LIC Jeevan Lakshya is a limited premium paying conventional life insurance policy categorized as a with-profit endowment assurance plan. The plan is chiefly advantageous for minors and therefore, is a good choice for parents looking to invest in a child plan.
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Guaranteed maturity with life
cover for securing Child's future
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The plan offers a lump-sum figure at the time of policy maturity irrespective of whether the life assured survives till the end of the policy term or not. In addition, the beneficiaries of the policy are entitled to the sum assured on death of the life assured. Parents who are covered under this policy can nominate their kids as well to receive the death benefit amount. Note that to be eligible to receive the benefit amounts in full, all due premium payments should be complete.
The LIC Jeevan Lakshya has a Unique Identification Number i.e. 512N297V01 which is quoted in all the relevant documents furnished by the policyholder and others.
This endowment-based insurance cum savings protection policy features important benefits that can be particularly crucial for a child. Here’s how LIC Jeevan Lakshya functions as a child plan.
LIC Jeevan Lakshya child plan provides an annual income benefit, which is 10% of the basic sum assured following the death of the life assured till the maturity of the policy. This amount can help fulfill the requirements of the family, primarily towards a child's future.
The sum assured on death is paid to the children in the case of the unfortunate demise of the insurer during the term of the plan.
Additional bonuses with the policy ensure increased savings and therefore, more capital to fund a child's future.
The life assured is eligible to avail of loan facilities to fund any emergency care for his/her child.
Keeping in mind the educational needs of a child as they grow older, the fees, and other needs, the life assured can opt to receive the death benefit in installments. This allows the child to manage the funds better instead of a lump sum payout.
Depending on the customers’ needs, the policy offers some exquisite features. Some of the salient features offered by the plan are:
Loan Facility - Policyholders can opt for loans against a percentage of the surrender value to take care of capital needs arising put child care, medical emergencies, or any other need for liquidity.
Benefits in Installments - Policyholders have the choice to opt for benefits in installments, be it the death benefit or the maturity benefit. To receive the maturity benefit in installments, you have to choose the settlement option. The installments in both cases are made for a period of 5, 10, or 15 years.
Premium Payment - One can pay the premiums on a yearly, half-yearly, quarterly, or monthly basis. Please note that the monthly premium payments can only be made through NACH. You can also choose to pay premiums through salary deductions based on your convenience.
Bonuses - As a with-profit insurance plan, the LIC Jeevan Lakshya child plan 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 along with the maturity benefit and on the death of the life assured along with the death benefit.
Add-on Riders - The policy also allows the life assured to avail the benefits of a maximum of 3 riders. The options available are:
LIC’s Accidental Death and Disability Benefit Rider
LIC’s Accident Benefit Rider
LIC’s New Term Assurance Rider
LIC’s New Critical Illness Benefit Rider
To be eligible to invest in the LIC Jeevan Lakshya child plan, you need to fulfill certain criteria set by LIC. The table below highlights these criteria for your information.
|Entry Age||18 years||50 years|
|Maturity Age||NA||65 years|
|Sum Assured||Rs. 1 Lakh||No limit|
|Policy Term||13 years||25 years|
|Premium Paying Term||Policy Term minus 3 years|
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
There are several benefits of buying the LIC Jeevan Lakshya child policy. Some of the benefits offered by the policy are:
The life assured is entitled to a lump sum payout at the time of maturity of the policy if (s)he endures even after the fulfillment of the policy period. This benefit is only applicable if all the due premium payments have been made in full. The maturity benefits will incorporate the sum assured on maturity plus the final additional bonus and a reversionary bonus.
The sum assured on maturity is equivalent to the amount defined under the basic sum assured. It is only offered at the time of completion of the policy term. Sum assured on maturity plus all accumulated gratuities shall be paid to the policyholder if he endures even after the fulfillment of the policy period.
The LIC Jeevan Lakshya child plan participates in the profits of the Corporation. This essentially means that based on the company’s annual valuation, policyholders shall be eligible to receive a Simple Reversionary Bonus, provided the purchased policy is in force.
In the case of the death of the policyholder, the policy shall continue to take part in the profits up to the maturity date. The entire fixed Final Additional Bonus and Simple Reversionary Bonus, if any, is payable on the maturity due date or on the death of the policyholder along with the assured benefits.
Note that Therefore, the Final Additional Bonus and the Simple Reversionary Bonuses, if any, must be paid under the policy regardless of the survival of the Assured Life.
If you do not pay the premiums (except in the case of demise of the Assured Life under the enforced policy), the policy shall cease to take part in the future profits, regardless of whether the policy has attained the paid-up value.
Death benefits are provided in case of the unfortunate demise of the policyholder before the completion of the policy tenure. Under the policy tenure, the sum assured on demise is payable along with the final additional bonus and the simple reversionary bonuses. The benefit amount is paid to the child on the death of the parent policyholder.
Sum Assured on Death is defined as the sum of:
The Annual Income Benefit equivalent to 10 percent of the Basic Sum Assured that must be payable from the anniversary of policy going along with or following the date of the demise of the Life Assured, until the anniversary of the policy before the maturity date.
The Assured Absolute Amount is equivalent to 110 percent of the Basic Sum Assured that must be payable on the maturity due date.
