LIC Jeevan Lakshya: Review (2024) – Is it Good or Bad?

Do you regularly set aside a part of your income to achieve your life aspiration?

Are these savings getting systematically invested to create wealth over time to meet all financial targets?

You should also keep in mind the uncertainty in life. LIC has a gamut of endowment policies. LIC’s Jeevan Lakshya claims an opportunity to save as well as provide financial security with a life cover.

What are the pros and cons of LIC Jeevan Lakshya? Will it meet the promises made in the official brochure?

Let us explore the features & opportunities of LIC Jeevan Lakshya with all kinds of calculations and illustrations.

Will this plan act as a saving tool & provide adequate life cover?

Let’s discover here!

Table of Contents:

1.) An Overview Of LIC Jeevan Lakshya
2.)Are The Features of LIC Jeevan Lakshya Good?
3.) Eligibility Criteria Of LIC Jeevan Lakshya( Plan No: 933, Old No 833):
4.) Benefits Of LIC Jeevan Lakshya: Review
5.) Other Benefits Of LIC Jeevan Lakshya: Analysis
6.) Analysis of Grace Period, Revival, Paid-up Policy – LIC Jeevan Lakshya
7.) How To Cancel/surrender LIC Jeevan Lakshya
8.) Advantages Of LICJeevan Lakshya: Evaluation
9.) Disadvantages Of LIC Jeevan Lakshya: Evaluation
10.) Research Methodology On LIC Jeevan Lakshya: Analysis
11.) Review of Benefits with Illustration – LIC Jeevan Lakshya
12)LIC Jeevan Lakshya vs. Other Investments Plans – Review

• LIC Jeevan Lakshya vs. Other Investments + Term Insurance: Review
• LIC Jeevan Lakshya Vs. PPF Vs. ELSS – Review
• LIC Jeevan Lakshya Vs. LIC New Jeevan Anand – Review
• LIC Jeevan Lakshya Vs. LIC Jeevan Umang – Review

13) LIC Jeevan Lakshya Vs. Other Investment Plans – Review Conclusion
14) Final Verdict On LIC Jeevan Lakshya

An overview of LIC Jeevan Lakshya:

LIC’s Jeevan Lakshya is a Non-linked, Participating, Individual, Life Assurance plan. It offers a combination of life protection and corpus savings.

In case of the unfortunate death of the Policyholder at any time before maturity, this plan provides an Annual Income benefit that may help to fulfill the primary needs of the family. It also provides a lump sum amount at the time of maturity irrespective of the survival of the Policyholder.

Before getting into the review, please read the official brochure of LIC Jeevan Lakshya (Plan No: 933, Old No: 833) pdf.

The ‘LIC Jeevan Lakshya’ plan details in the brochure would help you to evaluate this review better.

Are The Features of LIC Jeevan Lakshya Good?

• Limited premium paying term & life cover throughout the policy term.
• The mode of premium can be chosen as per convenience.
• The policy shall continue to participate in profits up to the date of maturity, provided the policy is in force.
• Simple reversionary bonus & Additional bonus – As declared by the Life Insurance Corporation.
• The death benefit & Maturity benefit can be taken in installments.

Eligibility criteria of LIC Jeevan Lakshya ( Plan No: 933, Old No 833):

a) Minimum Basic Sum Assured	1,00,000
b) Maximum Basic Sum Assured	No Limit
(The Basic Sum Assured shall be in multiples of 10,000/-)
c) Policy Term	13 to 25 years
d) Premium Paying Term	(Policy Term – 3) years
e) Minimum Age at entry	18 years (last birthday)
f) Maximum Age at entry	50 years (nearer birthday)
g) Maximum Maturity Age	65 years (nearer birthday)
h) Premium payment mode	Yearly, Half-yearly, Quarterly or Monthly

Benefits of LIC Jeevan Lakshya: Review

Death benefit:

On the death of the Life Assured during the policy term before the stipulated Date of Maturity, the benefits are payable at 2 stages. One is maturity benefit payable on the date of maturity & the other is annual income till the date of maturity.

