LIC’s New Jeevan Lakshya Plan

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LIC’s New Jeevan Lakshya Plan is a Limited Premium Paying Conventional Plan, a Non-linked, Participating, Individual, Life Assurance Saving plan which offers a combination of protection and savings. This plan provides both investment and insurance benefits. It provides for Annual Income benefit that may help to fulfill the needs of the family, primarily for the benefit of children, in case of unfortunate death of Policyholder any time before maturity and a lump sum amount at the time of maturity irrespective of survival of the Policyholder. There are some additional benefits which we can take in the form of riders. This plan also takes care of liquidity needs through its loan facility. Here’s everything you want to know.

Plan No.	933
Launch Dated	1 Feb 2020

What are the benefits available under this plan?

Death Benefit:

The death benefit payable in case of death of the Life Assured during the policy term provided the policy is in force shall be defined as the sum of “Sum Assured on Death”, vested Simple Reversionary Bonuses and Final Additional Bonus if any.
Where “Sum Assured on Death” is defined as higher of:

• 7 times of annualized premium or
• Sum of 110% of Basic Sum Assured, which shall be payable on the date of maturity and Annual Income Benefit equal to 10% of the Basic Sum Assured, which shall be payable from the policy anniversary coinciding with or following the date of death of Life Assured, till the policy anniversary prior to the date of

The vested Simple Reversionary Bonuses and Final Additional Bonus, if any, included in the Death Benefit, shall be payable on the due date of maturity.

The Death Benefit defined above shall not be less than 105% of total premiums paid up to the date of death.

Premiums referred above exclude taxes, extra premiums, and rider premium(s) if any.

Maturity Benefit:

On Life Assured surviving the policy term provided the policy is in force, “Sum Assured on Maturity” along with vested Simple Reversionary bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

Participation in Profits:

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in- force.

In case of death under a policy that is in force, the policy shall continue to participate in profits up to the date of maturity and the entire vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable on the due date of maturity. Hence, the Simple Reversionary Bonus and Final Additional Bonus, if any, shall be payable under the policy on the due date of maturity irrespective of survival of the Life Assured.

In case the premiums are not duly paid (except in case of death of the Life Assured under the in-force policy), the policy shall cease to participate in future profits irrespective of whether or not the policy has acquired paid-up value. However, the policy shall be considered as in-force on death during the grace period. Final Additional Bonus shall not be payable under reduced paid-up policies.

What are the Eligibility Conditions and Other Restrictions?

1. Minimum Basic Sum Assured: Rs. 100,000
2. Maximum Basic Sum Assured: No Limit

(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)

1. Policy Term: 13 to 25 years
2. Premium Paying Term : (Policy Term – 3) years
3. Minimum Age at entry:  18 years (last birthday)
4. Maximum Age at entry:  50 years (nearer birthday)
5. Maximum Maturity Age: 65 years (nearer birthday)

What are the options available in this plan?

Rider Benefits:

The following four optional riders are available under this plan by payment of additional premium. However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of three riders can be availed under a policy.

LIC’s Accidental Death and Disability Benefit Rider

This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term of the base plan is at least 5 years. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured under the base policy which is equal to Accident Benefit Sum Assured, shall be waived.

LIC’s Accident Benefit Rider

This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term of the base plan is at least 5 years. The benefit cover under this rider shall be available during the premium paying term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan.

LIC’s New Term Assurance Rider

This rider is available at the inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the Life Assured during the policy term.

LIC’s New Critical Illness Benefit Rider

This rider is available at the inception of the policy only. The cover under this rider shall be available during the policy term. If this rider is opted for, on the first diagnosis of any one of the specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable.

The premium for LIC’s Accident Benefit Rider/LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium under the base plan and the premiums under LIC’s New Term Assurance Rider shall not exceed 30% of premiums under the base plan.

Each of the above Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.

For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.

What is the Option to take Death Benefit in installments?

Under this option, the applicable lumpsum amount payable in case of death of the Life Assured, which shall be payable on the date of maturity under an in-force or paid-up policy, can be received in installments over the chosen period of 5 or 10 or 15 years instead of lump-sum amount. This option can be exercised only by the Life Assured during his/her lifetime; for full or part of the lump sum amount payable in case of death, as specified above. The amount opted by the Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

This option shall not be applicable for the Annual Income Benefit payable on the death of the Life Assured.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

 

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Life Assured, the claim proceed shall be paid in lump sum only.

