LIC Jeevan Lakshya Plan 733

LIC Jeevan Lakshya Plan is a Par, Non-linked, Life, Individual, Savings 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 the Policyholder any time before maturity, and a lump sum amount at the time of maturity irrespective of survival of the Policyholder.

This Plan can be purchased offline through Licensed Agents, Corporate Agents, Brokers and Insurance Marketing Firms.

LIC Jeevan Lakshya Plan KEY FEATURES:

• LIC Jeevan Lakshya Plan provides for protection and savings.

• Option for payment of benefits in instalments.

• Option to enhance coverage by opting for Rider Benefits on payment of additional premium for the rider benefits.

• Benefit of LIC Jeevan Lakshya Plan attractive High Sum Assured Rebate.

• Takes care of liquidity needs through loan facility.

1. ELIGIBILITY CONDITIONS AND RESTRICTIONS of LIC Jeevan Lakshya Plan:

• a) Minimum Age at entry: 18 years (Last birthday)

• b) Maximum Age at entry: 50 years (Nearer birthday)

• c) Minimum Maturity Age: 31 years (Nearer birthday)

• d) Maximum Maturity Age: 65 years (Nearer birthday)

• e) Minimum Policy Term: 13 years

• f) Maximum Policy Term: 25 years

• g) Premium Paying Term: (Policy Term – 3) years

• h) Minimum Basic Sum Assured: Rs. 2,00,000

• i) Maximum Basic Sum Assured: No limit, subject to underwriting decision*

(*The maximum Basic Sum Assured allowed to each individual will be subject to underwriting decision as per Board Approved Underwriting Policy.)

• j) Basic Sum Assured Multiples:

Date of commencement of risk: Under this plan, the risk will commence immediately from the date of acceptance of the risk.

2. LIC Jeevan Lakshya Plan 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 the sum of:

• “Sum Assured on Death”

• Vested Simple Reversionary Bonuses

• Final Additional Bonus (if any)

shall be payable.

Where “Sum Assured on Death” is defined as the higher of:

• 7 times of annualised premium

• or 110% of Basic Sum Assured, payable on date of maturity

• Plus Annual Income Benefit equal to 10% of Basic Sum Assured, payable from the policy anniversary coinciding with or following the date of death, till the policy anniversary prior to the date of maturity.

Definitions:

(i) “Annualised Premium”: Premium payable in a year, excluding taxes, rider premiums, underwriting extras, and loadings for modal premiums.
(ii) “Total Premiums Paid”: Total of all premiums paid under the base product excluding any extra premiums and taxes.

The vested bonuses shall be payable on the date of maturity.

Minimum Death Benefit of LIC Jeevan Lakshya Plan: Not less than 105% of total premiums paid up to the date of death.

B. Maturity Benefit of LIC Jeevan Lakshya Plan:

On Life Assured surviving the policy term and policy being 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 = Basic Sum Assured

C. Participation in Profits of LIC Jeevan Lakshya Plan:

The policy shall participate in the Corporation’s profits and is eligible to receive Simple Reversionary Bonuses as per the Corporation’s experience, provided policy is in-force.

• In case of death under an in-force policy, bonuses will continue to accrue till maturity.

• In case of lapse (non-payment of premiums), future participation in profits ceases.

• Simple Reversionary Bonuses are declared annually and form guaranteed benefits.

• Final Additional Bonus may be declared at death or maturity, but not under paid-up policies.

• Surplus allocation will be in accordance with LIC Act, 1956.

3. OPTIONS AVAILABLE of LIC Jeevan Lakshya Plan:

I. Rider Benefits:

Policyholders may choose from the following optional riders:

1. LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)

   • Can be opted any time during premium paying term (minimum 5 years left).

   • In case of accidental death: Lump sum Accident Benefit Sum Assured paid.

   • In case of accidental disability (within 180 days): Equal monthly instalments for 10 years + waiver of future premiums.

2. LIC’s Accident Benefit Rider (UIN: 512B203V03)

   • Can be opted any time during premium paying term (minimum 5 years left).

   • In case of accidental death: Lump sum Accident Benefit Sum Assured paid.

3. LIC’s New Term Assurance Rider (UIN: 512B210V02)

   • Available only at policy inception.

   • On death during rider term: Term Rider Sum Assured paid.

Note:

• Combined rider premium should not exceed 30% of base premium.

• Accident Benefit Rider Sum Assured: Max 3 times of Basic Sum Assured.

• Other rider benefits must not exceed the Basic Sum Assured.

• Refer to rider brochure or contact nearest LIC Branch for full details.

II. Option to Take Death Benefit in Installments:

• Lump sum amount payable on death (due at maturity) can be taken in installments over 5, 10 or 15 years.

• Life Assured must opt this during lifetime, for full or partial claim amount.

• Not applicable for Annual Income Benefit.

LIC Jeevan Lakshya Plan Installment Modes & Minimum Amounts:

If Net Claim Amount is below minimum requirement, full amount will be paid lump sum.

Interest Rate for Installment Option (May 2024 – April 2025):
5.07% p.a. (effective) – calculated as G-Sec yield minus 2%.

Once selected, no changes allowed by nominee.

III. Settlement Option (for Maturity Benefit)of LIC Jeevan Lakshya Plan:

• Maturity Benefit can also be taken in installments over 5, 10, or 15 years, under an in-force or paid-up policy.

• Can be opted for full or partial maturity proceeds 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.
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:

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.

For all the instalment payment options commencing during the 12 months’ period from 1st May to 30th April, the interest rate used to arrive at the amount of each instalment shall be annual effective rate not lower than the 10 year semi-annual G-Sec yield p.a. minus 2%; where, the 10 year semi-annual G-Sec yield p.a. shall be as at last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st May, 2024 to 30th April, 2025, the applicable interest rate for the calculation of the instalment amount shall be 5.07% p.a. effective.

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 applicable interest rates that will be used to discount the future instalment payments shall be annual effective rate not exceeding 10 year semi-annual G-sec yield p.a.; where the 10 year semi-annual G-sec yield p.a. shall be as at last trading day of previous financial year during which the Settlement Option was commenced.
Accordingly, in respect of all the Settlement Options commenced during the 12 months period beginning from 1st May, 2024 to 30th April, 2025, the maximum applicable interest rate used for discounting the future instalments shall be 7.07% p.a. effective.

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.

6. Sample Illustrative Premium:

The sample illustrative annual premiums (in Rs.) for Basic Sum Assured of Rs. 2 lakh for Standard lives are as under:

The above premium is exclusive of taxes.

7. Rebates:

Mode Rebate:

• Yearly mode – 2% of Tabular Premium

• Half-yearly mode – 1% of Tabular Premium

• Quarterly, Monthly & Salary deduction – NIL

High Sum Assured Rebate (on Premium):