LIC Jeevan Lakshya 733
LIC of India new plan launched on 1st. October 2024 which name is LIC Jeevan Lakshya Plan 733 (LIC Table no. 733) is a combination of risk cover and saving plan which is most suitable for the purpose of providing financial problems of children and family. This policy provides life cover during the policy term and Sum Assured + Bonuses on survival as maturity. You can now buy online LIC Jeevan Lakshya plan 733 through credit card/debit card, net banking, upi and wallets on our LICs New Business Platform.
Description
LIC Jeevan Lakshya (Plan No. 733) is a popular endowment life insurance plan offered by the Life Insurance Corporation of India (LIC). It is designed to provide financial protection for the family in the event of the policyholders death, especially focusing on funding childrens education and other goals. The plan offers both death and maturity benefits, making it a combination of protection and savings.
Launch Date:
- LIC Jeevan Lakshya Plan 733 was launched on October 1, 2024.
Key Features:
- Combination of Protection and Savings: The plan offers life insurance protection with savings, where the family receives financial support in case of the policyholders demise, and the policyholder receives maturity benefits if they survive the policy term.
- Annual Income Benefit: In case of the policyholders death, an annual income is provided to the family to cover living expenses and other financial goals.
- Bonuses: The plan is a participating policy that earns Simple Reversionary Bonuses and a Final Additional Bonus (if declared) during the policy term.
- Premium Waiver: In case of death, all future premiums are waived, and benefits continue.
- Loan Facility: Loans can be availed against the policy after it acquires a surrender value.
Eligibility Criteria
- Minimum Entry Age: 18 years.
- Maximum Entry Age: 50 years.
- Policy Term: 13 to 25 years.
- Maximum Maturity Age: 65 years.
- Minimum Basic Sum Assured: ₹1,00,000.
- Maximum Basic Sum Assured: No limit (subject to underwriting).
Benefits
Death Benefit
- In the event of the policyholders death during the policy term, the following benefits are provided:
- Annual Income Benefit: 10% of the Basic Sum Assured is paid every year starting from the year of death till the end of the policy term.
- Lump Sum Payment: At the end of the policy term, the Sum Assured on Death plus vested Simple Reversionary Bonuses and Final Additional Bonus (if any) is paid to the nominee.
- Sum Assured on Death is the highest of:
- 10 times the annual premium,
- 110% of the Basic Sum Assured,
- or 105% of all premiums paid till the date of death.
Maturity Benefit
- If the policyholder survives till the end of the policy term, the Maturity Benefit includes the Basic Sum Assured along with accrued Simple Reversionary Bonuses and Final Additional Bonus (if any).
Bonus
- The plan participates in LICs profits and is eligible for Simple Reversionary Bonuses, which are added to the policy annually. Upon maturity or death, a Final Additional Bonus may also be paid if declared by LIC.
Loan Facility
- You can avail a loan against the policy once it acquires a surrender value, i.e., after paying premiums for at least 3 years.
Surrender Benefit
- The policy can be surrendered after paying premiums for at least three consecutive years. A guaranteed surrender value and possibly a special surrender value are paid on surrender.
Optional Riders
- LICs Accidental Death and Disability Benefit Rider: Offers additional sum assured in case of accidental death or disability.
- LICs Term Assurance Rider: Provides additional cover on death.
- LICs New Critical Illness Benefit Rider: Provides coverage against specified critical illnesses.
Tax Benefits
- Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.
- The death and maturity benefits received are tax-exempt under Section 10(10D) of the Income Tax Act, subject to prevailing laws.
Example:
Lets consider an example to illustrate how the LIC Jeevan Lakshya plan works.
- Policyholders Age: 30 years
- Basic Sum Assured: ₹10,00,000
- Policy Term: 20 years
- Annual Premium: ₹45,000 (approximately)
Death Benefit Scenario
- If the policyholder dies in the 10th policy year:
- Annual Income Benefit: 10% of the Basic Sum Assured = ₹1,00,000 per year is paid to the nominee from the 11th year till the 20th year.
- Lump Sum at the end of the policy term: The nominee will receive ₹10,00,000 (Sum Assured on Death) + accrued bonuses at the end of the 20th year.
- Total Benefit: Annual income of ₹1,00,000 for 10 years + Lump Sum at maturity.
Maturity Benefit Scenario
- If the policyholder survives the policy term (i.e., till the end of 20 years):
- The policyholder will receive ₹10,00,000 (Basic Sum Assured) + accrued Simple Reversionary Bonuses and Final Additional Bonus (if any).
Example Data:
Here is an illustrative table with approximate premiums for different policy terms and sum assured amounts (actual premiums will vary based on age, term, and other factors).
Age (Years) | Policy Term (Years) | Sum Assured (₹) | Annual Premium (₹) |
---|---|---|---|
25 | 20 | 5,00,000 | 22,000 |
30 | 20 | 10,00,000 | 45,000 |
35 | 25 | 7,00,000 | 34,500 |
40 | 15 | 5,00,000 | 28,000 |
Advantages of LIC Jeevan Lakshya Plan 733
- Income Protection: In case of the policyholders death, the family receives a steady income in the form of annual payments, making it ideal for ensuring financial security for dependents.
- Maturity Benefit: Offers lump sum maturity benefits, making it an ideal savings plan.
- Bonus Participation: As a participating plan, the policyholder benefits from LICs annual profits through bonuses.
- Loan Facility: Provides liquidity during the policy term by allowing loans against the policy.
- Tax Benefits: Premiums paid and benefits received enjoy tax advantages under current tax laws.
Conclusion
The LIC Jeevan Lakshya Plan 733 is suitable for individuals seeking a combination of life insurance and savings. It offers the security of an income stream to the policyholders family in case of death during the policy term while also providing a lump sum maturity benefit if the policyholder survives the term. The plan is particularly beneficial for policyholders with dependents, such as children or a spouse, ensuring financial stability through both the annual income and maturity benefits.
Please Note:
In view of the IRDAI (Insurance Products) Regulations, 2024, Master Circular on Life Insurance Products, 2024 and other relevant Circulars, issued by IRDAI, it has been decided to modify LICs Jeevan Lakshya (Plan No.933), Unique Identification Number (UIN) 512N297V02. The new Plan Number for this modified LICs Jeevan Lakshya shall be 733 and UIN shall be 512N297V03.