The plan number of the LIC Jeevan Lakshya is 933. Earlier its name and plan number were LIC Jeevan Lakshya 833, then plan number changed from 833 and now it is 933.
Most of the people know this plan as LIC Kanyadaan policy
Yes, this plan is an endowment plan. it provides risk cover to the customers and also contains saving components with a high yield of bonuses on deposited money. This plan is a with-profit plan, It means this plan participates in the profit of the company also. This plan is not linked to the equity market.
This plan is a participating plan, It means this plan also participates in the profit of the company. This plan is not linked to the equity market.
This is a plan which provides a Risk cover equals to 110 % of the Sum assured.
Maturity benefit of LIC Jeevan Lakshya 933:
On completing the full policy term the policy is assumed as mature. then all the benefits of maturity are deposited in the account of customers.
These benefits include the sum assured with a simple reversionary bonus and a final additional bonus is also added in the amount of maturity.
Participation in profit:
As mentioned above this plan is with a profit plan and it participates in the profit of the company. It means the above maturity benefits will be paid with additional profit amount, and the maturity of LIC Jeevan Lakshya 933 policy calculated at the time of purchase will be little more than that value shown by multiplying bonus rates in calculations.
The death benefit of LIC Jeevan Lakshya 933:
In the case of death of Life assured, a Death claim is payable to the nominee. where this claim amount contains a 110% of a basic sum assured ( amount of risk cover or value of insurance amount ) of the policy along with a simple reversionary bonus and final additional bonus. Death claim will be no less than 105% of all premiums paid.
Now, here is the main USP of this plan, If a Policyholder dies during policy term then the 110% of the Sum Assured is payable on the date of maturity and the annual income benefit of 10% of the Sum Assured will be payable to the Nominee from the date of death of policyholder till the maturity date of Policy.
The vested Simple revisionary bonuses and final additional bonuses are added in Death benefit but payable on the maturity date of the policy.
7 times of the annualized premium.
In case of death claim whichever of the above condition the higher amount will be payable to the nominee.
The risk cover will start immediately on acceptance of the risk under policy.
Who is eligible to buy LIC Jeevan Lakshya 933:
The minimum age of entry is 18 years of age completed
The maximum age of entry is 50 years of age Nearest birthday.
The maximum maturity age is 65 years of age Nearest birthday.
The minimum sum assured amount is Rs 100,000 and the maximum sum assured is no Limit.
Policy term available in LIC Jeevan Lakshya 933:
The minimum policy term available is of 13 years and the maximum term is available for 25 years.
In this plan Premium paying term is always 3 years less than the policy term.
it means if you are buying this policy for 18 years of policy term then you have to pay for 15 years, that is 3 years less than the policy term
Riders available in LIC Jeevan Lakshya 933:
1: Accidental death and disability benefit rider.
2: Accidental death benefit rider.
3: Term Assurance Rider. (Recommended to buy with plan as a must had feature )
4: Critical illness Rider.
5: Premium waiver benefit rider.
Modes of premium payment available in LIC Jeevan Lakshya 933:
Monthly mode (NACH)
Grace period available in LIC Jeevan Lakshya 933:
A grace period of 30 days for the payment of premium is available in modes of Yearly, half-yearly, and quarterly payments.
A grace period of 15 days is provided in monthly modes.
Revivals in LIC Jeevan Lakshya 933:
if a customer does not pay his premium even after a grace period then the policy is considered as a lapsed policy. it means there is no risk cover of that customer.
In such a case a customer can revive his policy anytime within a time period of 5 years. No policy can be revived after 5 years of lapsation.
if a customer paid for his policy at least for 2 years and now he is unable to pay the premiums then the policy will not be considered as null and void. it will be considered as paid-up policy.
it means the customer will get the deposited amount with a little growth at the maturity term of that policy. But, there will be no insurance cover for the paid-up policies.
Surrender in LIC Jeevan Lakshya 933:
The policy can be surrendered anytime after paying a premium for 2 years complete. The surrender value is reviewed by IRDA from time to time and updated by The Life Insurance Corporation of India.
The surrender value is always less than the premium paid by the customers. So, it is always a bad decision to surrender a policy.
Loan available in LIC Jeevan Lakshya 933:
The customer can get a loan against his policy after the policy attains the paid-up value after 2 years. The loan amount will depend upon the surrender value of that policy, the loan value will be the 80% of the surrender value calculated.
Freelook period in LIC Jeevan Lakshya 933:
A free look period of 15 days is available. This period is also called a cool off period and It is started from the day when the policy document is issued to the customer. If a customer is not agreed or not satisfied with the terms and conditions of the policy then he can cancel his policy and take the premiums back but within 15 days. the stamp charges and Taxes will not be returned.
The customer can claim for tax Redemption on the premium paid every year for this policy under the section of 80C of the Income Tax Department
The maturity amount is also exempted from income tax under section 10D
Conclusion and illustration:
For example, If a person buys any policy of sum insured 500,000 then he has to pay a complete 500000 or more than it, in the whole policy term.
But in this plan customer pays a very little less than the sum assured and get the bonuses on the complete sum assured. That a small more amount is GST included in the premium.
Here we will do three calculations with all the options on 5 lakh sum assured and keeping in the mind the age of the customer’s 35 years.
and one example of a death case
Calculation one with a policy term of 16 years and a premium payment term of 13 years.
Here the customer will pay a total of 4,92,349 in 13 years and will get 8,72,500 on the 16th year as maturity amount.
Calculation second with a policy term of 21 years and a premium payment term of 18 years.
here the customer will pay a total of 4,89,946 in 18 years and will get 10,64,500 on the 21st year as maturity amount.
Calculation third with a policy term of 25 years and a premium payment term of 22 years.
here the customer will pay a total of 4,87,810 In 22 years and will get 13,37,500 on the 25th year as maturity amount.
Now an example of a death case, if a policyholder of 35 years buys this policy of sum assured 5 Lakh with the policy term of the 21 years.
after 5 years of the policy term, he met a mishappening leading to Death then the nominee will get 10% of the sum assured, that is 50,000 annually for the remaining years of the policy till the maturity date and maturity benefit as 110% of the sum assured along with Simple revisionary Bonuses and final additional bonuses.
We recommend adding a term assurance rider with this plan. In case of death, the immediate payment of term assurance rider will be paid as a lump sum and the remaining payments will be paid as mentioned above.
Hope you all get the basic ides of the plan and about its merit and demerits. This article will make it easy to make decisions about the purchase of this plan of LIC Jeevan Lakshya 933