LIC Jeevan Lakshya: Benefits, Premium, Maturity, Eligibility & Plan Details

LIC Jeevan Lakshya is an LIC savings plan built around one particular worry: what happens to a family goal if the person paying for it dies early. If the life assured dies during the policy term, the family does not just receive a lump sum and stop. They get an income of 10% of the basic sum assured every year until the policy’s maturity date, and then a lump sum at maturity. That is why the plan is often bought by parents saving for a child’s education or marriage.

Before going further, one point matters if you are researching this plan today. LIC Jeevan Lakshya Plan No. 933 was withdrawn on 1 October 2024. It was replaced by a revised version, LIC’s Jeevan Lakshya Plan No. 733 (UIN 512N297V03). The structure is the same, but the minimum sum assured, surrender rules, loan limits and free-look period changed. If you hold a 933 policy, its original terms still apply. New buyers are offered Plan 733.

What Is LIC Jeevan Lakshya?

LIC Jeevan Lakshya is a non-linked, participating, individual life insurance savings plan with a limited premium-paying term. “Non-linked” means it is not tied to market returns the way a ULIP is. “Participating” means it shares in LIC’s profits through bonuses.

The plan’s purpose is goal protection. You choose a basic sum assured and a policy term that ends roughly when you will need the money, say when a child turns 21 or 25. You pay premiums for three years less than the policy term. If you survive, you receive the sum assured plus bonuses at maturity. If you do not, LIC steps in: your family receives an annual income for the remaining years, and the full maturity payout still arrives on the original date.

It has typically been considered by parents, especially the main earner of a family, who want to make sure a specific future expense is funded even if they are not around to keep paying.

LIC Jeevan Lakshya Plan Details

How Does LIC Jeevan Lakshya Work?

Take an example to see the mechanics. The figures are for illustration only.

Suppose a 35-year-old parent buys LIC Jeevan Lakshya with a basic sum assured of ₹10 lakh and a policy term of 25 years. The premium-paying term is 22 years.

If the parent survives the full 25 years, premiums are paid for 22 years. At maturity, they receive the ₹10 lakh basic sum assured plus the simple reversionary bonuses added over the years and any final additional bonus.

If the parent dies in, say, the eighth policy year, three things happen:

1. No further premiums are payable.
2. The nominee receives ₹1 lakh (10% of the basic sum assured) every year, starting from the policy anniversary on or after the date of death and continuing until the anniversary just before the maturity date.
3. On the original maturity date, the nominee receives ₹11 lakh (110% of the basic sum assured), plus the vested simple reversionary bonuses and any final additional bonus.

The family therefore gets a regular income to manage while the goal is still years away, and a lump sum when the goal finally arrives.

LIC Jeevan Lakshya Benefits

Death Benefit

The death benefit under LIC Jeevan Lakshya is paid in parts rather than all at once. If the life assured dies during the policy term while the policy is in force, the nominee receives:

• an Annual Income Benefit of 10% of the basic sum assured, every year until the year before maturity;
• 110% of the basic sum assured on the maturity date;
• vested simple reversionary bonuses and any final additional bonus, payable on the maturity date.

The policy terms also set floors. The Sum Assured on Death is defined with reference to seven times the annualised premium, and the total death benefit cannot be less than 105% of all premiums paid up to the date of death.

Annual Income Benefit

This is the feature that sets Jeevan Lakshya apart. The annual income is not paid while the life assured is alive. It starts only after a death claim. It is meant to replace part of the income the family has lost, for the years left until the policy matures.

Because it is a fixed percentage of the basic sum assured, the amount does not rise with inflation. A ₹1 lakh annual income on a ₹10 lakh policy will be worth less in real terms ten years from now.

Maturity Benefit

If the life assured survives to the end of the term with all premiums paid, the maturity benefit is the basic sum assured plus vested simple reversionary bonuses plus any final additional bonus. The basic sum assured is guaranteed. The bonuses are not guaranteed in advance.

Bonus

Bonuses are explained in detail further below. In short, they are what lifts the payout above the basic sum assured, and they depend on LIC’s declarations year by year.