The following death benefit is payable on maturity (maturity benefit)

• Sum Assured on death + Vested Simple reversionary bonus + Additional bonus if any.

Sum Assured on death will be the highest of the following

• 7 times of annualized premium or
• A sum of 110% of the Basic Sum Assured or
• 105% of total premiums paid up to the date of death.

Meanwhile, the following shall be payable annually (Annual income benefit)

Annual Income Benefit equal to 10% of the Basic Sum Assured shall be payable from the policy anniversary coinciding with or following the date of death of Life Assured, till the policy matures.

Maturity Benefit:

On Life Assured surviving the policy term, the following is payable on maturity.

Sum Assured on maturity + Vested Simple reversionary bonus + Additional bonus if any.

Sum Assured on maturity = Basic Sum Assured.

LIC Jeevan Lakshya Maturity Value Calculator

LIC Jeevan Lakshya Maturity Value = Sum Assured + Bonuses + Final Additional Bonus (if declared).

Even though we cannot calculate the exact amount precisely, this will give a good estimation.

Other Benefits of LIC Jeevan Lakshya: Analysis

Option to take Death Benefit in installments:

The lump sum amount payable in case of death of the Life Assured can be received in installments over the chosen period of 5 or 10 or 15 years instead lump sum amount. This option shall not be applicable for the Annual Income Benefit payable on the death of the Life Assured.

Settlement Option (for Maturity Benefit):

Option to receive Maturity Benefit in installments over the chosen period of 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as paid-up policy. This option can be exercised by the Life Assured; for full or part of the lump sum amount payable as maturity benefits either in absolute value or in percentage terms.

Rider Benefits:

LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)

LIC’s Accident Benefit Rider (UIN:512B203V03)

LIC’s New Term Assurance Rider (UIN: 512B210V01)

LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)

Policy Loan:

The loan can be availed under the policy provided at least two full years’ premiums have been paid.

Analysis of Grace Period, Revival, Paid-up Policy – LIC Jeevan Lakshya

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.

Revival:

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 but before the end of the policy term.

Paid-up policy:

If less than two years’ premiums have been paid – any subsequent premium is not duly paid, all the benefits under the policy shall cease after the expiry of the grace period.

If at least two full years’ premiums have been paid – any subsequent premiums be not duly paid, the policy shall not be wholly void, but shall continue as a paid-up policy.

How to cancel/surrender LIC Jeevan Lakshya:

What is the Free look period of LIC Jeevan Lakshya?

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy can return within 15 days from the date of receipt of the policy bond stating the reasons for objections.

How to Surrender LIC Jeevan Lakshya after the Free look period?

The policy can be surrendered at any time provided two full years’ premiums have been paid. On surrender of the policy, the higher of the following shall be payable

Guaranteed Surrender Value or Special Surrender Value

LIC Jeevan Lakshya Surrender Value calculator

Guaranteed Surrender value = Total premiums paid (excluding extra premiums, taxes, and premiums for riders, if opted for) multiplied by the Guaranteed Surrender Value.

Advantages of LIC Jeevan Lakshya: Evaluation

• Premium paying frequency can be selected as per convenience.
• All the bonuses enhance the maturity benefit.
• Simple Reversionary Bonus and Final Additional Bonus shall be payable under the policy on the due date of maturity irrespective of survival of the Life Assured.
• A loan option is available.
• Option to receive the death benefit & maturity benefit in installments
• Tax benefit as per Sec 80 C & Sec 10 (10D).
• Rider options are available.

We have seen the analysis of good features in short and crisp points. Now, let’s look at the not-so-good features!

Disadvantages of LIC Jeevan Lakshya: Evaluation

• The benefits are not guaranteed. The bonus declaration varies for each year.
• The Annual income benefit in case of death, will not suffice to cater to the needs of the family.
• The lock-in period is 2 years for the loan & surrendering the policy.

Let’s analyze the Research Methodology of LIC Jeevan Lakshya.

Research Methodology on LIC Jeevan Lakshya: Analysis

Till now we have seen some important factors that we need to know about LIC Jeevan Lakshya. But, still, it is not enough for us to decide whether we should buy this plan or not.

