• A Complete Insight Into Lic Jeevan Lakshya Policy

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    Life Insurance Corporation of India (LIC) is a leading life insurance provider in India. The company was nationalised in the year 1956 and has since then launched a range of innovative life and health insurance solutions to cater to the needs of their ever-expanding consumer base.

    The Jeevan Lakshya Plan, which is one of the many endowment insurance plans offered by LIC, was launched in the year 2015 in an effort to provide policy buyers the dual benefits of a life cover and a savings option through a single financial tool.

    LIC’s Jeevan Lakshya Plan is a non-linked, participating, life insurance policy that provides an Annual Income Benefit to the nominee in the event of the policyholder’s death. Further, this policy also pays out a lump sum amount at maturity of the policy, regardless of whether the policyholder has survived to this date or not. The insurer also offers policyholder the option to avail a loan against this policy and thereby guarantees liquidity in the event of an emergency.

    Features of LIC’s Jeevan Lakshya Plan

    • The Jeevan Lakshya Plan is a “with-profits” plan. Thus, the policyholder/nominee, as applicable, will also be eligible to receive a Simple Reversionary Bonus and a Final Additional Bonus along with their payout.
    • Policy buyers can choose to purchase additional riders – LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider – along with this policy.
    • The minimum sum assured that one needs to opt for to purchase this policy is Rs.1 lakh. There is no limit on the maximum sum assured that can be chosen by the policy buyer.
    • Policy buyers will have to choose a basic sum assured that is a multiple of Rs.10,000.
    • When purchasing this plan, individuals can opt for a policy term of 13 years and 25 years.
    • The premium payment term for this policy is the policy term – 3 years.
    • Individuals between 18 years and 50 years can purchase this policy. The maximum maturity age for this plan is 65 years.
    • Premiums can be paid on an annual, bi-annual, quarterly, or monthly basis.
    • A grace period of 30 days is allowed for annual and bi-annual premium payments, whereas a grace period of 15 days is allowed for monthly and quarterly premium payments.
    • Policy buyers are eligible to receive a rebate upon opting for the yearly or half-yearly mode of premium payment. Similarly, if you opt for a sum assured over Rs.2 lakh, you will receive a rebate on the sum assured.
    • This policy comes with a free-look period of 15 days, during which time policy buyers can review the terms and conditions of their policy.
    • This policy has a suicide clause. If the policyholder commits suicide within a year of purchasing the policy, 80% of the premiums paid will be returned to the nominee. Similarly, if the policyholder commits suicide within a year of reviving the policy, the insurer will pay the higher of the surrender value or 80% of the premiums paid during the policy year.

    Documents required to apply for LIC’s Jeevan Lakshya Plan

    While the exact documents required to purchase an insurance policy from LIC will vary based on the insurer’s terms and condition, the basic documentation that one is supposed to provide remains the same.

    • Filled and signed application form
    • Recent passport-size photographs
    • Medical screening report, if applicable
    • Age proof documents, such as passport copy, Aadhaar card, etc.
    • Address proof documents, such as utility bills, Aadhaar, Voter’s ID, etc.
    • Valid photo ID proof, such as Aadhaar, passport, etc.

    Tabular Representation of LIC’s Jeevan Lakshya Plan

    Minimum Entry Age 18 years
    Maximum Entry Age 50 years
    Maximum Age at Maturity 65 years
    Minimum Base Sum Assured Rs.1 lakh
    Maximum Base Sum Assured No limit
    Minimum Policy Term 13 years
    Maximum Policy Term 25 years
    Premium Payment Term Policy Tenure – 3 years
    Premium Payment Mode
    • Annual
    • Bi-Annual
    • Quarterly
    • Monthly

    Coverage and Benefits offered by LIC’s Jeevan Lakshya Plan

    • Death Benefit: In the event of the policyholder’s death before the date of maturity, the death sum assured, Final Additional Bonus, and Simple Reversionary Bonus will be paid as the death benefit to the nominee. The death benefit will be paid in two parts:
    • Annual Income Benefit: 10% of the sum assured will be paid from the policy anniversary on or after the policyholder’s death up to the policy anniversary prior to the maturity date.
    • Assured Absolute Amount: 110% of the sum assured will be paid on the date of maturity.
    • Maturity Benefit: At the completion of the policy tenure, the insurer will pay the maturity sum assured, which will be equal to the base sum assured, Simple Reversionary Bonus, and Final Additional Bonus, as a lump sum amount.
    • Tax Benefits: Life insurance plans also offer tax benefits to policyholder/nominees. Policyholders can claim tax benefits under Section 80C of the Income Tax Act for premiums paid. Similarly, the payouts received are also eligible for tax rebates under Section 10(10D).

    Other Features of LIC’s Jeevan Lakshya Plan

    • Policy Revival: Lapsed policies can be revived within a period of 2 years starting from the date of the first due unpaid premium. In order to revive a policy, the policyholder will need to pay all arrears with interest.
    • Paid-Up Value: If the policyholder has paid all due premiums for a minimum of three years and has missed the subsequent premium payment, this policy will be converted into a paid-up policy.
    • Surrender Value: Policies which have been active for at least 3 full years can be surrendered. Upon surrendering your policy, the insurer will pay you the higher of the guaranteed surrender value or the special surrender value, after which the policy will cease to exist.
    • Loan against Policy: After the policy has acquired a surrender value, policyholders can avail a loan against this policy.


    The Jeevan Lakshya Plan from LIC is an insurance plan that provides policyholders a comprehensive life insurance cover as well as savings benefits. With this policy, policy buyers can ensure that their nominees are financially secure, even in case of an untimely eventuality.

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