The Life Insurance Corporation of India (LIC) has launched LIC Jeevan Azad Plan, offering death benefits and an assured maturity sum in the event the policyholder survives.
The plan’s minimum sum assured is Rs 2 lakh, and the maximum is Rs 5 lakh. The subscriber won’t require a medical test if the sum assured is up to Rs 3 lakh, if more, they will require one.
Likewise, the minimum policy term is 15 years, and the maximum is 20 years, while the lowest age limit is 90 days and the highest is 50 years.
If the entry age is less than eight years, the risk cover will commence either two years from the date of the start or the anniversary coinciding with the policyholder’s eighth birthday or immediately after.
The following are some key features of the plan.
The policyholder can pay the premiums yearly, half-yearly, quarterly, and monthly. It also offers the option to select the mode and the premium payment term, like paying through cash or electronic modes, such as a cheque, UPI, etc.
In addition, the premium payment term is equal to the policy term minus eight years. So, if a policyholder opts for 15 years, they will need to pay premiums for seven years. If it is 20 years, the policyholder is required to pay premiums for 12 years
The policyholder will get a guaranteed sum—equal to the basic sum assured on maturity—if he survives the policy term. So, the maturity sum can be a minimum of Rs 2 lakh or a maximum of Rs 5 lakh.
If the policyholder dies during the policy term, then the nominee will get the sum assured. It could be higher of the basic sum assured or seven times the annualised premium.
However, the death benefits will be at least 105 per cent of the total premiums paid till death.
If the insured minor dies before risk commencement, the insurer will refund all premiums paid, excluding taxes, any extra premium, and rider premiums, if any, LIC said on its website.
On maturity, the policyholders also have the option to receive the maturity benefits in installments over a period of five years instead of a lump sum.
The policyholder can get a loan against the plan, provided they paid premiums for two years. For in-force policies, it is up to 90 per cent, and for paid-up policies, it is up to 80 per cent. LIC would determine the loan rate interest from time to time.
LIC Jeevan Azad offers riders along with the base plan for an additional premium. These riders include Accidental Death, Disability Benefit, and New Term Assurance. However, these riders carry different eligibility conditions.