LIC Jeevan Lakshya

LIC Jeevan Lakshya- An Overview

LIC Jeevan Lakshya Plan 733 is an endowment plan offered by the LIC of India designed to provide comprehensive financial security for your family. It offers a combination of life insurance coverage and a guaranteed annual income benefit, making it suitable for long-term financial goals. The plan provides financial protection to your family in case of your untimely demise, with guaranteed income to support their needs. It also offers maturity benefits, including the sum assured, bonuses, and a final additional bonus.

Features of LIC Jeevan Lakshya Policy

Below are some of the key features of LIC Jeevan Lakshya 733 offered to the policyholders. Take a look at them:

• The plan offers a minimum sum of Rs 1,00,000 and no maximum limit.

• The Policy term states from 13 years-25 years

• One can pay the premiums either yearly, half-yearly, quarterly, or monthly. The policy also provides you with the option of Electronic Clearing Service (ECS), which is a much easier mode of payment.

• As a with-profit endowment assurance plan the policy accumulates profit made by LIC through the final additional bonus and simple reversionary bonus. These add-on bonuses are paid out at the termination of the maturity period.

LIC Jeevan Lakshya Policy Eligibility Criteria

Benefits of LIC Jeevan Lakshya Policy

There are several benefits of buying LIC Jeevan Lakshya policy. Some of the benefits offered by the policy are

• Maturity Benefits 

  If the policyholder survives till the end of the policy tenure, the policy will pay the maturity benefit. The maturity benefits paid is “sum assured on maturity” plus along with vested Simple Reversionary bonuses and Final Additional bonus if any.

• Participation in Profits

  This is a participating plan, which means it can receive bonuses declared by LIC. These bonuses are declared based on the company’s experience and are added to the policy, enhancing the overall benefit.

  In the case of the policyholder's demise, the LIC Jeevan Lakshya Plan 833 must continue to share in the profits up to the maturity date, and the entire fixed Final Additional Bonus and Simple Reversionary Bonus, if any, must be payable on the maturity due date. Therefore, the Final Additional Bonus and the Simple Reversionary Bonuses, if any, must be paid under the policy on the maturity due date regardless of the survival of the Assured Life.

• Death Benefits

  In case the policyholder dies before the completion of the policy tenure, the nominee is paid death benefit. The benefit amount is equal to the sum assured, the final additional bonus (if any) and the simple reversionary bonus.

  Sum Assured on Death is defined as the sum of:

  • 7 times of annualised premium, or

  • Sum of 110% of Basic Sum Assured, which will be payable on date of maturity and Annual Income Benefit equal to 10% of the Basic Sum Assured, which will be payable from the policy anniversary.

• Tax benefits-

  Under the Income Tax Act of 80C, the premium paid under this plan is permissible for a rebate on annual income tax, and as per section 10 D, the maturity amount is free from tax.

• Loan on the Policy

  After the policy acquires a surrender value, the policyholder can avail of a loan against the policy. The maximum loan amount depends on the surrender value and terms and conditions of LIC.

Optional Benefits Under LIC Jeevan Lakshya

Accidental Death and Disability Benefit Rider: You can avail the LIC Accidental Death and Disability benefit anytime during the term of the payment of the premium. One of the most important benefits offered by this rider is, in the case of death in an accident, an extra sum assured, equivalent to the sum assured in the accidental benefit, is payable. This benefit is provided to the co-rider at the time of the accident. Secondly, in case of disability due to an accident, an equivalent amount of the accidental benefit sum assured is paid to the insured in equal monthly instalments up to 10 years.

New Term Assurance Rider: The New Term Assurance rider is made available upon paying an additional premium at the policy's inception. The payment of the amount is made together with the primary plan of the LIC Jeevan Lakshya Plan. One of the advantages offered by this rider is that in the case of the death of the insured during the term of the policy, an additional amount equivalent to the sum assured of the term assurance rider is liable to be paid to the policyholder as long as the applicability of the coverage of the plan rider is there.

Exclusion under LIC Jeevan Lakshya Plan

TThe LIC Jeevan Lakshya Plan 733 offered by the LIC of India is a comprehensive plan that does not come with additional regulations, provided the mentioned criteria are fulfilled properly.

However, like any other policy, this plan also has some exclusions.

• If the Life Assured commits suicide within 12 months from the date of commencement of risk, the company will not be liable to provide any compensation under the policy. In such cases, the company will reimburse 80% of the total paid premiums of the active policy.

• In the event of suicide within 12 months from the date of revival, the Company will pay either 80% of the total premiums paid till the date of death or the surrender value available on the date of death, whichever amount is higher.

LIC Jeevan Lakshya Policy Details

• Grace Period 

  You will be given a grace period of 30 days to make payments of the premiums. If the policyholder fails to pay within the policy's grace period, then the policy gets lapsed automatically. However, you are given the option to revive the policy within the period of two years from the first unpaid policy premiums’ date.

• Free Look Period

  If the policyholder is not satisfied with the conditions of the policy, then he can cancel the policy within 15 days from the date of receipt, only if any claim has not already been registered with LIC.

• Paid-up Value

  If you have made payment of the premiums for around three consecutive years and the payment of subsequent premiums has not been made, the LIC Jeevan Lakshya Plan 833 obtains the Paid-up value. In such a case, a multiple of a fraction of the total number of payable premiums and the total number of paid premiums is the Death Sum Assured and the Maturity Sum Assured. The Income Value will also be liable to be subjected to the equivalent fraction beginning from the demise of the life assured.

• Surrender Value

  If the policy is surrendered before the end of the premium payment term, a surrender value is payable. The surrender value is a percentage of the premiums paid, depending on the policy duration and premium payment term.

  You can avail of the Guaranteed Surrender Value if you surrender the policy after making payment of premiums for at least three years. It is a percentage of the entire premiums paid until the date of maturity.

• The Revival of the Policy

  You can reinstate the policy if it lapses, only if you have not paid the premiums for less than 2 consecutive years.

Documents Required to Buy LIC Jeevan Lakshya

To purchase the LIC Jeevan Lakshya policy, you must submit certain documents as part of the application process. Here are the general documents typically required to buy LIC Jeevan Lakshya:

• Proposal Form: You will need to fill out the application form provided by LIC. This form collects essential personal and policy-related information, including your name, contact details, age, occupation, medical history, nominee details, and desired policy features.

• Identity Proof: You will need to submit proof of your identity, which can be any of the following documents:

  • Aadhaar Card

  • PAN Card

  • Passport

  • Voter ID Card

  • Driving License

• Address Proof: You will need to provide proof of your address, such as:

  • Aadhaar Card

  • Passport

  • Utility bills (electricity bill, telephone bill, etc.)

  • Bank account statement

  • Ration card

• Age Proof: You will be required to provide proof of your age, which can be established with documents such as:

  • Birth certificate,

  • School leaving certificate

  • Passport

  • PAN Card

• Income Proof: Some policies may require income-related documents to determine the sum assured eligibility. Commonly accepted income proofs include:

  • Salary slips

  • Income tax returns

  • Bank statements

  • Form 16

• Medical Examination Reports: Depending on the sum assured and the policyholder's age, LIC may require you to undergo a medical examination. Medical examination reports will be needed to assess your health condition.