LIC Jeevan Lakshya 933

Read on to know more about the LIC Jeevan Lakshya Plan 933.

LIC Jeevan Lakshya 933- An Overview 

LIC Jeevan Lakshya plan 933 is an endowment plan by LIC of India that focuses on the assured future of your family. It pays an Annual Income benefit, which can be used to meet the family needs, primarily for the benefit of children, if the Policyholder dies unfortunately at any time before maturity, and the Policyholder or the nominee gets a lump sum amount at the time of maturity regardless of the survival of the Policyholder. The Jeevan Lakshya LIC Policy plan also caters to liquidity needs by offering a loan against policy facility.

The 933 LIC Plan by LIC of India is an endowment plan that offers a dual benefit structure:

• Death Benefit: If the life assured dies during the policy term, the nominee.

• Maturity Benefit: If the life assured survives the term of the policy, they receive a lump sum payout.

Key Features of LIC Jeevan Lakshya 933 Plan

• The LIC Jeevan Lakshya 933 Plan is a participating plan, meaning you will receive bonuses (simple reversionary and final additional bonus) based on LIC’s performance.

• It offers flexible premium payment modes for paying the premium that are offered by the plan: yearly, half-yearly, quarterly, and monthly.

• One can choose the policy term between 13 to 25 years, and usually, the premium paying term is 3 years less than the whole policy term.

• If the policyholder passes away during the policy term, the nominee gets the sum assured on death that comprises the sum assured, yearly income benefit, and any bonuses that might have been accumulated.

• Upon survival of the policy term, the life insured will be paid the sum assured on maturity along with the accrued bonuses (simple reversionary and final additional bonuses).

• In the Jeevan Lakshya Policy LIC offers a loan facility against the policy's surrender value, thus ensuring the availability of cash if required.

Eligibility Criteria for LIC Jeevan Lakshya 933 Plan

LIC Jeevan Lakshya Plan 933 Benefits

Here are the LIC Jeevan Lakshya Plan 933 Benefits that make the plan a good choice for you:

Death Benefit

In the event of the policyholder's death during the policy term, the following benefits are provided:

• Sum Assured on Death: The higher of 7 times the annual premium or 110% of the basic sum assured.

• Annual Income Benefit: The nominee receives 10% of the basic sum assured as annual income until the policy anniversary before maturity.

• Bonuses: In addition to the basic sum assured and annual income, the nominee is also entitled to vested bonuses (simple reversionary) and final additional bonus (if declared).

Option to take Death Benefit in installments:

Instead of receiving the death benefit as a lump sum, the Life Assured can choose to receive the eligible amount in instalments over 5, 10, or 15 years. This option can be exercised during the policyholder’s lifetime for full or partial death benefit, either as a fixed amount or a percentage of the claim. It does not apply to the Annual Income Benefit. If death occurs after the policy term but before maturity payout, the basic sum assured is paid to the nominee.

Maturity Benefit

If the life assured survives the policy term, the following benefits are provided:

• Sum Assured on Maturity: The basic sum assured is paid to the policyholder.

• Bonuses: Along with the sum assured, any vested bonuses (simple reversionary) and final additional bonus (if declared) are paid at maturity.

Policyholders can use the LIC Jeevan Lakshya maturity calculator to know how much amount they will receive at the time of policy maturity.

Settlement Option

Under the Settlement Option, the Life Assured can receive the maturity benefit in instalments over 5, 10, or 15 years instead of a lump sum. This option applies to both in-force and paid-up policies and can be chosen for full or partial maturity proceeds. The option must be exercised at least 3 months before maturity. Instalments can be paid monthly, quarterly, half-yearly, or yearly, starting from the maturity date.

Note: Existing policyholders can use the LIC Jeevan Laksahya 933 maturity calculator to calculate the maturity value of their plan. 

Participation In Profits

LIC Jeevan Lakshya 933 is a participating plan, thereby the policy participates in the company's profits. Depending on the performance of LIC, the policyholder is entitled to:

• Simple Reversionary Bonuses: These are credited to the policy and are payable either on death or maturity.

• Final Additional Bonus (FAB): Depending on the company’s performance, an additional bonus may be payable.

Both the reversionary and final additional bonuses are not guaranteed but are based on the company’s profits.

