LIC’s Jeevan Azad presents itself as an extraordinary Non-Linked, Non-Participating, Individual, Savings Life Insurance plan.
LIC is one of the most prestigious insurance institutions in India providing amazing LIC policies for you to subscribe to.
This plan empowers you to shape your financial destiny without compromising on your present needs.
This plan offers the convenience of limited premium payments, where the Premium Payment Term (PPT) is equal to the Policy Term minus 8 years. In this article, we will discuss LIC Jeevan Azad, eligibility, Benefits, Features, Taxes, etc.
Table of Contents
Features of LIC Jeevan Azad
The following are the features of the LIC Jeevan Azad policy-
- LIC Jeevan Azad is a non-linked, non-participating life insurance plan that focuses on delivering essential protection and savings benefits to policyholders
- Jeevan Azad offers the convenience of limited premium payments, where the Premium Payment Term (PPT) is calculated as the Policy Term minus 8 years.
- The plan harmoniously blends the elements of protection and savings, providing a comprehensive solution for individuals seeking both security for their loved ones and a means to accumulate a corpus over time.
- In the event of the life assured’s untimely demise during the policy term, Jeevan Azad offers vital financial support to the family, ensuring their well-being and stability in difficult times.
- Recognizing the need for liquidity during unforeseen circumstances, the plan provides a loan facility, enabling policyholders to access funds when required, thereby offering additional financial flexibility and peace of mind.
- Upon reaching the culmination of the policy term, Jeevan Azad bestows a guaranteed lump sum to the surviving life assured
Eligibility For the LIC Jeevan Azad
The following are the eligibility for the LIC Jeevan Azad-
| Minimum Basic Sum Assured: | Rs. 2,00,000 | |
| Maximum Basic 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 | |
| Rs. 5,00,000 (per life) The basic Sum Assured shall be in multiples of Rs 25,000/- | 50 years | |
| Minimum Maturity Age: | 18 years | |
| Maximum Maturity Age: | 70 years | |
| Policy Term and Premium Payment Term: | Policy Term | Premium Paying Term |
| Minimum Age at Entry: | Policy Term minus 8 years | |
Benefits for LIC Jeevan Azad
The following are the benefits for LIC Jeevan Azad-
- Jeevan Azad offers a combination of protection and savings, ensuring that policyholders can safeguard their financial future
- With the convenience of limited premium payments, Jeevan Azad allows policyholders to fulfil their premium obligations without undue burden
- Jeevan Azad facilitates the accumulation of savings over the policy term
- Jeevan Azad recognizes the need for liquidity during unexpected situations. Policyholders have the flexibility to avail loans against their policy
- the end of the policy term, Jeevan Azad offers a guaranteed lump sum to the surviving life assured.
- The premiums paid and the maturity proceeds are eligible for tax deductions and exemptions
Death Benefits
If the policyholder demises during the term of the LIC Jeevan Azad policy, their family is eligible to claim Death Benefits by meeting the terms and conditions.
The Death Benefit can be defined as the higher of the Basic Sum Assured or 7 times the Annualized Premium. Additionally, the death benefit should not be less than 105% of the total premiums paid up to the date of the policyholder’s death.
However, in the unfortunate event that the insured person is a minor below the age of 8 years and they pass away before the commencement of the risk period, the death benefit payable will be a refund of the premium(s) paid, excluding taxes, any extra premiums, and rider premiums (if applicable
Maturity Benefits
If the policyholder survives the policy term period of LIC Jeevan Azad, the policy offers a maturity benefit known as “Sum Assured on Maturity,” which is equivalent to the “Basic Sum Assured.”
This means that upon maturity, the policyholder will receive a lump sum amount equal to the predetermined Basic Sum Assured as specified in the policy terms and conditions.
Rebate
Rebate is the loyalty benefit LIC provides to its customer. If you pay the premium for a certain amount of time then you’ll be provided with certain premium discounts which is called Rebate. The following is the rebate for the LIC Jeevan Azad policy-
Mode Rebate
| Mode | Rebate |
| Yearly mode | 2% of Tabular premium |
| Half-yearly mode | 1% of Tabular premium |
| Quarterly, Monthly (through NACH only) and SSS mode | Nil |
High Basic Sum Assured Rebate
| Basic Sum Assured (B.S.A) | Rebate |
| Up to Rs. 2,75,000 | Nil |
| Rs. 3,00,000 to Rs. 3,75,000 | Rs. 0.50 per Rs. 1000 Basic Sum Assured |
| Rs. 4,00,000 to Rs. 4,75,000 | Rs. 1.50 per Rs. 1000 Basic Sum Assured |
| Rs. 5,00,000 | Rs. 2.00 per Rs. 1000 Basic Sum Assured |
Rebate under Online Sale
| Premium Paying Term | Online Sale Rebate (as a % of Tabular Premium) |
| 7 to 9 years | 7.50% |
| 10 to 12 years | 10.00% |
Corporation’s Insurance Scheme (CIS) Rebate
| Premium Paying Term | CIS Rebate (as a % of Tabular Premium) |
| 7 to 9 years | 7.50% |
| 10 to 12 years | 10.00% |
Loan Against Policy
LIC Jeevan Azad offers a valuable loan facility that provides policyholders with a pathway to financial flexibility.
This feature allows policyholders to access funds against their policy, catering to their immediate liquidity needs while keeping the policy benefits intact
You can find the loan details like interest rate, and tenure by contacting the LIC and finding your loan details against your policy.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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