LIC Jeevan Azad Plan 868 – Full Details, Benefits, and Features Explained
LIC Jeevan Azad (Plan No. 868) is a non-linked, non-participating, individual savings life insurance plan launched by the Life Insurance Corporation of India. This plan combines the benefits of life cover and guaranteed savings, making it suitable for individuals seeking protection and financial planning for future needs.
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What is LIC Jeevan Azad Plan?
LIC’s Jeevan Azad is a simple, limited premium, savings-oriented life insurance plan that offers:
Guaranteed maturity benefit
Life insurance cover
Short premium payment term (PPT)
It is an ideal plan for those looking to build a financial corpus while ensuring life cover for the family in case of untimely death.
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Key Features at a Glance
FeatureDetailsPlan Name LIC Jeevan AzadPlan Number 868
Launch Date January 2023
Policy Type Endowment-type, Non-linked, Non-participating
Minimum Age at Entry- 90 days (completed)
Maximum Age at Entry- 50 years
Minimum Sum Assured- ₹2,00,000
Maximum Sum Assured -₹5,00,000
Policy Term -15 to 20 years
Premium Paying Term (PPT) Policy Term minus 8 years
Loan Facility Available-
Surrender Option Available after 2 years of premium payment
Riders Available -Yes (optional)
Bonus -No (Non-participating plan)
🎯 Unique Selling Points
Guaranteed maturity benefit
Only 7 to 12 years of premium payments (depending on policy term)
Simple, hassle-free plan with no bonus fluctuations
Guaranteed maturity benefitOnly 7 to 12 years of premium payments (depending on policy term)
Simple, hassle-free plan with no bonus fluctuations
Suitable for salaried individuals and parents planning for children's future ✅
Benefits of LIC Jeevan Azad Plan 1. Maturity Benefit
On survival to the end of the policy term:
Basic Sum Assured will be paid (guaranteed)
Example: If the sum assured is ₹5,00,000, then ₹5,00,000 is paid at maturity.
2. Death Benefit
If the policyholder dies during the policy term, the nominee gets: "Sum Assured on Death" = Higher of:
7 times the annualized premium, OR
Basic Sum Assured
Minimum death benefit will always be 105% of all premiums paid (excluding taxes and rider premiums).
3. Riders (Optional Add-ons)
You can enhance protection by adding:
LIC Accidental Death & Disability Benefit Rider
LIC New Term Assurance Rider
LIC Premium Waiver Benefit Rider 🧮 Sample Illustration
Let’s assume:
DetailValueAge 30 years
Sum Assured ₹5,00,000
Policy Term 20 years
Premium Paying Term 12 years (20 - 8)
Approx. Annual Premium ₹31,000 (approximate)
Scenario 1: Survival Till Maturity
Total Premium Paid = ₹3,72,000 (₹31,000 × 12)
Maturity Payout = ₹5,00,000 (Guaranteed)
Scenario 2: Death in 10th Year
Death Benefit = ₹5,00,000 (since higher than 7x premium)
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Surrender and Loan
✅ Surrender:
Allowed after paying at least 2 full years of premiumsSurrender value will depend on premiums paid and policy duration
✅ Loan:
Available after 2 years of policy, subject to conditions
💡 Tax Benefits
Section 80C: Premiums paid are eligible for tax deductionSection 10(10D): Maturity/death benefits are tax-free (as per prevailing laws)
👨👩👧👦 Who Should Buy LIC Jeevan Azad?
Young earners looking for a guaranteed saving plan
Parents planning for child education or marriage
Individuals wanting a risk-free insurance option
Anyone seeking short-term premium plans with long-term benefits
📝 Final Thoughts
LIC Jeevan Azad is a low-risk, guaranteed return policy with life cover, ideal for those who prefer security and certainty over market-linked products. With a short premium payment term and fixed benefits, it's a good choice for disciplined savers and conservative investors.
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