LIC Jeevan Lakshya Premium

Your LIC Jeevan Lakshya premium depends on:

• Age at entry. Older entrants pay more, because the cost of cover is higher.
• Basic sum assured. A higher sum assured means a higher premium, though a rebate for higher sums assured can lower the rate per thousand.
• Policy term. A longer term spreads payments over more years.
• Premium mode. LIC’s tables include a mode rebate of 2% of the tabular premium for yearly payment and 1% for half-yearly payment. Quarterly, monthly and salary-deduction modes have no mode rebate.
• Health and underwriting. LIC may require medical tests or charge an extra premium depending on your health and the cover amount.
• Riders. Optional riders increase the premium.

GST: From 22 September 2025, GST on individual life insurance premiums was reduced to zero. This applies to premiums, including renewal premiums, paid on or after that date. Premium figures from older sources that include GST are no longer accurate.

An official example

LIC’s sales brochure for the current version includes a benefit illustration for a 35-year-old buying a 25-year policy (22-year premium-paying term) with a basic sum assured of ₹2,00,000 on yearly mode. The yearly premium shown is ₹9,535, excluding taxes.

Treat this as an example of how the plan is priced, not as a quotation. Your own premium will depend on your age, sum assured, term and underwriting, and LIC may revise rates.

LIC Jeevan Lakshya Premium Calculator

Any LIC Jeevan Lakshya premium calculator, including the benefit illustration an LIC agent can generate, needs the same basic inputs:

• your date of birth;
• the basic sum assured;
• the policy term (which fixes the premium-paying term at three years less);
• the premium mode;
• any riders you want to add.

For maturity estimates, a calculator also needs an assumed bonus rate. Official illustrations show projected benefits at two assumed rates of return, 4% and 8%, so that you can see the range. Third-party calculators may use different assumptions, and some still use the withdrawn Plan 933 rates. For new policies, make sure any figure is based on Plan 733.

LIC Jeevan Lakshya Maturity Amount

The LIC Jeevan Lakshya maturity amount is made up of:

So the only figure you can count on when you buy is the basic sum assured. Anything above it depends on bonus declarations over the policy term. When you look at an illustration, compare the 4% and 8% columns. The difference shows how much of the projected maturity amount is uncertain.

If the life assured has died during the term, the maturity-date payment is 110% of the basic sum assured plus vested bonuses and any final additional bonus, on top of the annual income already received.

LIC Jeevan Lakshya Death Benefit

To put the death benefit in plain terms, think of it as two streams.

The first stream is the annual income, 10% of the basic sum assured every year, from the policy anniversary on or after the date of death until the anniversary before maturity. If the death happens late in the term, there may be only a year or two of income. If it happens early, the income can run for many years.

The second stream is the lump sum on the maturity date: 110% of the basic sum assured, plus vested bonuses and any final additional bonus.

Premiums stop after death. The policy is not “cashed out” at the time of death. It continues to its original maturity date, with LIC paying the instalments along the way.

A suicide clause applies. If the life assured dies by suicide within 12 months of the start of the policy, the nominee receives 80% of the premiums paid, excluding taxes, extra premiums and rider premiums. Similar rules apply within 12 months of a revival.

LIC Jeevan Lakshya Bonus

A simple reversionary bonus is declared by LIC at the end of each financial year, as an amount per ₹1,000 of basic sum assured. Once declared, it is added to the policy and becomes payable at maturity or on a claim. “Simple” means it is calculated on the basic sum assured, not on bonuses already added.

A final additional bonus may be declared in the year a policy results in a claim, by death or maturity, subject to conditions such as a minimum policy duration.

Two points matter. First, bonuses already declared and vested are part of your policy. Future bonuses are not guaranteed and depend on LIC’s experience. Second, paid-up policies stop earning new bonuses and are not entitled to the final additional bonus.

LIC Jeevan Lakshya Loan Facility

Yes, a loan is available against LIC Jeevan Lakshya once the policy acquires a surrender value. The policy is assigned to LIC as security.

Plan 733: a loan can be taken after the first policy year, if one full year’s premium has been paid. Before two full years’ premiums have been paid, the maximum loan is 50% of the surrender value for in-force policies and 40% for paid-up policies. After two full years’ premiums, the limits rise to 75% and 65%.

Plan 933: a loan is available after at least two full years’ premiums, up to 90% of the surrender value for in-force policies and 80% for paid-up policies.

Interest is charged at a rate LIC sets from time to time, compounding half-yearly. Any unpaid loan and interest are deducted from claim or maturity proceeds.

