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LIC’s Jeevan Lakshya Plan

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.

What is LIC Jeevan Lakshya Plan?

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.

What are the salient features of LIC Jeevan Lakshya Plan?

Following are the salient features of LIC’s Jeevan Lakshya Plan :

  • This policy offers double benefit on death of the insured during the policy tenure
  • The minimum sum assured that can be availed under this plan is Rs 1,00,000 further the basic sum assured can be increased only in multiples of Rs. 10,000.
  • The policy term offered by LIC Jeevan Lakshya Plan is between 13 years to 25 years
  • The policy offers 4 modes of premium payment namely yearly, half-yearly, quarterly and monthly. You have to choose the premium payment mode as per your convenience.
  • The minimum age to take the policy is 18 years while the maximum age is 50 years
  • The maximum maturity age under this plan is 65 years
  • The plan is participating plan so bonuses like the Simple Reversionary Bonus & Final Additional Bonus, if applicable, is added and paid at the time of maturity
  • The premium paying term is 3 years less than the policy term
  • The plan offers two additional riders namely LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider that are optional

What are the benefits offered by LIC Jeevan Lakshya Plan?

The LIC Jeevan Lakshya Plan offers the following benefits :

  • Death Benefit
    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 :
    1. Pays Annual Income Benefit equivalent to 10% of the basic sum assured on every policy anniversary following the death of the life assured till the last policy anniversary that falls prior to the maturity date of the policy +
    2. On the date of maturity
      1. The Assured Absolute Amount equivalent to 110% of Basic Sum Assured is payable; along with
      2. Simple Reversionary Bonuses and Final Additional Bonus, if applicable.
    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
    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
  • Participatory Plan
    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.
    • In case of death of the policyholder (whose policy is in full force) the entire bonuses (if any) shall be paid on the maturity date along with Assured Absolute Amount and the policy terminates.
    • In the case of lapsed policies, the policy shall cease to participate in future profits. However, the bonuses already accrued would be payable.
    • On maturity of the plan, the Maturity Assured Amount + accrued bonuses would be payable.
  • Additional optional Benefits
    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 :
    • LIC’s Accidental Death and Disability Benefit Rider
    • LIC’s New Term Assurance Rider
  • Flexibility in payment of premium
    The plan offers flexibility in paying the premium amount. Premiums can be paid at Yearly, Half-yearly, Quarterly or monthly basis as per the convenience of the policyholder.
  • Attractive Rebates
    Attractive rebates and discounts are available on premium payment mode and high sum assured as under :

For premium payment mode rebate is as under :

For yearly mode of premium payment2% rebate on tabular premium
For half-yearly mode of premium payment1% rebate on tabular premium
For Quarterly and salary deduction i.e. monthly mode of premium paymentNIL Rebate

For High Sum Assured rebate allowed is as under :

Sum assured Rs 1,00,000 to Rs 1,90,000NIL
Sum assured Rs 2,00,000 to Rs 4,90,0002% of basic sum assured
Sum assured Rs 5,00,000 and above3% of basic sum assured

What are the eligibility criteria of LIC Jeevan Lakshya plan?

Following are the eligibility criteria to avail LIC Jeevan Lakshya Plan

Minimum Basic Sum AssuredRs. 1,00,000
Maximum Basic Sum AssuredNo Maximum Limit
Policy Term13 years – 25 years
Premium Paying TermPolicy Term minus three years
Minimum entry age18 years completed
Maximum entry age50 years
Maximum Maturity Age65 years

What are the documents required to buy LIC Jeevan Lakshya policy?

Following is a list of required documents for buying LIC Jeevan Lakshya Policy

  • Photo identity proof
  • Address proof
  • A recent passport sized photograph
  • Age proof
  • A duly filled proposal form

What are the exclusions of the LIC Jeevan Lakshya Plan?

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 –

  • If the insurer commits suicide within the first year of buying the policy in such cases 80% of the premiums paid
  • If the insured commits suicide within 12 months of the revival of the policy in such cases higher of 80% of the premiums paid or the surrender value applicable under the plan.

What are the premium rates of LIC Jeevan Lakshya policy?

The premium rates of the LIC Jeevan Lakshya policy are as under :

Age of the insuredPolicy 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 years83.3058.3544.55
For 40 years85.7061.7048.85
For 50 years92.95

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)

What is the procedure to make claim under LIC Jeevan Lakshya Plan?

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 :

  • Duly filled discharge form
  • Original policy document
  • Copy of Identity Proof
  • Duly filled and signed NEFT mandate form

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.

Document required for claim

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.

  • A duly filled claim form
  • Original policy document
  • NEFT mandate for receiving direct credit in the nominee’s bank account
  • Proof of title
  • Proof of death
  • Details of medical treatment, if any

While in the case of accidental death or disability claim the insurance company requires additional documents as under :

  • A certified copy of First Information Report (FIR)
  • A certified copy of Police Inquest Report
  • Punchanama
  • Post Mortem Report
  • Hospital Treatment Reports and records etc

How to purchase LIC Jeevan Lakshya Policy?

LIC has simplified the way of purchasing the LIC’s Jeevan Lakshya Plan. You can purchase the policy in the following ways :

  • Online Channel : You can purchase the LIC Jeevan Lakshya Plan directly from the official website of LIC or from various online agents and aggregators. The online channel is very convenient as you can purchase the plan anytime and anywhere. The process of simple and quick even the online channel offers a range of premium payment modes to choose from.
  • Offline Channel : Offline channel is a traditional way of purchasing the LIC Jeevan Lakshya plan. Under this channel, you can purchase the policy from the LIC Office or from authorized agents of LIC.

Also Read: How to Pay LIC Premium Payment Online & Offline?


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 surrenderPolicy term 16 yearsPolicy term 21 yearsPolicy 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.

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