LIC Jeevan Lakshya Plan 733 – The Life Insurance Corporation (LIC) of India introduced a new version of its popular Jeevan Lakshya plan on October 1, 2024. The original Jeevan Lakshya, known under Table Number 933, has now been replaced by Table Number 733, offering updated features and more robust benefits. This plan is widely recognized for providing comprehensive financial security for policyholders and their families, making it an ideal choice for individuals seeking long-term protection. It’s also known as the “Kanyadan Policy” due to its suitability for securing a child’s financial future.
In this article, we will discuss the differences between the old and new versions of Jeevan Lakshya, the changes made in the plan, and its benefits. By the end, you will have a clear understanding of why the Jeevan Lakshya Plan 733 might be the right choice for you.
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Overview of LIC Jeevan Lakshya Plan
LIC Jeevan Lakshya Plan 733 is a non-linked, participating life insurance plan that provides both protection and savings. This plan is designed to cater to the financial needs of the policyholder’s family in case of the unfortunate death of the policyholder before maturity. At the same time, it ensures financial support in the form of survival benefits during the policy term.
Here are the key changes and features of the Jeevan Lakshya Plan 733 compared to the older version (Table Number 933):
- Old Plan: Jeevan Lakshya (Table No. 933)
- New Plan: Jeevan Lakshya (Table No. 733)
- Entry Age: Same in both versions, 18 to 50 years.
- Sum Assured: Increased from a minimum of ₹1 lakh to ₹2 lakh.
- Policy Term: 13 to 25 years (same as before).
- Premium Paying Term: The premium paying term is three years less than the policy term, as was the case in the earlier version.
- Maximum Maturity Age: 65 years in both plans.
The Jeevan Lakshya Plan is designed to offer risk cover along with bonuses and additional features, making it a well-rounded choice for policyholders who want to secure their family’s financial future.
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Premium Payment Options and Changes in NACH Mode
The Jeevan Lakshya Plan provides the flexibility to choose from multiple premium payment modes, including monthly, quarterly, half-yearly, and yearly. However, there has been a significant change in the monthly premium mode with the introduction of the new plan.
In the older version, if you opted for the monthly payment mode via NACH (National Automated Clearing House), you were only required to pay one month’s premium upfront. Now, under the new plan (Table Number 733), if you opt for the monthly mode, you will need to pay three months’ premium together. If your bank fails to process the premium within the first three months, your policy will automatically be shifted to the quarterly mode. This change has been introduced to ensure smoother processing and reduce potential lapses in premium payments.
Loan and Surrender Benefits
One of the significant advantages of the new Jeevan Lakshya Plan is the increased liquidity available to the policyholder. Previously, under the old plan, you could only avail a loan after two years of paying premiums. However, with the new Jeevan Lakshya Plan 733, loans are available after just one year of paying premiums, providing quicker access to liquidity in case of financial emergencies.
Similarly, the surrender benefits have also been updated. Earlier, the surrender option was available after two years of paying premiums, but there were no bonuses associated with it, and heavy deductions were made. In the new plan, the surrender option is available after one year, and not only do you get the guaranteed surrender value, but you are also eligible for vested bonuses. This makes the surrender option much more attractive in the new version.
Maturity Settlement Options
Another key feature of the Jeevan Lakshya Plan is its maturity settlement options. The policyholder or nominee can choose from three different settlement options at the time of maturity:
- 5 years
- 10 years
- 15 years
This flexibility allows for tailored financial planning based on the needs of the policyholder or their family. The settlement option chosen will determine how the sum assured, bonuses, and final additional bonus (FAB) are paid out over the selected period.
Free Look Period
The free look period is another area where LIC has introduced improvements. Under the old plan, the free look period was 15 days. This has now been extended to 30 days, giving policyholders more time to review their policy and ensure it meets their needs before making a final decision.
Special Benefits: Risk Cover and Premium Waiver
The Jeevan Lakshya Plan is primarily known for its robust risk cover benefits. In both the old and new versions, the nominee is entitled to receive the sum assured upon the policyholder’s death. In addition to this, the premium liability is waived off in both plans, meaning the nominee will not have to pay any further premiums, and the policy will continue to run as planned.
The insurance risk cover is provided to the nominee immediately after the policyholder’s death, ensuring that the family has immediate financial support. This makes the Jeevan Lakshya Plan an excellent choice for individuals seeking a plan that offers financial protection for their loved ones in the event of their untimely demise.
Survival and Maturity Benefits
The survival benefit in the Jeevan Lakshya Plan remains the same in both the old and new versions. Starting from the end of the policyholder’s death, 10% of the sum assured will be given to the nominee until the policy term ends. For example, if the policy’s sum assured is ₹5 lakhs, the nominee will receive ₹50,000 annually as a survival benefit.
