LIC Jeevan Lakshya Plan: Review, Features & Benefits

The Life Insurance Company of India’s LIC Jeevan Lakshya plan is a limited premium-paying conventional plan (LIC of India). The plan is best for minors and gives annual income benefits for family needs. 

The primary feature of the LIC Jeevan Lakshya policy is the payment of premiums for a period shorter than the policy term. In case of the policyholder’s untimely death, 10% of the sum assured will be paid on each policy anniversary until the policy matures. Furthermore, regardless of the policyholder’s survival, he/she will get a lump sum payment at the policy’s maturity. 

We will go over all you need to know about the LIC Jeevan Lakshya Plan in this article. Continue reading LIC Jeevan Lakshya’s review to learn more about the strategy. 

What is LIC Jeevan Lakshya Policy

The LIC Jeevan Lakshya policy is a participating endowment plan that offers policyholders both investing and insurance advantages. Additionally, Riders are accessible in this plan because it is a participating plan.

As a death benefit, the plan provides a regular income to meet the needs of your family. Also, It has survival benefits, including some extra components.

The plan began in March 2015 and provides a regular income to the policyholder’s family in case of the policyholder’s untimely death, as well as a lump sum amount when the policy ends. Hence, LIC Jeevan Lakshya’s reviews are positive from policyholders.

The LIC Jeevan Lakshya plan is unavailable in online mode. Therefore, You need to purchase it from a local agent or broker.

Also Read: LIC Jeevan Labh Plan 836 Premium And Maturity Calculator

Features of LIC Jeevan Lakshya Policy

The LIC Jeevan Lakshya plan salient features are as follows: 

1. The policy’s lowest sum is INR. 1,000,000, while the maximum can be any amount. The base sum assured, however, can only be in multiples of INR. 10,000.
2. Policy terms might range from 13 to 25 years. Premiums mode can be yearly, half-yearly, quarterly, or monthly.
3. There is also the option of using an Electronic Clearing Service (ECS) to pay your premiums quickly.
4. To become a LIC Jeevan Lakshya policyholder, you must be at least 18 years old and no older than 50 years old. 65 years is the policy’s maximum maturity age.
5. This plan includes additional bonuses. Because the plan is an endowment assurance policy, it collects profits produced by the Life Insurance Corporation of India via the simple reversionary bonus and final additional bonus, which are paid at the policy’s maturity.
6. The premium is to be paid for three years less than the policy term, regardless of how long the insurance is taken out.

Benefits of LIC Jeevan Lakshya policy

There are numerous advantages and benefits of purchasing the LIC Jeevan Lakshya policy :

1. Maturity Benefits 

The maturity amount is provided when the policyholder survives until the end of the policy duration. The maturity advantages of the LIC Jeevan Lakshya plan include a guaranteed lump payment amount along with any last further incentive, in addition, to the basic sum assured upon maturity.

2. Death Benefits 

When a policyholder dies before the policy’s term expires, death payments are paid out. The benefit amount consists of the money assured on death plus any additional bonuses payable to the policy’s nominee. However, The sum assured upon death is the sum of the yearly income benefit equal to 10% of the basic sum assured that must be payable beginning with the LIC Jeevan Lakshya plan anniversary date.

3. Tax Benefits

The premium of the LIC Jeevan Lakshya plan is tax-deductible under Section 80C of the Income Tax Act. Also,  the maturity amount is tax-free under Section 10 D of the Income Tax Act. 

LIC Jeevan Lakshya Review: Additional Riders

The LIC Jeevan Lakshya plan also has 2 riders: accidental death and disability benefit rider and LIC new term assurance rider.

1. Accidental Death and Disability Rider

The LIC accidental death and disability compensation is available at any time throughout the premium payment period. The significant advantage of this rider is that, in the event of accidental death, an additional sum assured equivalent to the sum assured is payable. The nominee gets it at the time of the accident. In case of accidental disability, the policyholder gets the equal money of accidental benefit sum as decided in monthly installments for 10 years.

2. New Term Assurance Rider

The new term assurance rider can be purchased by paying an additional premium. In this rider, if the policyholder dies during the policy term, the sum assured plus an additional is paid to the policyholder.

LIC Jeevan Lakshya Review: Eligibility

The LIC Jeevan Lakshya plan can be supplemented with two optional riders. The eligibility requirements for all three are listed below –

Premium Paying Term for LIC Jeevan Lakshya

Premium payments for the LIC Jeevan Lakshya plan can be paid yearly, half-yearly, quarterly, and monthly, and an ECS service is also provided for quicker premium payment via net banking or mobile banking.

The following are the LIC premium payments for Jeevan Lakshya and its optional riders:

Documents Required for LIC Jeevan Lakshya

The documents required to buy the LIC Jeevan Lakshya Policy are as follows:

1. Duly filled and signed policy proposal form.
2. Cheque or cash for the first installment.
3. A passport-size photograph of the applicant.
4. A valid identity proof of the applicant.
5. Proof of residence of the applicant.
6. Proof of Date of birth of the applicant.
7. Income proof of the applicant.

Conclusion

Life Insurance Corporation of India (LIC) is a renowned insurance business in India that has been dedicated to promoting the benefits of life insurance since its beginnings. LIC provides suitable financial security against death or insurance-linked savings through the Jeevan Lakshya policy by offering distinctive insurance products at reasonable prices.

LIC Jeevan Lakshya Policy – FAQs

Is it possible to cancel my LIC Jeevan Lakshya policy?

Ans. Yes, the LIC Jeevan Lakshya policy can be surrendered if the first three years’ premiums have been paid. The policyholder is entitled to the policy’s surrender value upon surrender. The surrender value is determined by the policy’s terms and the year in which the plan is surrendered. The policyholder is entitled to a surrender value calculated as a percentage of total premiums paid.

Is there a guaranteed bonus with the plan?

Ans. The LIC Jeevan Lakshya plan is a participation plan, which means that if the insurance company makes a profit and has a successful financial performance, the earnings will be shared with the policyholders in the form of a bonus. As a result, bonus payments will be based on the insurance company’s performance and earnings. As a result, the incentive is not guaranteed and will be given based on the company’s financial performance.