The Ultimate Guide to LIC's Jeevan Lakshya (Plan 733)
When it comes to Financial Planning in Bhadra, securing your children's future education and marriage expenses is often the highest priority. Among the myriad of investment options available today, LIC's Jeevan Lakshya (UIN: 512N297V03) stands out as a premier choice.
Brought to you by Ashuram Insurance Expert, the most trusted name for Insurance Services in Bhadra, this comprehensive guide will decode everything you need to know about this policy. LIC's Jeevan Lakshya is a participating (Par), non-linked, life, individual, savings plan. It offers an exceptional combination of protection and savings.
1. What Makes LIC’s Jeevan Lakshya Unique?
The core objective of this plan is to provide financial aid to the family, primarily for the benefit of children, in the unfortunate event of the policyholder's early demise. It ensures that your child's goals are met even if you are not around to see them.
The plan does this by providing an Annual Income benefit any time before maturity if the policyholder passes away, and additionally provides a lump sum amount at the time of maturity irrespective of the survival of the policyholder.
You can purchase this plan offline through licensed agents, corporate agents, brokers, and Insurance Marketing Firms.
2. Eligibility Conditions and Core Restrictions
Before you initiate your Saving and Investment Planning with Ashuram Insurance Expert, you must evaluate the eligibility criteria. The parameters for LIC's Jeevan Lakshya are structured as follows:
| Minimum Age at Entry | 18 years (Last birthday) |
|---|---|
| Maximum Age at Entry | 50 years (nearer birthday) |
| Minimum Maturity Age | 31 years (nearer birthday) |
| Maximum Maturity Age | 65 years (nearer birthday) |
| Policy Term | Minimum 13 years to Maximum 25 years |
| Premium Paying Term | (Policy Term minus 3) years |
| Minimum Basic Sum Assured | Rs. 2,00,000 |
| Maximum Basic Sum Assured | No Limit (Subject to underwriting decision) |
*Note on Basic Sum Assured Multiples: For a Basic Sum Assured ranging from Rs. 2,00,000 to Rs. 4,00,000, the amount must be in multiples of Rs. 10,000. For amounts above Rs. 4,00,000, it must be in multiples of Rs. 50,000.
Risk Commencement: Under this plan, the risk commences immediately from the date of acceptance of the risk.
3. In-Depth Look at Policy Benefits
As your dedicated LIC Agent Near Ambedkar Chowk, Ashuram Ji strongly advocates understanding the exact payouts of your life insurance policy.
A. Death Benefit (A Complete Financial Safety Net)
In the unfortunate event of the Life Assured's death during the policy term before the stipulated Date of Maturity, and provided the policy is in-force, a highly structured Death Benefit is payable.
The Death Benefit is defined as the sum of "Sum Assured on Death", vested Simple Reversionary Bonuses, and Final Additional Bonus, if any. (Note: The bonuses included in this Death Benefit shall be payable on the due date of maturity, not immediately).
The "Sum Assured on Death" is defined as the higher of the following:
- 7 times of the annualised premium.
- The sum of 110% of the Basic Sum Assured PLUS an Annual Income Benefit equal to 10% of the Basic Sum Assured.
This 10% Annual Income Benefit is payable starting from the policy anniversary coinciding with or following the date of death of the Life Assured, continuing until the policy anniversary prior to the date of maturity.
The 105% Guarantee Rule: Furthermore, LIC provides an iron-clad guarantee: the Death Benefit defined above shall not be less than 105% of the total premiums paid up to the date of death.
B. Maturity Benefit (Wealth Creation)
If the Life Assured survives the policy term, and the policy remains in-force, the "Sum Assured on Maturity" along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable. Under this plan, the "Sum Assured on Maturity" is exactly equal to the Basic Sum Assured.
C. Participation in Profits
The policy participates in the profits of the Corporation and is entitled to receive Simple Reversionary Bonuses declared as per the Corporation's experience, provided the policy is in-force.
