LIC Jeevan Lakshya Plan Table No:833 – Endowment Plans




LIC’s Jeevan Lakshya policy is a combination of protection and savings plan. This policy provides life cover during the policy term and Sum Assured + Bonuses on survival as maturity. In case of unfortunate death of Policyholder any time before maturity, Jeevan Lakshya policy provides 10% of sum assured every year till masurity as Annual Income benefit that may help to fulfill the needs of the family & children and at the time of maturity it again provides 110% of Sum Assured + Bonuses as maturity. This plan also takes care of liquidity needs through its loan facility.

Key Features

  • Annual Income in case of death
  • Sum assured + Simple Reversionary Bonus + Final Addition Bonus as maturity
  • Annual Income feature can be used as child education in case of death
  • Paid premiums are exempted from income tax under 80C
  • Maturity amount is tax free under 10 (10D)





Policy Benefits:

On Death
In case of death of policy holder during policy term, 10% of Sum Assured will be provided to nominee every year till one year prior to maturity, and On maturity, 110% of Sum Assured + Simple Reversionary Bonus + Final Addition Bonus will be payable as maturity amount.

On Maturity
“Sum Assured on Maturity” equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any.

Surrender Value
The policy can be surrendered during the term of the policy provided at least three full years’ premiums have been paid

Policy Loan
Loan can be availed under the policy after payment of premiums for atleast 3 full years.
Taxes
The amount of Service Tax payable as per the prevailing rates shall be payable by the policyholder on premiums payable under the policy, which shall be collected separately over and above in addition to the premiums payable by the policyholder



Plan Parameters

Premium Payment Mode: Yly, Hly, Qly, Mly(ECS or SSS)
Mode and High S.A. Rebates:
Mode Rebate:

  • Yearly mode – 2% of Tabular Premium
  • Half-yearly mode – 1% of Tabular premium
  • Quarterly & Monthly – NIL

High Sum Assured Rebate:

  • Basic Sum Assured (B.S.A) Rebate (Rs.)
  • 1,00,000 to 1,90,000 – Nil
  • 2,00,000 to 4,90,000 – 2.00 ‰ B.S.A.
  • 5,00,000 and above – 3.00 ‰ B.S.A.

Policy Term 13 years to 25 Years
Premium Paying Term Policy term – 3
Minimum Entry Age 18 years (last birthday)
Maximum Entry Age 50 years (nearest birthday)
Maximum Maturity Age 65 years (nearest birthday)
Minimum Basic Sum Assured 1,00,000
Maximum Basic Sum Assured No upper limit
Optional Rider LIC’s Accidental Death and Disability Benefit Rider, LIC’s New Term Assurance Rider



Illustrations with Example

To understand Jeevan Lakshya Plan, Lets take an example of a person who is purchasing Jeevan lakshya Plan with following details.
Sum Assured: Rs. 5,00,000
Policy Term: 21 Years
Premium Paying Term: 18 Years
Policy Purchase Year: 2015
Age: 28 Years
Yearly Premium: Rs. 26,992 (25,279+1,138+550+25)

  • Base Premium Endowment – 25,279 
  • Tax on Base Premium – 1,138 

Since Premium paying term is 3 year lesser than policy term, so premium will be payable for 18(21-3) years in this case.




Maturity benefit illustration
At maturity, Jeevan Lakshya provides Sum Assured + Simple Reversionary Bonus + Final Addition as maturity amount on survival of policy holder. Following table indicates the maturity details.

Year Sum Assured (Guaranteed) Bonues (Variable) Maturity Amount (Approx)
2038 5,00,000 5,54,000 10,54,000

Death benefit illustration

In case of unfortunate death of policy holder during policy term, this plan proivides 10% of sum assured every year till maturity and again at competion of policy term maturity amount is also payable. To understand this benefit, let’s suppose death happens 10 year after taking this policy, age of the policy holder and year at time of death will 38 and 2024 repectively. 10% of sum assured will be payable from year of death till maturity and on completion of the policy term maturity benefit will be also provide. Following table provides year-wise details.




End of Year Year Premium Paid Return in case of death Remarks
1 2017 26,992 0
2 2018 26,992 0
3 2019 26,992 0
4 2020 26,992 0
5 2021 26,992 0
6 2022 26,992 0
7 2023 26,992 0
8 2024 26,992 0
9 2025 26,992 0
10 2026 0 50000 Unfortunate death happens
11 2027 0 50000
12 2028 0 50000
13 2029 0 50000
14 2030 0 50000
15 2031 0 50000
16 2032 0 50000
17 2033 0 50000
18 2034 0 50000
19 2035 0 50000
20 2036 0 50000
21 2037 0 1054000 Maturity Amount
Total 242928 1604000 Maturity + Yearly Income




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