LIC Jeevan Azad Plan

LIC Jeevan Azad Plan

  • Protection and Savings
  • Extend Benefit with Riders
  • Facility to Avail of Loan

LIC Jeevan Azad for Guaranteed Return

Life Insurance Corporation of India (LIC of India) is one of India's renowned life insurance companies, serving customers with different types of life insurance plans. Different plans serve different purposes. Depending upon the needs of the individuals, they can select a policy to secure life risk cover, gain investment benefits, claim pension benefits, or build a corpus for their child's education.

But do you want to secure financial support for your loved ones when you are not around and gain investment benefits in a single plan, that too, at an affordable premium cost? That's precisely what the Jeevan Azad Plan aims for – providing the peace of mind that your family's financial well-being is protected, no matter what. In this blog, we discuss LIC Jeevan Azad policy details, uncovering its features, benefits, and everything you need to know to make an informed decision.

What is LIC Jeevan Azad Plan?

LIC Jeevan Azad is a non-linked, non-participating, individual savings life insurance plan in the category of endowment policies. The single premium paying plan offers the combined benefit of protection and savings.

In simple words, buying LIC Jeevan Azad plan ensures the financial security of the family in case of an unfortunate death of the life assured during the policy term. If the life assured survives the policy term, they receive a guaranteed lump sum amount on the policy maturity date.

To fund any financial requirements during the policy term, the policyholder can avail of the loan under LIC Jeevan Azad Policy. You can purchase the plan offline through licensed agents, insurance brokers, corporate agents, insurance marketing firms, POSP-LI, and online on the official website of LIC of India.

Highlights of LIC Jeevan Azad Policy

The following are the key highlights of the Jeevan Azad LIC plan that make it a worthwhile investment.

  • Plan Type
  • Policy Term
  • Min. Basic Sum Assured
  • Death Benefit

Endowment Plan

15 to 20 years

Rs. 2 Lakhs

105% of total premiums paid

Eligibility Criteria of LIC Jeevan Azad Plan

An individual looking to buy LIC Azad Plan 868 must meet the following eligibility criteria and restrictions.

Parameters Specifications
Entry Age 90 days - 50 years
Maturity Age 18 years - 70 years
Premium Paying Term Policy Term – 8 years
Maximum Basic Sum Assured Rs. 5 Lakhs

LIC Jeevan Azad Plan Benefits

A healthy individual can purchase LIC Jeevan Azad Policy to secure a sum assured of up to Rs. 3 Lakhs without going through any medical examination. To avail of a basic sum of up to Rs. 5 Lakhs, the individual must undergo a medical examination. The benefits under LIC Plan 868 are payable as follows:

01

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.

02

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.

03

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.

04

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.

Optional Benefits Under LIC Jeevan Azad Plan

Apart from the benefits mentioned, the policyholder can avail of optional benefits to extend the base policy coverage and flexibility under the LIC Jeevan Azad plan.

Optional Riders

The policyholder can add the following optional riders to the LIC Jeevan Azad plan by paying an additional premium and enhance the base policy cover:

  • LIC Accidental Death and Disability Benefit Rider
  • LIC Accident Benefit Rider
  • LIC Premium Waiver Benefit Rider

However, the policyholder can opt between LIC accident death and disability benefit rider and LIC accident benefit rider. This way, a maximum of two riders can be availed under the LIC Jeevan Azad 868 plan.

Also, read about LIC Riders in detail.

Settlement Option for Maturity Benefit

Under this option, the policyholder can opt to receive the maturity benefit in instalments spread over a period of 5 years instead of a lump sum amount. This option is applicable for full or part of maturity proceeds payable under the policy. The instalments are paid in advance depending on the mode selected, subject to the minimum instalment amount as follows:

Instalment Payment Mode Minimum Instalment Amount
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Annually Rs. 50,000

Opt to Receive the Death Benefit in Instalments

The policyholder can opt to receive the full or part of the death benefit in instalments over a period of 5 years instead of a lump sum amount. The instalments shall be paid in advance at the mode selected by the policyholder. The minimum instalment amount for different modes is as follows:

Instalment Payment Mode Minimum Instalment Amount
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Annually Rs. 50,000

LIC Jeevan Azad Policy Premium Chart

Let’s understand the LIC Jeevan Azad Policy premium rates to better understand how much you need to spend and attain financial security under the plan.

