LIC’s Jeevan Lakshya Policy Features & Returns Calculation

LIC’s Jeevan Lakshya plan is a limited premium, non-linked, with profits Endowment Plan. Jeevan Lakshya plan offers a combination of risk coverage along with savings, which gives financial protection to the family in case any unfortunate event occurs. Premiums are payable for 3 years less than the policy term. This policy provides life cover during the policy term and Sum Assured + Bonuses on survival as maturity. In case of death of policy holder during the policy term, this policy provides 10% of sum assured every year till maturity and on maturity it again provides 110% of Sum Assured + Bonuses as maturity.

DEATH BENEFIT:
Sum Assured on Death (Should not be less than 105% of totalpremiums paid):
i) 10% of Basic S.A will be paid from policy Anniversary after death of life assured till policy anniversary prior to Maturity and

ii) 110% of Basic S.A. + Bonus for full term + FAB, if any, will be paid on date of Maturity.

MATURITY BENEFIT:
Basic Sum Assured + Vested Bonus + FAB if any.

CASE STUDY:

Age- 35, S.A.- `5,00,000, Policy Term – 21 years, PPT- 18 years ( 21-3), Basic Yearly Premium: `27,784

Enter Age is 35.

In case of Death at age 40(6th Policy year):

Death Benefit =

i. 10% of S.A. i.e `50,000 will be paid from 6th to 20th Policy Anniversary.
i.e for 15 years. Total Amount `50,000 x 15 =`7,50,000
ii. At Maturity : 110 % of S.A + Vested Bonus for 21 years + FAB
= `5,50,000 + `5,14,500 (49x500x21) + `50,000 (100×500)
= `11,14,500
Total Death Benefit =`7,50,000 + `11,14,500 =`18,64,500

In case of death where Term Rider and Accident Rider are opted:

Under Natural Death : Term Rider S.A opted will be paid immediately.
Under Accidental Death : Term Rider S.A + Accidental Rider S.A opted will be paid immediately.

FEATURES:

Minimum age at entry : 18 years lbd
Maximum age at entry : 50 years nbd
Maximum maturity age : 65 years nbd
Policy Term : 13 to 25 years.
Premium Paying Term : (Policy Term -3) Years
Minimum S.A. : `1,00,000/- & in multiples of ` 10,000 thereafter.
Maximum S.A. : No limit

Available Riders:
1. Accident & Permanent Disability Benefit for full policy term – Max 1Crore.
2. Term Assurance Rider – Max 25 Lakhs

Mode of Payment:
Yearly, Half Yly, Qly & Mly ( SSS & ECS)

Paid Up/ Surrender/Policy Loan: After payment of premium of 3 full years.

Revivals: Within 2 years of FUP.

Service Tax:
1st Year of Policy : 3.75%
2nd Year onwards : 1.875%

Tax Benefits :
On Basic Premiums : u/s 80C
Maturity/Death claim : u/s 10(10D)