LIC Jeevan Azad Plan

Death Benefit

In case of the unfortunate death of the life assured during the policy term, the nominee listed under LIC Jeevan Azad plan receives the ‘Sum Assured on Death’ as the death benefit. The sum assured on death is defined as Higher of

• Basic sum assured, or
• 7 times the annualised premium

Note that the death benefit received is more than 105% of the total premium paid up to the date of death.

Death Benefit in Case of a Minor Life Assured

Suppose the policy is proposed under the life of a minor (entry age below 8 years). Upon the death of the life assured before the commencement of risk, the premiums paid towards LIC Jeevan Azad Plan till the date of death are refunded without any interest as the death benefit.

Maturity Benefit

When the life assured survives the date of maturity of the policy, they receive the Basic Sum on Maturity equal to the ‘Basic Sum Assured’ as a maturity benefit. Once the benefits are paid, the LIC Jeevan Azad policy terminates.

Tax Benefit

The policyholder can avail of tax benefits of up to Rs. 1.5 Lakhs on the premium paid towards LIC Jeevan Azad 868 under Section 80C. Additionally, the benefits received are tax-exempt under Section 10 (10D) of the Income Tax Act, 1961.

Payment of Premiums

Depending on financial suitability, the policyholder can opt to make the premium payments regularly yearly, half-yearly, quarterly, or monthly.

Grace Period

A grace period of 30 days is allowed for yearly, half-yearly, or quarterly premiums, while 15 days is allowed for monthly premiums from the first unpaid premium date. During this period, all the benefits continue without any interruption. Suppose the policyholder does not pay the premiums before the completion of the grace period, the LIC Jeevan Azad plan lapses.

Policy Revival

The policyholder can revive LIC Plan 868 within 5 consecutive years from the date of the first unpaid premium by paying all the outstanding premiums with interest. The LIC of India fixes the interest rate from time to time. The revival of LIC riders added to LIC Jeevan Azad plan is only possible with the base policy, not in isolation.

Paid Up Value

Suppose the policyholder duly paid the premium towards LIC Jeevan Azad for at least two full years, and any subsequent premiums are unpaid. In that case, the policy acquires paid up value till the end of the policy term. Under such conditions, the benefits payable are reduced to ‘Death Paid-Up Sum Assured’ and ‘Maturity Paid-Up Sum Assured’.

Policy Surrender

When the policyholder has duly paid the premiums for at least two full years, the policy can be surrendered anytime during the policy term. Upon surrender, LIC of India pays the policyholder a surrender value equal to the higher of

• Guaranteed surrender value, or
• Special surrender value

Policy Rebates

The policyholder can avail of the following rebates under LIC plan 868.

Modal Rebates:

Rebates on High Sum Assured:

Rebates on Online Sale:

Policy Loan

The policyholder can avail of the loan under LIC Jeevan Azad when at least two full years premiums have been duly paid. The maximum loan amount granted should be as

• For in-force policies: up to 90% of the surrender value
• For paid-up policies: up to 80% of the surrender value

Free Look Period

Suppose the policyholder is not satisfied with the terms and conditions of the LIC Jeevan Azad policy. In that case, they can return it to LIC India within 30 days of the date of policy issuance. The policyholder needs to state the reasons for the objection. Thereafter, the LIC of India cancels the plan and returns the premium amount deposited after deducting any expenses.