LIC Jeevan Lakshya Plan No. 833

LIC’s Jeevan Lakshya is a participating non-associated plan that provides both security and savings. It is not a Term plan. This plan has provisions for Yearly Income benefit with an aim to fulfil the economic requirements of the family (especially dependent children) in the instance of an early demise of the Life Assured in the course of an active policy term. The plan also has provision for lump sum payment in the form of maturity benefit irrespective of the survival of the policy holder. Additionally, the plan has provision for a loan facility to take care of the liquidity needs of the policy holder.

BENEFITS & FEATURE

Death Benefit

In the instant of a premature death during an active policy term, the beneficiary would receive Death Benefit, defined as sum of “Sum Assured on Death”, vested Simple Reversionary Bonuses and any Final Additional Bonus. Here “Sum Assured on Death” is defined as the sum of:

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• Yearly Income Benefit equivalent to 10 percent of the Basic Sum Assured, which would be payable from the policy centenary coinciding with or following the date of death of Policy Holder, till the time of policy anniversary before the date of maturity of the plan.

• Assured Absolute Amount equivalent to 110 percent of Basic Sum Assured that would be paid on the due maturity date; and
• The vested Simple Reversionary Bonuses and any Final Added Bonus, included in the Death Benefit, would be paid on the ensuing maturity date.

The above mentioned Death Benefit would not be less than 105 percent of all the premiums paid till the date of demise.

The above mentioned premium value is exclusive of service tax, extra premium, and any accompanying rider premium.

Maturity Benefits

Maturity benefits are the benefits paid after the completion of the policy term. Here the total maturity value would include “Sum Assured on Maturity” equivalent to Basic Sum Assured, along with any vested Simple Reversionary Bonuses and Final Additional Bonus. The maturity value would be given in a one-time lump sum amount at the end of the policy term on the condition that all the premiums have been paid in a timely manner.

Participation in Profits

The policy is eligible to participate in Corporation’s profits and would be authorized to accept Simple Reversionary Bonuses declared according to the experience of the Corporation, on the condition that the policy is fully active.

In the instance of the demise of a Life Assured with a fully active plan, the policy would continue to partake in profits till the maturity date and the entire vested Simple Reversionary Bonuses along with any Final Additional Bonus, would be paid at the time of maturity. Therefore, the Simple Reversionary Bonus along with any Final Additional Bonus would be paid under the policy on the scheduled date of maturity without taking into account the survival status of the Life Assured.

In the instance of a plan where the premiums have not been duly paid (excluding the instance of death of the Life Assured under enforce policy), the plan would no longer partake in forthcoming profits regardless of whether or not the policy has attained paid-up value. Nevertheless, the policy would be regarded as in force on an early demise of the Life Assured in the course of the grace period.

The Final Additional Bonus would not be paid under abridged paid-up policies.

Optional Benefits

The Life Assured has a choice to avail the following Rider benefit(s):

(i) LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01)
(ii) LIC’s New Term Assurance Rider (UIN: 512B210V01)

• Rider Sum Assured could not go above the Basic Sum Assured.
• Yearly Income Benefit equivalent to 10 percent of the Basic Sum Assured would be paid from the policy centenary coinciding with or following the date of demise of the policy holder, till the policy anniversary prior to the maturity date.
• Assured Absolute Amount equivalent to 110 percent of the Basic Sum Assured would be paid on the due maturity date

ELIGIBILITY & PREMIUM PAYMENTS

Eligibility Criteria:   Lowest Basic Sum Assured:  1 lakh INR.

Highest Basic Sum Assured:  Limitless. (The Basic Sum Assured would be in multiples of ten thousand INR)

Policy Duration: 13 to 25 years.

Premium Paying Duration: Three years less than the total policy duration.

Minimum Entry Level Age: The applicant must be18 years of age on the last birthday.

Maximum Entry Level Age: The applicant must be 50 years on the nearest birthday.

Maximum Age of Maturity: The Life Assured must be 65 years on the nearest birthday.

Payment of Premiums

• A policy holder can opt to pay the premiums at regular intervals of monthly, quarterly, half-yearly or annual payments.
• There is an option for both salary deduction and ECS.
• The plan has a provision for grace period during delay in payment. In the instance of monthly premium payments, the grace period is fifteen days, while in the instance of other types of payments the grace period is thirty days.

Sample Premium Rates

Given below are some of the sample yearly tabular premium rates (in INR) (Exclusive of service tax) per one thousand rupees Basic Sum Assured:

AGE/TERM (in years)	13 (PPT = 10)	15 (PPT = 12)	20 (PPT = 17)	25 (PPT = 22)
20	100.75	82.80	57.60	43.40
30	101.20	83.30	58.35	44.55
40	103.25	85.70	61.70	48.85
50	109.95	92.95	–	–

Mode and High S.A. Rebates

Mode Rebate:

• There is a mode rebate of 2 percent of tabular premium on annual mode.
• There is a mode rebate of 1 percent of tabular premium on half-yearly mode.
• There is no rebate on quarterly and monthly modes.

