LIC Jeevan Lakshya 733

LIC Jeevan Lakshya 733

The LIC Jeevan Lakshya Plan 733 is a popular life insurance policy from the Life Insurance Corporation of India (LIC). This plan is a non-linked, participating, endowment plan that offers both life cover and savings benefits. It is designed to meet the financial goals of individuals, particularly those who want to secure their family’s future and build a corpus for specific financial needs such as children’s education, marriage, buying a home, or ensuring a steady income after retirement.

The Jeevan Lakshya Plan 733 is an ideal choice for people who wish to achieve life protection, tax savings, and long-term savings under one policy. The plan provides the sum assured on death, bonus facility, and maturity benefit at the end of the policy term. Additionally, the plan offers the flexibility of premium payment and can be customized to suit individual financial objectives.

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In this article, we will explore the key features, benefits, working mechanism, and eligibility criteria of the LIC Jeevan Lakshya Plan 733. We will also provide an illustrative example to help you understand how the plan works in real-life scenarios.


1. Introduction to LIC Jeevan Lakshya Plan 733

The LIC Jeevan Lakshya Plan 733 is a endowment policy that aims to provide both life insurance coverage and a savings component. The plan is specifically designed for individuals who want to achieve their long-term financial goals while ensuring financial protection for their families.

The key highlight of this plan is that it offers financial security in the event of the policyholder’s untimely death during the policy term, and at the same time, it provides maturity benefits at the end of the policy term if the policyholder survives the term.

This plan can be an effective choice for those who want life coverage along with guaranteed returns at the end of the policy term, in addition to the possibility of bonus participation from LIC.


2. Key Features of LIC Jeevan Lakshya Plan 733

The LIC Jeevan Lakshya Plan 733 has several distinct features that make it an attractive life insurance product. Below are the key features:

a. Policy Term and Premium Payment Term

  • Policy Term: The policy term can be chosen between 15, 20, or 25 years.
  • Premium Payment Term: The premium payment term is usually equal to the policy term. In other words, if the policy term is 20 years, the premium payment term will also be 20 years. In some cases, a policyholder may opt for a premium payment term shorter than the policy term (such as 10 or 12 years).
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b. Sum Assured on Death

The Sum Assured on Death is the amount that is payable if the policyholder dies during the policy term. This is a non-decreasing sum, which remains the same throughout the policy term. The sum assured on death can be chosen by the policyholder at the time of purchasing the policy, depending on their financial goals and needs.

The Sum Assured on Death is the higher of the following:

  • The basic sum assured chosen at the time of policy purchase.
  • 125% of the annual premium.

In addition to the sum assured on death, any bonuses (if declared) will also be added to the death benefit.

c. Maturity Benefit

At the end of the policy term, if the policyholder survives, the maturity benefit will be paid. The maturity benefit includes:

  • Sum Assured on Maturity: This is the total sum assured chosen at the time of policy purchase.
  • Bonuses: If the policy has earned any bonuses during its term, these will be added to the maturity benefit.

The maturity benefit can be used by the policyholder to achieve various financial goals, such as paying for children’s education, building a retirement fund, or buying a home.

d. Bonus Facility

As a participating policy, the LIC Jeevan Lakshya Plan 733 is eligible to receive bonuses. These bonuses are declared by LIC based on the company’s performance and surplus. The policy may earn the following bonuses:

  1. Reversionary Bonuses: These are declared annually and added to the sum assured.
  2. Final Additional Bonus (FAB): This is a lump sum bonus that may be declared at the time of policy maturity or in the event of death.

Bonuses, though not guaranteed, can significantly enhance the total returns from the policy.

e. Loan Facility

The policy allows the policyholder to avail of a loan against the policy’s surrender value. This is a flexible feature that allows the policyholder to access funds in case of an emergency, without surrendering the policy.

The loan amount is generally up to 90% of the policy’s surrender value.

f. Tax Benefits

LIC Jeevan Lakshya Plan 733 offers tax-saving advantages under various sections of the Income Tax Act:

  • Section 80C: Premiums paid for the policy qualify for tax deductions of up to ₹1.5 lakh per year.
  • Section 10(10D): The death benefit and maturity benefit are tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions.

These tax benefits make the LIC Jeevan Lakshya Plan 733 an attractive option for individuals looking to save taxes while securing their family’s financial future.

