LIC’s Jeevan Azad is a non-linked, non-participating individual life insurance plan that combines protection and savings. This is a Limited Premium Payment Endowment plan that offers the policy provides financial support to families in the event of the insured person’s death, as well as liquidity needs through a loan facility. The policy guarantees a lump sum payment to the surviving life assured upon maturity.
If a policyholder wishes to buy an insurance plan that provides both savings and protection, he or she might consider LIC’s Jeevan Azad plan. In January, the Life Insurance Corporation of India announced the Jeevan Azad plan, which is a limited premium payment endowment plan. This plan not only meets the family’s liquidity needs through the loan facility, but it also provides financial assistance to the life assured’s family in the event of the life assured’s untimely death while the policy is active.
Aside from that, if the life assured lives the policy term and keeps the policy active, he or she is entitled to receive a lump sum payment as a maturity bonus. LIC of India has maintained its doors open to both online and offline buyers. If a policyholder prefers to acquire the plan offline, he or she can do so through licenced agents, corporate agents, brokers, insurance marketing businesses, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centres (CPSC-SPV).
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Features of LIC Jeevan Anand
The LIC Jeevan Anand plan offers a total Basic Sum Assured of Rs 5,000,000 across all policies. It is only available for healthy individuals without medical examinations, up to a limit of Rs 3 Lakh and a maximum of Rs 5 Lakh based on a medical examination report. The date of policy issuance refers to when a proposal is accepted as a policy and the contract is effected.
Read more: How to check my lic policy status
Benefits of LIC Jeevan Azad
The various benefits of LIC Jeevan Azad are mentioned below –
Maturity benefit: The death benefit is payable after the onset of risk but before the maturity date if the life assured dies within the policy term of an active policy. The death benefit is equivalent to the sum assured on death that is the greater of the following.
Basic Sum Assured: 7 times Annualised Premium: This Death Benefit cannot be less than 105% of the total premiums paid up to the date of death.
Death benefit for a minor: If a minor Life Assured dies before the initiation of risk and his or her age of entrance is less than eight years, the Death Benefit payable will be a refund of premium(s) paid, except taxes, extra premiums, and rider premium(s), if applicable), without interest.
Tax Benefits: Under Section 80C, premiums paid for the LIC Jeevan Azad are not subject to tax. Also, Section 10D(D) of the Income Tax Act of 1961 exempts the maturity and death benefit amounts from taxes.
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Additional Benefit of LIC Jeevan Azad
The additional benefits of LIC Jeevan Azad are mentioned below –
Instalments of death benefits – The policy gives its customers the choice of receiving death benefits as a lump sum payout or as payments over a 5-year period. There is a minimum instalment amount for each type of payment method, and the payments must be paid in advance at specified intervals annually, half-yearly, quarterly, or monthly.
LIC’s accidental death and disability rider
It provides a lump sum payment to the beneficiary in the event of an accident. In the event of incapacity within 180 days of the accident, an amount equivalent to the Accident Benefit Sum Assured will be paid over ten years in equal monthly instalments. If the accident results in accidental disability, all upcoming premiums will be waived.
LIC Premium waiver benefit rider
Under this rider, any unpaid premiums on the base policy payable on or after the date of death until the end of the rider term will be forgiven upon the policyholder’s death.
LIC accident benefit rider
In the case of an accidental death, the Accident Benefit amount Assured will be paid in one lump amount along with the death benefit under the base plan.
Eligibility criteria for LIC Jeevan Azad Plan
The eligibility conditions for LIC Jeevan Azad are given below:
Entry age: The minimum entry age for LIC Jeevan Azad is 90 days, while the maximum entry age is 50 years.
Maturity age: Age ranges from 18 to 70 years.
Basic sum assured: The least basic amount assured for LIC Jeevan Azad is Rs.2 lakhs, and the highest is Rs.5 lakhs.