LIC Jeevan Lakshya Surrender Value

Plan 733: a special surrender value may be available after the first policy year, if one full year’s premium has been paid. The guaranteed surrender value applies once at least two full years’ premiums have been paid.

Plan 933: the policy acquires a surrender value after at least two full years’ premiums.

In both versions, LIC pays the higher of the Guaranteed Surrender Value and the Special Surrender Value. The guaranteed surrender value is a percentage of total premiums paid, plus a surrender value on vested bonuses, using factors that increase with the policy’s duration. The special surrender value is set by LIC and may change.

Surrendering early almost always returns less than the premiums paid, and it ends the life cover and the family protection that is the whole point of this plan. If money is tight, a policy loan or a paid-up policy may be worth considering before surrender.

LIC Jeevan Lakshya Paid-Up Policy

If premiums stop, one of two things happens.

Lapse. If the policy has not yet acquired paid-up value, it lapses after the grace period. A lapsed policy gives no cover. LIC allows a grace period of 30 days for yearly, half-yearly and quarterly modes, and 15 days for monthly mode.

Paid-up. If the policy has acquired paid-up value, which under Plan 733 happens after one full year’s premium and under Plan 933 after two full years’ premiums, it continues as a paid-up policy. The death and maturity benefits are reduced in proportion to the period for which premiums were paid compared with the full premium-paying term. A paid-up policy does not earn future bonuses.

Revival. A lapsed policy can be revived within five consecutive years from the date of the first unpaid premium, and before maturity, by paying the arrears with interest and satisfying LIC’s requirements on health.

LIC Jeevan Lakshya Eligibility

The life assured must be between 18 and 50 years old at entry, and the policy must mature by age 65. The policy term can be from 13 to 25 years, as long as the maturity age limit is met. The premium-paying term is always three years shorter than the policy term.

For Plan 733, the minimum basic sum assured is ₹2 lakh. Under the withdrawn Plan 933, it was ₹1 lakh. There is no fixed maximum, but larger amounts are subject to LIC’s underwriting, which may include income proof and medical tests.

Because the life assured must be an adult, this plan is usually taken on the parent’s life, not the child’s. That is what makes the death benefit structure useful for funding a child’s goals.

LIC Jeevan Lakshya Tax Benefits

Tax treatment depends on the law in force and your situation:

• Premiums may qualify for a deduction under the old tax regime (Section 80C under the previous Income-tax Act), within the overall limit. Under the new tax regime, this deduction is generally not available. The Income-tax Act, 2025 has renumbered many sections.
• Death benefits, including the annual income paid to the nominee, are generally exempt from tax.
• Maturity proceeds can be exempt under Section 10(10D) only if the conditions are met. These include a limit on premium as a percentage of sum assured and, for non-ULIP policies issued on or after 1 April 2023, an aggregate annual premium limit of ₹5 lakh. Otherwise, the maturity amount or part of it may be taxable.

Please check your own position with a tax adviser before relying on any tax benefit.

LIC Jeevan Lakshya Riders

Optional riders can be added for an extra premium, subject to conditions.

For Plan 733, the riders available are LIC’s Accidental Death and Disability Benefit Rider, LIC’s Accident Benefit Rider and LIC’s New Term Assurance Rider. Premiums for all life insurance riders together cannot exceed 30% of the base plan premium.

For Plan 933, the options were LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider (one of the two), LIC’s New Term Assurance Rider and LIC’s New Critical Illness Benefit Rider.

LIC Jeevan Lakshya: Advantages and Limitations

The main strength of Jeevan Lakshya is how it handles the worst case. Many savings plans simply pay a lump sum on death. Jeevan Lakshya instead gives the family a yearly income and still delivers the maturity amount on the date the goal was planned for. That structure suits goal-based planning. The basic sum assured is guaranteed, premiums stop three years before maturity, and loans are available if needed.

There are real limitations too. The plan requires a long premium commitment of 10 to 22 years. A large part of any return above the sum assured depends on bonuses, which are not guaranteed. Early surrender is expensive. The annual income benefit is fixed and does not keep up with inflation. And for the same premium, a pure term plan would give much higher life cover. Some people prefer to combine term insurance with separate investments instead, accepting more decisions and different risks.

Who May Consider LIC Jeevan Lakshya?

The plan is usually evaluated by working parents who want to protect a specific future expense, such as a child’s higher education or marriage, against the risk of their own early death. It may also interest people who want a disciplined, long-term savings plan with a guaranteed sum assured and the possibility of bonuses on top, and who are comfortable with lower liquidity.

