Life Insurance Corporation of India (LIC) has launched a new life insurance plan Jeevan Azad. The policy aims to provide individual savings and life insurance. The policy number is 868, and it is a non-linked, non-participating, savings life insurance plan which is also a limited premium endowment plan.
The plan provides a lump sum maturity amount to the policyholder and looks after his liquidity needs through a loan facility.
Let’s dive deep to accumulate more insight into LIC’s Jeevan Azad plan.
Benefits of LIC Jeevan Azad Plan
LIC launched this plan on 19th January 2023 to provide individual savings and life insurance benefits. It has a limited premium payment option of eight years less than the policy term. It gives the dual advantage of saving and protection. In case of the policyholder’s demise, the plan has a death benefit for the nominee. And if the policyholder survives till the maturity of the policy, he would receive the maturity amount.
The premium paid is exempted from tax under section 80C of the Income Tax Act. The maturity amount and death benefits are also tax-free under section 10D(D)
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It comes with three optional riders.
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LIC accidental death and disability rider benefit.
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LIC accident rider benefit.
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LIC premium waiver rider benefit.
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The death benefit in Instalments.
Under this benefit, the nominee of the policyholder has the option to receive the death benefit in instalments over five years instead of the lump sum. The benefits have to be paid in advance at the chosen interval.
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Settlement Option (Maturity benefit)
In the plan, the policyholder has the option to receive the maturity benefit in instalments for over five years. LIC is obligated to pay this benefit in advance at the chosen interval.
Eligibility Criteria for LIC Jeevan Azad Plan
The entry age in the plan is a minimum of 90 days and a maximum of 50 years. The maturity age is a minimum of 18 years and a maximum of 70 years. The term of the policy is between 15-20 years. The basic sum assured is a minimum of Rs 2 lakhs and a maximum of Rs 5 Lakhs.
Other Benefits of Jeevan Azad Plan
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Like other policies, the Jeevan Azad plan comes with a grace period of 15/30 days from the date of the first unpaid premium.
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The policyholder can renew it within five consecutive years from the first unpaid premium.
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The policy provides liquidity benefits by giving the option to apply for a loan after a premium payment for two years.
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It comes with a free-look period of 30 days from the date of issuance of the policy.
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The policyholder can surrender the policy only if he has paid all premiums for two years. LIC will pay the surrender value equal to the special surrender value or the guaranteed surrender value, whichever is high.
Exceptions Of LIC Jeevan Azad Plan
If the policyholder commits suicide within the first year, LIC is not liable to pay the claim. It can pay 80% of the premium paid within the year, provided the policy is in force.
