Ensuring a bright future for their child is every parent's biggest goal. They work hard to gather funds so that their children can get the best possible education and lifestyle. However, with changing times and a rise in inflation, meeting the lifestyle needs of your children is not easy. Education is becoming expensive, and children come up with new demands that sometimes may not be feasible for parents to fulfill.Read more
This is why the benefits of LIC Jeevan Lakshya become crucial. Yes - you heard it right.
India's biggest insurance company has come with a child care plan that will help you ensure a bright future for your little champion. Find all the details in this article.
It is a non-linked and endowment scheme with features like the ones in the Kanyadan plan. Kanyadan deals with a daughter's marriage. However, this plan can be utilized for any other use like the children's education expenses. At maturity, the plan will provide a decent lump sum outlay to the insured or the nominee. Anyone over 18 years and under 50 years can take the Jeevan Lakshya for prolonged future benefits. So, it is imperative that the adult policy-buyer takes this plan and not the child. The death advantages of this plan also help the parents plan a secured future for their child.
The minimum amount assured in this policy is Rs.1 lakh. There is no limit on the maximum amount in this plan. The premium term for the policy is three years less than the entire duration of the policy. A minimum of 13 years until the maximum of 25 years is set as the policy term.
Therefore, when an investor chooses to sign for the policy's term of 25 years, the premium term will be 22 years. The premium is payable each year, every quarter, or every month. The initial year's cost is taxed at 4.5 percent, and from the following year, it will be taxed at 2.25 percent.
The benefits of reaching maturity with this LIC Jeevan Lakshya policy are profitable to parents looking for their child's future. If a person takes this policy after giving birth to a child for a term of 25 years, the lump sum is paid by LIC when the child is 25 years old. The money could be used for the child's higher education or even marriage. This is why it's among the top sought-after plans that LIC offers, which parents prefer for their children.
One of the best aspects of the policy is its death benefits. LIC would not ask for remaining premiums if the parent or the policy buyer dies after buying the policy. Moreover, the policy's nominee will receive 10% of the entire sum assured each year until the policy matures. For example, if the sum assured is Rs.10,00,000, the nominee will receive Rs.1,00,000 every year till the policy term.
LIC will give 110% of the total sum assured during the plan's maturity with Final Additional Bonus (FAB) and other bonuses as applicable. This implies that the parent's death will not affect the child's plans if so happens, unfortunately. The policyholder has the option of taking maturity and death benefits in the form of installments over 5, 10, or 15 years. Death benefits provided by this LIC Jeevan Lakshya policy are unique from other policies.
If you add on a term rider premium with the base scheme and the minimum assured sum of Rs.10 lakh, the entire 10lakh will be paid to the nomine/e if the insured passes away. Suppose the insured dies as a result of the accident. In that case, the entire rider amount will be paid in addition to the basic sum assured. The policy buyer can also take critical and term insurance riders.
Moreover, the loan can be taken against the policy, assuming two years have passed since the policy was bought and all the premiums are paid on time. The policy can as well be surrendered after two years. The policyholder can avail of tax benefits under death or maturity under section 10(10D) of the Income Tax Law. On premium, the reduction will be in line with ITR laws. This plan is also open for NRIs who can join this scheme without being physically present in India.
It is advisable to plan for your child's future and your family's well-being if you are the breadwinner of your family. Owing to the attractive benefits of the LIC Jeevan Lakshya plan, it makes sense to consider buying it. However, assess your lifestyle requirements first and then make an informed buying decision.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