What is Jeevan Lakshya?
LIC Jeevan Lakshya (Plan No. 733) is a participating, non-linked, protection-cum-savings plan that provides a unique death benefit. If the policyholder passes away during the policy term, the family receives 10% of Sum Assured every year as annual income until the original maturity date. On top of that, the full Sum Assured + accrued bonus + FAB is paid on the original date of maturity. This ensures your family has both regular income and a lump sum payout.
Key Features
- Unique Death Benefit Income: On death during the policy term, 10% of Sum Assured is paid as annual income to the nominee every year until the original maturity date. This provides sustained financial support to the family.
- Lump Sum at Maturity Date: In addition to the annual income, the full Sum Assured + vested bonus + FAB is paid on the original maturity date — even if death has occurred.
- PPT = Term − 3 Years: Premium Paying Term is 3 years less than the policy term. For example, for a 20-year term, you pay premiums for only 17 years. The last 3 years are premium-free!
- Bonus: Simple Reversionary Bonus at approximately ₹46 per ₹1,000 SA per year
- Final Additional Bonus (FAB): One-time bonus at maturity for qualifying policies
- Tax Benefits: Premiums qualify for Section 80C deduction. Maturity proceeds tax-free under Section 10(10D) if premium ≤ 10% of SA
- Loan Facility: Loan available after policy acquires surrender value (3 years)
How the Death Benefit Works — Example
Scenario: Mr. Sharma buys Jeevan Lakshya with ₹10,00,000 SA, 20-year term. He passes away in the 5th year.
✅ Annual Income to Family: ₹1,00,000 (10% of ₹10L) paid every year from year 6 to year 20 = ₹15,00,000 total income
✅ Lump Sum at Maturity (Year 20): ₹10,00,000 (SA) + Accrued Bonus + FAB
This means the family gets both regular income AND a large lump sum, ensuring complete financial security.
Eligibility Criteria
- Minimum Entry Age: 18 years (completed)
- Maximum Entry Age: 50 years (nearest birthday)
- Maximum Maturity Age: 65 years
- Minimum Sum Assured: ₹1,00,000
- Maximum Sum Assured: No upper limit
- Policy Term: 13 to 25 years
- Premium Paying Term: Policy Term − 3 years (e.g., 20-year term → PPT of 17 years)
Maturity Benefit
Maturity = Sum Assured + Accrued Bonus + Final Additional Bonus (FAB)
Example: For ₹10,00,000 SA, age 30, 20-year term:
- Sum Assured at maturity: ₹10,00,000
- Accrued Bonus (₹46 × 1000 × 20): ₹9,20,000
- Final Additional Bonus: ~₹2,00,000
- Total Estimated Maturity: ~₹21,20,000
Death Benefit
- Annual Income on Death: 10% of Sum Assured is paid every year from the date of death until the original maturity date. This acts as a regular income for the bereaved family.
- Lump Sum on Maturity Date: Sum Assured on Death + Accrued Bonus + FAB is paid on the original maturity date. Sum Assured on Death = Higher of (10 × Annual Premium) or (1.25 × Basic SA) or (7 × Annual Premium)
Premium Paying Term (PPT) — Important Note
Unlike most LIC plans where PPT equals the policy term, Jeevan Lakshya has PPT = Term − 3 years. This means:
- 13-year term → Pay premiums for 10 years
- 16-year term → Pay premiums for 13 years
- 20-year term → Pay premiums for 17 years
- 25-year term → Pay premiums for 22 years
The last 3 years of the policy are premium-free, while coverage and bonus accumulation continue.
Premium Payment Modes
- Yearly: Base rate (no loading)
- Half-Yearly: ~51.3% of annual premium
- Quarterly: ~25.8% of annual premium
- Monthly (ECS/NACH): ~8.7% of annual premium
Jeevan Lakshya vs Other LIC Plans
- vs Jeevan Anand (715): Jeevan Anand provides continued life cover after maturity, while Jeevan Lakshya provides annual income to the family on death. Lakshya is better for families needing regular income support.
- vs Jeevan Labh (736): Both have limited PPT. Jeevan Labh has fixed PPT options (10/15/16 years) while Lakshya's PPT is always Term − 3. Labh offers Loyalty Addition; Lakshya offers death benefit income.
- vs Money Back Plans: Money Back provides periodic survival benefits to the policyholder. Lakshya provides annual income only on death — making it more of a family protection plan.
Who Should Buy Jeevan Lakshya?
- Primary breadwinners who want to ensure regular income for family even after their death
- People looking for both protection and savings in one plan
- Those who want premium-free years at the end of the policy term (PPT = Term − 3)
- Families who need guaranteed financial security with sustained annual payouts