LIC Jeevan Lakshya (733) Calculator

LIC Jeevan Lakshya (733) Calculator

What this calculator does

LIC's Jeevan Lakshya (Table No. 733) is a non-linked, participating (with-profits) life insurance plan built specifically around a family's future milestones - a child's education, a wedding, or any long-term goal - rather than around the policyholder's own retirement or survival. It is a limited premium payment plan: you pay premiums for only Policy Term minus 3 years, while risk cover and bonus accrual continue for the full Policy Term.

What sets Jeevan Lakshya apart from a plain endowment plan is its Death Benefit structure. If the life assured dies during the policy term (outside the last two policy years), the plan pays out in two parts - not one:

1. An immediate lump sum (the Sum Assured on Death, plus bonus accrued to date), paid right away to the family, and
2. An Annual Income Benefit - 10% of the Basic Sum Assured, paid every year from the date of death until the original maturity date - so the family keeps receiving a yearly income exactly as if the policyholder were still around, right up to the year the policy would have matured.

At the end of the original policy term, the Maturity Benefit (Basic Sum Assured plus all vested bonuses plus the Final Additional Bonus) is paid out as well - whether or not the life assured is alive - completing the plan's goal-linked promise.

This calculator gives you an indicative estimate of:

• the Premium Payment Term (Policy Term minus 3 years) and the annual premium you would pay throughout it, plus the per-installment premium for your chosen payment mode
• the Accident Benefit Rider premium, if you opt for it
• the lump sum payable immediately on death, and the Annual Income Benefit paid every year after that until the original maturity date
• the Simple Reversionary Bonus that vests every policy year, and the Final Additional Bonus (FAB) paid only at maturity for longer-running policies
• the total maturity benefit - Basic Sum Assured plus all vested bonuses plus the FAB
• a year-by-year schedule showing the accrued bonus and the benefit payable on death (lump sum, plus the annual income note where it applies) as the policy runs

based on your entry age, Basic Sum Assured, Policy Term, payment mode, and whether you add the Accident Benefit Rider.

Formula Used

Eligibility. Entry age must be between 18 and 50 years, the Policy Term between 13 and 25 years, and the age at maturity (entry age plus policy term) cannot exceed 65 years:

$$MaturityAge = EntryAge + PolicyTerm \le 65$$

Premium Payment Term. Jeevan Lakshya is a limited premium plan - premiums stop 3 years before the policy matures, though cover and bonuses continue to the full term:

$$PremiumPaymentTerm = PolicyTerm - 3$$

Premium. The illustrative tabular annual premium rate (₹ per ₹1,000 Sum Assured) combines a savings component that shrinks as the Premium Payment Term lengthens with a mortality component that grows with entry age:

$$BaseRate(age, ppt) = \frac{1000}{ppt} \times 0.85 + \big(2.2 + age \times 0.05\big)$$

Policies with a larger Sum Assured earn a small per-mille rebate on the tabular rate - a "High Sum Assured Rebate":

$$Rebate(SumAssured) = \begin{cases} 3 & SumAssured \ge 10{,}00{,}000 \\ 2 & SumAssured \ge 5{,}00{,}000 \\ 0 & \text{otherwise} \end{cases}$$ $$AnnualPremium = \frac{SumAssured}{1000} \times \big(BaseRate(age, ppt) - Rebate(SumAssured)\big)$$

If you opt for the Accident Benefit Rider, an additional ₹0.50 per ₹1,000 of Sum Assured (capped at a Sum Assured of ₹50,00,000 for the rider) is added:

$$RiderPremium = \frac{\min(SumAssured,\ 50{,}00{,}000)}{1000} \times 0.50$$

The total is then split by your chosen payment mode (yearly, half-yearly, quarterly, or monthly), using LIC's standard modal factors (yearly 1.00, half-yearly 0.510, quarterly 0.260, monthly 0.0875), and paid for the Premium Payment Term only:

$$InstallmentPremium = (AnnualPremium + RiderPremium) \times ModeFactor$$ $$TotalPremiumPayable = InstallmentPremium \times InstallmentsPerYear \times PremiumPaymentTerm$$

