Lic Jeevan Azad: LIC Jeevan Azad (plan no. 188) policy with guaranteed return: All you need to know

Lic Jeevan Azad: LIC Jeevan Azad (plan no. 188) policy with guaranteed return: All you need to know


The Life Insurance Corporation of India (LIC) has launched LIC Jeevan Azad Plan (plan no. 188). It is a limited period premium payment plan that offers financial support for the family in case of unfortunate death of the life assured during the policy term. If the LIC policyholder survives the maturity term, then the plan offers a guaranteed base sum-assured amount.

Here are more details about the newly launched LIC Jeevan Azad Plan:

Minimum and Maximum sum assured in LIC Jeevan Azad plan

As per the policy documents, the minimum basic sum assured under LIC Jeevan Azad is Rs 2 lakh while the maximum basic sum assured has been set at Rs 5 lakh.

This plan is available for standard healthy lives. There will be no medical examination for the sum assured of up to Rs 3 lakh. For a sum assured of above Rs 3 lakh, a medical examination is required.

Minimum and Maximum policy term of LIC Jeevan Azad
A policyholder can buy LIC Jeevan Azad plan for a minimum term of 15 and maximum up to 20 years.

Minimum and maximum age limit to buy LIC Jeevan Azad plan
The minimum age to buy the LIC Jeevan Anand plan is 90 days. The maximum age of entry is 50 years.

In case the age at entry of the life assured is less than eight years, the risk under this plan will commence either two years from the date of commencement of the policy or from the policy anniversary coinciding with or immediately following the attainment of eight years of age, whichever is earlier. For those aged eight years or more, risk will commence immediately from the date of issuance of policy.

How to pay premium in LIC Jeevan Azad plan
The new LIC scheme offers policyholder to pay premiums regularly at yearly, half-yearly, quarterly, and monthly intervals. A policyholder will have the option to select the mode and term of premium payment while purchasing the LIC Jeevan Anand policy.

Premiums for LIC Jeevan Azad can be paid through cash or electronic modes such as cheque, UPI, NACH etc. The Premium Payment Term (PPT) is equal to the policy term minus eight years. This means that if a policyholder opts for minimum policy term of 15 years, then he/she needs to pay premium for 7 years. Similarly, if a policyholder opts for policy term of 20 years, then he/she is required to pay premium for 12 years.

Policy term Premium payment term
15-20 years Policy term-8 years

Source: LIC Jeevan Azad

What are the maturity benefits in LIC Jeevan Azad plan
If the policyholder survives the policy term, he or she will get a guaranteed sum assured on maturity which is equal to the basic sum assured. This means that on maturity a policyholder will get the sum insured amount (minimum Rs 2 lakh and maximum Rs 5 lakh), as opted initially.

What will happen to LIC Jeevan Azad policy if policyholder dies
If the policyholder dies during the policy term, , then the sum assured on death will be payable to the nominee.

Do note that the sum assured payable to nominee will be higher of the following:
a)basic sum assured or
b)seven times of annualised premium.

However, the death benefit will not be less than 105 per cent of the total premiums paid up to the date of death. Total premiums paid means the total of all premiums received, excluding any extra premium, any rider premiums, and taxes, if any, according to the policy documents.

On the death of the minor life assured (whose age at entry is below eight years) before the commencement of risk, the insurer will refund of premiums paid [excluding taxes, any extra premium, and rider premiums, if any], without interest, according to the LIC website.

Installment payments on maturity in LIC Jeevan Azad
At the time of maturity, a settlement option is available to policyholders under the LIC Jeevan Azad plan. It is an option to receive the maturity benefit in installments over a period of five years instead of a lump sum amount under an in-force as well as a paid-up policy. There will also be an option to receive death benefits in installments over a period of five years instead of a lump sum amount under an in-force as well as a paid-up policy. There are various terms and conditions to avail of these options.

Loan facility against LIC Jeevan Azad
A loan facility is available under the LIC Jeevan Azad plan after the completion of two policy years. To get a loan against this plan, policyholders must pay premiums for two full years. The maximum loan as a percentage of surrender value shall be as under:

For in-force policies – up to 90 per cent
For paid-up policies – up to 80 per cent.

The rate of interest to be charged for the loan amount would be determined by the Life Insurance Corporation from time to time.

What are the riders available in LIC Jeevan Azad
Like other LIC insurance plans, LIC Jeevan Azad offers riders along with the base plan. These riders are available if a policyholder pays additional premium. These three riders are LIC’s Accidental Death and Disability Benefit Rider UIN (512B209V02), LIC’s New Term Assurance Rider (UIN 512B210V01), LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03). Do note that there are different eligibility conditions for these riders. Policyholders must read the documents carefully to understand if they are eligible for any rider while buying the policy.



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Author: Shirley