Introduction
LIC’s Jeevan Lakshya is a participating non-linked plan which offers a combination of protection and savings. This plan provides for Annual Income benefit that may help to fulfill the needs of the family, primarily for the benefit of children, in case of unfortunate death of Policyholder any time before maturity and a lump sum amount at the time of maturity irrespective of survival of the Policyholder. This plan also takes care of liquidity needs through its loan facility.
Table No.
833
Plan Type
participating non-linked plan
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
Maximum :
Maturity Age
Minimum
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Maximum
Basic Sum Assured
Maximum
Rs.1 lakh
Minimum
No Limit
The basic sum assured amount chosen by the insured shall be in multiples of Rs.10,000.
Policy Term
Minimum 13 Years
Maximum 25 years
Policy Paying Term
(Policy term-3 years)
Premium Payment Frequency
monthly, quarterly, half-yearly and yearly modes and an ECS’s facility is also available
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Participation In Profit
- Vested Simple Reversionary Bonus
- Final (Additional) Bonus (if any)
Key Features
- The plan offers a minimum sum assured of Rs 1, 00, 000 and has no maximum limits.
- The Policy term states from 13 years-25 years
- One can pay the premiums either yearly, half-yearly, quarterly or monthly basis. The policy also provide you with an option of Electronic Clearing Service (ECS), this is a much easier mode to pay premiums.
- Irrespective of the tenure of the policy the premium paying term is of 3 years.
- The minimum to maximum eligibility of age for the policy states from 18 years – 50 years
- The maximum maturity age of the policy holder is 65 years
- As a with-profit endowment assurance plan the policy accumulate profit made by LIC through the final additional bonus and simple reversionary bonus and these add-on bonuses are paid out at the termination of the maturity period.
- The policy also offers two optional riders
- LIC Accidental Death and Disability Benefit Rider
- LIC New Term Insurance Rider.
Policy Benefits
Death Benefit
If the unfortunate event of death of policyholder during the policy term, the plan pays out 10% of basic sum assured as annual income benefit on every policy anniversary. On the due date of maturity, the assured absolute amount will be 110% of basic sum assured will be paid. On maturity, Simple Reversionary Bonuses and Final Additional Bonus, if any, will also be included in the death benefit.
Maturity Benefit
The plan comes with maturity benefit. If the policyholder has paid regular premiums thought out the plan and survives the policy term then he/she will be eligible for maturity benefit. The final sum will be the basic sum assured plus the vested simple revisionary bonus and final additional bonus if any will be added to the maturity amount.
Rebate
Two Types of rebate paid
Profit Participation
The policy can take part in the company’s profits as per Section 28 of LIC Act 1956. The bonuses paid on the policy are based on these profits.
Ideal Plan
This plan provides an annual income which can be beneficial towards the needs of the family, especially the minors, in case of the death of the policyholder before the maturity of the plan.
Tax Benefits
Premium paid in this plan and maturity amount received carry income tax benefit under section 80c and 10D of the Income Tax Act.
- Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act.
- Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act
- Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act
Loans
Loan can be taken on the policy provided three full years of premiums have been paid. However, the loan amount must be within the surrender value of the policy.
Other benefits of LIC
LIC’s Jeevan Lakshya Plan also provides access to other benefits offered by the company. Some of the other benefits offered by the company are as follows:
Customer service – Customers can call LIC’s helpline and get their doubts clarified about their policy. Information regarding a policy, premium payment, claim, etc. can be obtained from the customer service helpline.
Multiple payment modes – There are plenty of options available when it comes to paying premiums. Premium payments can be made online simply by visiting the company’s website. In addition, policyholders can also pay through authorized banks, franchisees, and third-party merchants. Offline payment modes are also available.
View NAV status – LIC’s website displays the net asset value (NAV) status of various funds. People can check this value to invest in the right products suitable for them.
