LIC Jeevan Lakshya is built around a specific goal: making sure a family, particularly children, continues receiving income if the policyholder dies before the policy matures, on top of a lump sum paid at maturity regardless of what happens. This income-on-death structure is what sets it apart from a standard LIC endowment plan. Here’s how it actually works.
What Are the Eligibility Terms?
- Entry age: 18 to 50 years
- Minimum maturity age: 31 years
- Maximum maturity age: 65 years
- Policy term: 13 to 25 years
- Premium paying term: Always 3 years less than your policy term (a 20-year policy term means a 17-year premium paying term)
- Minimum Basic Sum Assured: ₹2,00,000, with no upper limit
- Sum Assured multiples: ₹10,000 for amounts between ₹2,00,000 and ₹4,00,000, ₹50,000 above that
This plan is sold only offline, through agents, corporate agents, brokers, or insurance marketing firms.
How Does the Annual Income Benefit Actually Work?
This is the plan’s defining feature. If the policyholder dies during the policy term, their family doesn’t just wait for a single payout at maturity. Instead, the family starts receiving an Annual Income Benefit equal to 10% of the Basic Sum Assured every year, beginning from the policy anniversary on or after the date of death, continuing until the policy anniversary just before the original maturity date would have occurred.
On top of this yearly income, 110% of the Basic Sum Assured is also paid out, but not immediately, it’s paid on the original maturity date, regardless of when the death actually occurred. Any vested bonuses follow the same rule: they’re held and paid on the maturity date too, not released early. This is a structural detail worth understanding clearly, since it means the death benefit isn’t entirely front-loaded, it’s spread across the remaining term as planned income, with a final lump sum arriving when the policy would have originally matured.
The overall death benefit is guaranteed to be at least 105% of total premiums paid to date, regardless of how the income and lump sum components add up.
What Do You Get at Maturity, If the Policyholder Survives?
Simply the Basic Sum Assured, plus any vested Simple Reversionary Bonuses and Final Additional Bonus, if declared. Since Jeevan Lakshya is a participating plan, the bonus component depends on rates LIC declares annually based on actual performance, not a fixed guaranteed rate.
What Does This Plan Actually Cost?
LIC’s own official illustration gives a real example: a 35-year-old choosing a ₹2,00,000 Basic Sum Assured over a 25-year policy term (22-year premium paying term) pays an annual premium of ₹9,535, with no GST currently applied. At inception, the Sum Assured on Death is ₹2,20,000 (110% of the Basic Sum Assured).
By the end of the full 25-year term, having paid a cumulative ₹2,09,770 in premiums, the guaranteed maturity benefit reaches approximately ₹2,35,000 under the illustration’s conservative 4% assumed return, or around ₹4,00,000 under the 8% assumed return. Both rates are illustrative only, not guaranteed, and your actual maturity value depends on the bonus rates LIC declares over your specific policy term.
What Riders Are Available?
Three optional riders:
- Accidental Death and Disability Benefit Rider
- Accident Benefit Rider (choose either this or the Accidental Death and Disability Rider, not both)
- LIC’s New Term Assurance Rider
Note that the Premium Waiver Benefit Rider, available on some other LIC savings plans, is not offered under Jeevan Lakshya.
Can You Take the Maturity Benefit in Instalments?
Yes, through the Settlement Option, you can choose to receive your maturity proceeds over 5, 10, or 15 years instead of as a lump sum. Separately, the lump sum portion of the death benefit (the 110% of Basic Sum Assured payable at maturity) can also be taken in instalments over the same range of periods, though this instalment option does not apply to the Annual Income Benefit itself, which is always paid as calculated yearly amounts.
Loan and Surrender Terms
You can take a loan after paying at least one full year’s premium, up to 50% of surrender value before completing two years of premiums, rising to 75% after that. The policy can be surrendered after one full year of premiums, though the Guaranteed Surrender Value specifically applies only once two full years are completed.
How Does This Compare to LIC’s Other Savings Plans?
The clearest distinction from Jeevan Labh is the income structure: Jeevan Labh pays a single death benefit, while Jeevan Lakshya spreads part of it into ongoing annual income for the family, specifically useful if the goal is funding a child’s education or ongoing expenses rather than a one-time payout. Compared to Bima Jyoti’s fully guaranteed, non-participating structure, Jeevan Lakshya’s returns depend partly on LIC’s declared bonus rates, trading some certainty for the potential of a higher long-term return.
For the full picture across LIC’s other savings and endowment plans, see our complete guide: LIC Plans 2026: A Complete Guide to Every Policy Type
Frequently Asked Questions
What is the Annual Income Benefit under LIC Jeevan Lakshya?
If the policyholder dies during the policy term, the family receives 10% of the Basic Sum Assured every year, starting from the policy anniversary after the date of death and continuing until the policy anniversary before the original maturity date. A separate lump sum of 110% of the Basic Sum Assured is paid at the original maturity date.
Is the death benefit paid immediately if the policyholder dies?
The Annual Income Benefit begins on the next policy anniversary, but the 110% lump sum portion and any vested bonuses are held and paid only on the policy’s original maturity date, not immediately upon death.
What is the minimum and maximum policy term for Jeevan Lakshya?
13 years minimum, 25 years maximum, with the premium paying term always set at 3 years less than your chosen policy term.
Does Jeevan Lakshya offer a Premium Waiver Rider?
No. Unlike some other LIC plans, Jeevan Lakshya offers three riders, Accidental Death and Disability, Accident Benefit, and New Term Assurance, but not a Premium Waiver Benefit Rider.
Is GST charged on Jeevan Lakshya premiums?
No. LIC’s official brochure confirms the GST rate is currently nil, consistent with the broader exemption on individual life insurance premiums effective from September 22, 2025.
How is Jeevan Lakshya different from Jeevan Labh?
Jeevan Lakshya pays part of its death benefit as ongoing annual income to the family, useful for funding recurring needs like a child’s education. Jeevan Labh pays its death benefit as a single amount rather than spreading it into yearly income.
Last Updated on 1 hour ago by Team Paisaseekho
