The terms of the policy vary from 15 to 20 years, and the minimum and maximum sums insured are Rs 2 lakh and Rs 5 lakh respectively.
LIC’s Jeevan Azad is an individual, untied, non-participating savings life insurance plan.
Life Insurance Corporation of India had introduced LIC Jeevan Azad policy in January 2023. Within 10-15 days, the policy made huge strides in the non-participating insurance industry and sold 50,000 policies in less than a month.
Now you might be wondering what made that Politics of Jeevan Azad attractive. Read on to find out more.
What is LIC’s Jeevan Azad policy?
LIC’s Jeevan Azad is an individual, untied, non-participating savings life insurance plan. It is a limited premium endowment plan under which the premium payment term (PPT) is equal to the term of the policy minus 8 years. This means that if the policy is taken out for 20 years, the premium will only be paid for 12 years. Similarly, a person will pay the premium for 10 years for a policy term of 18 years. It provides a basic capital guaranteed-amount insured at the maturity date for the surviving insured life.
This plan will only be available for normal healthy lives without any medical examination up to a limit of Rs 3 Lakh and maximum up to Rs 5 Lakhs based on the medical examination report.
For a 30-year-old man paying Rs. 12,083 for 10 years, the maturity value of the policy will be Rs. 2 lakh after 18 years, giving a net interest rate of 4-5%. If the annualized premium falls below 105 percent of all premiums paid, the death benefit will be the lesser of the base sum insured or seven times the annualized premium.
A guaranteed lump sum payment to policyholders of the Jeevan Azad savings-based life insurance plan at maturity is what makes it unique. A person choosing 18 year old insurance will only be required to pay premiums for 10 years, as the policy payout period is equal to the policy term minus 8 years. The terms of the policy vary from 15 to 20 years, and the minimum and maximum sums insured are Rs 2 lakh and Rs 5 lakh respectively.
On the Life Insured surviving the Maturity Date, the “Maturity Sum Insured” which is equal to the Base Sum Insured will be payable.
- The death benefit payable on the death of the insured during the term of the policy after the risk commencement date but before the stipulated maturity date will be the “sum insured at death”; Or
- “Sum insured at death” is defined as greater than the basic sum insured or 7 times the annualized premium.
- This death benefit must not be less than 105% of the “total premiums paid” up to the date of death.
- Where, Total Premiums Paid means the total of all premiums received, excluding any additional premiums, any endorsement premiums and taxes, if any.
- In the event that the LIC Waiver of Premium Rider is elected, in the event of the applicant’s death, all subsequent premiums that are waived will be deemed to have been received and will be included in the total premiums paid.
- However, in the event of the death of the insured minor (whose entry age is less than 8 years) before the start of the risk (as specified in the “characteristics” tab), the death benefit payable will be the reimbursement of the premium(s) paid. [excluding taxes, any extra premium and rider premium(s), if any]without interest.
Eligibility requirements and restrictions for the basic plan
- Minimum basic sum insured – Rs 200,000
- Maximum Sum Insured – Rs 5,00,000 (per life)
- The basic sum insured must be in multiples of Rs 25,000/-
- Minimum age at entry 90 days (completed) (However, for online plans, underage life is not allowed. You can purchase offline at any nearest branch.
- Maximum age at entry 50 (nearest birthday)
- Minimum age of maturity 18 years (Terminated)
- Maximum age of maturity 70 (nearest birthday)
Policy term and premium payment term
|Policy term||Duration of premium payment|
|15 to 20 years old||Policy term minus 8 years|
The age at entry of the insured must be considered as the age closest to the birthday, with the exception of the minimum age at entry which must be taken as indicated below:
|Policy duration (years)||Minimum age at entry (in completed years/days)|
|18, 19 and 20||90 days|
How can you buy LIC Jeevan Azad font online?
- Login to LIC website https://www.licindia.in/ and click “BUY POLICY ONLINE”
- Select “LIC’s Jeevan Azad” and click “CLICK TO BUY ONLINE”
- Fill in contact details i.e. name, date of birth, mobile number, email id and nearest city to create access ID and OTP.
- Enter captcha and submit. You will receive a 9-digit Access ID and an OTP on your mobile number and email.
- Enter OTP and continue.
The above information is intended for general use. Readers are advised to read full details of the policy on the official website of LIC (https://licindia.in/).
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