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g. Paid-Up Option

If the policyholder is unable to continue paying premiums due to some financial constraints, they can opt for the Paid-Up option. Under this option, the policy will continue with a reduced sum assured, and the policyholder can continue to enjoy the benefits of bonuses and life coverage, though premiums are no longer required.

h. Revival of Lapsed Policy

In case the policy lapses due to non-payment of premiums, the policyholder has the option to revive the policy within 5 years from the date of the first unpaid premium. However, the policyholder needs to pay all the outstanding premiums along with interest to revive the policy.


3. Eligibility Criteria for LIC Jeevan Lakshya Plan 733

To avail of the LIC Jeevan Lakshya Plan 733, the following eligibility criteria must be met:

  • Minimum Age of Entry: 18 years (completed).
  • Maximum Age of Entry: 50 years (for a policy term of 25 years).
  • Minimum Sum Assured: ₹1,00,000.
  • Maximum Sum Assured: There is no upper limit on the sum assured, subject to underwriting requirements.
  • Premium Payment Modes: Premiums can be paid annually, half-yearly, quarterly, or monthly.

4. Benefits of LIC Jeevan Lakshya Plan 733

The LIC Jeevan Lakshya Plan 733 offers several benefits to policyholders, making it a suitable option for long-term financial planning.

a. Financial Protection for Family

The policy offers a life cover that ensures the policyholder’s family is financially protected in case of the policyholder’s untimely demise. The sum assured on death ensures that the family receives financial support when needed the most.

b. Savings for Future Goals

The plan not only provides life insurance coverage but also offers a savings component. The policyholder can use the maturity benefit to meet various financial goals, such as children’s education, wedding expenses, retirement planning, or purchasing property.

c. Liquidity through Loan Facility

The ability to avail of a loan against the policy’s surrender value ensures that the policyholder has access to funds in case of an emergency without having to surrender the policy.

d. Bonuses for Increased Returns

The possibility of bonus participation increases the overall return on investment. Reversionary bonuses and the Final Additional Bonus can significantly enhance the total benefit of the policy.

e. Tax Benefits

The policy offers attractive tax deductions under Section 80C for premiums paid and tax exemption on the death and maturity benefits under Section 10(10D).

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f. Flexibility and Customization

The policy offers flexibility in terms of premium payment term and policy term, which allows the policyholder to customize the policy according to their specific financial goals.


5. How LIC Jeevan Lakshya Plan 733 Works: An Example

Let’s consider an example to understand how the LIC Jeevan Lakshya Plan 733 works.

Example:

Let’s assume Mr. Ramesh, aged 35 years, purchases the LIC Jeevan Lakshya Plan 733 for himself, with the following parameters:

  • Age of Entry: 35 years
  • Policy Term: 20 years
  • Sum Assured on Death: ₹10,00,000
  • Annual Premium: ₹70,000 (approximately)
  • Premium Payment Term: 20 years (same as the policy term)
Breakdown of Benefits:
  1. Death Scenario: In the unfortunate event that Mr. Ramesh passes away during the policy term, the death benefit would be payable to his nominee. This would consist of:
    • Sum Assured on Death: ₹10,00,000
    • Bonuses (if declared): Let’s assume that LIC declares an annual bonus of ₹50 per ₹1,000 sum assured. Since Mr. Ramesh’s sum assured is ₹10,00,000, the bonus would be ₹50,000 per year. The total death benefit would therefore be higher than ₹10,00,000, depending on the accumulated bonuses.
  2. Maturity Benefit: If Mr. Ramesh survives the entire 20-year policy term, the policy would mature, and he would receive the following:
    • Sum Assured on Maturity: ₹10,00,000 (the sum assured chosen at the start).
    • Bonuses: Assuming that the policy earns bonuses for the entire policy term, Mr. Ramesh could receive reversionary bonuses and a final additional bonus at maturity. If the bonuses accumulate to ₹5,00,000 over 20 years, his total maturity benefit would be ₹15,00,000.

6. Conclusion

The LIC Jeevan Lakshya Plan 733 is a comprehensive and well-structured insurance product that combines life coverage with a savings component. It offers the policyholder the flexibility to choose the policy term and premium payment term, making it customizable for different financial goals. Additionally, the possibility of bonuses further enhances the overall returns on the policy.

With its death benefit, maturity benefit, loan facility, and tax advantages, this plan is an ideal choice for individuals who wish to achieve their long-term financial goals while ensuring financial security for their loved ones.

The LIC Jeevan Lakshya Plan 733 can help policyholders meet crucial life milestones like buying a home, funding children’s education, or securing a comfortable retirement, all while providing peace of mind through its life cover. Therefore, it is an excellent option for those looking for both protection and investment growth under a single plan.