The sum assured on death shall be equal to 7 times the annualized premium if this amount is higher than the one defined above. Further, the aforementioned death benefit must not be less than 105 percent of all paid premiums as of the date of demise.
The aforementioned premiums do not include taxes, rider premium(s), and extra premium if any.
Under the Income Tax Act of 1961, the premium paid under this plan is permissible for availing rebate on annual income tax under section 80C, and as per section 10 (10D), the maturity amount is free from tax.
By using the LIC Jeevan Lakshya premium and maturity calculator, an interested buyer can calculate the premium and maturity benefits of the policy. You can check the details of the policy online and choose the LIC policy from the comfort of your home.
You can avail of the LIC accidental death and disability benefit anytime during the premium paying term. One of the most important benefits offered by this rider is, in the case of death due to an accident, an extra sum assured equivalent to the sum assured under the accidental benefit is payable. This benefit is provided to the co-rider at the time of the accident.
Secondly, in the case of disability of the insured resulting from an accident, an amount equivalent to the accidental benefit sum assured is paid to the insured in equal monthly installments for up to 10 years.
In both cases, any premiums due under the rider benefit shall be waived off.
The New Term Assurance Rider is made available on making the payment of an additional premium at the inception of the policy. The payment is made together with the premiums payable on the purchase of LIC’s Jeevan Lakshya child plan.
The advantage offered by this rider is that in the case of death of the insured during the term of the policy, an additional amount equivalent to the sum assured under the term assurance rider is liable to be paid to the beneficiaries (a child if the policyholder is a parent) as long as the applicability of the coverage of the plan rider is valid.
This rider can be opted for at any point in time during the premium paying term of the LIC Jeevan Lakshya child plan. Please note that the rider can only be availed if the outstanding premium paying term is at least 5 years for the base policy. On the death of the life assured due to an accident, the rider pays out an additional sum in lump sum along with the death benefits defined above.
Note that policyholders can only choose one rider between LIC’s Accident Benefit Rider and LIC’s Accidental Death and Disability Benefit Rider.
The additional sum assured under this rider is paid on the initial diagnosis of a pre-specified critical illness. LIC has published a list of 15 critical illnesses against which the benefits of this rider are applicable.
Please note that the sum assured for any of the above-mentioned riders is not allowed to be more than the basic sum assured under LIC's Jeevan Lakshya child plan.
|Policy Criteria||Accident Benefit Rider||Accidental Death and Disability Rider||New Term Assurance Rider||New Critical Illness Benefit Rider|
|Minimum Entry Age||18 years||18 years||18 years||18 years|
|Maximum Entry Age||65 years||70 years||60 years||65 years|
|Maximum Age at Maturity||70 years||70 years||75 years||75 years|
|Minimum Sum Assured||Rs. 20,000||Rs. 10,000||Rs. 1 Lakh||Rs. 1 Lakh|
|Maximum Sum Assured||Equal to the basic SA to less than Rs. 100 Lakhs||Equal to the basic SA to less than Rs. 100 Lakhs||Rs. 25 lakhs||Rs. 25 lakhs|
|Premium Paying Term||Same as the Jeevan Lakshya (Policy Term-3 years)||Same as the Jeevan Lakshya (Policy Term-3 years)||Same as LIC Jeevan Lakshya (Policy Term-3)||Same as the Jeevan Lakshya (Policy Term-3 years)|
|Policy Term||Same as the Jeevan Lakshya or (70 minus age at entry), whichever comes early||Same as the Jeevan Lakshya or (70 minus age at entry), whichever comes early||Minimum- 5 years Maximum- 35 years||Same as the Jeevan Lakshya|
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The LIC Jeevan Lakshya child plan offered by the Life Insurance Corporation of India is a fairly comprehensive plan with several important benefits. Policyholders can avail of these benefits provided that all the criteria mentioned under the policy are fulfilled. However, like any other insurance scheme, this plan also comes with exclusion such as:
In case of suicide, the policy does not provide any coverage to the insured.
Beneficiaries can claim 80% of the single premium paid if the policyholder dies of suicide within 12 months from the date of commencement.
If you have paid the premiums for a minimum of two years and have stopped the payment of subsequent premiums, the policy obtains a paid-up value. All the benefits under a paid-up policy are reduced to a paid-up sum assured. Note that a paid-up policy does not participate in company profits.
You can avail of the Guaranteed Surrender Value if you surrender the policy after making premium payment in full for at least two years. It is defined as the product of the number of premiums paid multiplied by the GSV factor.
You can reinstate the policy if it lapses within 5 years of not paying premiums consecutively since the first unpaid premium.
After making a payment of premiums for at least 2 years, you can avail of up to 90% of the surrender value, if the policy is still in force.
You will be given a grace period of a maximum of 30 days to resume premium payments to keep the policy in force. If the policyholder fails to make the payment within the grace period of the policy, then the policy lapses automatically. However, you are given an option to revive the policy within 5 years from the first unpaid premium.
If the policyholder is not satisfied with the terms and conditions of the policy, then (s)he can cancel the policy within 15 days from the date of receipt, only if any claim under the LIC has not been raised.
The policyholder must fill the Proposal Form 300 under this policy with their exact medical history and also submit other documents such as proof of address and other KYC (Know Your Customer) documents. Apart from this, you may be required to undergo medical tests depending on the sum and the age of the policyholder.
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