Jeevan Lakshya - LIC's 360 Degree Cover for your Families Financial Needs

Life Insurance Corporation of India (LIC) has been a trusted name in the Indian insurance sector for decades, providing a wide range of insurance products tailored to meet the diverse needs of its customers. Among its offerings, the LIC Jeevan Lakshya Plan stands out as a unique and comprehensive policy designed to help in achieving the financial goal setted by the policy holder for different responsibilities of him . In this blog, we will explore the key features and benefits of the LIC Jeevan Lakshya Plan. For better understanding of entire plan benefit, i request readers to also go through the example given in the end.

Assured Income Benefit:

One of the standout features of the Jeevan Lakshya Plan is the guaranteed income benefit it offers. Under this plan, policyholders receive a regular income payout in the form of annual installments. This income continues for a fixed term, which can be chosen at the outset of the policy. This ensures that your family's financial needs are met even in your absence.

Death Benefit:

In the unfortunate event of the policyholder's demise during the policy term, the Jeevan Lakshya Plan provides a death benefit to the nominee. LIC provides 4 benefits to the nominee

1. Lumsum death benefit of maximum 25 lakhs to nominee
2. Also pays annually 10% of Sum Assured to nominee, till the policy continues
3. Also all the balance premiums are waived off and paid by the LIC of India 
4. Also at maturity LIC of India pays maturity beenfit which is equivalent to sum of bonuses , final additional bonus and 1.10 times the Sum Assured to nominee.

Maturity Benefit:

If the policyholder survives the policy term, they are entitled to receive the maturity benefit, which includes the sum assured along with any applicable bonuses. This serves as a financial boon, helping you achieve long-term financial goals or retirement planning.

Bonuses:

LIC has a strong track record of providing bonuses to policyholders, and the Jeevan Lakshya Plan is no exception. This plan offers both Simple Reversionary Bonuses and Final Additional Bonuses, which enhance the overall payout at maturity or in the event of the policyholder's demise.

Loan Facility:

Policyholders can avail of a loan against their Jeevan Lakshya Plan after the policy has acquired a surrender value. This feature can be useful in times of financial need, providing a source of liquidity without surrendering the policy.

Flexible Premium Payment Terms:

The Jeevan Lakshya Plan offers flexibility in premium payment terms. Policyholders can choose from various premium payment frequencies, including yearly, half-yearly, quarterly, or monthly, depending on their convenience.

Tax Benefits:

Under Section 80C of the Income Tax Act, premiums paid for the Jeevan Lakshya Plan are eligible for tax deductions. Additionally, the maturity amount and death benefit received are also tax-free under Section 10(10D), making this plan a tax-efficient investment option.

Example

Now Let us understand the benefits of Jeevan Lakshya with an example for a 30 year Old person with sum assured of 50 Lakhs with maximum term of 25 years and with given below riders

1. Term rider of 25 Lakhs (Maximum term cover)
2. ADDB (Accidental Death & Disability benefit) of 1 Crore

Plan is for 25 years, but premium is to be paid only for period of 22 years. 3 years less than the policy period is to be paid. Lets see the monthly premium amount in 1st and than consecutive years for 50 lakh Sum Assured.

Approximately INR 19300/- is to be paid monthly in 1st year and Approx INR 18900/- is to be paid in subsequent years.

Lets see the Benefit & Coverage table of the Jeevan Lakshya Plan for 50 lakh coverage.

As we can see in the above table for just a premium of Approx. INR 19000/month, we are getting a risk cover  INR 3.3 Crore from day 1, which is almost 1700 times the money we are paying for insurance. The kind of risk cover is phenomenal at such low cost. Also if you see after 25 years policy holder will get lumsum benefit of INR 1.3 Crore, which he can utilise for the goal which he had planned on day 1.

Also if you see, if policy holder is having any urgent need of money, he even can take loan equivalent to loan value mentioned in the loan column and can continue his policy along with the payment of interest amount.

So lets take a look at the Risk cover table for understanding the entire benefits of Jeevan lakshya plan of LIC of India

If we look at the above table we can see that the policy holder died after 6 policy premiums, therefore the death benefits will start getting given to nominated person.

1. In case of Normal Death of policy holder, nominee will get lumsum 25 lakhs immediately and therefore 10% of sum assured every year till policy continues. Annual death benefit will be given 5 lakhs, which will be equivalent to 95 Lakhs. Also at completion of policy period nominee will be given additional 1.35 Crore. All these payouts will accumulate to INR 2.55 Crore.
2. In case of Accidental Death of policy holder, nominee will get lumsum 75 lakhs immediately (25 lakhs term + 50 lakhs of ADDB) and therefore 10% of sum assured every year till policy continues. Annual death benefit will be given 5 lakhs, which will be equivalent to 95 Lakhs. Also at completion of policy period nominee will be given additional 1.35 Crore. All these payouts will accumulate to INR 3.05 Crore.
3. In case of permanent disability due to accident approx. 42000/month will be paid to policy holder for 10 years or end of policy term (whichever comes first). along with it premium waive off and maturity benefits will be paid to the policy holder.

The LIC Jeevan Lakshya Plan is a well-rounded insurance policy that not only offers financial security but also serves as a sound investment option. Its guaranteed income benefit, coupled with bonuses and tax benefits, makes it an attractive choice for individuals looking to secure their family's future. However, before investing in any insurance plan, it's essential to carefully assess your financial goals and consult with a financial advisor to determine if it aligns with your needs and objectives. With the Jeevan Lakshya Plan, you can rest assured knowing that you are providing a solid foundation of financial stability for your loved ones, no matter what life may bring.