LIC Jeevan Lakshya Plan Number-933
LIC Jeevan Lakshya is a popular life insurance plan offered by the Life Insurance Corporation of India (LIC). It is a non-linked, with-profits, limited premium payment policy that provides financial protection to the family of the policyholder in case of his or her unfortunate demise.
In this article, we will discuss the features, benefits, and eligibility criteria of the LIC Jeevan Lakshya plan in detail.
Features of LIC Jeevan Lakshya Plan:
- Premium Payment: The policyholder can choose to pay premiums on a yearly, half-yearly, quarterly, or monthly basis.
- Premium Payment Term: The policyholder can choose a premium payment term of 3, 4, or 5 years, depending on their preference.
- Policy Term: The policy term is between 13 and 25 years.
- Death Benefit: In case of the unfortunate death of the policyholder during the policy term, the nominee will receive a death benefit which includes the sum assured on death and any bonuses accrued during the policy term.
- Maturity Benefit: If the policyholder survives till the end of the policy term, he or she will receive the maturity benefit, which includes the sum assured on maturity and any bonuses accrued during the policy term.
- Survival Benefit: The policy also provides for survival benefits in the form of periodic payments during the policy term. The policyholder can choose to receive the survival benefit either as a fixed percentage of the sum assured or in the format
LIC’s JEEVAN LAKSHYA (UIN: 512N297V02)
(A Non-Linked, Participating, Individual,
Life Assurance Savings Plan)
LIC’s Jeevan Lakshya is a Non-linked, Participating, Individual, Life
Assurance plan which offers a combination of protection and savings.
This plan provides for Annual Income benefit that may help to fulfill
the needs of the family, primarily for the benefit of children, in case
of unfortunate death of Policyholder any time before maturity and a
lump sum amount at the time of maturity irrespective of survival of the
Policyholder. This plan also takes care of liquidity needs through its loan
facility.
Benefits:
A. Death Benefit:
On death of the Life Assured during the policy term before the
stipulated Date of Maturity provided the policy is in-force i.e. all
due premiums have been paid, Death Benefit, defined as sum
of “Sum Assured on Death”, vested Simple Reversionary
Bonuses and Final Additional Bonus, if any, shall be payable.
Where “Sum Assured on Death” is defined as higher of:
– 7 times of annualised premium or
– Sum of 110% of Basic Sum Assured, which shall be payable
on date of maturity and Annual Income Benefit equal to 10%
of the Basic Sum Assured, which shall be payable from the
policy anniversary coinciding with or following the date of
death of Life Assured, till the policy anniversary prior to the
date of maturity.
The vested Simple Reversionary Bonuses and Final Additional
Bonus, if any, included in the Death Benefit, shall be payable on
due date of maturity.
The Death Benefit defined above shall not be less than 105%
of total premiums paid upto the date of death.
Premiums referred above exclude taxes, extra premium and
rider premium(s), if any.
B. Maturity Benefit:
On Life Assured surviving the policy term, provided the policy
is in-force, “Sum Assured on Maturity” along with vested
Simple Reversionary bonuses and Final Additional bonus, if
any, shall be payable. Where “Sum Assured on Maturity” is
equal to Basic Sum Assured.
C. Participation in Profits:
The policy shall participate in profits of the Corporation and
shall be entitled to receive Simple Reversionary Bonuses
declared as per the experience of the Corporation, provided
the policy is in- force.
In case of death under a policy which is in-force, the policy3
shall continue to participate in profits upto the date of
maturity and the entire vested Simple Reversionary Bonuses
and Final Additional Bonus, if any, shall be payable on due date
of maturity. Hence, the Simple Reversionary Bonus and Final
Additional Bonus, if any, shall be payable under the policy on
due date of maturity irrespective of survival of the Life Assured.
In case the premiums are not duly paid (except in case of death
of the Life Assured under in-force policy), the policy shall cease
to participate in future profits irrespective of whether or not
the policy has acquired paid up value. However, the policy shall
be considered as in-force on death during the grace period.
Final Additional Bonus shall not be payable under reduced
paid-up policies.
The actual allocation to policyholders, out of the surplus
emerging from the actuarial investigation, shall be as approved
by Central Government in accordance with provisions in this
regard under LIC Act, 1956.
2. Eligibility Conditions and Other Restrictions :
a) Minimum Basic Sum Assured : `100,000
b) Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of ` 10,000/-)
c) Policy Term : 13 to 25 years
d) Premium Paying Term : (Policy Term – 3) years
e) Minimum Age at entry : 18 years (last birthday)
f) Maximum Age at entry : 50 years (nearer birthday)
g) Maximum Maturity Age : 65 years (nearer birthday)
3. Options available:
I. Rider Benefits:
The following four optional riders are available under this
plan by payment of additional premium. However, the
policyholder can opt between either of the LIC’s Accidental
Death and Disability Benefit Rider or LIC’s Accident Benefit
Rider. Therefore, a maximum of three riders can be availed
under a policy.