So, now we are going to see the analysis of LIC Jeevan Lakshya and how much return it gives us in the worst-case scenario and the best-case scenario by using the LIC Jeevan Lakshya Online Calculator.

Later, we are going to use the same value on other investments to see how much return we can get from other investments.

Finally, we are going to see compared to other investments, whether LIC Jeevan Lakshya gives us a better return or not.

Review of Benefits with Illustration – LIC Jeevan Lakshya

By looking into the following benefit illustration, we can understand the working of the plan. Here, the policyholder is assumed to survive till the end of the policy term & receive the maturity benefit (guaranteed) along with the bonus (non-guaranteed).

It is assumed that the Projected Investment Rate of Return that LIC will be able to earn throughout the term of the policy will be 4% p.a. or 8% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed and they are no upper or lower limits.

Let’s calculate the IRR( Internal Rate of Return ) of LIC Jeevan Lakshya. (IRR can also be called as an Interest Rate in layman’s terms).

		At 4% p.a.		At 8% p.a.
Age	Year	Annualised premium / Maturity benefitSWA	Death benefit	Annualised premium / Maturity benefit	Death benefit
31	1	-93,769	16,50,000	-93,769	16,50,000
32	2	-93,769	16,50,000	-93,769	16,50,000
33	3	-93,769	16,50,000	-93,769	16,50,000
34	4	-93,769	16,50,000	-93,769	16,50,000
35	5	-93,769	16,50,000	-93,769	16,50,000
36	6	-93,769	16,50,000	-93,769	16,50,000
37	7	-93,769	16,50,000	-93,769	16,50,000
38	8	-93,769	16,50,000	-93,769	16,50,000
39	9	-93,769	16,50,000	-93,769	16,50,000
40	10	-93,769	16,50,000	-93,769	16,50,000
41	11	-93,769	16,50,000	-93,769	16,50,000
42	12	-93,769	16,50,000	-93,769	16,50,000
43	13	-93,769	16,50,000	-93,769	16,50,000
44	14	-93,769	16,50,000	-93,769	16,50,000
45	15	-93,769	16,50,000	-93,769	16,50,000
46	16	0	16,50,000	0	16,50,000
47	17	0	16,50,000	0	16,50,000
48	18	0	16,50,000	0	16,50,000
		18,66,000		25,09,500
	IRR	2.55%		5.18%

In the above illustration the IRR for the policy with the assumed rate for non-guaranteed benefit @ 4% is calculated at 2.55% which is similar to the Bank SB A/C rate.

Even if the assumed rate is 8% the IRR would be 5.18% which is lower than the Bank FD rate.

Is LIC Jeevan Lakshya a good policy?

Even after staying invested for a long time, the return on investment at these rates won’t help in achieving your or your family’s aspirations.

These rates are not inflation-beating returns. Essentially, one should look for investment options that have the potential to give much higher returns to offset inflation.

If you are a person who is more inclined towards watching this LIC Jeevan Lakshya review as a Youtube video. Check below.

Expert analysis of the advantages(pros) and disadvantages(cons) of LIC Jeevan Lakshya with a voice-over. IRR analysis and calculations are explained in detailed PowerPoint illustrations.

Embed English video review

LIC Jeevan Lakshya vs. Other Investments Plans – Review

• LIC Jeevan Lakshya vs. Other Investments + Term Insurance: Review

Financial security against life uncertainty can be provided by a Pure term insurance policy. In order to beat inflation, regular savings & smart investment options need to be chosen. Invest in the asset class that suits your risk appetite & time horizon.

The annualized premium for the above illustration is Rs.93,769. This amount can be split & invested in term insurance for life cover & the balance for wealth accumulation. Here the assumed investment option for low-risk appetite is PPF & for others ELSS.

Pure term policy: – Sum Assured: Rs. 15 lakhs, Term: 15 years, Annual premium: Rs 6000.

Balance amount: – Rs 87,769 can be invested in PPF / ELSS.