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising the option to take Death Benefit in installments, the Life Assured can exercise this option during his/her life while in the currency of the policy, specifying the period of Instalment payment and net claim amount for which the option is to be exercised. The death claim amount shall then be paid to the nominee as per the option exercised by the Life Assured and no alteration whatsoever shall be allowed to be made by the nominee.

What mode of Payment of Premiums is available in this plan?

Premiums can be paid regularly during the premium paying term at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deductions over the premium paying term of the policy.

How many days are given under the Grace Period?

A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of the first unpaid premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses. The above grace period will also apply to rider premiums which are payable along with a premium for the base policy.

How can I understand Sample Illustrative Premium?

The sample illustrative annual premiums (in Rs.) for Basic Sum Assured of Rs 1 lakh for Standard lives are as under:

 

How many Rebates are available in this plan?

Mode Rebate:

 

High Sum Assured Rebate:

What is Revival and how can I revive my policy under this plan?

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time and on the satisfaction of Continued Insurability of the Life Assured on the basis of the information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured.

The Corporation reserves the right to accept at original terms, accept with modified terms, or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.

A revival of rider(s), if opted for, will be considered along with the revival of the Base Policy, and not in isolation.

What is Paid-up Value available in this plan?

If less than two years’ premiums have been paid, and any subsequent premium is not duly paid, all the benefits under this policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable.

If after at least two full years’ premiums have been paid and any subsequent premiums are not duly paid, this policy shall not be wholly void but shall subsist as a paid-up policy till the end of the Policy Term.

The benefit payable in case of death under a paid-up policy called “Death Paid-up Sum Assured”, shall be equal to the sum of:

• 110% of Basic Sum Assured multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable which shall be payable on the date of maturity; and
• Reduced Income Benefit i.e. 10% of Basic Sum assured multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable, shall be payable from the policy anniversary coinciding with or following the date of death of Life Assured till the policy anniversary prior to the date of maturity.

The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured on Maturity multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable

A paid-up policy shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses, if any, shall remain attached to the reduced paid-up policy and shall be payable only on the date of maturity.

Rider(s) do not acquire any paid-up value and the rider benefits cease to apply if the policy is in lapsed condition.

What is the Surrender Value available in this plan?

The policy can be surrendered at any time provided at least two full years’ premiums have been paid. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.

The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid (excluding extra premiums, taxes, and premiums for rider(s), if opted for) multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered as specified:

In addition, the surrender value of any vested simple reversionary bonuses, if any, shall also be payable which is equal to vested bonuses multiplied by the Guaranteed Surrender Value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which the policy is surrendered.

How can I avail Policy Loan under this plan?

A loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for the entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

In case of exit i.e. either by Surrender or Maturity, any loan outstanding along with interest shall be recovered from the claim proceeds. However, in case of death of the policyholder, until the loan is fully repaid, interest on such outstanding loan (principal amount with interest) as on the date of death shall be recovered from any immediate benefit(s) i.e. Rider Benefit(s) payable under the policy and Annual Income Benefits. The principal amount of loan outstanding shall be recovered from any rider benefit(s) if payable under the policy else from the final lump sum payment.

What are the Taxes benefits available in this plan?

Statutory Taxesif any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.

The amount of applicable taxes as per the prevailing rates shall be payable by the Policyholder on premiums (for base policy and rider(s), if any) including extra premiums if any which shall be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Regarding Income tax benefits/implications on the premium(s) paid and benefits payable under this plan, please consult your tax advisor for details.

What is the Free Look period given in this plan?

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons for objections. On receipt of the same, the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for Base Plan and rider(s), if any) for the period on cover, expenses incurred on medical examination, special reports, if any and stamp duty charge.

What are the Exclusions in this plan?

Suicide:

This policy shall be void

1. If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under this policy except for 80% of the total premiums paid provided the policy is in force.
2. If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the total premiums paid till the date of death or the Surrender Value available as on the date of death, shall be payable. The Corporation will not entertain any other claim under this policy. This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such a situation.

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