Riders
Accidental Death and Disability Rider
LIC Jeevan Lakshya | New Term Insurance Rider | Accidental Death and Disability Rider |
Age of entry | Minimum- 18 years Maximum-50 years | Minimum- 18 years Maximum- 5 years of PPT of Jeevan Lakshya |
Maximum Coverage maturity age | 65 years | 65 years |
Sum Assured | Minimum-Rs 1,00,000 Maximum- Rs 25 00,000 | Minimum- Rs 10,000 Maximum- Equal to the basic sum assured subject to Rs 100 lakh over all limits |
Policy term | Minimum- 13 years Maximum- 25 years | N/A |
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
If premiums have been paid for three years continuously, the policyholder has the option of surrendering the policy and get back the premiums paid till date.
you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. The exact surrender value factor can only be known by contacting the LIC office.
Guaranteed Surrender Value
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Special Surrender Value
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Paid Up Value
If premiums are not stopped after continually paying premiums for three years, the policy will not become entirely void. In this case, the benefit will paid as per the paid-up value.
Rebates
Rebate on Premium Payment Mode
2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
Rebate on Sum Assured
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High Sum Assured and Mode Rebate
0% of SA on 0 to 2,00,000
2% of SA on 2,00,000 to 4,90,000
3% of SA on 5,00,000 and above
Other Details
Revival Period
When premiums are not paid within the grace period, the policy will lapse. Lapsed policies can be revived within 2 years of first unpaid premium. However, this is subject to the approval of the company.
Free Look Period
This policy comes with a 15-day free look period to ensure that policyholders are satisfied. During this period, policyholders can return the policy and get their money back if they are not satisfied.
Grace Period
here is a grace period available for paying premiums. For quarterly, half-yearly, and yearly payment of premiums, a grace period of 30 days is allowed. For monthly payment of premiums, the grace period is 15 days.
Nomination
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Assignment
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Exclusions
Suicide
LIC’s Jeevan Lakshya Plan comes with a suicide exclusion rule which makes the policy void upon the suicide of the insured person. If the insured person commits suicide within 12 months of the commencement of the policy, the company is not liable to pay the death benefit. In this case, the company will return 80% of the premium paid till date for the policy. For suicides within 12 months of the revival of policy, the company will pay either 80% of the premium paid till date or the surrender value of the policy (whichever is higher).
Claim Process
Death Claim
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Maturity Claim
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Surrender Claim
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Examples
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FAQs
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More Information About Policy
If the premium has been paid for three consecutive years and then the premium following it are not paid than the policy acquires Paid-Up value.
A feature of Guaranteed Surrender Value is also present which can be availed if the policy is surrendered after at least three years payment of premiums. It’s a percentage of the total premiums which are paid till date.
If the policy has lapsed then you can restore it provided that it has been less than 2 consecutive years since the date of the last unpaid premium.
There is a feature of availing loan on this policy. After the payment of premium for three years, you can take the loan on behalf of it as well.
The premium rebate for the policy is 2% for yearly and 1 % for half yearly. For the quarterly and monthly option there is no rebate.
The premium of the policy is to be paid regularly on every due date. In case premium is not paid by the due date, a grace period to pay the premium is given for payment of the outstanding premium. This period is equal to 30 days for policies where an annual, half-yearly or quarterly mode of premium payment is selected. In case the mode of premium payments is monthly then only 15 days is allowed for the grace period.
Even a process is there to cancel the policy. If the policyholder is not happy with the plan than same can be cancelled, provided that the cancellation is done within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the net premium paid of any related expenses would be returned.
What happens if you stop paying your premiums in the Jeevan Lakshya Plan?
The policy will acquire a Paid-Up Value in case you stop paying future premiums after the grace period also. Paid-up Value of Jeevan Lakshya Plan will only be available if at least 3 years’ premiums have been paid.
- The plan will not have any additional bonus accruals
- The Death Benefit would be as following:
- (No. of premiums paid / Total no. of premiums payable) x (110% of Basic Sum Assured + Accrued bonus).
- 10% of Basic Sum Assured x (No. of premiums paid / Total no. of premiums payable) as an Annual Income Benefit from the next policy anniversary date to the policy anniversary date one year before the Maturity Date.
- The Maturity Benefit would be as follows:
- (No. of premiums paid / Total no. of premiums payable) x (Basic Sum Assured + Accrued bonus).