Life Insurance Corporation of India (LIC) is a leading insurance company in India who since inception is dedicated to promoting the advantage of life insurance. LIC is responsible and dedicated to providing adequate financial coverage against death or insurance-linked savings by offering exclusive insurance products at reasonable costs. LIC Jeevan Lakshya is one of the most popular insurance plans offered by LIC from their gamut of plans. Here is a go-to-guide that will help you understand the plan in depth.
LIC’s Jeevan Lakshya is an endowment plan that assures guaranteed benefits throughout the tenure of the plan if the insured dies within the policy term. The plan is a traditional non-market linked participating plan i.e. unlike unit-linked plans this plan is not affected by market movements. Being a participating plan the policyholders of this policy are eligible for receiving bonus thereby increasing the total amount of benefit payable. Thus LIC’s Jeevan Lakshya Plan focuses on offering dual benefits to the policyholder namely financial security and savings.
Following are the salient features of LIC’s Jeevan Lakshya Plan :
The LIC Jeevan Lakshya Plan offers the following benefits :
Upon unfortunate death of the insured during the policy tenure, death benefit is eligible for payment to the nominee. Following are the details of the death benefit payable to the nominee under LIC Jeevan Lakshya Plan are :
Kindly note that the Death Benefit under this plan shall be minimum 105% of all the premiums paid till the date of eventuality.
Maturity Benefit refers to the amount payable to the policyholder on the due date. Maturity benefit is the “Maturity Sum Assured” that is equivalent to the sum assured of the base plan + vested Simple Reversionary Bonus plus Final Additional Bonus if any.
The entire sum assured on maturity is paid in lump sum on survival at the end of the policy term provided that the policy is in full force i.e. all the premiums are paid
The LIC Jeevan Lakshya policy is a participatory plan i.e. the plan shall participate in profits of LIC and the policyholders are entitled to receive bonuses, if applicable, subject to policy is in full force.
An additional optional benefit like availing rider benefit is allowed to the policyholder under the LIC Jeevan Lakshya Plan. The Policyholder can choose either both or any one of the two riders available under this plan namely :
For premium payment mode rebate is as under :
|For yearly mode of premium payment||2% rebate on tabular premium|
|For half-yearly mode of premium payment||1% rebate on tabular premium|
|For Quarterly and salary deduction i.e. monthly mode of premium payment||NIL Rebate|
For High Sum Assured rebate allowed is as under :
|Sum assured Rs 1,00,000 to Rs 1,90,000||NIL|
|Sum assured Rs 2,00,000 to Rs 4,90,000||2% of basic sum assured|
|Sum assured Rs 5,00,000 and above||3% of basic sum assured|
Following are the eligibility criteria to avail LIC Jeevan Lakshya Plan
|Minimum Basic Sum Assured||Rs. 1,00,000|
|Maximum Basic Sum Assured||No Maximum Limit|
|Policy Term||13 years – 25 years|
|Premium Paying Term||Policy Term minus three years|
|Minimum entry age||18 years completed|
|Maximum entry age||50 years|
|Maximum Maturity Age||65 years|
Following is a list of required documents for buying LIC Jeevan Lakshya Policy
The only exclusion under the LIC Jeevan Lakshya plan is suicides. If the insures death is due to suicide, then the death benefit is as under –
The premium rates of the LIC Jeevan Lakshya policy are as under :
|Age of the insured||Policy term : 15 years Premium paying term : 12years||Policy term : 20years Premium paying term : 17years||Policy term : 25 years Premium paying term : 6 22years|
|For 30 years||83.30||58.35||44.55|
|For 40 years||85.70||61.70||48.85|
|For 50 years||92.95||–||–|
Above is a sample annual tabular premium rates for per 1000 Rs of basic sum assured. The premium rates mentioned above are exclusive of the service tax charge. Here is an example that will illustrate how premium rates are used to calculate the premium amount :
if you opt for Rs 1,00,000 as sum assured and your age is 30 years for a policy term of 25 years then your premium amount will be Rs 4455 (Rs 1,00,000/1000*44.55)
Claim under LIC Jeevan Lakshya Plan is of two types namely maturity claims and death claim. Maturity claim is payment of maturity due to payable under the policy. The procedure for making maturity claim under the LIC Jeevan Lakshya Plan is very simple you only have to submit duly signed claim form along with identity proof and the maturity claim proceeds shall be credited to you. Following is the list of documents that need to be submitted while making maturity claim or in case of surrendering the policy :
While in the case where the claim is a death claim i.e. the payment is to be done on account of the death of the policyholder, then the procedure to make the claim is different. Under death claim, the first step is to intimate the insurance company about the eventuality of the life assured.