High Sum Assured Rebate:

• The policy also has a provision for high Sum Assured Rebate.
• There is no rebate on Basic Sum Assured value of 1 lakh to 1.9 lakhs.
• There is 2 percent rebate on Basic Sum Assured value of Rs. 2 lakh to Rs. 4.9 lakhs.
• There is 3 percent rebate on Basic Sum Assured value of Rs. 5 lakhs and above.

Revival

• In the absence of premium payments (that surpasses the grace period) a policy may go into a relapse state. However, the LIC Jeevan Lakshya plan has the provision of revival of policy within a two-year period from the policy relapse date (that is the date of first unpaid premium) provided the plan is still active and there is some time for expiration date.
• To revive this policy, the Life Assured would have to make a payment of all the missed premiums along with the corresponding interests (the interest compounds on a half-yearly basis and is fixed by the corporation). The interest incurred on the missed premiums is clearly communicated to the policy holder.
• The corporation has the right to accept the revival of the policy (i) at the original term, or (ii) at a revised term, or (iii) decline the revival request.
• The policy would only be revived after getting approval from the corporation and the acceptance (or rejection) of the revival would be communicated to the applicant.

Paid-up Value

The plan transforms into a paid-up form if the policy holder had paid at-least three years of premiums without paying any additional premiums.

• The Paid-up form saves the policy from going into a void state.
• There will be a reduction in the original Basic Sum Assured amount and this new amount would be known as “Paid-up Sum Assured”. This Reduced Income Benefit would be 10 percent of Basic Sum assured x (Number of premiums paid/Total Number of premiums payable) and would be paid from the policy centenary coinciding with or following the demise date of the Life Assured till the policy anniversary prior to the maturity date.
• The Paid-up Sum Assured added with any vested simple reversionary bonuses would be paid only on the maturity date.
• Any revisionary bonus that was earlier added to the policy on the date of paid-up would continue to exist as an attachment to the policy.
• There will be no further bonuses to a paid-up plan.
• In the instance of death, the Paid-up Sum Assured shall be paid and called “Death Paid-up Sum Assured”. It would be a sum of [(Number of premiums paid/Total Number of premiums payable) x Absolute amount assured to be paid on death] which would be paid on the maturity date.
• There are no paid-up values on the rider(s) and hence, if the policy goes into a relapse state then the rider benefits cease to exist.
• The Sum Assured on Maturity would be reduced to a sum known as “Maturity Paid-up Sum Assured” and would be equivalent to Sum Assured on Maturity * (no. of premiums paid / no. of premiums payable).

Surrender Value

• * The policy holder can surrender the policy for cash benefits on the condition that at least three years premiums have been paid.
•  In the course of the premium term, the Guaranteed Surrender value would be certain percentage of overall premiums paid (net of service tax) without taking into account the added premiums and any opted rider premiums. The percentage would be dependent on the duration of the policy along with the year in which the policy is surrender.
• Corporation might pay a Special Surrender value, if it is more favourable to the Life Assured.

Policy Loan

• * The plan is eligible for loan on the condition that it has acquired a minimum surrender value. The loan value is subject to the terms and conditions of the company and could change at any moment of time during the policy term.
• In the instance of an exit, either by Surrender or Maturity, any outstanding loan along with interest would be recovered from the claim proceeds. Nevertheless, in the instance of demise of the Life Assured, until the loan is fully repaid, the interest as on the date of death would be recovered from any immediate benefit(s) i.e. Rider Benefit(s) paid under the policy and Yearly Income Benefits. The principal amount of outstanding loan would be recovered from any rider benefit(s) if paid under the policy, else from the final lump sum payment.

Taxes

• Policy would incur the relevant taxes including Service Tax.
• The tax would be as per the Tax laws and the rate of tax would differ on the basis of government mandate from time to time.
• The Life Assured is mandated to pay the tax value according to the prevailing government rates. The tax would also be eligible on any added premiums.
• The amount of tax paid would not be taken into account for the calculation of benefits payable under the plan.

Cooling-off period

• The plan has a provision of cooling-off period wherein the policy holder could return the plan within a fifteen day period from the date of plan purchased.
• To return the plan, the policy holder would have to state in writing the reason for objection in the continuation of plan.
• Once the request for return of plan is submitted at the Corporation, the Corporation cancels the policy and gives back the total premium amount deposited for the purchase of plan after subtracting the equivalent risk premium (for basic plan and any rider(s)) for the cover duration, expenses sustained on medical examination and any special reports, and the stamp duty.

Exclusion

Suicide: – In the instance of suicide, the policy would be deemed void.

• In the instance of suicide within a 12 months period from the date of commencement of risk, the Corporation would pay just the sum of 80 percent of the premiums paid. This sum is exclusive of all taxes and any added premium and rider premiums, and is given out on the condition that the policy is fully effective.
• In the instance of suicide within a 12 months period from the date of revival, an amount that is higher of 80 percent of the premiums paid till the date of death (exclusive of any taxes and any extra premium and rider premiums) or the surrender value is paid to the beneficiary on the condition that the policy is in effect. There will not be any other compensation under this policy.