Unique Feature: In case of death under an in-force policy, the policy continues to participate in profits up to the date of maturity. The entire vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable on the due date of maturity, irrespective of the survival of the Life Assured.
4. Customizing Your Coverage: Optional Rider Benefits
To optimize your Family Financial Security, you have the option to enhance coverage by opting for Rider Benefits on payment of an additional premium. You can choose from the following three optional riders:
- LIC's Accidental Death and Disability Benefit Rider: Can be opted for at any time within the premium paying term (if >5 years remain). In case of accidental death, an extra sum is payable. In case of disability, paid in equal monthly instalments over 10 years and future premiums are waived.
- LIC's Accident Benefit Rider: Provides that in case of accidental death, the Accident Benefit Sum Assured will be payable in a lump sum. (Note: You can opt for either the Accidental Death and Disability Benefit Rider OR this Accident Benefit Rider).
- LIC's New Term Assurance Rider: Available only at the inception of the policy. It provides an extra amount payable on the death of the Life Assured during the rider term.
Please note that the premiums under all life insurance riders combined shall not exceed 30% of the premiums under the base plan.
5. Settlement Options: Securing a Regular Income Stream
A modern approach to Long Term Investment Plan management involves receiving benefits in a structured manner rather than a lump sum.
Installments for Death Benefit & Maturity Benefit
The applicable lump sum amount payable in case of death (payable on the maturity date) AND the Maturity Benefit can both be received in instalments over a chosen period of 5, 10, or 15 years instead of a lump sum. This option must be exercised by the Life Assured during his/her lifetime. (Note: The 10% Annual Income Benefit is already in instalments and is not affected by this option).
| Mode of Instalment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000/- |
| Quarterly | Rs. 15,000/- |
| Half-Yearly | Rs. 25,000/- |
| Yearly | Rs. 50,000/- |
*The interest rate used for these instalments is based on the 10-year semi-annual G-Sec yield. For the period from 1st May 2024 to 30th April 2025, the applicable interest rate is 5.07% p.a. effective.
6. Premium Payments, Grace Periods, and Rebates
Ashuram Insurance Expert ensures that your policy aligns with your cash flow. Premiums can be paid regularly during the premium paying term at yearly, half-yearly, quarterly, or monthly modes (through NACH only), or via salary deductions.
A grace period of 30 days is allowed for the payment of yearly, half-yearly, or quarterly premiums, and 15 days is allowed for monthly premiums. The policy is considered in-force with risk cover without interruption during this grace period.
Maximize Savings with Rebates
| Rebate Type | Applicable Discount |
|---|---|
| Yearly Mode | 2% rebate on Tabular Premium |
| Half-Yearly Mode | 1% rebate on Tabular Premium |
| BSA: 5,00,000 to < 10,00,000 | 4.00% of B.S.A. |
| BSA: 10,00,000 and above | 5.00% of B.S.A. |
7. Managing Policy Liquidity: Loans, Surrender & Revival
- Policy Loan Facility: A loan can be availed after the completion of the first policy year (up to 50% before 2 years, and 75% after paying 2 full years' premiums for in-force policies). Interest rate (May 2024-Apr 2025) is 9.5% p.a.
- Surrender Conditions: The policy can be surrendered after the completion of the first policy year provided one full year's premium has been paid.
- Policy Revival: A lapsed policy can be revived within a period of 5 consecutive complete years from the date of the first unpaid premium. Interest rate (May 2024-Apr 2025) is 9.50% p.a.
- Suicide Exclusion: Within 12 months, the Nominee gets 80% of total premiums paid provided the policy is in-force.
Trust the Best LIC Agent in Bhadra
Creating a reliable safety net for your children does not happen by accident; it requires strategic planning and expert advice. LIC's Jeevan Lakshya (Plan 733) is undoubtedly one of the most powerful tools to guarantee that your child's education and dreams are never compromised by life's uncertainties. For personalized premium illustrations and policy issuance, look no further than Ashuram Insurance Expert (Serving all pin codes from 335501 to 335511).