LIC Jeevan Lakshya Plan – Key Features & Benefits

Life Insurance Corporation, i.e. LIC is one of the most trustworthy and reliable insures of India. LIC aims at improving the quality of the life of Indians by offering them financial security. It is the only insurance company that cater to around 190 million policy holders who are satisfied with their services across the country and abroad. In the year 2015, LIC introduced various life insurance plans and LIC Jeevan Lakshya is one of them.

LIC is one of India’s largest life insurance service providers and has been impressing all and sundry with its multi-coloured gamut of life insurance products. LIC Jeevan Lakshya is amongst one of the bestselling life insurance products.

LIC Jeevan Lakshya Plan

LIC Jeevan Lakshya is an excellent plan that comes with innovative features. It was introduced in March 2015 and is a gain linked endowment assurance plan. This plan provides its policyholders with a combination of protection along with savings. The annual income benefits that the plan offers, helps in catering to the requirements of the family. This policy is specially planned for the benefit of children.

A traditional savings plan, LIC Jeevan Lakshya provides policy holders with both savings and comprehensive financial protection, at the same time. Let’s check out some of the prominent features and benefits of LIC Jeevan Lakshya plan to understand why it sells like hot cakes in the Indian insurance sector.

In spite of the survival of the insured, he is paid a lump sum amount at the end of the maturity of the policy. Under this plan, the payment of the premium is restricted to a tenure that is shorter as compared to the policy term. In the case of an unfortunate demise of the policy holder, 10% of the assured sum is paid out on each anniversary of the policy until the maturity of the policy.

Key Features of LIC Jeevan Lakshya Plan

The salient features of LIC Jeevan Lakshya Policy are mentioned below:

  • 1,00,000 is the minimum sum assured
  • No limit on Maximum sum assured
  • Basic sum assured should be in multiples of Rs. 10,000 only
  • The term of the policy is from 13 to 25 years
  • You can make payment of the premium monthly, quarterly, half-yearly and yearly
  • Electronic Cleaning Service options is made available to make payment of the premiums
  • Without considering the term of the policy you choose to term for paying premiums is 3 years less than that of the policy term
  • Minimum entry age is 18 years while the maximum entry age is 50 years
  • Maximum maturity age is 65 years
  • As it is a With-Profits Endowment Assurance plan, LIC Jeevan Lakshya Plan garners profits that the LIC makes via Final Additional Bonus and Simple Reversionary Bonus (if applicable) and payment of these bonuses are made at the end of the maturity period of the policy
  • Lic Jeevan Lakshya by Life Corporation of India comes with two optional riders namely, LIC Accidental Death and Disability Benefit Rider and LIC New Term Assurance Rider
  • Policy holders get the vested simple revisionary bonuses and final bonuses that increase the overall benefit.
  • There is a limited tenure for the premium payment.
  • Death benefits are paid out in both in annual instalments during plan term and a lump sum payment is made out on the policy maturity.
  • Two riders – Accidental Death/Disability Benefit Rider and New Term Assurance Rider are available under this plan.
  • Policy holders can also avail loans under this plan.

Benefits of LIC Jeevan Lakshya Plan

This amazing plan from LIC offers a string of benefits and advantages to ensure utmost savings and comprehensive protection for the policy holders.

Here are just some of the many outstanding benefits of the plan. If you avail this policy, you will enjoy the following benefits:

Death Benefit

In case of the demise of the insured during the policy term, the nominee, selected by the policy holder, is paid the Sum Assured along with the Simple Reversionary Bonuses and the Final Additional Bonus, provided all due premiums have been paid until death.

Upon the death of the insured, the Sum Assured is expressed as the following:

  • Annual Income Benefit of 10% of the Sum Assured from the policy anniversary following the date of death till one year before the maturity date.
  • Absolute Assured Amountof 110% of the Sum Assured is paid to the nominee on the maturity date of the policy.
  • Simple Reversionary Bonusesand Final Additional Bonuses are also paid to the nominee upon the completion of the maturity date along with the Absolute Assured Amount.
  • The death benefit payable is a minimum of 105% of all the premiums paid towards the policy till the death of the policy holder.

Maturity Benefit

The maturity benefit of the Jeevan Lakshya will cover the Sum Assured on Maturity along with the Final Additional Bonus and Simple Reversionary Benefits, if any, provided that the policy holder has made payment for all the premiums and he has survived until the end of the term of the policy. Basic Sum Assured is the Sum Assured on Maturity.

Income Tax Benefit

You can avail a rebate on income tax under 80 C if you make payment of the premiums of the plan and the maturity amount is tax-free according to section 10D.

LIC Jeevan Lakshya Plan – Riders

LIC Jeevan Lakshya is available with two different rider options to make the plan even more rewarding for the policy holders.

The two additional riders available with this plan are:

Accidental Death and Disability Rider

The LIC accidental death and disability benefit can be availed anytime during the premium paying term. This is one of the most important benefits offered by the policy.  This rider comes in action in case of death of the insured due to an accident. Under this rider an additional sum assured equal to accidental benefit sum assured is payable to the beneficiary of the policy. This benefit is also provided to the co-rider at the time of the accident. One of another advantage of this rider is that in case of disability due to accident an equal amount of accidental benefit sum assured is paid to the insured in equal monthly installments up to 10 years.

New Term Assurance Rider

This rider is available on the payment of additional premium at the beginning of the policy. The amount is to be paid along with the basic plan of LIC Jeevan Lakshya Policy. One of the advantages offered by this rider is that in the case of death of the insured during the tenure of the policy, an additional amount equal to the term assurance rider sum assured is payable to the insured as long as coverage of the plan rider is applicable.

LIC Jeevan Lakshya Plan – Eligibility Criteria

LIC Jeevan Lakshya Plan – Exclusions

Before jumping guns and buying LIC Jeevan Lakshya Policy, it makes sense to check out the exclusions of the policy.

  • If policy holder commits suicide within 1 year of the policy inception date, only 80% of the total premiums paid are refunded to the nominees.
  • If Policy holder commits suicide within 12 months of policy renewal date, higher of the 80% of the premiums paid or acquired surrender value or are returned.
  • Death or disability caused due to self-inflicted injury or suicide, riots, war, civil commotion, criminal acts, defense operations, police activities, aviation, participation in hazardous activities, alcohol or drug abuse or occurring 180 days after the accident are excluded.

Wrapping it Up!

LIC Jeevan Lakshya Policy is one of the best plans to invest if you’re looking to ensure comprehensive financial security and comprehensive savings for your loved ones. This plan will help you ensure financial stability and happiness for your loved ones, even when you’re not around.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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