LIC Jeevan Azad

If a policy-seeker wants to purchase an insurance plan that offers a combination of savings and protection, he/she can keep LIC’s Jeevan Azad plan on the bucket list. Life Insurance Corporation of India recently launched the Jeevan Azad plan in January, a limited premium payment endowment plan. This plan not only takes care of the liquidity needs of the family through the loan facility but also offers financial help to the family of the life assured in case of an unfortunate and untimely demise of the life assured during the policy term of an active policy.

The followings are the basic specification of the plan:

Plan name

LIC’s Jeevan Azad Plan

Type of the plan

Non-linked, non-participating, individual, savings, life insurance plan

Plan number

868

UIN

512N348V01

Date of launch

19.01.2023

Eligibility Criteria

Key specifications Details

Minimum age at entry

90 days (Completed)

Maximum age at entry

50 years (nearer birthday)

65 years (nearer birthday) minus Policy Term in case of policies procured through POSP-LI/CPSC-SPV

Minimum age at maturity

18 years

Maximum age at maturity

70 years (nearer birthday)

65 years (nearer birthday) in case of policies procured through POSP-LI/CPSC-SPV

Policy term

15 to 20 years

Premium paying term

Policy Term minus 8 years

Minimum basic sum assured per life

Rs. 2 lakhs

Maximum basic sum assured per life

Rs. 5 lakhs

Payment of premiums

Yearly, half-yearly, quarterly, or monthly.

Key Benefits of LIC'S Jeevan Azad Policy

This plan offers the life assured and his/her family multiple benefits to provide maximum financial protection and security. Those benefits are discussed below.

Death Benefit:

The death benefit is payable after the date of commencement of risk but before the maturity date on the death of the life assured during the policy term of an active policy. The death benefit is equal to the sum assured on death which is higher of the followings.

• Basic Sum Assured

• 7 times of Annualized Premium.

This Death Benefit shall not be less than 105% of the Total Premiums Paid up to the date of death.

Death benefit in case of a minor:

In case of a minor Life Assured, whose age at entry is below 8 years, on death before the commencement of risk, the Death Benefit payable will be a refund of premium(s) paid, excluding taxes, extra premium, and rider premium(s), if any), without interest.

Maturity Benefit:

If the life assured survives the stipulated date of maturity, Sum Assured on Maturity will be paid to him/her, which is equal to Basic Sum Assured.

Rebates:

The rebates will be as per the following tables:

Mode rebate

Mode Rebate

Yearly mode 2% of Tabular Premium

Half-yearly mode 1% of Tabular Premium

Quarterly, Monthly (NACH) & SSS mode

NIL

Paid-up Value:

If the life assured pays at least two full years’ premiums and any subsequent premiums are not duly paid, this policy will not be wholly void, rather it will be called a paid-up policy till the end of the policy term. Under this policy, the death paid-up sum assured on death, and maturity paid-up sum assured on maturity will be payable. The rider will not acquire any paid-up value and the rider benefits cease to apply if policy is in lapsed condition. 

Loan Facility:

This policy has come up with the loan facility under the following terms and conditions:

• At least two years’ full premiums have to be paid.

• The maximum loan for an in-force policy will be 90%. For a paid-up policy, it will be 80%.

• A certain rate of interest will be applicable for availing of the loan facility. 

• Any outstanding loan, along with interest, will be recovered from the claim proceeds at the exit time.

Surrender Benefit:

The policy can be surrendered by the policyholder at any time during the policy term, provided two full years’ premiums have been paid. On surrender of the policy, the Corporation will pay the Surrender Value equal to the higher Guaranteed Surrender Value or Special Surrender Value.

Optional Benefits of LIC'S Jeevan Azad

There are several options available with this policy which have made the policy more convenient for the customers. Those options are as follows.

Optional Riders:

To strengthen the policy, one can opt for the following riders by paying a little extra premium.

• LIC’s Accidental Death and Disability Benefit Rider

• LIC’s Accident Benefit Rider

• LIC’s Premium Waiver Benefit Rider

However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider and/or LIC’s Premium Waiver Benefit Rider subject to the eligibility.

Settlement option for maturity and death benefit:

One can receive the maturity and death benefit in installment over a period of 5 years instead of lumpsum amount for both an in-force and paid-up policy. The minimum installement amount will be as per the following table:

Mode of installment payment

Minimum installment amount

Monthly Rs. 5000

Quarterly Rs. 15,000

Half-yearly Rs. 25,000

Yearly Rs. 50,000

What are the key exclusions of LIC'S Jeevan Azad?

The general exclusions of LIC’s Jeevan Azad are as follows:

• Anything that does not fulfil the terms and conditions of the policy fall under the category of exclusions.

• Any kind of breach of law, intentionally or unintentionally, is permanently excluded from the policy.

• If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the nominee or beneficiary of the Life Assured will be entitled to 80% of the total premiums paid, excluding any taxes, extra premium, and rider premiums, if any, provided the policy is in-force. This clause will not be applicable in case the age at entry of the Life Assured is below 8 years.

• If the Life Assured commits suicide within 12 months from the date of revival, an amount which is higher than 80% of the total premiums paid till the date of death, or the surrender value available as on the date of death, will be payable. The nominee or beneficiary of the Life Assured shall not be entitled to any other claim under the policy. This clause is not applicable for a minor life assured and for a policy lapsed without acquiring paid-up value.

Let’s understand this with an example!

Mr. Kumar, a 30-year-old male, purchased  of the LIC Jeevan Azad Plan. He planned to go for the sum assured of Rs. 5 lakhs. The plan will work for him as follows:

Sum Assured Rs. 5 Lakhs

Policy Term 20 Years

Premium Paying Term   12 Year

Premium Amount with GST Rs. 24532

Death time Nominee get Rs. 5,00,000  or 

Maturity Rs. 5,00,000