LIC of India: The Life Insurance Corporation (LIC) Jeevan Lakshya Plan is a limited premium paying conventional life insurance plan, which is non-linked and classified as a 'With-Profits Endowment Assurance plan.' The plan came into effect in March 2015. This plan provides an annual income to the investor, which can be beneficial towards the needs of the family, especially the minors, in case of the death of the policyholder before the maturity of the plan. A lump sum amount is also made available at the end of the maturity period in this LIC of India policy, regardless of the survival of the LIC policyholder. Most importantly, this LIC of India Plan is not subject to market risk.

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Speaking on key features of this LIC of India plan; Jitendra Solanki, a SEBI registered tax and investment expert said, "The minimum sum assured in LIC Jeevan Lakshya Plan is Rs 1 lakh (maximum SA Rs 10 lakh) and the basic sum-assured in this LIC of India plan is multiple of Rs 10,000. An investor can invest in this policy for the period of 13 years to 25 years. Premiums for this LIC of India policy can be paid in yearly, half-yearly, quarterly and monthly periods and an option of Electronic Clearing Service (ECS) is also available, wherein it facilitates an easier option to pay the premiums." Solanki said that any one who is aged between 18 years to 50 years can buy this LIC of India Plan but the investor will have to mature its plan after attaining the 65 years of age.

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Elaborating upon the profit endowment benefit Manikaran Singhal, a SEBI registered tax and investment expert said, "Being a With-Profits Endowment Assurance plan, this LIC of India policy garners profits made by the Life Insurance Corporation of India through the Simple Reversion Bonus and Final Additional Bonus (if applicable) and these are paid out at the end of the maturity period." He said that LIC Jeevan Lakshya Plan has table number 933, which is important to know if someone wants to invest in this LIC policy. In this LIC policy, death benefit of the policy holder is given into annual installments to the nominee that helps the family of deceased policy holder to lead a sustained life even when the earning member of the family is not alive.

Solanki said that in this LIC Jeevan Lakshya Plan, if the policy holder dies before the maturity of the plan, then the nominee of the policy holder will get annual 10 per cent of the sum-assured, that works as the regular income for the family. apart from this, rest of the premium gets exempted as well.

LIC Jeevan Lakshya Premium Calculator

Annual: Rs 42,829

Half-yearly: Rs 21,639

Quartely: 10,934

Monthly: 3,645

Daily: Rs 117

These premiums are inclusive of the 4.5 per cent tax in the first year of payment.

After one year premium payment the new premium will become as follows:

Annual: Rs 41,897

Half-yearly: Rs 21,173

Quartely: 10,698

Monthly: 3,566

Daily: Rs 114

So, net premiumpayment to be done by the invstor during 25 years maturity period is around Rs 9,22,656.

LIC Jeevan Lakshya Plan Calculator

Sum Assured: Rs 10 lakh

Bonus: Rs 12.25 lakh

Final Additional Bonus: Rs 4.50 lakh

Net Maturity Amount: Rs 26.75 lakh

So, as clear from above calculation, by investing Rs 114 per day, an LIC of India investor who buys LIC Jeevan Lakshya plan can expect to get Rs 26.75 lakh as maturity amount.

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