LIC Jeevan Lakshya

LIC Jeevan Lakshya- An Overview

LIC Jeevan Lakshya Plan 733 is an endowment plan offered by the LIC of India, which aims to provide financial stability to the family of the insured person in a comprehensive manner. Besides, the plan contains an additional feature of guaranteed annual income benefit along with a life insurance coverage, thus making it a perfect choice for long-term financial goals. The plan was previously known as LIC Jeevan Lakshya 833 and LIC Jeevan Lakshya plan 933.

Key Features of LIC Jeevan Lakshya Policy

Below are some of the key features of LIC Jeevan Lakshya plan 733:

• The LIC Jeevan Lakshya plan is designed to provide a combination of savings and life protection in a single plan.

• Policyholders can choose how they want to receive the payment of benefits: a lump sum or instalments.

• Additional riders are available to enhance protection against specific circumstances such as accidental and disability, by just paying an extra premium amount.

• The LIC Jeevan Lakshya plan also offers attractive rebates if the sum assured is high.

• The plan offers a loan facility available against the policy for liquidity needs.

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

• 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.

• Death Benefit in Installment 

  The LIC Jeevan Lakshya Plan offers the option to receive the death benefit in installments instead of a lump sum. The Life Assured can choose to receive the benefit over a period of 5, 10, or 15 years. This option must be exercised during the Life Assured's lifetime and can apply to the full or partial amount payable on death.

  Mode of Instalment Payment	Minimum instalment amount
  Monthly	5,000
  Quarterly	15,000
  Half-Yearly	25,000
  Yearly	50,000

• 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.

• Settlement Option

  The Settlement Option allows the Life Assured to receive the Maturity Benefit in instalments over 5, 10, or 15 years instead of a lump sum. It can be chosen for full or part of the maturity amount, in absolute value or percentage, with instalments paid in advance at chosen intervals.

  Mode of Instalment Payment	Minimum instalment amount
  Monthly	5,000
  Quarterly	15,000
  Half-Yearly	25,000
  Yearly	50,000

• 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.

• 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.

Optional Rider 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 LIC 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.

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 30 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.

• Policy Loan

  A loan facility is available in the LIC Jeevan Lakshya plan after completion of one policy year, provided at least one full year’s premium has been paid. The maximum loan is up to 75% of the surrender value for in-force policies (after two full years' premiums) and 65% for paid-up policies. The applicable interest rate for loans sanctioned between May 1, 2024, and April 30, 2025, is 9.5% p.a., compounding half-yearly.

Exclusion under LIC Jeevan Lakshya Plan

Suicide is the only exclusion under the LIC Jeevan Lakshya plan. These are the conditions:

• If the Life Assured commits suicide within 12 months from the date of commencement of the risk, the insurer will not be required to make any payment under the policy. In these circumstances, the insurer will return 80% of the total premiums paid under the policy in force.

• In the event of suicide within 12 months from the date of revival, the insurer shall pay, as the case may be, 80% of the aggregate premiums paid up to the date of demise or the surrender value on the date of death, whichever is higher.

Documents Required to Buy LIC Jeevan Lakshya Plan

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: 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: Aadhaar Card, PAN Card, Passport, Voter ID Card, or Driving License.

• Address Proof: Card, Passport, and Utility bills (electricity bill, telephone bill, etc.). Additionally, Bank account statements and Ration cards are also valid address proofs.

• Age Proof: Birth certificate, School leaving certificate (TC), Passport, and PAN Card.

• Income Proof: Salary slips, Income tax returns, Bank statements, and Form 16.

• Medical Reports: the sum assured be of a considerable amount and/or the policyholder be of an advanced age, the Life Insurance Corporation (LIC) has the prerogative to request a medical examination. The ensuing medical examination reports will serve as evidence of the health condition of the policyholder.

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