The table below reflects the annual premium rates of LIC plan 868 for the basic sum assured of Rs. 2 Lakhs, where the policy is sold offline for a standard healthy life.

Age (Nearer Birthday) Annual Premium
Policy Term (Policy Paying Term)
15 (7) 16 (8) 17 (9) 18 (10) 19 (11) 20 (12)
10 Rs. 17,679 Rs. 15,190 Rs. 13,279 Rs. 11,917 Rs. 10,692 Rs. 9,682
20 Rs. 17,787 Rs. 15,288 Rs. 13,377 Rs. 12,015 Rs. 10,780 Rs. 9,771
30 Rs. 17,846 Rs. 15,347 Rs. 13,446 Rs. 12,083 Rs. 10,858 Rs. 9,849
40 Rs. 18,159 Rs. 15,670 Rs. 13,769 Rs. 12,436 Rs. 11,221 Rs. 10,231
50 Rs. 19,208 Rs. 16,719 Rs. 14,837 Rs. 13,524 Rs. 12,328 Rs. 11,358

* Premium rates reflected above are taken from the sources available on the official website of LIC of India. Additionally, you can use the LIC Jeevan Azad calculator to estimate the expected premium rates for your personalized financial requirements or visit the official website of LIC of India.

Also read: How can you use LIC premium calculator?

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Additional Features of LIC Jeevan Azad Policy

The following additional features are available under the LIC Jeevan Azad policy, making the policy purchase more flexible.

01

Payment of Premiums

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

02

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.

03

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.

Read in Detail: The process to revive lapsed LIC policy.
04

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’.

05

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
06

Policy Rebates

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

Modal Rebates:

Premium Payment Mode Rebates
Yearly 2% of the tabular premium
Half-yearly 1% of the tabular premium
Quarterly & monthly NIL

Rebates on High Sum Assured:

Basic Sum Assured Rebates on Tabular Premium per Rs. 1000 BSA
Up to Rs. 2,75,000 NIL
Rs. 3,00,000 to Rs. 3,75,000 0.50
Rs. 4,00,000 to Rs. 4,75,000 1.50
Rs. 5,00,000 2.00

Rebates on Online Sale:

Premium Paying Term Rate of Rebate
7 to 9 years 7.50%
10 to 12 years 10%
07

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
08

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.

Exclusions Under LIC Jeevan Azad Plan

Suicide committed under a certain time period prevents the policyholder from attaining the benefits under the LIC Jeevan Azad Plan. The exclusions are defined as

  • If the life assured commits suicide at any time within the 12 months from the date of commencement of risk, the nominee receives 80% of the total premium paid, excluding taxes or rider premium.
  • If the life assured commits suicide within 12 months from the date of revival, the nominee receives a higher of 80% of the total premium paid or the surrender value till the date of death.

Final Words

Reading here, you have learnt about LIC Jeevan Azad plan details that will help you make your investment decision more wisely. When you can purchase an LIC plan directly by reaching a nearby LIC branch, you can also contact an LIC agent or POSP advisor. Take the help of RenewBuy Advisor Connect to search for an advisor nearby.

If you want to purchase LIC Jeevan Azad online, visit the official LIC India website. Once purchased, add the plan to your LIC customer portal and manage your policy online. There, you have secured your family from any mishaps in life and secured a corpus by paying the LIC premium on time.

Recommended Read: LIC Premium Payment in Simple Steps

Explore LIC of India Resources