Life Insurance Corporation of India introduced LIC Jeevan Azad Policy in January 2023. Within 10-15 days the coverage has made large development in the non-participating insurance sector and has offered 50,000 insurance policies in less than a month.
Now you may be wondering what made the Jeevan Azad Policy attractive. Read additional to know extra.
What Is LIC’s Jeevan Azad Policy?
LIC’s Jeevan Azad is a non-linked, non-participating, individual, savings life insurance plan. This is a Limited Premium Endowment plan below which the Premium Payment Term (PPT) is the same as Policy Term minus 8 years. It means if the coverage is taken for 20 years, then the premium will likely be paid just for 12 years. Similarly, an individual can pay a premium for 10 years for a coverage term of 18 years. It supplies an assured base sum-assured quantity on the date of maturity for the surviving life assured.
This plan shall solely be available for standard healthy lives with no medical examination up to a restriction of Rs 3 Lakh and most up to Rs 5 Lakhs based on the medical examination reports.
For a 30-year-old paying Rs 12,083 for 10 years, the coverage’s maturity worth will likely be Rs 2 lakh after 18 years, yielding a web rate of interest of 4-5 p.c. If the annualised premium falls beneath 105 p.c of all premiums paid, the demise profit would be the lesser of the essential sum assured or seven instances of the annualised dividend.
An assured lump sum fee to policyholders of the savings-based life insurance plan Jeevan Azad upon maturity is what makes it distinctive. An individual selecting 18-year insurance will solely be required to make premium funds for 10 years as a result of the coverage’s fee interval being the same as the coverage term minus 8 years. The coverage’s phrases vary from 15 to twenty years, and the bottom and most sums insured are Rs 2 lakh and Rs 5 lakh, respectively.
On the life assured surviving to the date of maturity, “Sum Assured on Maturity” which is the same as Basic Sum Assured shall be payable.
- Death Benefit payable on the demise of the Life Assured through the coverage term after the date of graduation of threat however earlier than the stipulated date of maturity shall be “Sum Assured on Death”; Where
- The “Sum Assured on Death” is outlined as more extensive of Basic Sum Assured or 7 instances of Annualised Premium.
- This demise profit shall not be lower than 105% of “Total Premiums Paid” up to the date of demise.
- Where, Total Premiums Paid means the full of all premiums acquired, excluding any additional premium, any rider premium(s) and taxes, if any.
- In case LIC’s Premium Waiver Benefit Rider is opted for, within the occasion of the demise of Proposer, any subsequent Premiums that are waived shall be deemed to have been acquired and be included within the Total Premiums Paid.
- However, on the demise of the minor Life Assured (whose age at entry is beneath 8 years) earlier than the graduation of Risk (as laid out in the ‘features’ tab), the demise profit payable shall be a refund of premium(s) paid [excluding taxes, any extra premium and rider premium(s), if any], without curiosity.
Eligibility Conditions And Restrictions For Base Plan
- Minimum Basic Sum Assured – Rs 200,000
- Maximum Sum Assured – Rs 5,00,000 (per life)
- The basic Sum Assured shall be in multiples of Rs 25,000/-
- The minimum age at entry is 90 days (completed) (However for online plans, minor life just isn’t allowed. You can buy 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)
- Policy Term and Premium Payment Term
POLICY TERM PREMIUM PAYING TERM
15 years to 20 years —————- Policy Term minus 8 years
Age at the entry of the life assured is to be taken because the age nearer birthday aside from the minimum age at the entry which shall be taken as proven below:
POLICY TERMS (YEARS) MINIMUM AGE AT ENTRY (IN COMPLETED YEARS/DAYS)
15 years policy terms—– 3 years minimum age
16years policy terms—– 2 years minimum age
17 years policy terms======= 1 year minimum age
18, 19 and 20 years policy terms——– 90 days minimum age
How can you purchase LIC Jeevan Azad coverage online?
- Login to LIC’s website https://www.licindia.in/ and click on “BUY POLICY ONLINE”
- Select “LIC’s Jeevan Azad” and click “CLICK TO BUY ONLINE”
- Fill in contact particulars i.e. Name, Date of the beginning, cellular no, email ID and nearest City to create access id and OTP.
- Enter the captcha and submit. You will obtain a 9-digit entry id and OTP in your cellular no and email.
- Enter OTP and proceed with further
.The above info is for basic awareness use. Readers are suggested to learn complete details about the policy on the official website of LIC (https://licindia.in/).