LIC Jeevan Lakshya Plan - Features & Benefits

LIC’s Jeevan Lakshya is a participating endowment plan that provides investment and insurance benefits. Because it’s a Non-linked, Participating, Individual Life

Assurance plan: investors can enjoy a combination of protection and savings. 

Let’s understand everything about this policy. 

Eligibility Criteria

The LIC Jeevan Lakshya plan comes with the following eligibility conditions: 

Other Important Restrictions

Key Benefits of LIC Jeevan Lakshya Plan

LIC Jeevan Lakshya plan offers several key benefits, as explained below. 

• Maturity Benefits

When the policyholder survives the complete policy term, they will receive the "Sum Assured on Maturity," along with a final additional bonus and a reversionary bonus, if any. 

Here, the "Sum Assured on Maturity" is the same as the “Basic Sum Assured.”

• Death Benefits

If the policyholder dies during the policy term, the LIC Jeevan Lakshya policy provides a comprehensive death benefit, which includes: 

• Sum Assured on Death: The higher of:
  • 7 times the annualized premium
  • 110% of the Basic Sum Assured, payable at maturity. 
• Annual Income Benefit: 10% of the Basic Sum Assured, payable annually from the policy anniversary following the policyholder's death until the policy matures.
• Bonuses: Vested Simple Reversionary Bonuses and Final Additional Bonus, if any, payable at maturity.

Note: The total death benefit is not less than 105% of the total premiums paid (excluding taxes, extra premiums, and rider premiums).

• Participation in Profits

As already said above, LIC Jeevan Lakshya is a participating plan, which means policyholders are also entitled to receive bonuses declared by LIC. These are declared by the corporation and added to the overall policy benefit.

1. If the policyholder dies with an active policy, it continues to participate in profits until maturity. Upon maturity, all vested Simple Reversionary Bonuses and a Final Additional Bonus, if any, are paid out.
2. If premiums are not paid on time (except in case of death with an active policy), future profit sharing stops. 
3. The policy remains in force if the insured person dies during the grace period. 

The distribution of surplus among policyholders is regulated by the Central Government under the LIC Act 1956.

• Loan On Policy 

1. 1. Policyholders can take loans under the policy if at least two years’ premiums have been paid. 
   2. Maximum Loan Percentage:
      • For active policies: Up to 90% of the surrender value.
      • For paid-up policies: Up to 80% of the surrender value.
   3. Interest Rate: Interest rates are determined periodically by the Corporation and are set according to methods approved by IRDAI.
   4. Loan Repayment Conditions

• • • Upon policy exit (surrender or maturity), any outstanding loan and interest are deducted from the claim proceeds.
    • In case of the policyholder's death, interest on the outstanding loan (principal plus interest as of the date of death) is deducted from immediate benefits such as Rider Benefits or Annual Income Benefits.
    • The principal amount of the loan outstanding is recovered from any applicable Rider Benefits or the final lump-sum payment if Rider Benefits are not payable under the policy.

• Tax Benefits

Policyholders can enjoy tax rebates under Section 80C of the Income Tax Act. Moreover, the maturity amount is free from tax as per section 10D. 

• Grace Period

The policy provides a grace period of 30 days for yearly, half-yearly, or quarterly premiums from the due date. For monthly premiums, the grace period is 15 days.  

• Free Look Period

Bought the policy but not satisfied? No worries! The company offers a 15-day Free Look Period, which means you can cancel the policy within 15 days of receiving the policy bond.

Key Features of LIC Jeevan Lakshya Plan

Below are some of the key features of the LIC Jeevan Lakshya plan. 

• This policy offers a minimum sum assured of Rs 1,00,000 and has no maximum limit. 
• The policy term is 13 to 25 years. 
• Irrespective of policy tenure, the premium paying term is 3 years. 
• The policy premiums can be paid on a yearly, half-yearly, quarterly, or monthly basis. Also, it comes with an Electronic Clearing Service (ECS) mode, which makes it much easier to pay premiums.  

Exclusions

• If the Life Assured commits suicide within 12 months from the risk commencement date, the policy will be void. In such cases, only 80% of the total premiums paid will be refunded, provided the policy is active.

