Life Insurance Corporation of India (LIC), a leading state insurer, has introduced Jeevan Azad (Plan No. 868), a scheme for personal savings and life insurance. According to the LIC's notice, Jeevan Azad is a limited premium endowment plan and a non-participating, non-linked individual savings life insurance plan.
Through a lending facility, it examines the liquidity requirements and also offers the surviving life a guaranteed lump sum payment on the maturity date.
Benefits of LIC Jeevan Azad
A limited premium payment option is available under the plan, with the premium paying term being 8 years less than the policy term. In the event of an untimely death of the life assured during the policy term, the plan attempts to provide financial help to the family.
Assured Returns:
Investors under the LIC Jeevan Azad Plan would receive a minimum basic payment assured of Rs. 2 lacks, according to the policy specifications. The highest basic amount guaranteed is Rs. 5 lacks. 15 to 20 years can be added to the policy's term.
Age limits for the policy:
The minimum entry age for this plan is 90 days, and the maximum entry age is 50.
Premium Payment Term Calculation & Frequency:
According to the plan, the LIC will deduct 8 years from the policy term to determine the premium-paying term. As a result, if the investor chooses a 20-year policy term, he will be responsible for 12 years of premium payments (20-8).
The premium can be paid on a recurring basis at intervals of annually, half-yearly, quarterly, or monthly.
Investment Plans:
According to LIC, a beneficiary would receive Rs 500,000 at the conclusion of the term if he paid the premiums of Rs 25,120 in the first year and Rs 24,578 from the second year to 12 years. The beneficiary will have spent a total of Rs 2,95,478 on the premium.
Exit Plans:
The policy could well be canceled after two years and at least two complete premium payments.
Benefits After Investor’s Death:
The death benefit is paid under the new plan upon the death of the life assured during the policy term. It is granted after the beginning of the risk but before the maturity date. The death benefit is defined as the "Sum Assured on Death," which is the greater of the "Basic Sum Assured" or "Seven Times Annualized Premium."
According to LIC, the Death Benefit cannot be less than 105% of "Total Premiums Paid" up to the date of death.
