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LIC Jeevan Lakshya Plan (933) - UIN 512N297V02

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LIC Jeevan Lakshya Plan (933) Review

LIC’s Jeevan Lakshya Policy (933) is a participating endowment plan which provides both investment and insurance benefits. Since it is a participating plan, bonus benefits will be available. In case of death of the policyholder a regular income is provided to the nominee in addition to a lump sum at the maturity. There are some additional benefits which you can take in the form of riders. We will explain the benefits of this plan with the help of a few examples.
 
Launch Date 1st February 2020
Table Number 933
Policy Type Endowment
Bonus Yes
UIN 512N297V02
 

How does LIC Jeevan Lakshya Plan (933) work?



When buying the LIC Jeevan Lakshya Plan (933), the customer has to decide on the following:
  1. Basic Sum Assured - the amount of cover that you want. You can choose a minimum amount of Rs. 1,00,000. There is no upper limit.
  2. Policy Term - the period for which you wish to have the cover. The term can be anywhere between 13 to 25 years
  3. Premium Payment Term - You need to pay the premiums for the Policy Term minus 3 years only.
Based on the basic sum assured, your age and the policy term selected, your annual premium will be decided.

Since it is a Participating plan, you will receive Simple Reversionary Bonus and Final Additions as and when declared by LIC.

Benefits in the LIC Jeevan Lakshya Plan (933)

Death Benefit in LIC Jeevan Lakshya Plan
In case of the death of the policyholder before the end of the policy term, the nominee will receive all of the following:
  • 10% of the Basic Sum Assured as an Annual Income Benefit from the next policy anniversary date to the policy anniversary date one year before the Maturity Date. We will explain this better in the example.
  • 110% of the Basic Sum Assured payable on the Maturity Date
  • Simple Reversionary Bonus which has accrued throughout the policy term payable on the Maturity Date
  • Final Addition Bonus if declared payable on the Maturity Date
The Death Benefit shall not be less than 105% of all premiums paid as on date of death of the policyholder.

Maturity Benefit in LIC’s Jeevan Lakshya Plan
At the end of the policy term, the policyholder will receive the following:
  • Basic Sum Assured
  • Simple Reversionary Bonus
  • Final Addition Bonus if declared

LIC’s Jeevan Lakshya Plan (933) with an Example

We have Nitesh Dubey, age 35 who wishes to buy this plan. He goes in for the plan with the following:

Sum Assured - Rs. 2,00,000
Term - 25 years
Premium Payment Term = 25 - 3 = 22 years

Based on these parameters,
First year premium - Rs. 8,645 + 4.5% GST = Rs. 9,034.
Second year onwards - Rs. 8,645 + 2.25% GST = Rs. 8,840.

Death Benefit

Scenario 1 : If Nitesh dies after 4 policy years.

In 4 years, he would have paid Rs. 35,554 as premiums. The Sum Assured of his plan is Rs. 2,00,000.  

His nominee will get the following benefits:

Annual Income Benefit of 10% of Sum Assured - Rs. 20,000. At the end of the 4th year, the nominee will get Rs. 20,000. This amount would be paid every year till the end of the 24th year.
110% of Sum Assured - Rs. 2,20,000. At the end of the 25th year the nominee will get Rs. 2,20,000
Along with the Rs. 2,20,000 the Simple Reversionary Bonus which has accrued in the plan along with any Final Addition Bonus will also be paid to the nominee.

Scenario 2 : If Nitesh dies after 15 policy years

In 15 years, he would have paid Rs. 1,32,794 as premiums. The Sum Assured of his plan is Rs. 2,00,000.  

His nominee will get the following benefits:

Annual Income Benefit of 10% of Sum Assured - Rs. 20,000. At the end of the 15th year, the nominee will get Rs. 20,000. This amount would be paid every year till the end of the 24th year.
110% of Sum Assured - Rs. 2,20,000. At the end of the 25th year the nominee will get Rs. 2,20,000.
Along with the Rs. 2,20,000 the Simple Reversionary Bonus which has accrued in the plan along with any Final Addition Bonus will also be paid to the nominee.  

Maturity Benefit

Scenario 3 : If Nitesh survives till the end of the policy term of 25 years - Nitesh will get the  Sum Assured + Simple Reversionary Bonus + Final Addition Bonus as declared.

Total Premiums Paid = Rs. 1,94,674

Sum Assured = Rs. 2,00,000

Let us assume that a Simple Reversionary Bonus of Rs. 49 per 1,000 Sum Assured. There is no guarantee that this will be the bonus rate for all years.

Simple Reversionary Bonus = 49 x 2,00,000 / 1,000 for 25 years = Rs. 2,45,000

Again, let us assume a Final Addition Bonus of Rs. 90,000

So Nitesh will get Rs. 2,00,000 + Rs. 2,45,000 + Rs. 90,000 = Rs. 5,35,000

LIC Jeevan Lakshya Plan (933) Maturity Calculator

You can use this to get a fairly accurate estimate of the Maturity Value of your LIC Jeevan Lakshya Plan (933). The maturity of LIC’s Jeevan Lakshya is totally tax-free.
 Add updated calculator

Sample Premium Illustration of LIC Jeevan Lakshya Plan (933)

Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.