Lump sum payable immediately on death. The guaranteed minimum payable right away on death during the policy term is the higher of the Basic Sum Assured itself or 7 times the annualized premium:

$$SumAssuredOnDeath = \max\big(SumAssured,\ 7 \times AnnualPremium\big)$$

Annual Income Benefit. This is Jeevan Lakshya's defining feature: in addition to the lump sum above, 10% of the Basic Sum Assured is paid every year from the date of death until the original maturity date - but only if death occurs before the last 2 policy years (too close to maturity for a further income stream to apply):

$$AnnualIncomeBenefit = 0.10 \times SumAssured$$

Simple Reversionary Bonus. An illustrative bonus of ₹45 per ₹1,000 Sum Assured vests at the end of every completed policy year, right up to maturity:

$$VestedBonus(year) = year \times \frac{SumAssured}{1000} \times 45$$

Final Additional Bonus (FAB). An illustrative one-time bonus of ₹1,500 per ₹1,000 Sum Assured, paid only at maturity, and only if the Policy Term is 15 years or longer:

$$FAB = \begin{cases} \frac{SumAssured}{1000} \times 1500 & term \ge 15 \\ 0 & \text{otherwise} \end{cases}$$

Maturity Benefit (paid once, at the end of the policy term, whether or not the life assured is alive):

$$MaturityBenefit = SumAssured + VestedBonus(term) + FAB$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate table, which is IRDAI-approved and can change over time. The real plan's death benefit is also subject to a floor of 105% of total premiums paid to date, which this calculator does not model exactly. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter your Age at Entry in years (18 to 50).
2. Enter your desired Basic Sum Assured (minimum ₹1,00,000).
3. Choose your Policy Term in years (13 to 25) - remember entry age plus term cannot exceed 65. Your Premium Payment Term will automatically be 3 years shorter.
4. Choose your Premium Payment Mode - yearly, half-yearly, quarterly, or monthly.
5. Choose whether to add the Accident Benefit Rider.
6. Click Calculate Benefits to see your premium, the lump sum and Annual Income Benefit payable on death, the bonus schedule, and the total maturity benefit.

Worked Example

Suppose you are 30 years old, choose a Basic Sum Assured of ₹5,00,000, a 20-year Policy Term, yearly payment mode, and no rider.

$$PremiumPaymentTerm = 20 - 3 = 17 \text{ years}$$ $$BaseRate(30, 17) = \frac{1000}{17} \times 0.85 + (2.2 + 30 \times 0.05) = 50.0 + 3.7 = 53.7$$

Since the Sum Assured is ₹5,00,000, a rebate of 2 per mille applies:

$$AnnualPremium = \frac{5{,}00{,}000}{1000} \times (53.7 - 2) = 500 \times 51.7 = ₹25{,}850 \text{ per year}$$

Over the 17-year Premium Payment Term, total premium payable is 25{,}850 \times 17 = ₹4{,}39{,}450.

The lump sum payable immediately on death is \max(5{,}00{,}000,\ 7 \times 25{,}850) = \max(5{,}00{,}000,\ 1{,}80{,}950) = ₹5{,}00{,}000, and the Annual Income Benefit is 0.10 \times 5{,}00{,}000 = ₹50{,}000 per year - paid every year from the date of death until the original maturity date (as long as death occurs before the last 2 policy years).

At maturity, the vested Simple Reversionary Bonus is 20 \times 500 \times 45 = ₹4{,}50{,}000, and since the term is 20 years (≥ 15), a Final Additional Bonus of 500 \times 1500 = ₹7{,}50{,}000 is also paid. The total maturity benefit is:

$$MaturityBenefit = 5{,}00{,}000 + 4{,}50{,}000 + 7{,}50{,}000 = ₹17{,}00{,}000$$

So if the life assured survives the full term, the family receives ₹17,00,000 at maturity. If the life assured instead passes away in, say, policy year 10 (age 40), the family receives an immediate lump sum plus accrued bonus right away, and then ₹50,000 every year for the remaining 10 years until the policy would have matured, on top of that.