Jeevan lakshya

LIC’s Jeevan Lakshya is a participating non-linked plan which offers a combination of protection and savings. This plan provides for Annual Income benefit that may help to fulfill the needs of the family, primarily for the benefit of children, in case of unfortunate death of Policyholder any time before maturity and a lump sum amount at the time of maturity irrespective of survival of the Policyholder. This plan also takes care of liquidity needs through its loan facility. It is available for sale from 12/03/2015.

Example:

Person Name: Mr.XYZ

Sum Assured : Rs 5,00,000 ( i.e 5lak)

Person Age : 30

Policy Name : Jeevan Lakshya

Policy Term : 25 Years

Premium paying Term (PPT) : 22 Years

Pay Frequency : Yearly

What is Sum Assured ?

The sum assured is the amount of money an insurance policy guarantees to pay up before any bonuses are added. In other words, sum assured is the guaranteed amount the policyholder will receive. This is also known as the cover or the coverage amount and is the total amount for which an individual is insured

Policy Term : Policy term is the duration for which the policy provides you cover.

Premium Paying Term : Policy paying term is the duration for which you have to pay the premium.

Jeevan Lakshya policy Term : In this policy Min term period is 13Years and Max is 25 years.

PPT : In this policy premium paying term is (Policy period minus 3 years)

Pay Frequency: Monthly auto payment from bank, Quarterly payment, half yearly payment, yearly payment options are available in this policy.

In above example Mr.XYZ took Jeevan lakshya policy for 25 years term period where sum assured he opted is 5lak rupees (Min Sum assured to be opted in this policy is 1lak )

He need to pay premium for 22 years and policy will mature on 25^th year. He no need to pay premium for last 3 years (I.e 23^rd year, 24^th Year and 25^th Year )

Here for Mr.XYZ yearly premium amount will be approx rs21272

Mr.XYZ can save tax approx rs6498 every year (Calculated for 30% tax slab )

Total approx paid premium : rs4,68,375

Approximate Return at Maturity Time:

Sum assured : 5lak

Bonus : 6.12 Lak

Final additional Bonus : 2.25lak

Total Approx Return:13.38Lak rupees

Survival Benefit:-

If Mr.XYZ survive at end of 25^th year then he will receive 13.38lak rupees from LIC and policy will get closed at this point.

Normal Death Benifit:-

If Mr.XYZ dies unfortunately at 8^th year(No need to pay further premiums) of policy term then his family will receive 10% of sum assured each year till policy end date. On policy end date 13.38lak rupees will be handed over to his family.

I.e here his family will receive 50,000rs per year from 9^th year till 25^th year. In addition to this his family will receive 13.38lak at end of 25^th year.

Accident death benefit :-

If Mr.XYZ dies unfortunately at 8^th year (No need to pay further premiums ) of policy term, then his family will receive 5lak rupees sum assured on 8^th year, then from 9^th year to 25^th year his family will receive 50,000 rs each year and at end of 25^th year his family will receive 13.38 lak rupees.