LIC Jeevan Lakshya Policy was introduced in March 2015 by Life Insurance Corporation of India (LIC of India). It is a Limited Premium Payment policy and a traditional endowment assurance plan that is primarily advantageous for minors and aims to provide an annual income benefit to the policy holder enabling him/her to fulfill the financial needs of the family.
The most important feature of this plan is, the premiums are supposed to be paid for a term that is shorter than the policy term. In case the policy holder dies, a payment of 10% of sum assured is made on every policy anniversary till the time of maturity of the policy. To add to that, a lump sum amount is payable at the time of policy’s maturity irrespective of survival of insurer.
The LIC Jeevan Lakshya is an affordable LIC plan, and like all other LIC products, aims at encouraging people, especially ones belonging to middle class Indian families, to start saving early on in life, so as to ensure financial stability in future.
512N297V01 is the Unique Identification Number of the LIC Jeevan Lakshya Policy and is quoted in all relevant documents given by the policy holder.
Key Features of LIC Jeevan Lakshya Policy
Depending on the needs of the customers, this policy has some great features to offer. Some of them are:
- The policy term is from 13 to 25 years.
- The policy holder can take loans under this plan should any unforeseen financial emergencies arise.
- A minimum sum of Rs. 1,00,000 is assured by the plan and it has no maximum limits.
- The premiums can either be paid monthly, quarterly, half-yearly or annually.
- Through facilities such as Electronic Clearing Service (ECS), LIC strives to make payment of premiums easier for the policy holder.
- The term for paying premium is of 3 years irrespective of the tenure of the policy.
- A person has to be of a minimum age of 18 and maximum age of 50 in order to be eligible for the policy.
- 65 years is the maximum age of maturity of the policy holder.
- Since this is a with-profit endowment assurance plan, add-on bonuses made by LIC are paid out at the time of termination of the maturity period.
- Two optional riders are also offered by the LIC Jeevan Lakshya Policy – LIC New Term Insurance Rider and LIC Accidental Death and Disability Benefit Rider.
What Are the Tax Implications of the LIC Jeevan Lakshya Plan?
Under Section 80C of the Income Tax Act, all the premiums paid for this plan are exempted from taxes. However, Rs. 1.5 lakhs is the maximum exemption that can be availed.
Under Section 10(10D) of the Income Tax Act, all the death claims and maturity amounts received would be tax-free. Additionally, there is no upper limit on the amount of claim received – the entire claim is tax-free.
How Can You Buy the LIC Jeevan Lakshya Plan?
The LIC Jeevan Lakshya Plan cannot be bought online. It can be bought only through agents or brokers. You may also buy the plan by visiting one of LIC’s offices or by contacting one of the company’s executives. Also, this plan isn’t available for NRIs.
Documents That You Will Need for Buying the LIC Jeevan Lakshya Plan
You will need to submit the below documents in order to buy the LIC Jeevan Lakshya Plan:
- Plan Proposal Form which is duly filled in and signed
- Cash or cheque for the payment of first premium
- One passport sized photograph
- A valid Proof of Address
- A valid Identity Proof
- Age proof
- Documents pertaining to proof of Income
Exclusions under the LIC Jeevan Lakshya Plan
This comprehensive LIC plan, like any other policy, is subject to certain exclusions. They are:
- In case the insured individual ends his/her life within 12 months of inception of the policy, only 80% of the premiums paid would be refunded.
- The LIC plan does not provide any coverage to the insured, in case of suicide.
- If the policy holder opts for Accidental Death and Disability Benefit Rider, disability or death arising due to suicide, self-inflicted injury, civil commotion, riots, criminal acts, war, police activities, defense operations, participation in hazardous activities, aviation, drug abuse or alcohol, or occurring more than 180 days post the accident, would all be excluded.
LIC Jeevan Lakshya is a traditional insurance plan that has low premiums, good returns and many benefits and is best suited for average middle class Indian citizens looking at safeguarding theirs and their family’s future.