LIC Jeevan Lakshya 833 is a plan with a premium paying terms less than policy term by 3 years, non-linked Endowment Assurance Plan with Profit. That combines protection with savings. Other benefits are also available under this plan like tax benefits, loan facility and rider benefits.
Sum Assured: Minimum limit for the sum assured is Rs. 1 lakh and there is no maximum limit.
Policy Term: 13 to 25.
Premium Paying Term: Policy Term – 3 Years ( Suppose Policy is for 20 years then PPT will be for 20 – 3 = 17 Years)
Entry Age: The minimum entry age of the policy holder should be 18 years and the maximum age limit is 50 years.
Maximum Maturity Age: 65 Years.
Premium Payment Mode: Premium can be paid Monthly, Quarterly, Half Yearly or Yearly.
Maturity Benefits: on maturity, basic sum assured along with vested simple reversionary bonus and the final additional bonus is paid to the policy holder.
Death Benefits: If the Death happens after the commencement of risk, the nominee will get:
Base Sum Assured + Simple Reversionary Bonus (every year) + Final Additional Bonus (applicable in the year of death)
Rider benefits: Accidental Death benefit is available during the policy term; accident benefit sum assured will be paid along with death benefit under the basic plan. Disability benefits are paid till 65 years of age of the policy holder.
Income Tax Benefit: Premium paid in this policy is tax exempted under section 80C. The maturity benefits are also exempted from tax under section 10(10D).
Liquidity Benefit: Policyholder can take a loan under this policy after completion of 3 full years of the Policy.
For simplicity study following table
|Min Age||18 Year|
|Max Age||50 Year|
|Max Maturity Age||65 Year|
|Term||13 to 25 Year|
|Premium Paying Term||Term Year - 3 Year|
|Min Sum Assured||Rs. 1,00,000/-|
|Max Sum Assured||Any|
|Loan||Yes, after completion of 3 years|
|Surrender||after 3 Years|
An example of Jeevan Lakshya Plan, 833
Suppose someone of 30 years age is going to apply for policy 833 Jeevan Lakshya Plan for the Basic Sum Assured Rs. 1000000 and 25 years term. Following are Key points of the policy.
“Jeevan Lakshya” Table 833
Age: 30 Year
Basic Sum Assured: Rs. 1000000/-
|Policy Term||25 Year|
|Premium Paying Term||22 Year|
|Basic Sum Assured||Rs. 10,00,000/-|
|Double Accidental Benefit:||Rs. 10,00,000/-|
|Death Sum Assured||Rs. 11,00,000/-|
|Premium for First Year||Rs. 43,638/-|
|From Second year Onwards Premium||Rs. 42,699/-|
|Total Premium Paid||Rs. 9,40,317/-|
|Approximate Maturity Return||Rs. 26,75,000/-|
|Total Return||Rs. 26,75,000/-|
Above Calculations are approximate and according to current bonus rate. It may vary according to the rate of bonus and taxes.