LIC of India
LIC Jeevan Lakshya Policy

LIC Jeevan Lakshya

LIC Jeevan Lakshya (Plan No. 933, UIN No. 512N297V02) is a Non-linked, Participating, Individual, Life Assurance plan that is specially designed to generate a regular flow of income as it has come up with Annual Income Benefit to safeguard you and your family from the uncertainties of life. Under this policy, you can not only avail of maturity benefit with lump sum amount but also get death benefit before the maturity time, in case of untimely and unfortunate death of the insured person. This plan offers you a sack full of other benefits to fulfill your future needs, especially for your children.

Eligibility Criteria of LIC Jeevan Lakshya Policy

If you want to avail of this policy, have a look at the following table to know about the eligibility criteria.

Age at entry

Minimum – 18 years

Maximum – 50 years

Maximum maturity age65 years
Policy term

Minimum – 13 years

Maximum – 25 years

Policy Paying TermPolicy Term minus 3 years
Policy typeEndowment plan
Rider benefitAvailable
Sum assured

Minimum – Rs. 1 lakh

Maximum – No upper limit

(The Basic Sum Assured will be in multiples of ` 10,000/-)

Benefits of LIC Jeevan Lakshya Policy

LIC Jeevan Lakshya Policy has come up with a bunch of benefits to offer you protection and savings facilities. To more about its benefits in detail, have a look at the below mentions.

Death Benefit – In case of unfortunate demise of the Life Assured before the maturity date of an active policy, the beneficiary or nominee is entitled to get the death benefits. The amount of death benefit will not be less than 105% of total premiums paid up to the date of death of the insured person. The death benefits include the following:

  • Sum Assured on Death. It refers to either 7 times of annualized premium or Sum of 110% of Basic Sum Assured and Annual Income Benefit equal to 10% of the Basic Sum Assured, whichever is higher.

  • Vested Simple Reversionary Bonuses and,

  • Final Additional Bonus

It has to be remembered that Simple Reversionary Bonuses and Final Additional Bonus will be paid only on the due date of maturity.

Maturity Benefit – In case of survival of the Life Assured through the entire policy period of an active policy, he/she is entitled to receive the maturity benefits. The maturity benefit refers to the following in total.

  • Sum Assured on Maturity. It is equal to the Basic Sum Assured.

  • Vested Simple Reversionary Bonuses and,

  • Final Additional Bonus

Participation in Profit – This policy will take part in different types of profits of the Corporation. As the Corporation will reap, according to that, the Life Assured will also get the profits as Simple Reversionary Bonuses while the policy has to be an active one. In case of the untimely demise of the Life Assured, the policy will keep on participating in profits up to the date of maturity. In total, the entire vested Simple Reversionary Bonuses and Final Additional Bonus will be paid by the insurer on the due date of maturity. In that case, whether Life Assured survives the policy term or not, that does not matter.

Riders Benefits Available Under LIC Jeevan Lakshya Policy

To enhance the benefits of this policy and to make it stronger, LIC has come up with four Rider benefits available with LIC Jeevan Lakshya Policy. You can choose any of them according to your convenience. Have a look at the details of the riders below.

1. LIC’s Accidental Death and Disability Benefit Rider

You can opt for this rider within the premium paying term of the Base plan and you can enjoy the benefits of this rider throughout the policy term. Here are the benefits of this plan.

  • In case of accidental death, the Accident Benefit Sum Assured will be payable in a lump sum.

  • Once opted for this plan, 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 installments spread over 10 years.

  • Future 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 for accidental disability.

2. LIC’s Accident Benefit Rider

You can purchase this Rider benefit within the premium paying term of the Base plan anytime by paying an extra premium amount and can enjoy the benefits during the premium paying term. This plan will offer you the Accident Benefit Sum Assured in a lump sum, in case of accidental death.

3. LIC’s New Term Assurance Rider

This rider can only be opted for when you purchase the policy. Once you have availed of this rider, the beneficiary or the nominee is eligible to enjoy an amount equal to Term Assurance Rider Sum Assured in case of unfortunate demise of the Life Assured during the policy term.

4. LIC’s New Critical Illness Benefit Rider

Once you have gone for this rider, in case of the first diagnosis of any one of the specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured will be paid to the Life Assured.

Options Benefits Under LIC Jeevan Lakshya Plan

LIC Jeevan Lakshya Policy is flexible enough to offer its customers different options to choose from according to their needs. This makes the plan more consumer-friendly. Have a look at those options offered by the Corporation.

Option to take Death Benefit in installments

Instead of the lump sum amount, you can receive the death benefit as in installments over the chosen period of 5 or 10 or 15 years for an active policy to generate a regular flow of income. This option will not be applicable for the Annual Income Benefit payable on the death of the Life Assured.

For the chosen intervals, the installments will be paid in advance and it is subject to a minimum installment amount for different modes of payments as mentioned below.

Mode of Installment paymentMinimum installment amount
AnnuallyRs. 50,000
Half-yearlyRs. 25,000
QuarterlyRs. 15,000
MonthlyRs. 5000

Settlement Option for Maturity BenefitLike the Death Benefit, you can also receive the maturity benefit in installments over the chosen period of 5 or 10 or 15 years instead of receiving it as a lump sum amount so that the policy can generate a regular flow of income to make your financial condition smooth. This facility is available for an active policy as well as for a paid-up policy. You can receive it either annually, half-yearly, monthly, or quarterly and that will be paid in advance.

Know More About LIC Jeevan Lakshya Policy

There are a few more things about this policy that you need to know before purchasing it to have a better idea. Have a look at the below details to know more.

Rebates – The rebates for this policy function in the following way.