Sum Assured : 1,00,000
Age : (30, 35, 40) Years
Policy Term : 25 Years



<<Premium Calculator>>
 

Eligibility Criteria for buying LIC Jeevan Lakshya Plan (933)

  Minimum Maximum
Sum Assured * Rs. 1,00,000 No limit
Policy Term 13 years 25 years
Premium Payment Term Policy Term minus 3 years
Entry Age (nearest birthday) 18 years 50 years
Maximum Maturity Age (nearest birthday) 65 years  
Premium paying frequency Annually, Half-yearly, Quarterly, Monthly

Tax Implications in LIC Jeevan Lakshya Plan (933)

  • Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act.
  • Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act  
  • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act

Documents required for buying LIC’s Jeevan Lakshya Plan (933)

  • To buy LIC’s Jeevan Lakshya Plan, one has to submit the following documents:
  • Plan Proposal Form duly filled in and signed
  • Cheque or cash for the first premium
  • A passport-sized photograph
  • A valid Identity Proof
  • A valid Address Proof
  • Date of Birth Proof
  • Vaccination certificate

How to make a claim in LIC’s Jeevan Lakshya Plan (933)

How to make a maturity or surrender claim?
A maturity claim is easy to make. The policyholder would have to fill and sign the claim discharge form and submit it to the insurer for availing the maturity benefit along with the original policy document, NEFT Mandate Form, and age proof if age was not admitted earlier.
In case of surrender, the policyholder should inform the company in writing to avail the surrender value.

The maturity or surrender amount can be either claimed lump sum or in instalments of 5, 10, or 15 years. For this, you just need to inform the company 3 months prior to the maturity date.

How to make a death claim?
In case of a death claim, the nominee should fill up the claim discharge form and submit it to the company along with -
  • Original policy document
  • NEFT Mandate Form for the direct settlement of claim into the nominee’s bank account
  • Proof of Title which is the nominee’s Identity Proof
  • Proof of Death - death certificate
  • Medical treatments availed prior to death
  • Proof of age if age was not admitted in the policy
  • Police inquest report, newspaper cuttings reporting the accident, copy of driving licence for road accidents, post-mortem report, etc. might be required in case of accidental or unnatural death.

Other Benefits in the LIC’s Jeevan Lakshya Policy (933)

  • Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned. To know more about the Free-Look Period, click here.
  • Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is 15 days.
  • Loan - You can avail a long against this policy after you have paid 2 years of premium.
  • Riders  - You have the choice of taking the following rider by paying an extra premium amount:
    • LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
    • LIC’s New Term Assurance Rider (UIN: 512B210V01)
    • LIC’s Accident Benefit Rider (UIN: 512B203V03)
    • LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
  • Surrender Value - If you surrender the plan anytime before paying 2 years of premiums, you will not be paid anything back. In case you have paid at least 2 years premiums, the policy will acquire a Surrender Value. The exact surrender value factor can only be known by contacting the LIC office.

What happens if you stop paying your premiums in the LIC’s Jeevan Lakshya Plan?

The policy will acquire a Paid-Up Value in case you stop paying future premiums after the grace period also. Paid-up Value of Jeevan Lakshya Plan will only be available if at least 2 years’ premiums have been paid.
  • The plan will not have any additional bonus accruals
  • The Death Benefit would be as following:
    • (No. of premiums paid / Total no. of premiums payable) x (110% of Basic Sum Assured + Accrued bonus).
    • 10% of Basic Sum Assured x (No. of premiums paid / Total no. of premiums payable) as an Annual Income Benefit from the next policy anniversary date to the policy anniversary date one year before the Maturity Date.
  • The Maturity Benefit would be as follows:
    • (No. of premiums paid / Total no. of premiums payable) x (Basic Sum Assured + Accrued bonus).

FAQs on LIC’s Jeevan Lakshya Policy (933)

How much bonus is declared under the plan?
The rate of bonus is not fixed. It varies depending on the performance of the insurer and is paid only if the insurer makes a profit in any financial year.

Check the Bonus rates of LIC’s Jeevan Lakshya Plan

What type of bonus is declared under the policy?
The plan pays simple reversionary bonuses for every year the policy is in force. On death during the plan tenure or on maturity, a Final Bonus might also be paid in addition to the vested bonuses.

Are there any rebates on the premium?
The plan offers two types of premium rebates. First, the high Sum Assured rebate which offers a rebate of 1.50% to 3% if the Sum Assured is Rs.2 lakhs and above. The second rebate offered is for paying the premium in annual or half-yearly mode. For annual mode, the rebate is 2% of the tabular premium while for the half-yearly mode the rebate is 1%.

How much is the revival period?
You can revive your lapsed policy within 5 years of the last paid premium
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