i) LIC’s Accidental Death and Disability Benefit Rider
(UIN:512B209V02)
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 policy term. If this rider
is opted for, in case of accidental death, the Accident
Benefit Sum Assured will be payable in lumpsum. In case
of accidental disability arising due to accident (within
180 days from the date of accident), an amount equal to
the Accident Benefit Sum Assured will be paid in equal
monthly instalments spread over 10 years and future4
premiums for Accident Benefit Sum Assured as well as
premiums for the portion of Basic Sum Assured under
the base policy which is equal to Accident Benefit Sum
Assured, shall be waived.
ii) LIC’s Accident Benefit Rider (UIN:512B203V03)
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.
iii) LIC’s New Term Assurance Rider (UIN: 512B210V01)
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.
iv) LIC’s New Critical Illness Benefit Rider (UIN:
512A212V01)
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.
Each of the above Rider Sum Assured cannot exceed the
Basic Sum Assured under the Base plan.
For more details on the above riders, refer to the rider
brochure or contact LIC’s nearest Branch Office.
II. Option to take Death Benefit in installments:
Under this option, the applicable lumpsum amount payable in
case of death of the Life Assured, which shall be payable on
date of maturity under an in-force or paid-up policy, can be
received in instalments over the chosen period of 5 or 10 or
15 years instead of lump sum amount. This option can be
exercised only by the Life Assured during his/her life time; for
full or part of the lumpsum amount payable in case of death,
as specified above. The amount opted by the Life Assured (i.e.
Net Claim Amount) can be either in absolute value or as a
percentage of the total claim proceeds payable.
This option shall not be applicable for the Annual Income
Benefit payable on death of the Life Assured.5
The instalments shall be paid in advance at yearly or half-yearly
or quarterly or monthly intervals, as opted for, subject to
minimum instalment amount for different modes of payments
being as under:
Mode of Installment payment Minimum installment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
If the Net Claim Amount is less than the required amount to
provide the minimum instalment amount as per the option
exercised by the Life assured, the claim proceed shall be paid
in lump sum only.
The interest rates applicable for arriving at the instalment
payments under this option shall be as fixed by the Corporation
from time to time.
For exercising option to take Death Benefit in instalments, the
Life Assured can exercise this option during his/her lifetime
while in currency of the policy, specifying the period of
Instalment payment and net claim amount for which the option
is to be exercised. The death claim amount shall then be paid
to the nominee as per the option exercised by the Life Assured
and no alteration whatsoever shall be allowed to be made by
the nominee.
III. Settlement Option (for Maturity Benefit):
Settlement Option is an option to receive Maturity Benefit in
instalments over the chosen period of 5 or 10 or 15 years
instead of lumpsum amount under an in-force as well as paid-
up policy. This option can be exercised by the Life Assured for
full or part of Maturity proceeds payable under the policy. The
amount opted for by the Life Assured (ie. Net Claim Amount)
can be either in absolute value or as a percentage of the total
claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly
or quarterly or monthly intervals, as opted for subject to
minimum instalment amount for different mode of payments
being as under:
Mode of Instalment payment Minimum instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
If the Net Claim Amount is less than the required amount to
provide the minimum instalment amount as per the option
exercised by the Life Assured, the claim proceed shall be paid
in lumpsum only.6
The interest rates applicable for arriving at the instalment
payments under Settlement Option shall be as fixed by the
Corporation from time to time.
For exercising the Settlement Option against Maturity Benefit,
the Life Assured shall be required to exercise option for
payment of net claim amount in instalments at least 3 months
before the due date of maturity claim.
The first payment will be made on the date of maturity and
thereafter, based on the mode of instalment payment opted for
by the Life Assured, every month or three months or six months
or annually from the date of maturity, as the case may be.
After the commencement of Instalment payments under
Settlement Option:
i. If a Life Assured, who has exercised Settlement Option
against Maturity Benefit, desires to withdraw this option
and commute the outstanding instalments, the same shall be
allowed on receipt of written request from the Life Assured.
In such case, the lump sum amount which is higher of the
following shall be paid and policy shall terminate,
• discounted value of all the future instalments due; or
• (the original amount for which settlement option was
exercised) less (sum of total instalments already paid);
ii. The interest rate applicable for discounting the future
instalment payments shall be as fixed by the Corporation
from time to time.
iii. After the Date of Maturity, in case of death of the Life Assured,
who has exercised Settlement Option, the outstanding
instalments will continue to be paid to the nominee as per
the option exercised by the Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.
4. Payment of Premiums:
Premiums can be paid regularly during the premium paying term
at yearly, half-yearly, quarterly or monthly mode (through NACH
only) or through salary deductions over the premium paying term
of the policy.
5. Grace Period
A grace period of 30 days shall be allowed for payment of yearly
or half-yearly or quarterly premiums and 15 days for monthly
premiums from the date of first unpaid premium. During this
period, the policy shall be considered in-force with the risk cover
without any interruption as per the terms of the policy. If the
premium is not paid before the expiry of the days of grace, the
Policy lapses.
The above grace period will also apply to rider premiums which are
payable along with premium for base policy.