The next step is to submit all the required documents to LIC. Following is a list of required documents that need to be submitted while lodging normal death claim with LIC.
While in the case of accidental death or disability claim the insurance company requires additional documents as under :
LIC has simplified the way of purchasing the LIC’s Jeevan Lakshya Plan. You can purchase the policy in the following ways :
Yes, if you are unhappy with the term & conditions of the LIC Jeevan Lakshya plan then you can cancel the plan. The plan can be cancelled in the free-look period i.e. within 15 days from the date of issue of the policy. Upon cancellation, the premium paid shall be refunded back but after deducting certain relevant expenses.
Yes, a grace period is an extra time allowed by LIC for payment of unpaid premium. The grace period for policies having yearly, half-yearly and quarterly mode of premium payment is 30 days while for policies having Monthly premium payment mode have 15 days grace period.
In case you stop paying the policy premium before the end of the policy’s premium paying term, then the LIC Jeevan Lakshya policy would lapse.
Yes, the LIC Jeevan Lakshya policy can be surrendered provided that the premium of the 1st 3 years has been paid. Upon surrendering, the policyholder is eligible to receive the surrender value of the policy. The surrender value is calculated based on the year in which the plan is surrendered and as per terms of the policy. The policyholder is eligible for a surrender value which is a certain percentage of total premiums paid. Following table illustrates in percentage the guaranteed surrender value applicable to total premiums paid for LIC Jeevan Lakshya Plan –
|Policy year of surrender||Policy term 16 years||Policy term 21 years||Policy term 25 years|
Under the LIC Jeevan Lakshya plan, you can avail rider coverage either equivalent to the sum assured (SA) or below the sum assured (SA) of LIC Jeevan Lakshya plan.
The plan LIC Jeevan Lakshya is a participating plan i.e. if the insurance company earns profit and has a good financial performance then such profits shall be shared with the policyholders by way of bonus. So the payment of bonus shall be dependent on the performance and profits earned by the insurance company. Thus the bonus is not guaranteed but shall be paid as per the financial performance of the company.
Yes, if you are opting for riders you have to pay an additional premium. The cost of the rider premium is very minimal. You need to pay for each rider you choose and attach to your LIC Jeevan Lakshya policy.
LIC Jeevan Lakshya plan promises to offer a final additional bonus which is payable on the due date of maturity. The final additional bonus, if applicable, is payable irrespective of the survival of the life assured. Kindly note, the final additional bonus under this plan is not a fixed amount and shall be dependent on the policy profit performance.
The LIC Jeevan Lakshya Plan offers two riders namely LIC’s New Term Assurance Rider and LIC’s Accidental Death and Disability Rider. You can buy and attach either one or both the riders to your LIC Jeevan Lakshya policy.
There is no limit on the amount of maximum sum assured that can be availed under LIC Jeevan Lakshya plan subject to financial underwriting terms & conditions.
Yes, a revival of lapsed LIC Jeevan Lakshya policy can be done. The revival of the lapsed policy is to be done before completion of 2 years of lapse. The procedure to revive LIC Jeevan Lakshya policy is by paying the unpaid premiums plus interest, if any, and submitting proof of continued good health.