		Term Insurance + PPF		Term insurance + ELSS
Age	Year	Term Insurance premium + PPF	Death benefit	Term Insurance premium + ELSS	Death benefit
31	1	-93,769	15,00,000	-93,769	15,00,000
32	2	-93,769	15,00,000	-93,769	15,00,000
33	3	-93,769	15,00,000	-93,769	15,00,000
34	4	-93,769	15,00,000	-93,769	15,00,000
35	5	-93,769	15,00,000	-93,769	15,00,000
36	6	-93,769	15,00,000	-93,769	15,00,000
37	7	-93,769	15,00,000	-93,769	15,00,000
38	8	-93,769	15,00,000	-93,769	15,00,000
39	9	-93,769	15,00,000	-93,769	15,00,000
40	10	-93,769	15,00,000	-93,769	15,00,000
41	11	-93,769	15,00,000	-93,769	15,00,000
42	12	-93,769	15,00,000	-93,769	15,00,000
43	13	-93,769	15,00,000	-93,769	15,00,000
44	14	-93,769	15,00,000	-93,769	15,00,000
45	15	-93,769	15,00,000	-93,769	15,00,000
46	16	0		0
47	17	0		0
48	18	0		0
		29,24,298		47,75,358
	IRR	6.52%		10.78%

In the above illustration, we have calculated the IRR of Term Insurance + PPF at 6.52% & IRR of Term Insurance + ELSS at 10.78%.

• LIC Jeevan Lakshya Vs. PPF Vs. ELSS – Review

Regular saving & proper investment earns a better return. Here the PPF investment reaps 6.52% & the ELSS reaps 10.78% (post-tax rate). Despite inflation, these investments help to attain your aspirations.

Life cover should be adequate so that the family can continue the same standard of life & also fulfill future goals. Always have adequate life cover & investment in the appropriate asset class to beat inflation in the long run.

• LIC Jeevan Lakshya Vs. LIC New Jeevan Anand – Review

Both the plans are non-linked, participating, individual, Life Assurance plans.

LIC New Jeevan Anand has four riders, out of which you can select any three.

Click below To read the complete review of LIC New Jeevan Anand

LIC New Jeevan Anand: Analysis & Review– Should you buy?

• LIC Jeevan Lakshya Vs. LIC Jeevan Umang – Review

LIC Jeevan Umang is marketed as a money-saving plan and it is also a ‘100-year plan’.

Click below to read the complete review with IRR analysis and precise calculation of returns with illustrations.

LIC Jeevan Umang: Review (2023) – Should You Buy It?

LIC Jeevan Lakshya Vs. Other Investment Plans – Review Conclusion

After comparing LIC Jeevan Lakshya with all the other alternative investment options.

It seems clear that a simple Term Insurance + PPF or ELSS can give you the same or even higher returns compared to LIC Jeevan Lakshya.

As a responsible investor, please don’t fall for new plans in the market without reading the review and comparing it with the reviews of other similar investment options in the market.

Please check out our hindi youtube review of LIC Jeevan Lakshya

LIC Jeevan Lakshya (एलआईसी जीवन लक्ष्य)– A Detailed review (Hindi – हिन्दी)

Final Verdict on LIC Jeevan Lakshya:

LIC Jeevan Lakshya is an endowment plan which provides both investment and insurance benefits. Since it is a participating policy, the bonus is not guaranteed. The returns are dependent on these bonus payouts.

So, the IRR (Internal Rate of Return i.e. Interest Rate) works out in the range of 2.5% to 5%. Don’t stick to these investments for tax benefits. It won’t help you in funding your goals.

LIC Jeevan Lakshya Plan neither provides adequate financial security to the family nor helps in regular savings.

But still, why do insurance agents try to sell you this plan? Like many policies In the bazaar, they get a high agent commission selling you this plan!

There is a lot of free advice on social media platforms like Quora, Facebook, Twitter, etc. Do you think they will help you in the long run for a safe investment journey?

When choosing an investment, one should be aware of the risk & return. Who is aware of the risk & return more than a professional financial planner?

Have Pure-Term insurance in place & start your investment journey. This will help to achieve your life aspiration without any compromise.

If you have any comments or questions, write them in the comment box below.

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