Jeevan Lakshya

What this product is

A savings plan aimed at funding a child's or family's future goals, where a death during the policy term triggers an ongoing yearly income plus a lump sum still paid out at the original maturity date.

You might need this if…

• You're saving toward a specific family goal (like a child's education) and want a plan that keeps that goal funded with yearly income even if you're not around to keep paying.
• You want your family to receive both immediate ongoing support (an annual income) and a lump sum at the plan's original maturity date if you die during the term — not just one or the other.
• You want a savings plan that participates in LIC's bonuses to grow your guaranteed base amount over time.
• You'd like to add optional riders such as accident or additional term cover on top of the base plan.

How it actually works

• Entry age 18–50 years; policy term 13–25 years; the premium paying term is always 3 years shorter than the policy term.
• Minimum sum assured is ₹2,00,000 with no fixed maximum.
• On death during the term, your family gets an annual income equal to 10% of the basic sum assured every year from the next policy anniversary until maturity, plus a lump sum of 110% of the basic sum assured at the original maturity date — with a guaranteed floor of 105% of premiums paid.
• On survival to maturity, you receive the basic sum assured plus vested bonuses and any final additional bonus.
• Three optional riders are available: Accidental Death & Disability, Accident Benefit, and New Term Assurance.
• Premiums can be paid yearly, half-yearly, quarterly, monthly (via NACH), or by salary deduction, with small rebates for yearly/half-yearly payment.

Worked example

The tiers

Worth knowing before you decide

• Because the premium paying term ends 3 years before the policy term, there's a stretch near the end where you have coverage but aren't paying — but this also means premiums are compressed into a shorter, higher-cost window.
• If premiums lapse after at least one year, the policy becomes paid-up with proportionally reduced income and lump-sum benefits, and stops earning further bonuses.
• Suicide within 12 months of starting the policy limits the payout to 80% of premiums paid.
• Surrender before 2 full years of premiums generally yields no guaranteed value; the guaranteed surrender value only kicks in after that.

Official source

⌟ Official product brochure

Learn about this category

Read the full traditional life insurance explainer → · See all traditional savings products →