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.
Apart from that, if the life assured survives the policy term and keeps the policy active, he/she is entitled to avail of a lumpsum amount as a maturity benefit. LIC has kept its door open for both online and offline buyers. If a policy-seeker is more comfortable with the offline method or buying, he/she can purchase the plan through licensed agents, corporate agents, brokers, insurance marketing firms, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV).
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|
|Date of launch||19.01.2023|
|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.
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.
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.
The rebates will be as per the following tables:
|Yearly mode||2% of Tabular Premium|
|Half-yearly mode||1% of Tabular Premium|
|Quarterly, Monthly (NACH) & SSS mode||NIL|
|High sum assured rebate|
|Basic sum assured||Rebate on tabular premium per Rs. 1000 BSA|
|Up to Rs. 2,75,000||NIL|
|Rs. 3,00,000 to Rs. 3,75,000||0.50|
|Rs. 4,00,000 to Rs. 4,75,000||1.50|
|Rebate under online sale|
|Premium Paying Term||Rate of rebate (as a percentage of tabular premium)|
|7 to 9 years||7.50%|
|10 to 12 years||10.00%|
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.
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.
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.
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|
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.
Sample Illustrative Premium of LIC'S Jeevan Azad
The sample illustrative annual premiums for Basic Sum Assured (BSA) of Rs. 2 lakhs for Standard lives for policies to be sold through Offline (Without CIS) are as under:
|Age (Nearer birthday)||Annual premium|
|Policy term (Premium paying term)|
|15 (7)||16 (8)||17 (9)||18 (10)||19 (11)||20 (12)|
|10||Rs. 17679||Rs. 15190||Rs. 13279||Rs. 11917||Rs. 10692||Rs. 9682|
|20||Rs. 17787||Rs. 15288||Rs. 13377||Rs. 12015||Rs. 10780||Rs. 9771|
|30||Rs. 17846||Rs. 15347||Rs. 13446||Rs. 12083||Rs. 10858||Rs. 9849|
|40||Rs. 18159||Rs. 15670||Rs. 13769||Rs. 12436||Rs. 11221||Rs. 10231|
|50||Rs. 19208||Rs. 16719||Rs. 14837||Rs. 13524||Rs. 12328||Rs. 11358|
LIC'S Jeevan Azad With an Example
To make it more understandable and simpler, here is an example of LIC’s Jeevan Azad Plan.
Mr. Agarwal, a 35-year-old businessman, purchased this plan for himself. Let us find out how much premium amount he has to pay for the given details.
|Number of lives||Individual|
|Sum assured||Rs. 4 lakhs|
|Policy term||16 years|
|Premium paying term||8 years|
|Total premium including tax (Yearly)||Ra. 31,673|
Basic premium – Rs. 30,309
Tax – Rs. 1364
LIC'S Jeevan Azad Buying Process
If a policy-seeker wants to buy this plan, he/she can opt for either the online or the offline process, according to his/her preference.
If you want to buy the policy online, follow the below steps.
- Go to the official website of the Life Insurance Corporation of India.
- Scroll down a bit, and there will be the Buy Policies option. Click on that.
- Many policies will appear on the screen. Select LIC’s Jeevan Azad Policy.
- After that, select the Click to Buy the Policy option.
- There, you have to upload several documents such as photograph, signature, self-attested copy of address proof, income proof, pan card, and self-cancelled cheque.
- After the that, click on the Proceed option.
- On the landing page, you need to provide the details regarding the policy as instructed by the insurer.
- Be careful while putting in the required details because a single piece of wrong information can damage the entire process.
- Once you put all the information and upload all the necessary documents, the premium amount will be displayed on the screen, calculated on the basis of the given data.
- Check it again. If no discrepancy is found, pay the premium amount by choosing the most convenient method of payment available with the insurer.
- Upon successful payment, a notification will be sent regarding the same to the registered email ID and/or mobile number.
- One can visit the nearest official branch of the Corporation to buy this product. Their customer executives are experienced and knowledgeable enough to guide you through the process.
- One can also purchase the policy through any registered and licensed agent.
- Brokers and insurance firms can also a policy-seeker to buy this policy smoothly and successfully.
Frequently Asked Questions
Annualized Premium will be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First Unpaid Premium. The free look period for this policy is 30 days from the date of receipt of the electronic or physical mode of Policy Document, whichever is earlier.
The total Basic Sum Assured under all policies issued to an individual under this plan shall not exceed Rs 5 lakh.
A policy will lapse if the premiums are not paid even within the grace period. A lapsed policy can be revived within a period of 5 consecutive years from the date of the First Unpaid Premium. The revival will be done only on payment of all the arrears of premium(s) together with interest.
This plan can be purchased through POSP-LI and CPSC-SPV. In such cases, the eligibility conditions and other terms and conditions will be as per the Guidelines, Circulars, Regulations, etc. issued by the IRDAI applicable to POS Plans and POSP-LI. Currently, the following restrictions are applicable:
- Maximum Age at Entry: 65 years minus Policy Term
- Maximum Age at Maturity: 65 Years
- Maximum Sum Assured on Death (per life): Rs. 25 Lakhs.
- No rider will be available in case of the policies procured through POSP-LI/CPSC-SPV.
In case the Plan is purchased through POSP-LI / CPSC-SPV, the general waiting period is 90 days on the death of the life assured.
The Guaranteed Surrender Value payable during the policy term will be equal to the total premiums paid (excluding any extra premium, any premiums for rider(s), if opted for and taxes), multiplied by the applicable Guaranteed Surrender Value factor. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered.
The maximum allowable Sum Assured on Death to each individual in respect of all policies under this plan if purchased through POSP-LI and CPSC-SPV channel (both inclusive) will be Rs 25 lakhs.