Riders Available

LIC Jeevan Lakshya plan offers four optional riders. 

• Accidental Death and Disability Rider
  • You can add this rider to any active policy if you have at least 5 years left to pay premiums on your main policy.

• • If the insured dies in an accident, the Accident Benefit Sum Assured is paid as a lump sum.

• • If the insured becomes disabled due to an accident (within 180 days from the accident date), the Accident Benefit Sum Assured is paid in equal monthly installments over 10 years. 

• • Future premiums for both the Accident Benefit Sum Assured and the equivalent portion of the Basic Sum Assured under the main policy are waived.
• New Term Assurance Rider
  • This rider can only be availed at the time of policy inception. 

• • In the case of the policyholder’s death, an amount equal to Term Assurance Rider Sum Assured is liable to be paid. 
• Critical Illness Rider
• • Just like the New Term Assurance Rider, it can also only be availed at the time of policy inception. 

• • If the policyholder is diagnosed with any one of the 15 specified Critical Illnesses, such as cancer, heart attack, stroke, kidney failure, etc, the Critical Illness Sum Assured is paid out.
• LIC’s Accident Benefit Rider
  • This rider can be added to any active policy if you have at least 5 years left to pay premiums on your main policy.
  • If chosen, the Accident Benefit Sum Assured will be paid in a lump sum in case of accidental death.

Note: Policyholders can opt between either the LIC’s Accidental Death and Disability Benefit Riders or LIC’s Accident Benefit Riders. In short, a maximum of three riders can be availed under the policy. 

Premium Chart

Note: All the premiums are exclusive of taxes.

How to Buy LIC Jeevan Lakshya Policy From InsuranceDekho

Here’s how you can buy the LIC Jeevan Lakshya Policy from InsuranceDekho. 

1. Visit the InsuranceDekho Website: Start by visiting the official InsuranceDekho website. On the home page, click  on "Insurance" > "Life Insurance."
2.  Enter Details: Enter all the required details, including

• • Name, 
  • Date of birth, 
  • Gender, and 
  • Mobile number.

Once done, click on the “View Plans for Free” button. 

1. Choose the LIC Jeevan Lakshya Policy: Then, choose the LIC Jeevan Lakshya policy among the list of plans available. If you want to customize the coverage, add riders to the base policy. 
2. Provide Specific Information: In this step, you have to enter additional information about your income, education, etc. Then, move forward by clicking the "Next Step" button.
3. Pay Premium: Carefully review the premium amount for your chosen LIC Jeevan Lakshya policy. Then, complete the premium payment securely by clicking on the "Accept and Pay" button. 
4. Submit Proposal Form & Necessary Documents: After making the payment, provide the necessary documents, for your identity proof, address proof, age proof, and income proof, along with the Proposal Form. 

Note: The company may request additional documents! However, Investment Plans may require fewer documents compared to other plans. 

• Medical Evaluation & Underwriting: According to the sum assured and the policyholder's age, the company may ask to undergo a medical evaluation. After the evaluation of the proposal and medical results, the policy will be approved based on the assessment.
• Policy Issuance: Once approved, you will receive confirmation of your LIC Jeevan Lakshya policy on your registered mobile number or via email.

If you have any confusion or need assistance regarding the policy, you can reach out to our relationship manager at +91-7551196989. Leave all your worries to us and focus on building a secure future! 

Frequently Asked Questions 

Ques 1. Do I have to pay an additional premium for riders? 

Ans. Yes! If you opt for riders, you have to pay an additional premium. However, it is suggested to include those riders for better security. 

Ques 2. What is the grace period under the plan? 

Ans. A grace period of 30 days is available for the LIC Jeevan Lakshya plan. 

Ques 3. Can I surrender the  LIC Jeevan Lakshya Policy?

If the premiums for at least two full policy years are fully paid, you can surrender the policy. 

Ques 4. What is the maximum sum assured available under the LIC Jeevan Lakshya policy?

There is no limit to the maximum sum assured. Although it is subject to financial underwriting terms & conditions.