LIC Jeevan Lakshya Plan table no. 833 is another limited premium endowment plan launched by LIC India in 2015.
This year LIC has launched 2 more policy, Jeevan Sangam and Children’s money back plan. It is expected that LIC is planning to launch few more policies in coming months. In this article I will review Jeevan Lakshya plan 833 and find out whether one should buy this policy or not.
Key features of LIC Jeevan Lakshya Plan
Let’s list out the key features and eligibility of LIC Jeevan Lakshya policy.
Entry Age: Min 18 years and max 50 years.
Policy Term: From 13 to 25 years. Max maturity age for the policy is 65 years.
Premium Paying Term: Less than 3 year from policy term. E.g. if your policy term is 20 years, then premium paying term will be 20 – 3 = 17 years.
Sum assured value: Min sum assured value 1 lakh and there is no limit for max sum assured value.
Payment options: One can choose the premium paying term from monthly, quarterly, half-yearly or yearly.
Death Benefit: In case of death during policy tenure, 10% of sum assured will be paid to family till maturity period. And at the end of this plan family will further get sum assured + vested bonus + FAB if any.
Maturity Benefit: In case of survival, at the end of the policy tenure insurer will get sum assured + vested bonus + FAB if any.
Riders: One can buy addition accidental and disability rider. Not only that one can also avail new term assurance rider at the time of buying Jeevan Lakshya Plan. Check out Jeevan Lakshya riders in detail here.
Rebate on premium: Get 3% rebate on premium on sum assured value more than 5 lakh. Also get 2% rebate for yearly premium paid options.
Surrender rules: To surrender this plan one have to pay 3 year premium. If you stop paying premium before that your policy will lapse.
Loan facility: You can also apply loan against this plan.
Don’t miss LIC Online Term plan review
You can check out how much commission an LIC agent is going to earn by selling Jeevan lakshya plan to you.
Jeevan Lakshya Premium calculator
If you are looking for lic Jeevan Lakshya premium calculator, then you have to wait. I have checked LIC’s website and in-fact there is no such calculator available. Still the old policies calculators.
Anyway, you can check out the sample premium calculations for Jeevan lakshya plan. E.g. For a 30 year male, the premium amount for a sum assured value of Rs 1,00,000 will be Rs 4366 / year. The policy tenure is 25 years.
LIC Jeevan Lakshya maturity amount calculation
As per the above data the maturity value of Jeevan Lakshya after 25 years will be as below.
Amount 1,17,500 will be considering interest rate of 4% and amount 1,90,000 will be considering 8% interest. But again these are all assumptions. In practice the net gain will be around 5-6% range only.
I took this data from lic website only. You can check out the complete maturity value chart here. In fact you can check out the complete jeevan lakshya plan circular launched by life insurance corporation of India.
Jeevan Lakshya Surrender value
Although this might be too early to talk about Jeevan Lakshya surrender value, as this is a new policy from lic f India. But I am sure that in few years people will start looking for how to calculate surrender value of Jeevan lakshya plan or how much I will get if I surrender Jeevan lakshya plan.
Anyway, this policy is also following the standard surrender rules like other lic policies. But the guaranteed surrender value calculation is not at all easy. You can find out the chart below to get some idea about that.
Should I buy LIC Jeevan Lakshya Plan?
LIC Jeevan Lakshya policy is nothing but another endowment plan. Although they are targeting this plan for children future and their 10% payment in every year in case of death clause will surely attract people.
If you consider the above example, by paying Rs 4,336 one can only buy a life cover of Rs 1,00,000 only. And the return after 25 years is also not at all attractive.
Look for other alternatives, buy a pure term insurance plan and invest money in mutual fund for long term to get maximum return.