LIC launches new life insurance plan Jeevan Azad; Check how you can get Rs 5 lakh at end of tenure

State insurance major Life Insurance Corporation of India (LIC) has launched Jeevan Azad (Plan No. 868), which is aimed at individual savings and life insurance. As per the note circulated by the LIC, Jeevan Azad is a non-participating, non-linked, individual, savings life insurance plan and limited premium endowment plan.  

It looks into the liquidity need through a loan facility and also provides a guaranteed lump sum amount to the surviving life on the date of maturity. 

The plan has a limited premium payment option where the premium paying term is 8 years less than the policy term. The plan aims to offer financial support to the family in case of uncertain death of the life assured during the policy term.  

Besides, it offers the surviving life assured a guaranteed lump sum payment on the maturity date. Accidental death and disability benefit rider are available. Non-medical insurance policy up to 3 lakhs assured. 

Assured returns 

As per the policy documents, investors would get a minimum basic sum of Rs 2 lakh assured under LIC Jeevan Azad Plan. The maximum basic sum assured is Rs 5 lakh. The policy can be taken for term of 15 to 20 years. 

Age limits for the policy 

For this plan, the minimum admission age is 90 days, while the maximum entry age is 50 years. 

Premium Payment Term Calculation & frequency 

Under the plan, the LIC will calculate the premium paying term as the policy term minus 8 years. Therefore, if the investors opt for a 20-year policy term, he will have to pay the premium for 12 years (20-8). 

Premium can be paid regularly at yearly, half-yearly, quarterly or monthly intervals. 

Investment plans

As per LIC, if a beneficiary pays the premium of Rs 25,120 in the first year and Rs 24,578 from the second year to 12 years, he would get Rs 500,000 at end of the tenure. The total premium paid by the beneficiary will be Rs 2,95,478.

Exit plans 

The policy can be surrendered after 2 years and at least 2 full payments of premiums. 

Benefits after investor’s death 

Under the new plan, the death benefit is payable on the death of the life assured during the policy term. It is given after the date of commencement of risk but before the date of maturity. The death benefit shall be “Sum Assured on Death” where “Sum assured on Death” is defined as higher of ‘Basic Sum Assured’ or 7 times of Annualized Premium’.  

The Death Benefit shall not be less than 105 per cent of ’Total Premiums Paid’ up to the date of death,  LIC said. 

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