Lic Jeevan Lakshya Plan 833 - Review, Benefits and Features

LIC Jeevan Lakshya Plan no 833 Review

LIC Jeevan Lakshya Policy (plan no 833) was introduced on March, 2015 as a With-Profits Endowment Assurance plan. Lic Jeevan Lakshya plan is a limited premium paying conventional plan. Jeevan Lakshya Lic policy provides Annual Income benefit to fulfill the needs of the family. It is mainly beneficial for children, in case of unfortunate death of policyholder during the policy term i.e., any time before maturity. Jeevan Lakshya Lic new plan also provides a lump sum amount at the time of maturity regardless of survival of the policyholder.

Lic Jeevan Lakshya UIN (Unique Identification Number) is 512N297V01. This UIN has to be quoted in all relevant documents furnished to the policyholders and other users.

Lic jeevan lakshya plan details like conditions, benefits, documents required etc., are given below. Also you can calculate the Premium rates using lic jeevan lakshya premium chart and Calculator based on some parameters given below.

Jeevan Lakshya Lic Policy Eligibility Conditions

Eligibility Conditions of Basic Plan are,

Entry Age:	Minimum: 18 years Maximum: 50 years
Maximum Maturity Age:	65 years
Policy Term:	Minimum: 13 years Maximum: 25 years
Premium Term:	(Policy term – 3) years
Sum Assured:	Minimu: 1 Lakh Maximum: No limit Basic SA shall be in multiples of Rs. 10,000/- only.
Premium paying modes:	Yearly, Half-yearly, Quartely and Monthly mode.

Jeevan Lakshya Lic New Plan Rebates

Under Jeevan Lakshya Lic Plan there are two types of rebates, they are

Mode Rebate
High Basic Sum Assured Rebate

Mode Rebate:

Mode	Percentage
Yearly	2% of tabular premium
Half-yearly	1% of tabular premium
Quarterly and monthly	Nil

High Basic Sum Assured Rebate:

Basic Sum Assured	Rebate (in Rs.)
1,00,000 to 1,90,000	Nil
2,00,000 to 4,90,000	2% of Basic Sum Assured
5,00,000 and above	3% of Basic Sum Assured

Jeevan Lakshya Lic Plan Maturity Benefit

On survival of the policyholder till the end of the policy term provided all due premiums have been paid, Maturity Benefit = “Sum Assured on Maturity” + vested Simple Reversionary bonuses + Final Additional bonus, if any. Where ‘Sum Assured on Maturity’ is equal to Basic Sum Assured (SA).

Lic Jeevan Lakshya plan Death Benefit

On death of the policyholder during the policy term, Death Benefit = “Sum Assured on Death” + vested Simple Reversionary Bonuses + Final Additional Bonus (FAB), if any.

Where ‘Sum Assured on Death’ = Annual Income Benefit + Assured Absolute Amount

Annual Income Benefit = 10% of the Basic SA, which shall be payable from the policy anniversary coinciding with or following the date of death of Life Assured, till the policy anniversary prior to the maturity date.
Assured Absolute Amount = 110% of Basic SA, which shall be payable on due date of maturity.

The vested Simple Reversionary Bonuses and FAB, if any, included in the Death Benefit, shall be payable on due date of maturity.

The Death Benefit shall not be less than 105% of all the premiums paid as on date of death.

Lic Jeevan Lakshya 833 Riders (Optional Benefits)

Lic Jeevan Lakshya 833 Policy provides optional riders with the payment of additional premium. There are 2 optional riders available under Lic Jeevan Lakshya Policy, they are

Accidental Death and Disability Benefit Rider
New Term Assurance Rider

Lic Accidental Death and Disability Benefit Rider:

Lic Accidental Death and Disability Benefit can be opted for at any time within the Premium Paying Term (PPT) of the Basic Plan provided the outstanding PPT is atleast 5 years. If Accidental Death and Disability Benefit is opted for, then

On death due to an accident, an additional amount equal to the Accident Benefit Sum Assured is payable, provided the rider is inforce at the time of accident.
In case of accidental permanent disability, an amount equal to the Accident Benefit SA will be paid in equal monthly installments spread over 10 years. Future premiums for Accident Benefit SA and premiums for the portion of Basic SA (which is equal to Accident Benefit SA), shall be waived.

Eligibility Conditions for Accidental Death and Disability Benefit Rider:

Minimum Entry Age:	18 years (last birthday)
Maximum Entry Age:	This cover can be opted for at inception provided the minimum PPT left under the Basic plan is 5 years.
Maximum cover ceasing Age:	65 years (nearer birthday)
Accident Benefit Sum Assured :	Minimum: Rs. 10,000/- Maximum: An Amount equal to Basic SA subject to the maximum of Rs.100 lakh overall limit. Accident Benefit SA shall be in multiples of Rs. 10,000/- only.

Lic New Term Assurance Rider:

Lic New Term Assurance Rider is available at the beginning of the policy on payment of additional premium. It is to be paid along with the premium of the basic plan and any other rider (if opted for), during the PPT of the Lic Jeevan Lakshya policy. If this rider is opted for,

On death of the Life Assured during the policy term, an additional amount equal to Term Assurance Rider Sum Assured shall be payable provided the rider cover is inforce.

