LIC Jeevan Lakshya (Table 833) – Review, Features and Benefits

LIC’s Jeevan Lakshya is a participating non-linked 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.

Features of this policy – (Table 833)

• Minimum and Maximum sum assured is Rs 1 lacs and no limit.
• The policy term is 13 to 25 years
• Premium payment mode is monthly, quarterly, half-yearly and yearly.
• Maximum maturity age is 65 yrs
• The policy offers additional benefit in terms of rider
• At the maturity of the policy, the policyholder is eligible to get a simple reversionary bonus and final additional bonus.

Benefits of the policy –

a) Maturity Benefit – If the policyholder survives till the maturity period, then the policyholder will get, Sum Assured on Maturity + vested Simple Reversionary Bonuses + Final Additional Bonus provided all the premiums have been paid and the policy is active. Where Sum Assured on Maturity is equal to Basic Sum Assured.

b) Death Benefit – If the policyholder dies before the maturity period, then the nominee of the policyholder will get “Sum Assured on Death” + vested Simple Reversionary Bonuses + Final Additional Bonus, provided all the due premiums have been paid and the policy is active.

Where “Sum Assured on Death” is defined as the sum of –

• 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 the policyholder, till the policy anniversary prior to the date of maturity.
• Assured Absolute Amount equal to 110% of Basic Sum Assured, which shall be payable on due 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 all the premiums paid as on date of death. Premiums referred above exclude tax, extra premium and rider premium(s), if any

c) Rider Benefit – The policyholder has the option of availing the following Rider benefit(s) on paying an additional premium. Rider Sum Assured cannot exceed the Basic Sum Assured.

1. LIC’s Accidental Death and Disability Benefit Rider.
2. LIC’s New Term Assurance Rider.

Eligibility Conditions –

Like every LIC Policy, this policy also has some eligibility conditions. Here are they in the below table:

Can the policy be revived if it gets lapsed?

Lapsed Policy can be revived within a period of 2 consecutive years from the date of the first unpaid premium provided all the premiums have been paid with interest. Revival of Rider(s), if opted for, will only be considered along with the revival of the Basic Policy and not in isolation.

Can I surrender the policy anytime?

No one cannot surrender the policy anytime one desires. The policy can be surrendered only if the policy is active and has completed 3 full years with all due premiums paid.

Can I get loan against this policy?

Yes, one can get a loan against this policy provided at least three full years’ premiums have been paid.

Can I return the policy if I didn’t like it’s terms and conditions?

Yes, If the policyholder doesn’t like the terms and conditions of the policy, then the policy can be returned within 15 days from date of receipt of the same to the Corporation stating the reason of objections. These 15 days period is called the Free Look Period.

Is there any exclusions in the policy?

This policy will be considered invalid in terms of Suicide. Let’s see 2 cases –

1. If the policyholder (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will pay only 80% of the premiums paid excluding any taxes, extra premium and rider premium(s) other than term assurance rider, if any, provided the policy is active. The corporation will not entertain any other claim.
2. If the policyholder (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premium(s) other term assurance rider, if any) or the surrender value shall be payable. The Corporation will not entertain any other claim under this policy.

This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.

Conclusions

As you all have come to know each and every detail about this policy, now it is up to you all to decide if this policy is fulfilling your future goals or not. Do let us know your views regarding this review. If you have any doubts regarding this policy then please let us know in the comment section.