, 15-year PPT): approximately ₹62,000 to ₹65,000 per year.
• •Jeevan Labh's premiums are higher because you pay for fewer years. Total outflow over the policy term is similar.

Maturity Returns. Real Numbers

Using LIC's historical bonus rates of ₹49 per ₹1,000 for Jeevan Anand and ₹52 per ₹1,000 for Jeevan Labh, plus terminal bonuses:

• •Jeevan Anand 20-year term: ₹10 lakh SA + approximately ₹9.8 lakh bonuses = ₹19.8 lakh at maturity.
• •Jeevan Labh 21-year term: ₹10 lakh SA + approximately ₹10.9 lakh bonuses + final additional bonus = ₹21.5 lakh+ at maturity.
• •Effective IRR (annualised return): Jeevan Anand 5.4%. Jeevan Labh 5.9%.

The Jeevan Anand Trick. Cover After Maturity

Jeevan Anand's unique selling point is that after the policy term ends and you get the maturity amount, your life cover (equal to the original sum assured) continues for FREE for life. Most people miss this. If you die at 75, your nominee still gets ₹10 lakh from LIC. on top of the ₹19.8 lakh you already received at maturity.

This is real. It is in the official LIC brochure. No other LIC plan does this.

Which One Should You Pick?

Quick decision framework:

• •If you want lifelong cover for your nominee and steady savings: Jeevan Anand.
• •If you want maximum returns and a shorter premium paying period: Jeevan Labh.
• •If you are 35+ and worried about long premium commitment: Jeevan Labh (10 or 15-year PPT).
• •If you are 25 to 35 and have stable income for the next 20 years: Jeevan Anand.
• •Pro tip: Many buyers split. ₹5 lakh Jeevan Anand for lifetime cover, ₹5 lakh Jeevan Labh for higher returns. Best of both.

The Cashflow Story Most Buyers Miss

Premium per year tells you about affordability. Total outflow tells you about the real cost. The two plans deceive in different ways.

On Jeevan Anand, a 30-year-old paying ₹48,000 a year for 20 years pays ₹9.6 lakh in total. The maturity is around ₹19.8 lakh. Effective gain of ₹10.2 lakh, plus the bonus of free lifetime cover after maturity.

On Jeevan Labh with 15-year PPT and 21-year term, the same buyer pays ₹63,000 a year but only for 15 years. Total outflow: ₹9.45 lakh. Maturity around ₹21.5 lakh in year 21 (six years after last premium). Effective gain of ₹12 lakh, but no post-maturity life cover.

Look closely. Total outflow on Jeevan Labh is actually lower by about ₹15,000 over the full term. The plan asks more from you in the early years and frees you from premiums in the back six years. That last gap can be useful if you anticipate other large expenses (children's college, parent care, home upgrade) in years 16 to 21.

When Neither Plan is the Right Fit

Both plans are solid for the right buyer. They are wrong for several common situations.

• •You need pure protection above ₹50 lakh. Endowment sum assured caps make these wrong tools for high cover. Use term insurance.
• •You want market-linked growth. Endowments give 5 to 6 percent IRR. ULIPs, mutual fund SIPs, and NPS Tier 1 will likely outperform on long horizons.
• •You are in your late 50s. Both plans have age caps (typically 50 to 60 at entry). At that age, immediate annuity from Jeevan Akshay VII is a better fit.
• •You expect significant income volatility (entrepreneur, contract work, freelancer). Locked yearly premiums add stress. Consider single-premium plans or step-up SIPs.
• •You already have two or more LIC endowment plans. Diversification matters. Add PPF, NPS, or an equity SIP rather than a third LIC plan.

Common Mistakes Comparing These Two Plans

• •Comparing only the headline bonus rate (₹52 vs ₹49 per ₹1,000). The actual maturity also depends on FAB, policy term, and PPT. Compare maturity values, not bonus rates.
• •Forgetting that Jeevan Anand's free-cover-after-maturity feature has real economic value. If the family relies on a small inheritance, ₹10 lakh of post-70 cover is meaningful.
• •Picking Jeevan Labh just to 'finish premium quicker' without checking if the higher annual outflow is sustainable. A lapsed Jeevan Labh in year 4 loses 50 to 60 percent of premiums paid.
• •Ignoring that the LIC plan numbers may change over time. Older Jeevan Anand (Plan 815 originally, now 715) and older Jeevan Labh (936) versions had different terms. Get the current sales brochure.
• •Assuming the agent's projected maturity is guaranteed. Only the sum assured and guaranteed addition (if applicable) are guaranteed. Bonus and FAB are not.

Frequently Asked Questions

Q: Can I convert my Jeevan Anand to Jeevan Labh midway? A: No. LIC does not allow plan conversion within the policy term. You can surrender one (with significant loss) and buy the other, but it rarely makes financial sense.

Q: Are riders available on both plans? A: Yes. Accidental Death and Disability Benefit, Permanent Disability Benefit, Critical Illness, and Term Rider are available on both, subject to underwriting and age limits.

Q: What is the difference between simple reversionary bonus and final additional bonus in these plans? A: SRB is declared annually and accumulates year by year. FAB is a one-time bonus paid only at maturity (or death claim) for policies with sufficient tenure. FAB is typically larger for 20-plus year policies.

Q: Can I take a loan against Jeevan Anand or Jeevan Labh? A: Yes, after the policy completes 3 years (Jeevan Anand) or 2 to 3 years (Jeevan Labh). The loan can be up to 90 percent of the surrender value at 9 to 10 percent interest.

Q: Which plan has better claim settlement experience? A: Both are LIC plans, so the claim experience is identical at the company level. LIC's overall claim settlement ratio applies. There is no plan-specific difference in claim handling.