LIC Jeevan Lakshya

Death Benefit

On the death of the life assured during the policy term but before the date of maturity, provided the LIC Jeevan Lakshya policy is in force and all the premiums have been duly paid, the nominee receives the ‘Sum Assured on Death’ as the death benefit on the date of maturity. He will also receive the vested simple reversionary bonuses and final additional bonus. The death benefit is an amount higher than the following:

• 7 times the annualized premium
• Sum of 110% of the basic sum assured
• 105% of the total premium paid upto the date of death

Also, an annual income benefit of 10% of the basic sum assured is paid on every policy anniversary on or following the date of death of the life assured till the policy anniversary prior to the policy maturity date.

Maturity Benefit

If the life assured survives the whole policy term and the policy is in force, they receive ‘Sum Assured on Maturity’ with the simple reversionary bonuses and a final additional bonus. The sum assured on maturity is an amount equal to the basic sum assured.

Maturity Benefit = Basic Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus

Participation in Profits

LIC Jeevan Lakshya participates in the profits of the corporation and receives simple reversionary bonuses. The bonuses solely depend upon the market experience of LIC of India and are paid irrespective of the survival or death of the life assured.

On the death of the life assured, the policy continues to participate in the profits upto the date of maturity. The total amount accumulated as simple reversionary bonuses and a final additional bonus is paid on the due date of the policy maturity.

In case the life assured does not pay the premiums, the LIC Jeevan Lakshya shall cease to participate in profits, whether the policy has acquired the paid-up value or not.

LIC Accidental Death and Disability Benefit Rider

If the policyholder opts for this rider, on the death of the life assured, the nominee receives an accident benefit sum assured in a lump sum.

In case of accidental disability arising due to the accident (within 180 days of the accident), the life assured receives an amount equal to the accident benefit sum assured in equal monthly instalments spread over 10 years.

LIC Accident Benefit Rider

The benefit cover is available during the premium paying term only. If the policyholder opts for this rider, in case of accidental death, the nominee receives an accident benefit sum assured in a lump sum.

LIC New Term Assurance Rider

If the policyholder opts for the rider, on the death of the life assured during the policy term, the nominee receives an amount equal to the term assurance rider sum assured.

LIC New Critical Illness Benefit Rider

If the policyholder opts for this rider, the life assured receives critical illness sum assured on the first diagnosis of any of the specified 15 critical illnesses covered under the rider.

Payment of Premiums

The policyholder can choose to pay the premium regularly in the monthly, quarterly, half-yearly or yearly mode of payment. The flexible premium paying term allows the policyholder to arrange the funds as per their financial suitability and reduce the strain on their pocket.

Grace Period

LIC Jeevan Lakshya offers a grace period to make the missed premium payments after the due date. A grace period of 30 days is allowed for the premium payment options of yearly, half-yearly, and quarterly premiums. A 15 days grace period is offered to make the due premium payments in monthly premium payment mode. In case, the policyholder cannot pay the premium before the completion of the grace period, the LIC Jeevan Lakhya policy lapses.

Policy Revival

The policyholder can revive the LIC policy within a period of 5 consecutive years from the date of the first unpaid premium but before the completion of policy maturity. To do so, the policyholder needs to pay all the outstanding premiums with the applicable interest.

Discount on Policy

Under the LIC Jeevan Lakshya policy, a discount is offered on different modes of payment and higher sum assured, in the following manner.

Rebate on Mode of Payment:

Rebate on High Sum Assured:

Paid-Up Policy

If the policyholder pays the premium for less than two years and no further premiums are paid, all benefits cease after the expiry of the grace period from the date of the first unpaid premium. No benefits are payable in such conditions.

If the policyholder pays the premium for at least two full years and any further premiums are not paid, the LIC Jeevan Lakshya policy shall not stand completely void but will continue as a paid-up policy. In such cases, the benefits payable on the death of the life assured are called “Death Paid Up Sum Assured’ and maturity benefits are paid as ‘Maturity Paid-Up Sum Assured’. The paid-up policy does not contribute to future profits earned by the corporation.

Policy Surrender

If the policyholder has paid the premiums for at least two full policy years, they can surrender the policy anytime during the policy term. Upon the surrender of LIC Jeevan Lakshya, the policyholder receives the surrender value, higher of

• Guaranteed surrender value
• Special surrender value

Policy Loan

The policyholder can fulfil their liquidity needs by taking the LIC Jeevan Lakshya policy loan, provided they have paid the premiums for at least two full policy years. The maximum loan that a policyholder can avail of is:

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

The Life Insurance Corporation determines the interest rates and gets approval from IRDAI on a prior basis.

Free Look Period

If the policyholder is not satisfied with the terms and conditions of the policy, they can return the policy to the Life Insurance Corporation within 15 days of the free look period from the date of the policy receipt. The policyholder needs to state the reasons for the objections. Upon receiving the same, the company shall return the policy and return the premium amount deposited after deducting any applicable charges.

Tax Benefits

According to the tax rules and implications, premiums paid towards the LIC Jeevan Lakshya plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Also, the benefits received are subject to tax exemption under Section 10 (10D) of the IT Act.