LIC Jeevan Lakshya policy is an endowment and non-linked policy which has similar features available in the Kanyadan policy. Kanyadan is related to a daughter's marriage to the parents. However, this LIC Jeevan Lakshya policy can be utilized for any other purpose like the education cost of the children. At the time of maturity, the policy will give a good lump sum amount to the policyholder or the nominee. The Jeevan Lakshya plan can be taken by anyone who is above 18 years and under 50 years for long-term future benefits. So, this policy must be taken by an adult policy holder's name, and not under the name of a child. The death benefits of the policy also make this policy significant to the parents which can secure the child's future.
Premium term and policy Term
The minimum sum assured in the LIC Jeevan Lakshya policy is Rs. 1 lakh, with no maximum limit depending on your income. Premium term for this policy is 3 years less than the total policy term, from a minimum of 13 years to a maximum of 25 years is fixed as the policy term. Hence, if an investor is signing for the policy term of 25 years, then the premium term will be 22 years. The premium can be paid yearly, quarterly, or monthly. The 1st year's premium will be taxed 4.5% and from the second year, the tax will be 2.25%.
The maturity benefits of the LIC Jeevan Lakshya policy are attractive for the parents for his/her child's future. If a parent takes this policy after the birth of a child for a 25 years policy term, the lump sum amount will be given by LIC when the child will be of 25 years. This age will eventually vary on the policy term. At that time the money can be utilized for the child's higher education or marriage. So, it is one of the most popular plans of LIC signed up by parents.
Sum Assured calculation of LIC Jeevan Lakshya (Policy term of 25 years, premium paying term 22 years)
|Basic sum assured||Death sum assured||Yearly premium (1st year)||Yearly premium (from 2nd year)||Total approximate return at the time of maturity|
The calculation is done by Goodreturns.in through the All In One Calc mobile app by LIC.
Death benefits make the policy unique
The death benefit is another reason behind the policy's popularity. In case of the death of the policyholder or the parent after signing up, the rest of the premium will not be required to pay. On the other hand, after the death of the policyholder, the nominee will get 10% of the total sum assured every year till the policy term. In case the minimum sum assured is Rs. 10 lakh, then the nominee will receive Rs. 1 lakh every year from LIC. At the time of maturity, 110% of the sum assured will be given by LIC, along with bonus and Final Additional Bonus (FAB). So, even if the parent died before the policy term, the future of the child will be secured. However, the policyholder can take the death benefits and maturity benefits even in installments for 5 or 10 or 15 years. The death benefits make the LIC Jeevan Lakshya policy unique from other policies and can be differentiated largely from the LIC Jeevan Labh policy.
If you add term rider premium with the basic policy with a minimum sum assured of Rs. 10 lakh, in case of the policy holder's natural death, a Rs. 10 lakh will be paid. This will be the amount of your sum assured. In case of accidental death, the same amount will be paid additionally with the accidental benefit rider. There are also term insurance riders and critical illness riders a policyholder can take.
You can also take a loan against the policy after 2 years and also can surrender the policy after 2 years. Tax benefits will be given on death or maturity benefits under section 10(10D) and on premium the deduction will be as per ITR rules. NRIs too can sign up for the plan even without visiting India.