Rebates-
Mode Rebate:
Yearly mode: 2% of Tabular Premium
Half-yearly mode: 1% of Tabular Premium
Quarterly, Monthly (NACH), and SSS mode: NIL
High Sum Assured Rebate:
Up to Rs. 2,75,000: NIL
Rs. 3,00,000 to Rs. 3,75,000: 0.50 rebate on tabular premium per Rs. 1000 BSA
Rs. 4,00,000 to Rs. 4,75,000: 1.50 rebate on tabular premium per Rs. 1000 BSA
Rs. 5,00,000: 2.00 rebate on tabular premium per Rs. 1000 BSA
Rebate Under Online Sale:
Premium Paying Term 7 to 9 years: 7.50% rebate (as a percentage of tabular premium)
Premium Paying Term 10 to 12 years: 10.00% rebate (as a percentage of tabular premium)
Paid-up Value:
If the life assured pays at least two full years’ payments and any future premiums are not paid, the policy will be considered paid-up until the end of the policy term. This policy will pay out the death paid-up payment and the maturity paid-up sum. If the policy is lapsed, the rider will not receive any paid-up value, and the rider benefits will no longer be valid.
Loan Facilities:
This policy established the credit facility under the following terms and conditions:-
- At least two years’ full premiums must be paid.
- An in-force policy will allow a maximum borrowing of 90%. For a paid-up policy, it will be 80%.
- A set rate of interest will be charged for using the lending facility.
- Any unpaid loan, including interest, will be collected from the claim proceeds at the time of withdrawal.
Surrender Benefits:
The policyholder can resign the insurance at any moment throughout the policy’s term, as long as two full years’ premiums are paid. When the policy is surrendered, the Corporation will pay the Surrender Value equal to the higher of the Guaranteed Surrender Value or Special Surrender Value.
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LIC Jeevan Azad Policy Details
The policy details of LIC Jeevan Azad are given below:
Policy resurrection – By paying all premium arrears plus interest (pre-set by the firm), a person can renew a lapsed policy within 5 years after the first unpaid premium.
Grace period – The plan has a 15-30 day grace period beginning with the date of the first delinquent premium. The policy will expire, and the policyholder will be ineligible for any benefits if the premiums are not paid during this time.
What are the primary exclusions for LIC’s Jeevan Azad?
The broad exclusions for LIC’s Jeevan Azad are as follows:
Exclusions include everything that does not meet the policy’s terms and conditions.
- Any type of violation of the law, whether deliberate or inadvertent, is permanently excluded from the policy.
- If the Life Assured (whether sane or insane) commits suicide within 12 months of the commencement of risk, the nominee or beneficiary will be entitled to 80% of the total premiums paid, excluding any taxes, extra premiums, and rider premiums, if any, as long as the policy is in force. This clause is not applicable if the Life Assured’s age upon admission is less than 8 years.
- If the Life Assured commits suicide within 12 months of the date of revival, an amount greater than 80% of the total premiums paid up to the day of death, or the surrender value available at the time of death, will be payable. The nominee or beneficiary of the Life Assured is not entitled to any other claims under the policy. This clause does not apply to a modest life assurance or a policy that lapsed without obtaining paid-up value.
FAQs-
1. What is the Annualised Premium under this policy?
The annualised premium will be the premium amount payable in the policyholder’s chosen year, excluding taxes, rider premiums, underwriting extra premiums, and modal premium loadings, if applicable.
2. What are the grace and free look periods for this policy?
From the date of the first unpaid premium, a grace period of 30 days will be provided for payment of annual, semi-annual, or quarterly premiums, and 15 days for monthly premiums. This policy has a 30-day free look period beginning with the date of receipt of the electronic or physical Policy Document, whichever comes first.
3. What should be the entire basic sum insured?
The total Basic Sum Assured for all policies offered to an individual under this plan shall not exceed Rs 5 lakh.
4. How can I reinstate my LIC Jeevan Azad policy?
A coverage will lapse if the premiums are not paid during the grace period. A lapsed policy can be reinstated for a period of five consecutive years from the first unpaid premium. The resurrection will only take place if all outstanding premium(s) and interest are paid.
5. What happens if the LIC Jeevan Azad Policy is purchased through POSP-LI and CPSC-SPV?
This plan can be purchased through POSP-LI or CPSC-SPV. In such circumstances, the eligibility and other terms and conditions will be in accordance with the IRDAI’s Guidelines, Circulars, Regulations, and so on, which apply to POS Plans and POSP-LI. Currently, the following restrictions apply:
Maximum age of entry: 65 years minus policy term.
Maximum age of maturity: 65 years.
The maximum sum assured on death (per life) is Rs. 25 lakhs.
No rider will be available for policies purchased through POSP-LI/CPSC-SPV.
