LIC Jeevan Lakshya Plan - Policy Details

The Jeevan Lakshya plan's salient features can be mentioned as follows -

1. Sum assured
   1. Minimum - Rs. 1,00,000
   2. Maximum - No limit
   3. Multiples - The basic sum assured can be in multiples of Rs. 10,000 only
2. Policy term - 13 to 25 years
3. Premium payment modes - Premiums for the policy can be paid in yearly, half-yearly, quarterly and monthly periods and an option of Electronic Clearing Service (ECS) is also available, wherein it facilitates an easier option to pay the premiums
4. Premium payment term - The premium paying term is 3 years less than the policy term, irrespective of whatever term the policy is for
5. Age of entry
   1. Minimum - 18 years (completed)
   2. Maximum - 50 years (nearest birthday)
6. Maximum maturity age - 65 years (nearest birthday)
7. Bonuses - Being a With-Profits Endowment Assurance plan, this policy garners profits made by the Life Insurance Corporation of India through the Simple Reversionary Bonus and Final Additional Bonus (if applicable) and these are paid out at the end of the maturity period
8. Optional riders - The policy can have two optional riders
   1. LIC Accidental Death and Disability Benefit Rider
   2. LIC New Term Assurance Rider

Benefits of LIC Jeevan Lakshya

This policy, if availed, offers the following benefits -

1. Maturity Benefit - Provided all the premiums have been paid in full and the policyholder has survived till the end of the policy term, the Maturity Benefit will encompass the Sum Assured on Maturity plus the vested Simple Reversionary Benefits and the Final Additional Bonus, if any. The Sum Assured on Maturity is the same as the Basic Sum Assured
2. Death Benefit - Under this benefit, in case of the death of the policyholder within the policy term, a Sum Assured on Death plus Simple Reversionary Bonuses and the Final Additional Bonus (if any) will be provided
3. Tax Benefits - Premium paid for this plan is admissible for availing rebate on income tax under 80C and the maturity amount is free from tax as per section 10D

Eligibility Conditions of LIC Jeevan Lakshya

The plan of LIC Jeevan Lakshya can be combined with two optional riders. The eligibility conditions for all the three can be mentioned as below -

Premium Paying Terms

The premium payments for LIC Jeevan Lakshya can be made in yearly, half-yearly, quarterly and monthly modes and a facility for ECS is also made available for easier payment of premiums through net-banking or mobile banking.

The LIC Premium Payments for Jeevan Lakshya and its optional riders can be mentioned as below -

Exclusions

This policy by the Life Insurance Corporation of India has very simple rules and regulations and no exclusions provided the above mentioned criteria are met.

There is, however, a suicide clause applicable to Jeevan Lakshya. If the life assured commits suicide within 12 months from the date of the commencement/risk, 80% of the single premium paid (excluding taxes) and extra premium (if any) will be returned.

Additional Information on LIC Jeevan Lakshya

Paid-up Value - If in case premiums have been paid for at least three consecutive years and subsequent premiums haven't been paid, the policy acquires Paid-Up Value. In this case the Maturity Sum Assured and Death Sum Assured will be a multiple of a fraction of the number of premiums paid and the number of premiums payable. The Income value will also be subject to the same fraction starting from the date of the death of the life assured.

LIC Jeevan Lakshya Surrender Value - Guaranteed Surrender Value is availed if the policy is surrendered after at least three years' payment of premiums. It's a percentage of the total premiums paid till date.

Revival of Policy - The policy can be reinstated if lapsed. Provided it has been less than 2 consecutive years since the date of the last unpaid premium.

Loan on Policy - After a payment of 3 years of premiums, a loan can be availed on the policy.

A Sample Case Study about LIC Jeevan Lakshya

Consider Mr. Vinod has availed LIC Jeevan Lakshya for a term of 30 years. His current age is 25 and the sum assured is 20 lakhs. Let's list out the initial details of how the policy would work in his case -

1. Mr. Vinod's age - 25 years
2. Policy Term - 30 years
3. Sum Assured - Rs. 20 lakhs
4. Premium Payment Term - 27 years (Policy Term - 3 years)

Death Benefit - If Mr. Vinod dies after 8 years from the date of the receipt of the policy, the death benefit payable will be -

1. From the 9th year of the policy period, the nominee will receive Rs. 2,00,000 (10% of the the Basic Sum Assured) on every policy anniversary till the end of the policy term (30 years)
2. At the end of the policy term/maturity period, the nominee shall receive Rs. 22,00,000 (110% of the Basic Sum Assured) + Simple Reversionary Bonuses + Final Additional Bonus (if any)

Maturity Benefit - If Mr. Vinod survives through the entire policy period, the final amount that he receives is -

Maturity Amount = Rs. 20,00,000 (Sum Assured) + Simple Reversionary Bonuses + Final Additional Bonus (if any)

LIC Jeevan Lakshya is available to all citizens of India through registered LIC offices and agents/brokers. The requisite documentation for availing the policy can be enumerated as below

1. Application form/Proposal form 300
2. Passport size photograph
3. Address Proof
4. Age Proof
5. Medical reports (if required)

This policy, though combining two optional riders and an ample coverage on life and death benefits, isn't a lucrative investment option. It should be taken up only as an insurance option.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017