Strategy life insurance plan Jeevan Lakshya from LIC helps policyholders pay for key future expenses like education or marriage. This 2015 life insurance savings plan is ideal for families seeking financial stability. Its non-linked, participating plan may benefit from LIC’s profits, increasing its payment.
Overview of LIC Jeevan Lakshya
The LIC Jeevan Lakshya gives protection and savings. Even after death, it pays the policyholder’s family monthly. The plan pays 10% of the insured amount yearly until one year before maturity if the policyholder dies. Bonuses and 110% of insured cash are paid at maturity. This function secures a child’s schooling and other expenses.
Major LIC Jeevan Lakshya Features
The policy has annual, half-yearly, quarterly, and monthly premiums. Policyholders have financial planning freedom since the premium payment term is three years shorter than the policy lifetime. This plan is for 18–50-year-olds with a 65-year maturity.
LIC Jeevan Lakshya stands out with riders like Accidental Death and Disability Benefit and New Term Assurance. Rider coverage increases for unforeseen events. This enhances the family’s financial safety net, helping beneficiaries in hard times.
LIC Jeevan Lakshya Works
The illustration is as below. Insure a 35-year-old for twenty years for INR 10,00,000. In the event of the death of the life assured, the nominee shall become eligible to receive an annual income benefit of INR 1,00,000 (10% of the amount assured) payable till the 19th year from the date of the contract and a lump sum benefit payable at maturity of the contract. Ultimate payment to the nominee will be 110% of the guaranteed amount plus any bonuses attached to the policy during its term if at all they make it more than doubled. Survival to the end of the policy gives both the assured and bonuses.
Death, maturity benefits
The guaranteed sum, vested Simple Reversionary Bonuses, and any Final Additional Bonus constitute LIC Jeevan Lakshya maturity benefits. For fixed-term financial reserves, the strategy is ideal. The plan protects the policyholder’s family with annual dividends and maturity.
The death benefit gives monthly income and a large sum to the family. This makes LIC Jeevan Lakshya appealing to parents who want to fund their child’s education or marriage after death.
Alternatives to LIC Jeevan Lakshya
LIC’s Jeevan Lakshya provides both death and maturity benefits, unlike term plans. LIC Jeevan Lakshya is the best alternative for security and planned saving due to its maturity benefits and monthly income. Jeevan Lakshya provides returns on an assured basis and, therefore, is a safer investment for conservative investors as compared to ULIPs. LIC Jeevan Lakshya gives security and guaranteed dividends, though its returns may be lower when compared to mutual funds or ELSS. The profitability of LIC affects the bonuses of the policies. Therefore, if the investor wants quick returns, he may add a few high-risk assets.