LIC Jeevan Lakshya – A Secure and Safe Future For Your Family

The pandemic showed us how uncertain life can be. Whether you still live with your parents or are planning to start a family of your own, the LIC Jeevan Lakshya 933 is an individual life insurance plan that offers a mix of savings and protection to the policyholders. In a tragic event, if the policyholder passes away before the plan’s maturity, the LIC Jeevan Lakshya policy offers an annual income that can help with the family’s requirements, particularly for the benefit of the children. 

Regardless of whether the policyholder survives the maturity period, a lump sum benefit is made available to the family. It is a profit-linked endowment assurance plan and, through its loan facility, the LIC Jeevan Lakshya policy also addresses liquidity requirements.

LIC’s Jeevan Lakshya Details 

The LIC Jeevan Lakshya 933 Policy is simple yet beneficial to secure your family’s future. 

LIC’s Jeevan Lakshya Eligibility Criteria

The eligibility criteria for the LIC Jeevan Lakshya Policy are mentioned in the table below –

LIC’s Jeevan Lakshya Key Features

The LIC Jeevan Lakshya policy offers various exquisite features depending on the needs of the customer. The following are a few of the policy’s benefits –

LIC’s Jeevan Lakshya Benefits

There are several benefits of buying the LIC Jeevan Lakshya policy. Some of the benefits are:

Maturity Benefits 

If all premium payments have been made in full and the policyholder has lived to the end of the policy term, then the Maturity Benefit Amount = Sum Assured + the vested Simple Reversionary Benefits + the Final Additional Bonus, if applicable, will be paid to the LIC Jeevan Lakshya policyholder. The Basic Sum Assured and the Sum Assured on Maturity are the same.

Death Benefits

Once the LIC Jeevan Lakshya policy reaches its maturity date, the nominee will receive the Sum Assured on Death + Vested Simple Revisionary Bonus + Final Additional Bonus (If any) if the policyholder passes away during the policy term.

The Sum Assured on Death is defined as the sum of – 

• If a death occurs during the policy term, the nominee will receive 10% of the basic sum assured (given as an annual income benefit) from the year of the death until the policy’s maturity date.

• The Assured Absolute Amount, which must be paid on the maturity due date, is equal to 110 per cent of the Basic Sum Assured.

Tax Benefits

The premium for this LIC Jeevan Lakshya 933 is eligible for a tax credit under Section 80C, and the maturity amount is exempt from tax under Section 10D.

LIC’s Jeevan Lakshya’s Optional Riders

The LIC Jeevan Lakshya policy offers optional riders at a nominal cost as benefits that help cover life events that the standard policy does not cover. During the term of your policy, riders may offer benefits for critical conditions and other situations. The LIC Jeevan Lakshya has two optional riders namely – 

LIC’s Accidental Death and Disability Benefit Rider 

During the premium-paying term, this rider may be added to the base plan at any moment. When an accident results in the death of a person within the policy period, the rider pays benefits and offers the nominee an additional sum assured. Anytime during the policy term, this rider may be selected by paying an additional premium above the regular policy premium.

LIC’s New Term Assurance Rider 

If the insured person, unfortunately, passes away during the policy’s term, this rider will offer life insurance. At the time the policy is created, the rider can be added to the base policy for an additional premium. If this rider is active, the payout is equal to the sum insured of the term assurance rider.

LIC’s Jeevan Lakshya Eligibility Criteria for Riders

Other Benefits of LIC Jeevan Lakshya 933

Free Look Period

Within 15 days of the LIC Jeevan Lakshya policy’s issue, the policyholder has the option to cancel the policy if they are unhappy with it. This time frame is known as the ‘free-look period.’ Any applicable expenses from the premium payment would be reimbursed upon cancellation.

Grace Period

When paying premiums annually, half-yearly, or quarterly, a grace period of 30 days is given after the due date for the premium. The grace period for monthly premium payment plans is 15 days.

LIC Policy Revival

If the insurance policy lapses, one can get it reinstated only if you haven’t made your payments for less than two years in a row.

Loan

After paying the premiums for three years, one can apply for a loan against the LIC Jeevan Lakshya 933 Policy coverage.

Surrender Value

Policyholders will not receive any money back if the plan is cancelled at any point before paying the required three years’ worth of premiums. If you have paid premiums for at least three years, the policy will be granted a surrender value. The entirety of all premiums paid up to that point makes up the guaranteed surrender value.

You can only find out the precise surrender value component by getting in touch with the LIC office.

Paid-Up Value

If one stops making premium payments after the grace period, the policy will also be deemed to have a Paid-Up Value. Only when at least three years’ worth of premiums have been paid will the LIC Jeevan Lakshya Plan’s Paid-Up Value be accessible.

LIC Jeevan Lakshya – Exclusion

If the requirements above are met, the LIC Jeevan Lakshya Policy 933 issued by the LIC of India is a comprehensive plan without any further restrictions. However, this plan contains some exclusions, just like any other policy.

The policy does not offer the insured any protection in the event of suicide. If the policyholder dies by suicide within 12 months of the policy’s start date, the policyholder will receive a refund of 80% of the single premium paid plus the additional premium.

The insured can compute the premium and maturity benefits of the insurance using the LIC Jeevan Lakshya calculator (premium and maturity). One can review the policy’s specifics online and select the LIC insurance that best suits their needs.

Documents Required for LIC Jeevan Lakshya Policy Application

All Indian citizens can purchase the LIC Jeevan Lakshya 933 policy through LIC offices, agents, and brokers. The required documents for obtaining the policy are listed below.

• Application Form/Policy Form 300
• Passport size photo
• Address Proof
• Age Proof
• Medical reports (if any are required)

LIC’s Jeevan Lakshya Comparison 

Here is an example explaining the same LIC Jeevan Lakshya policy more thoroughly, here is an example explaining the same –

Nitesh Dubey, 35 years old, plans to buy the LIC Jeevan Lakshya 933 policy. He buys the insurance policy with the following details –

• Sum Assured – Rs. 2,00,000
• Policy Term – 25 years
• Premium Payment Term (PPT) – 22 years (25-3)

Based on these factors, his annual premium, including taxes, comes to Rs. 9,034. Here, we’ve taken the current tax rate as 4.5%.

Scenario 1: If Nitesh passes away after four policy years, his nominee will be eligible for the following death benefits:

He would have paid Rs. 36,136 in premiums over 4 years. His plan’s sum assured is Rs. 2,000,000.

These advantages will be granted to his nominee:

• 10% of the sum assured in annual income benefits is equal to Rs 20,000. The candidate will receive Rs. 20,000 after the fourth year. Up to the end of the 24th year, this sum would be paid yearly.
• The candidate will receive Rs. 2,20,000 after the 25th year which is 110% of the Sum Assured (Rs. 2,20,000).
• The Simple Reversionary Bonus that has accumulated in the LIC Jeevan Lakshya policy, along with any final addition bonuses, would also be given to the nominee in addition to the Rs. 2,20,000.

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