As for the maturity benefit, at the end of the policy term, the nominee will receive the sum assured along with the bonuses and the final additional bonus (FAB). This ensures that the nominee receives the full maturity benefit, which includes all the accrued bonuses.
Tax Benefits
Both versions of the Jeevan Lakshya Plan offer tax benefits under the Income Tax Act. Policyholders can avail tax deductions under Section 80C for the premiums paid. However, a new rule introduced states that if an individual invests more than ₹5 lakhs in insurance or similar savings instruments, they will not be eligible for tax exemptions on that investment. However, the death claim amount remains tax-free under Section 10(10D), providing significant tax relief for the nominee.
Riders Available
The Jeevan Lakshya Plan offers various riders to enhance the protection and benefits of the policy. The available riders include:
- Term Insurance Rider: Provides additional coverage in case of the policyholder’s death.
- Critical Illness Rider: Offers financial assistance in case of diagnosis of critical illnesses.
- Accident Death Benefit Rider: Provides an additional sum assured in case of death due to an accident.
- Accident Death and Disability Benefit Rider: Offers coverage in case of accidental death or disability.
A significant change in the new plan is that the premium waiver benefit rider is now included within the base premium. This ensures that the policyholder’s family does not have to bear the burden of paying the premiums in case of the policyholder’s demise or disability.
Illustration Example
To provide a clearer picture of the changes in the new Jeevan Lakshya Plan, let’s consider the following example.
A policyholder, aged 30, chooses a sum assured of ₹5 lakhs with a policy term of 25 years. In the older version of the plan, the yearly premium was ₹22,917, while in the new plan, the premium has slightly increased to ₹23,501. The premium-paying term remains the same, 22 years. The risk cover in both plans is identical. However, the liquidity feature in the new plan allows the policyholder to access loans after just one year, compared to two years in the old plan.
If the policyholder dies after five years, the nominee will receive ₹5 lakhs in natural accidental death coverage and ₹10 lakhs for accidental death. In addition, the nominee will continue to receive the 10% survival benefit of ₹50,000 annually until the end of the policy term. Finally, the maturity benefit of ₹13 lakhs will be given to the nominee at the end of the policy term.
Who Should Choose Jeevan Lakshya Plan 733?
The Jeevan Lakshya Plan 733 is a versatile insurance product that caters to various financial needs. It is best suited for:
- Individuals looking for financial security: If you are the breadwinner of your family, this plan ensures that your family will continue to receive financial support even in your absence.
- Parents planning for their child’s future: The plan offers comprehensive financial protection for your child’s education, marriage, or other important milestones.
- Individuals seeking a secure retirement: Jeevan Lakshya provides a dignified retirement with regular payouts and a lump sum maturity benefit.
conclusion
LIC Jeevan Lakshya Plan 733 is an ideal choice for individuals seeking comprehensive financial security for themselves and their families. With improved liquidity, enhanced surrender benefits, and more flexible premium payment options, the new version of the plan offers substantial benefits that cater to various financial goals.
Also see:
- LIC Nivesh Plus 749 Plan
- LIC Amritbaal Plan 774
- LIC Jeevan Labh Plan 736
- LIC Jeevan Anand Plan 715
- LIC Jeevan Utsav Plan 771
FAQs about LIC Jeevan Lakshya Plan 733
What is the main difference between the old and new versions of LIC Jeevan Lakshya plan?
The key difference is the table number, which has been updated from 933 to 733 starting October 1, 2024. Additionally, the minimum sum assured has increased from ₹1 lakh to ₹2 lakh, and liquidity benefits like loan and surrender have been made available after just one year instead of two.
What are the premium paying terms for the new Jeevan Lakshya plan?
The premium paying term remains the same as in the old version, where the premium must be paid for three years less than the chosen policy term. For example, if the policy term is 25 years, the premium needs to be paid for 22 years.
What are the survival and maturity benefits in the new Jeevan Lakshya plan?
In both the old and new versions, 10% of the sum assured will be given to the nominee each year during the policy term in the case of the policyholder’s death. Upon maturity, the nominee receives the sum assured, plus the vested bonuses, and the final addition bonus (FAB).
When is a loan or surrender value available in the new Jeevan Lakshya plan?
A loan can be availed after just one year (as opposed to two years in the old version). Similarly, surrender value is available after one year, with a guaranteed surrender value and vested bonuses.
Are there any changes in tax benefits under the new Jeevan Lakshya plan?
Tax benefits remain the same under Section 80C for premium payments. However, according to new rules, if the total investment exceeds ₹5 lakh, you will not get an income tax exemption for the investment. Death claims, however, remain tax-free under Section 10(10D).
Disclaimer: The information provided in this article is based on the details available as of October 1, 2024, and is intended for informational purposes only. LIC policies, benefits, and terms may be subject to change without prior notice. Please consult with an authorized LIC agent or financial advisor for personalized advice and the latest updates on the Jeevan Lakshya plan.