Optional Rider Under LIC Jeevan Lakshya 933 Plan

LIC Jeevan Lakshya 933 offers four optional riders by paying an additional premium. However, only one accident-related rider can be selected, allowing a maximum of three riders per policy. Riders enhance protection against accidental death, disability, critical illness, and provide additional life cover. Rider availability and benefits are subject to policy conditions and premium limits specified by LIC.

LIC’s Accidental Death and Disability Benefit Rider 

This rider can be added during the premium-paying term, provided at least 5 years of premium term remain. In case of accidental death, the Accident Benefit Sum Assured is paid as a lump sum. In case of accidental disability within 180 days, the amount is paid in monthly instalments over 10 years, and future premiums for the rider and equivalent base sum assured are waived.

LIC’s Accident Benefit Rider

This rider can be opted for at any time under an in-force policy within the premium paying term of the Base plan provided the outstanding premium paying term of the base plan is atleast 5 years. The benefit cover under this rider shall be available during the premium paying term. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum.

LIC’s New Term Assurance Rider

This rider is available at inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the policy term.

LIC’s New Critical Illness Benefit Rider

This rider is available at the inception of the policy only. The cover under this rider shall be available during the policy term. If this rider is opted for, on first diagnosis of any one of the specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable. The premium for LIC’s Accident Benefit Rider/LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium under the base plan and the premiums under LIC’s New Term Assurance Rider shall not exceed 30% of premiums under the base plan.

Sample Illustration of LIC Jeevan Lakshya Plan 933

The sample illustration shows annual premiums (in Rs) for Basic Sum Assured of Rs 1 lakh as under:

LIC Jeevan Lakshya Plan Details

Grace Period

LIC Jeevan Lakshya 933 provides a grace period of 30 days for annual, half-yearly, and quarterly premium payments and 15 days for monthly premium payments. During this grace period, the policyholder can make the premium payment without the risk of the policy lapsing.

Free-Look Period

If the policyholder is dissatisfied with the terms and conditions of the policy, they can cancel it within the free-look period. The free-look period is 30 days from the date the policy document is received.

Revival of Lapsed Policies

If you fail to pay premiums within the grace period, the policy will lapse. However, the policy can be revived within 5 consecutive years from the date of the first unpaid premium by paying the overdue premiums along with interest. The policy will also be subject to underwriting approval.

Rebates

Rebates are provided for 

• Different premium payment modes:

• Yearly mode: 2% of the tabular premium

• Half-Yearly mode: 1% of the tabular premium

• Quarterly/Monthly: No rebate

• High Sum Assured:

• 1,00,000 to 1,90,000 - Nil

• 2,00,000 to 4,90,000 - 2% of Basic Sum Assured

• 5,00,000 to and above - 3% of Basic Sum Assured

Surrender Benefit

LIC Jeevan Lakshya 933 can be surrendered after paying premiums for at least 2 full years. The surrender value will be the higher of the guaranteed surrender value or special surrender value.

Paid-up Policy

 If less than two years’ premiums have been paid, and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable. If after at least two full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy shall not be wholly void, but shall subsist as a paid-up policy till the end of the Policy Term.

Loan Facility

The plan allows you to avail a policy loan against the surrendered value. This is a useful feature for policyholders needing liquidity without having to surrender their policy. The loan can be availed once the policy accumulates surrender value (after a certain period of premium payments).

The maximum loan as a percentage of surrender value shall be as under:

• For in-force policies – 90%

• For paid-up policies – 80%

Exclusions

The LIC Jeevan Lakshya 933 plan has some exclusions, including:

• Suicide:

If the life insured commits suicide within 12 months of policy commencement, no death benefit shall be payable, except for 80% of the premiums paid.

• Suicide after Revival:

Where the life assured commits suicide within 12 months of the policy, the death benefit payable shall be the maximum of 80% of premiums paid or the surrender value.

Summing Up

LIC Jeevan Lakshya 933 is a comprehensive life insurance plan that blends long-term financial protection with a savings discipline. Under the 933 LIC plan, you get guaranteed benefits, bonus participation and the family gets income support in case the policyholder passes away during the policy term. Additionally, the LIC Plan No. 933 offers flexibility in payout methods, thus enabling you to secure both your present protection and future financial goals. The LIC Jeevan Lakshya 933 can be further enhanced with the integration of the optional riders and settlement features. It can be an ideal solution for people who want to have a regular income, security, and a source of value for their dependents.

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