LIC Jeevan Lakshya Calculator
Calculate premium and benefits for LIC Jeevan Lakshya (Plan 733, UIN: 512N297V03) — LIC's child education savings plan. On death, your family gets 10% BSA every year till maturity then 110% BSA lump sum. On survival, full BSA plus bonus at maturity.
Most parents saving for their child's education face one blind spot: if they die mid-way, the annual savings stop and the corpus falls short. Jeevan Lakshya solves this. The moment you pass away, the plan sends 10% of your BSA to your family every year — replacing your contribution. On the day the policy matures, 110% of BSA arrives as a lump sum. The goal is met regardless of what happens to you.
Your Policy Details
Your Premium and Benefits
13 yrs / PPT 10 yrsFull Policy Summary
Plan 733 · UIN 512N297V03Your LIC Jeevan Lakshya Policy at a Glance
Year-by-Year Policy Statement
13 YearsGreen rows = premium paying years. Death Benefit shown is if death occurs in that year (annual income starts from next anniversary, lump sum paid on maturity date). Maturity benefit shown only in final year.
| Year | Age | Premium Due | Cumul. Premium | Accrued Bonus (Est.) | Annual Income if Death This Year | Status |
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LIC Jeevan Lakshya Plan 733 — What Every Parent Needs to Know
Planning your child's college fund is one of those things that feels straightforward until you think through the hard scenario. You set up a 20-year savings plan. You commit to paying annually. The money will be there when your child turns 18 or 21. But what if you are not there to keep paying? The plan collapses. The corpus is a fraction of what was needed. And your child still has fees to pay.
LIC Jeevan Lakshya was specifically designed to close that gap. The Annual Income Benefit is not a side feature — it is the entire point of the plan. If you die at any point during the policy term, your family does not get one large lump sum that may be spent or mismanaged. Instead, they receive 10% of your Basic Sum Assured every year until the policy matures. Then, exactly on the maturity date — the day you planned for — 110% of BSA arrives as a lump sum. The goal is met. The child gets their education corpus on schedule.
How the Annual Income Benefit Actually Works
Understanding exactly how this benefit flows is important:
- You take a policy with BSA Rs 5 lakh and a 20-year term (PPT 17 years)
- You die in Year 8. You have paid 8 years of premiums
- From the next policy anniversary after your death, your family receives Rs 50,000 per year (10% of Rs 5 lakh)
- This continues for Years 9, 10, 11 — all the way to Year 19 (the anniversary before maturity)
- On Year 20 (the actual maturity date), your family receives Rs 5,50,000 (110% of BSA) as a lump sum
- Plus all vested bonuses accumulated since inception are paid on that same maturity date
- Total guaranteed death benefit: Rs 50,000 per year for 11 years (Rs 5,50,000) plus Rs 5,50,000 at maturity = Rs 11 lakh guaranteed, plus bonus
Your family never has to worry about when the money arrives or how to manage it. The annual income keeps coming. The lump sum arrives on schedule.
Premium Paying Term — Always 3 Years Less
Jeevan Lakshya has a fixed PPT structure: you always pay for Policy Term minus 3 years. There is no choice here — it is baked into the plan design. For a 20-year policy you pay for 17 years. For a 25-year policy you pay for 22 years. This means:
- You get 3 years of coverage without any further payment at the end
- The policy stays fully in force during those last 3 years
- Bonuses keep accruing in those 3 years even though you are not paying premiums
- If you die in the last 3 years, the full death benefit still applies
Choosing the Right Policy Term
- 13-year term (PPT 10 years): Best for parents in their late 30s or 40s who want the corpus ready when the child is in their teens. Highest annual premium but shortest commitment
- 15-year term (PPT 12 years): Good middle ground. Suitable when a specific goal — Class 12 to college transition — is 15 years away
- 20-year term (PPT 17 years): Most popular combination for young parents. Start when the child is born, receive the corpus when they turn 20
- 25-year term (PPT 22 years): Lowest annual premium. Best started in the parent's 20s. Provides the largest maturity corpus due to more years of bonus accumulation
Who Should Buy Jeevan Lakshya
- Parents with a specific, time-bound education goal for a child 13 to 25 years away
- Single-income households where the death of the earning parent would derail the child's education plan
- Conservative investors who want life cover, annual death income protection, and guaranteed maturity corpus in one product
- People in the old tax regime who want both 80C deduction on premiums and 10(10D) tax-free maturity
Who Should Not Buy Jeevan Lakshya
- Investors who have separate term insurance and prefer higher returns through mutual fund SIPs. A term plan plus SIP typically builds a larger corpus than Jeevan Lakshya at equivalent annual outgo
- Those who need flexibility in the savings amount year to year — Jeevan Lakshya requires fixed annual commitments with a lapse risk if premiums are missed
- People in the new tax regime where the 80C benefit disappears, reducing the effective return further
The Bonus — Honest Expectations
Jeevan Lakshya is a participating plan, which means LIC shares part of its annual surplus with policyholders as Simple Reversionary Bonus. This bonus is not guaranteed — it depends on LIC's investment returns, claims experience, and expenses each year. However, LIC has declared bonuses consistently on participating plans. The benefit illustration in the official brochure uses Rs 35,000 (approx Rs 35 per Rs 1,000 BSA) as the annual bonus at the 4% scenario for the given example. This calculator uses a moderate default of Rs 55 per Rs 1,000 BSA. You can toggle between scenarios to see the range.
Tax Treatment
- Premium: Eligible for Section 80C deduction up to Rs 1.5 lakh per year (old tax regime)
- Maturity benefit: Tax-free under Section 10(10D) provided annual premium does not exceed 10% of BSA. For policies issued after April 1, 2023 where aggregate annual premiums across all life policies exceed Rs 5 lakh, maturity proceeds become taxable
- Annual Income Benefit received on death: Tax-free in the hands of the nominee
- Lump sum on maturity date after death: Tax-free in the hands of the nominee
- GST: Rs 0 since September 22, 2025
Frequently Asked Questions
What is LIC Jeevan Lakshya Plan 733?
LIC Jeevan Lakshya (Plan 733, UIN 512N297V03) is a participating, non-linked savings plan designed primarily to protect a child's future financial goals. Its unique feature is the Annual Income Benefit: if the policyholder dies during the policy term, the family receives 10% of the Basic Sum Assured every year till maturity, then 110% of BSA as a lump sum on the maturity date. If the policyholder survives, the full BSA plus accumulated bonuses is paid at maturity.
What is the Annual Income Benefit in Jeevan Lakshya?
The Annual Income Benefit is the standout feature of Jeevan Lakshya. If the policyholder dies at any time during the policy term, the family receives 10% of the Basic Sum Assured every year from the next policy anniversary after death until the policy anniversary just before the maturity date. On the actual maturity date, an additional 110% of the BSA is paid as a lump sum. This ensures a steady annual income for the child's education while a large corpus arrives exactly when it is needed most.
What is the maturity benefit if the policyholder survives?
If the life assured survives to the maturity date, the maturity benefit equals the Basic Sum Assured plus all vested Simple Reversionary Bonuses accumulated over the policy term, plus a Final Additional Bonus if declared. The bonuses depend on LIC's annual surplus and are not guaranteed, but LIC has consistently declared bonuses on participating plans for decades. The Base Sum Assured component is fully guaranteed.
What is the Premium Paying Term in Jeevan Lakshya?
The Premium Paying Term is always Policy Term minus 3 years. For a 13-year policy, you pay for 10 years. For a 15-year policy, you pay for 12 years. For a 20-year policy, you pay for 17 years. For a 25-year policy, you pay for 22 years. You stop paying 3 years before the policy matures, but the policy continues in force and bonuses keep accruing until maturity.
What is the minimum and maximum policy term in Jeevan Lakshya?
The minimum policy term is 13 years and the maximum is 25 years. Entry age is 18 to 50 years, and the maturity age must be between 31 and 65 years. So a 50-year-old can only take a 13 or 15-year policy (maturing at 63 or 65). A 25-year-old can take policies up to 25 years (maturing at 50). The term you choose should align with when you need the maturity corpus — typically when your child starts college or another major milestone.
What rebates are available in Jeevan Lakshya?
Two types of rebates apply. The Mode Rebate gives 2% off for yearly premium payment and 1% off for half-yearly payment. Quarterly, monthly, and salary deduction modes get no rebate. The High Sum Assured Rebate applies at Rs 4 per Rs 1,000 BSA for sum assured Rs 5 lakh to below Rs 10 lakh, and Rs 5 per Rs 1,000 BSA for Rs 10 lakh and above. There is no rebate for BSA below Rs 5 lakh. Both rebates stack and are applied automatically in this calculator.
What happens if I stop paying premiums in Jeevan Lakshya?
If at least one full year of premiums has been paid, the policy converts to a paid-up policy rather than lapsing entirely. The sum assured, annual income benefit and maturity benefit are all reduced proportionately based on the ratio of premiums paid to total premiums due. Bonuses already vested remain attached but no new bonuses accrue. All riders terminate when the policy becomes paid-up. The death benefit under a paid-up policy must still not be less than 105% of total premiums paid.
Is a loan available against LIC Jeevan Lakshya?
Yes. A loan is available after completing one policy year provided one full year of premiums has been paid. The maximum loan is 50% of surrender value for in-force policies before two years of premiums, rising to 75% after two full years of premiums. For paid-up policies the limits are 40% and 65% respectively. The loan interest rate for 2024-25 is 9.5% per annum compounded half-yearly.
What riders are available with Jeevan Lakshya?
Three optional riders are available. The LIC Accidental Death and Disability Benefit Rider provides extra cover for accidental death and a monthly instalment over 10 years on permanent disability, with future premiums waived. The LIC Accident Benefit Rider provides additional lump sum on accidental death. The LIC New Term Assurance Rider adds pure term cover and is available at policy inception only. Total rider premium cannot exceed 30% of the base plan premium.
Is GST applicable on LIC Jeevan Lakshya premiums?
No. As per the 56th GST Council meeting effective September 22, 2025, all individual life insurance premiums are fully exempt from GST. The premium shown in this calculator is the final amount payable. The brochure benefit illustration also confirms GST Rate as Nil currently.