Mode Rebate:

Yearly mode – 2% of Tabular Premium

Half-yearly mode – 1% of Tabular premium

Quarterly & Salary Deduction – NIL

High Sum Assured Rebate (on Premium):

Sum Assured (In Rupees)Rebate (In Rupees)
1,00,000 to 1,90,000Nil
2,00,000 to 4,90,0002 percent of basic Sum Assured
5,00,000 and above3 percent of basic Sum Assured

Grace period – For LIC Jeevan Lakshya Policy the grace period is 30 days for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of first unpaid premium. The same is also applicable for the rider premiums if any.

Surrender value – If you want to, you can surrender this policy at any time only if you have paid premiums for at least 2 years for an active policy. Once the policy is surrendered, the Corporation will pay the Life Assured the Surrender Value that is equal to Guaranteed Surrender Value or Special Surrender Value, whichever is higher.

Taxes – If the Indian government or any other constitutional Tax Authority of India imposes any statutory taxes on the policy, that will be as per the tax laws of the country and the rates will be according to that only.

Paid-up policy – If the Life Assured has paid at least premiums for at least 2 years for an active policy and if any subsequent premium is yet to be paid, the policy will not expire totally. Instead, it will be considered as a paid-up policy till the end of the policy term.

How Does LIC Jeevan Lakshya Policy Work?

For your better understanding of this policy regarding how it works, here is a sample example.

Mr. Sharma, a 34-year-old businessman has bought LIC Jeevan Lakshya Policy for the policy term of 25 years. Let us find out how much premium he has to pay for the given criteria.

AgeGenderPolicy buying yearPolicy termPremium paying term (Policy term minus 3 years)Sum assuredDisability and Accidental Rider Benefit
34Male202225 years22 yearsRs. 20 lakhsYes

First & second-year premium details:

ModePremiumTotal Premium for 1st Year (4.5% GST)Total Premium for 2nd Year (2.25% GST)
AnnuallyRs. 85870Rs. 3864Rs. 87802
Half-yearlyRs. 43393Rs. 1953Rs. 44369
QuarterlyRs. 21925Rs. 987Rs. 22418
MonthlyRs. 7308Rs. 329Rs. 7472

The above table showcases the first and second year onwards premium details for different modes.

Maturity Benefit Details:

Sum assuredApproximate bonusApproximate Final Additional Bonus (FAB)Total
Rs. 20 lakhs2300000900000Rs. 52 lakhs

The insured person will get INR 52 lakhs once the policy fully matures.

General Exclusions of LIC Jeevan Lakshya Policy

Though LIC Jeevan Lakshya policy has come up with a sack full of benefits and facilities, it also has certain exclusions. While you are buying a policy, it is very important to know about the exclusions too to avoid future complications. To know more about the general exclusions of the policy, have a look at the below mentioned.

  • In case of the Life Assured commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not be liable to pay any compensation under the policy. Only 80% of the total paid premiums of the active policy will be reimbursed.

  • If the Life Assured (whether sane or insane) commits suicide within 12 months from the date of revival, an amount of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death, whichever is higher, will be paid by the Corporation. Apart from it, the Corporation will not accept any other claim under the policy. However, this condition will not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.

Can you revive LIC Jeevan Lakshya Policy?

If you do not pay the due premiums within the grace period, the policy will be expired. An expired policy can also be revived within a period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity. Once you pay all the arrears of premium(s) together with interests (compounding half-yearly and the rate will be fixed by the Corporation), only then the revival of the policy will be effective. If you have opted for the Rider benefit(s), the revival of rider(s), will be considered along with the revival of the Base Policy, and not in isolation.

The Corporation will be in the power to decline the revival of the discontinued policy. The policy can only be revived if the Corporation approves the revival, accepts it, and issues a revival receipt.

How To Apply For LIC Jeevan Lakshya Policy?

LIC Jeevan Lakshya Policy cannot be purchased online. You can avail of this plan by visiting one of the official branches of the Life Corporation of India (LIC). Their experts will guide you through the buying process seamlessly. You can also contact any of the licensed and registered agents of the Corporation and they are experienced and knowledgeable enough to offer you a hassle-free buying process. Apart from these, you can also call on their given contact number to seek help for the buying procedure and they will guide you easily for the same.

Frequently Asked Questions

In case the premiums are not duly paid (except in case of death of the Life Assured under an active policy), the policy will stop participating in future profits irrespective of whether or not the policy has acquired paid-up value.

The Guaranteed Surrender value that will be paid by the Corporation is equal to the total premiums paid (excluding extra premiums, taxes, and premiums for rider(s), if opted for) multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid.

LIC has recently introduced this feature. Premiums for all the policies, now, can be paid at any of the CSC centers throughout the country.

Yes, if you have paid the premiums for this policy at least for 2 years, you can avail of the loan facility under this policy and this is subject6 to the terms and conditions of the Corporation.

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

  • For in-force policies – 90%
  • For paid-up policies – 80%

If you are not satisfied with the LIC Jeevan Lakshya Policy, you can return the policy within 15 days from the date of receipt of the policy bond and you need to state the reasons for objections. The certain amount fixed by the Corporation will be deducted in this scenario.

For this, go to the official website of the company and click on the Pay Premium Online option under the Online Services tab. Select either Pay Direct or Pay Premium through the e-Service option according to your convenience and provide the necessary details of your policy. Then pay the premium amount. Upon successful payment, you will be notified and you can also download the payment receipt from the same.

No, Final Additional Bonus will not be payable under reduced paid-up policies.

In this case, the Life Assured needs to exercise the option for payment of net claim amount in installments at least 3 months before the due date of maturity claim.

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