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.
- 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)
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.
“Sum Assured on Maturity” equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any.
The policy can be surrendered during the term of the policy provided at least three full years’ premiums have been paid
Loan can be availed under the policy after payment of premiums for atleast 3 full years.
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
Premium Payment Mode: Yly, Hly, Qly, Mly(ECS or SSS)
Mode and High S.A. Rebates:
- 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)|
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|
|10||2026||0||50000||Unfortunate death happens|
|Total||242928||1604000||Maturity + Yearly Income|