Eligibility Conditions for New Term Assurance Rider:

Entry Age:	Minimum: 18 years (last birthday) Maximum: 50 years (nearest birthday)
Policy Term:	Same as Basic plan i.e., Minimum: 13 years Maximum: 25 years
Premium Paying Term:	Same as Basic plan i.e., (Policy term – 3) years
Term Assurance Rider Sum Assured:	Minimum: Rs. 100,000/- Maximum: Rs. 25 lakhs. Term Assurance Rider SA can be taken in multiples of Rs. 10,000/- only.

Lic Jeevan Lakshya Premium Calculator

You can calculate the premium and Maturity benefits using Lic Jeevan Lakshya Premium and Maturity calculator. Policy period, Age and Sum assured are required to calculate the premium and maturity benefits.

LIC Jeevan Lakshya 833 Buying Procedure

Documents required for buying Lic Jeevan Lakshya Plan:

Application form/Proposal form 300 along with photo.
Address proof
Age proof
Medical reports (if required)

Additional Information about Lic Policy Jeevan Lakshya

Paid-Up Value:

If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, Lic Jeevan Lakshya Policy will acquire Paid-Up Value.

The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured”. Maturity Paid-up Sum Assured = Sum Assured on Maturity * (no. of premiums paid / no. of premiums payable).
The benefit payable in case of death under a paid-up policy, called “Death Paid-up Sum Assured”, shall be equal to the sum of:
- Reduced Income Benefit i.e. 10% of Basic SA x (No. of premiums paid/Total No. of premiums payable) shall be payable from the policy anniversary coinciding with or following the date of death of Life Assured till the policy anniversary prior to maturity date.
- [(No. of premiums paid/Total No. of premiums payable) x Absolute amount assured to be paid on death] which shall be payable on the date of maturity.

Lic Jeevan Lakshya Surrender Value:

Jeevan Lakshya Lic new plan can be surrendered at any time during the policy term provided atleast three full years’ premiums have been paid.

Guarenteed Surrender Value: The Guaranteed Surrender Value shall be a percentage of total premiums paid (net of taxes) – any extra premiums and premiums for riders, if opted for.
Special Surrender Value: The Special Surrender Value will be the discounted value of the sum of Maturity Paid-up Sum Assured and the vested Simple Reversionary bonuses, if any.

Revival:

If Lic Jeevan Lakshya policy has lapsed, it may be revived during the lifetime of the Life Assured, but within a period of 2 consecutive years from the date of first unpaid premium.

Loan:

Loan Facility is available under Lic Jeevan Lakshya policy after payment of premiums for at least 3 full years.

Suicide clause:

If the life assured commits suicide before 12 months from the date of commencement of risk, he/she will be returned back with 80% of single premium paid excluding any taxes and extra premium, if any.

Taxes:

Taxes, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.

Cooling-off Period:

If Policyholder is not satisfied with the Terms and Conditions of the policy, he/she may return the policy within 15 days from the date of receipt of the policy.

Backdating Interest:

The policies can be dated back with in the same financial year.

Policy Stamping:

Under Lic Jeevan Lakshya policy, stamping charges will be 20 paise per thousand of basic sum assured.

Assignments/Nominations:

Assignments and Nominations is possible under this Lic Jeevan Lakshya Policy plan no 833.

Lic Policy Jeevan Lakshya Benefit Illustration

Mr. Raju has taken LIC Jeevan Lakshya policy with following details:

Rajus’ age: 30 years
Policy Term: 20 years
Basic Sum Assured: 10 lakhs
Premium Paying term: ( Policy term – 3 years)= 20 years- 3 years = 17 years

Death Benefit: If Raju dies after 5 years from the date of receipt of policy. The death benefit payable will be:

From the 6th year of policy period, nominee will receive Rs. 1,00,000/- (10% of Basic sum assured) on every policy anniversary till end of the policy term(20th Year).
At end of policy term/ maturity date, Nominee will be paid Rs. 11,00,000/- (110% of sum assured) + Vested simple Revisionary Bonuses + Final Additional Bonus (If Any).

Maturity Benefit: If Mr. Raju is surviving till the end of the policy, the maturity benefit received

Maturity Amount = Sum Assured + vested Simple Revisionary bonuses + Final Additional bonus (if any)

Maturity Amount = 10,00,000 + vested Simple Revisionary bonuses + Final Additional bonus (if any)

FAQ’s of LIC Plan Jeevan Lakshya

What will be the Commission payable to intermediaries?

Commission rates (as a percentage of premium net of taxes) during the premium paying term are as under:

Agents and Corporate Agents:

Premium Paying Term	1st Year	2nd and 3 rd Year	Subsequent Years
10 to 14 years	20%	7.5%	5%
15 years and above	25%	7.5%	5%

Bonus Commission: 40% of 1^st year commission.

Brokers:

Premium Paying Term	1st Year	2nd and 3 rd Year	Subsequent Years
10 to 14 years	25%	5%	5%
15 years and above	30%	5%	5%

Bonus Commission: No bonus commission is payable to brokers.

What will be the credit to Development Officer?

Credit (as a % of the first year premium net of taxes) are as under:

Premium Paying Term	Credit
10 to 14 years	60%
15 years and above	100%

Is Lic Jeevan Lakshya Policy eligible for CEIS Rebate?

Lic Jeevan Lakshya Policy completed under CEIS will be eligible for CEIS (Corporation Employees’ Insurance Scheme) rebate in tabular premium for the basic plan as well as on rider(s) premium, if opted for, provided policy is not taken through any intermediary are as under: