Calculators LIC plans Jeevan Lakshya Review
LIC New Jeevan Lakshya (Plan 733) is a limited-pay endowment built around an income-replacement death benefit: if the life assured dies during the term, the nominee receives 10% of the basic sum assured as annual income every year until the original maturity date, and then the full 110% of BSA plus bonuses at maturity. The premium-paying term is three years shorter than the policy term (e.g., 20-year term, 17-year PPT). For a 30-year-old buying ₹5 lakh BSA for 20 years, the XIRR at current SRB of ₹49/₹1,000 SA/yr (maturity-age band ≤55) and FAB ≈ ₹60/₹1,000 SA at 20 yrs (Plan 733 has its own smaller FAB ladder) is approximately 5–6%. The income-stream death benefit is the plan's defining differentiator.
A primary breadwinner aged 28–45 with at least one financial dependant and a horizon of 15+ years. The 10%-of-BSA annual income on death replaces a salary stream rather than dumping a lump sum on a bereaved spouse who may not be financially literate — the structural plus is behavioural, not actuarial. The PPT-equals-term-minus-three structure also means you stop paying three years before maturity, useful if you expect income volatility late in your career.
Anyone without dependants — the income-replacement death benefit has no addressee. Anyone primarily seeking yield — the FAB on Lakshya is meaningfully lower than on Plans 714 or 715 because the insurer subsidises the income-stream feature out of the FAB pool. Anyone who could just buy term-plus-mutual-fund — a ₹1 cr term cover plus an SIP equal to the Lakshya premium will, in most plausible scenarios, leave the family materially better off.
The plan was withdrawn for fresh sale in 2025–26. Existing policyholders are unaffected, but the income-stream death benefit is a contractual feature frozen at the time of purchase — do not assume future LIC plans will offer the same structure. Future SRB compression remains the dominant scenario risk; the income-replacement amount itself is a fixed percentage of BSA and does not change with bonus declarations.
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term), excludes optional rider premiums from the cash-flow base, and assumes the latest declared simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions on the Jeevan Lakshya calculator.
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