LIC’s Jeevan Lakshya is another savings cum protection endowment plan. This plan provides for Annual Income benefit that may help to fulfill the needs of the family, primarily for the benefit of children, in case of death of the policyholder a regular income is provided to the nominee in addition to a lump sum at the date of Maturity.
Benefits of Jeevan Lakshya Plan
- Maturity Benefit – Provided all the premiums have been paid in full and the policyholder has survived till the end of the policy term, the Maturity Benefit will encompass the Sum Assured on Maturity plus the vested Simple Reversionary Benefits and the Final Additional Bonus if any. The Sum Assured on Maturity is the same as the Basic Sum Assured.
- Death Benefit – Under this benefit, in case of the death of the policyholder within the policy term, a Sum Assured on Death plus Simple Reversionary Bonuses and the Final Additional Bonus (if any) will be provided.
- Tax Benefits – Premium paid for this plan is admissible for availing rebate on income tax under 80C and the maturity amount is free from tax as per section 10D.
Understand Jeevan Lakshya Plan with an example:
Assume Mr. Ramesh aged 32 years, plans to take Jeevan Lakshya for 20 years and the sum assured of Rs 12,00,000/- (Rupees Twelve Lakhs only).
He is required to pay an annual premium of Rs 45,680.00 (Rupees Forty-Five Thousand Six Hundred and Eighty only).
If Mr. Ramesh dies during the policy term, his nominee will receive following benefits:
1. Annual Income of Rs 1,20,000/- every year till maturity.
2. 110% Basic Sum Assured i.e. Rs 13,20,000/- at maturity.
3. Simple Reversionary Bonus at maturity.
4. Final Additional Bonus at maturity.
* If the death occurs due to an accident, an additional accidental sum assured will also be payable along with above-mentioned benefits.
On Survival till maturity
If Mr. Ramesh survives till the end of policy term, he will get following benefits:
1. Basic Sum Assured i.e. Rs 12,00,000/-.
2. Simple Reversionary Bonus.
3. Final Additional Bonus (if any).
Other Benefits in the LIC Jeevan Lakshya Policy
- Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
- Grace Period – In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days.
- Loan – You can avail along against this policy after you have paid 3 years of premium.
- Riders – You have the choice of taking the following rider by paying an extra premium amount:
- Surrender Value – If you surrender the plan any time before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. The exact surrender value factor can only be known by contacting the LIC office.
LIC’s Accidental Death and Disability Benefit Rider
LIC’s New Term Assurance Rider
If you have any questions on the LIC Jeevan Lakshya Policy, drop in a line in the comments and we will be happy to help out.