In January 2023, the Life Insurance Corporation of India launched the LIC Jeevan Azad Policy. In just 10-15 days, this policy made remarkable strides in the non-participating insurance sector by selling over 50,000 policies in less than a month. This policy ensures a guaranteed base sum-assured amount on the date of maturity for the policyholder who survives till the end of the policy term.
Curious about what made the Jeevan Azad Policy so appealing? Keep reading to find out more.
What Is LIC’s Jeevan Azad Policy?
The Jeevan Azad policy offered by LIC is an individual, non-linked, non-participating savings life insurance plan. It operates as a Limited Premium Endowment plan, where the Premium Payment Term (PPT) is calculated by subtracting 8 years from the Policy Term. For example, if the policy is taken for 20 years, premiums will only be paid for 12 years. Similarly, for a policy term of 18 years, premiums will be paid for 10 years. This policy ensures a guaranteed base sum-assured amount on the date of maturity for the policyholder who survives till the end of the policy term.
This plan shall only be available for standard healthy lives without any medical examination upto a limit of Rs 3 Lakh and maximum upto Rs 5 Lakhs based on medical examination report.
For a 30-year-old paying Rs 12,083 for 10 years, the policy’s maturity value will be Rs 2 lakh after 18 years, yielding a net interest rate of 4-5 percent. If the annualised premium falls below 105 percent of all premiums paid, the death benefit will be the lesser of the basic sum assured or seven times the annualised premium.
A guaranteed lump sum payment to policyholders of the savings-based life insurance plan Jeevan Azad upon maturity is what makes it unique. A person choosing 18-year insurance will only be required to make premium payments for 10 years because the policy’s payment period is equal to the policy term minus 8 years. The policy’s terms range from 15 to 20 years, and the lowest and maximum sums insured are Rs 2 lakh and Rs 5 lakh, respectively.
Eligibility Conditions And Restrictions For Base Plan
- Minimum Basic Sum Assured – Rs 200,000
- Maximum Sum Assured – Rs 5,00,000 (per life)
- Basic Sum Assured shall be in multiples of Rs 25,000/-
- Minimum age at entry 90 days (completed) (However for online plans, minor life is not allowed. You can purchase offline from any nearest branch.
- Maximum age at entry 50 Years (nearer birthday)
- Minimum Maturity age 18 years (Completed)
- Maximum Maturity age 70 years (nearer birthday)
Maturity Benefit
On the life assured surviving to the date of maturity, “Sum Assured on Maturity” which is equal to Basic Sum Assured shall be payable.
Death Benefit
- Death Benefit payable on death of the Life Assured during the policy term after the date of commencement of risk but before the stipulated date of maturity shall be “Sum Assured on Death”; Where
- The “Sum Assured on Death” is defined as higher of Basic Sum Assured or 7 times of Annualised Premium.
- This death benefit shall not be less than 105% of “Total Premiums Paid” upto the date of death.
- Where, Total Premiums Paid means the total of all premiums received, excluding any extra premium, any rider premium(s) and taxes, if any.
- In case LIC’s Premium Waiver Benefit Rider is opted for, in the event of death of Proposer, any subsequent Premiums which are waived shall be deemed to have been received and be included in the Total Premiums Paid.
- However, on death of the minor Life Assured (whose age at entry is below 8 years) before the commencement of Risk (as specified in ‘features’ tab), the death benefit payable shall be refund of premium(s) paid [excluding taxes, any extra premium and rider premium(s), if any], without interest.
How can you buy LIC Jeevan Azad policy online?
- Login to LIC’s website https://www.licindia.in/ and click “BUY POLICY ONLINE”Select “LIC’s Jeevan Azad” and click on “CLICK TO BUY ONLINE”
- Fill contact details i.e. Name, Date of birth, mobile no, email ID and nearest City to create access id and OTP.
- Enter captcha and submit. You will receive a 9 digit access id and OTP on your mobile no and email.
- Enter OTP and proceed further.
The above information is for general awareness use. Readers are advised to read complete details about the policy on the official website of LIC (https://licindia.in/).
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