Things to Check Before Buying LIC Jeevan Lakshya

• Can you comfortably pay the premium for the full premium-paying term, which can be up to 22 years?
• What is the total premium you will pay, compared with the guaranteed sum assured?
• Does the policy term line up with the date you will need the money?
• Do you already have enough life cover through term insurance?
• Do you have emergency savings, so you will not need to surrender early?
• Have you looked at the 4% and 8% columns of the benefit illustration to see how much of the maturity value depends on bonuses?
• Do you understand the surrender and paid-up rules for the version you are buying?
• How will the maturity amount be taxed in your situation?
• Will the amount still be enough after inflation?

LIC Jeevan Lakshya vs Other LIC Plans

These are differences in structure, not a ranking. The right plan depends on what you want the money and the cover to do.

Frequently Asked Questions

What is LIC Jeevan Lakshya?

It is a non-linked, participating, limited-premium savings plan from LIC that pays an annual income to the family if the life assured dies during the term, plus a lump sum at maturity.

What is the plan number of LIC Jeevan Lakshya?

The earlier version was Plan No. 933 (UIN 512N297V02), withdrawn on 1 October 2024. The current version is Plan No. 733 (UIN 512N297V03).

Is LIC Jeevan Lakshya currently available for new policies?

Yes, as Plan 733. Plan 933 is no longer sold, but existing 933 policies continue on their original terms.

How does LIC Jeevan Lakshya work?

You pay premiums for the policy term minus three years. If you survive, you receive the sum assured plus bonuses at maturity. If you die during the term, your nominee receives 10% of the basic sum assured every year until the year before maturity, then 110% of the basic sum assured plus bonuses on the maturity date.

What is the maturity benefit of LIC Jeevan Lakshya?

The basic sum assured plus vested simple reversionary bonuses and any final additional bonus, provided all premiums have been paid.

How is the LIC Jeevan Lakshya premium calculated?

It is based on your age, sum assured, policy term, premium mode and underwriting, with rebates for yearly and half-yearly modes and for higher sums assured. LIC’s illustration for a 35-year-old with a ₹2 lakh sum assured and a 25-year term shows a yearly premium of ₹9,535, excluding taxes.

What is the death benefit under LIC Jeevan Lakshya?

An annual income of 10% of the basic sum assured until the year before maturity, then 110% of the basic sum assured plus vested bonuses and any final additional bonus on the maturity date. The total death benefit is at least 105% of premiums paid.

Does LIC Jeevan Lakshya provide an annual income benefit?

Yes, but only after the death of the life assured during the policy term. It is not paid while the life assured is alive.

Does LIC Jeevan Lakshya offer bonuses?

Yes. It is eligible for simple reversionary bonuses and a final additional bonus, if declared. Future bonuses are not guaranteed.

Can I take a loan against LIC Jeevan Lakshya?

Yes, once it acquires a surrender value. Under Plan 733 that can be after one full year’s premium, with limits that increase after two years. Under Plan 933 it is after two full years’ premiums.

What is the surrender value of LIC Jeevan Lakshya?

It is the higher of the guaranteed surrender value and the special surrender value. In the early years it is usually less than the premiums paid.

What happens if I stop paying LIC Jeevan Lakshya premiums?

If the policy has not acquired paid-up value, it lapses. If it has, it continues as a paid-up policy with reduced benefits and no future bonuses. A lapsed policy can be revived within five years of the first unpaid premium.

What are the tax benefits of LIC Jeevan Lakshya?

Premiums may qualify for a deduction under the old tax regime. Death benefits are generally exempt, and maturity proceeds can be exempt if the Section 10(10D) conditions are met.

Conclusion

LIC Jeevan Lakshya is designed for one job: making sure a planned future expense is still funded if the earning parent dies before the goal arrives. It does this through an annual income to the family and a lump sum on the original maturity date. Plan 933 has been withdrawn, and new policies are issued under Plan 733, which raised the minimum sum assured to ₹2 lakh and changed the surrender, loan and free-look rules.

The guaranteed part is the basic sum assured. Everything above it depends on bonuses. If you are considering LIC Jeevan Lakshya, ask for a benefit illustration, check that the premium fits your budget for the full paying term, and make sure your overall life cover is adequate.