LIC of India launched a powerful savings-cum-protection plan named LIC Jeevan Azad Plan 868 on 19th January 2023. This is a Non-Linked, Non-Participating, Limited Premium Endowment Plan, making it completely free from market fluctuations. It is perfect for individuals looking for guaranteed maturity benefits along with insurance protection for their family.
LIC Jeevan Azad is tailored for middle-income individuals who want simple, risk-free savings with short-term premium commitments. The most attractive part is that you only need to pay premiums for 8 years less than the policy term—a feature that makes this plan highly flexible and easy to maintain.
Key Highlights of LIC Jeevan Azad Plan 868
- ✅ Guaranteed maturity amount – no bonus dependency.
- ✅ Short Premium Term – Pay for just (Policy Term – 8) years.
- ✅ Tax Benefits – Under Sections 80C and 10(10D).
- ✅ Non-medical policy – Up to ₹3 lakh Sum Assured.
- ✅ Video medical – Required for ₹3 to ₹5 lakh Sum Assured.
- ✅ Simple fixed returns – No market risk.
- ✅ Loan and surrender facility after 2 years.
- ✅ Accidental and PWB Rider available.
Plan Type and Structure
| Plan Feature | Description |
|---|---|
| Plan Name | LIC Jeevan Azad |
| Table No. | 868 |
| UIN | 512N348V01 |
| Plan Type | Endowment (Traditional, Non-linked, Non-participating) |
| Risk Cover | From date of policy commencement |
| Maturity Benefit | Guaranteed Sum Assured (GSA) only |
Eligibility Criteria
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 90 days | 50 years |
| Maturity Age | – | 70 years |
| Policy Term | 15 years | 20 years |
| Premium Paying Term | Policy Term – 8 years | |
| Sum Assured | ₹2,00,000 | ₹5,00,000 |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH) |
LIC Jeevan Azad Benefits
1. Maturity Benefit
On survival till the end of the policy term, the Guaranteed Sum Assured (GSA) is paid. This is a pre-decided fixed amount that does not depend on bonuses or investment performance.
👉 Maturity = Guaranteed Sum Assured (₹2 lakh – ₹5 lakh)
2. Death Benefit
If the life assured passes away during the policy term, the nominee will receive the higher of:
- Basic Sum Assured, or
- 7 times of Annualised Premium.
✅ Death benefit shall not be less than 105% of all premiums paid till the date of death.
In case of accidental death (if rider opted), an additional Sum Assured is paid.
3. Riders Available
- Accidental Death and Disability Benefit Rider
- Premium Waiver Benefit (PWB) Rider
Riders can be added for enhanced protection by paying additional premium.
Rebates (Discounts)
➤ Mode Rebate
| Mode | Rebate |
|---|---|
| Yearly | 2% |
| Half-Yearly | 1% |
| Quarterly/Monthly | NIL |
➤ High Sum Assured Rebate
| Basic Sum Assured Range | Rebate per ₹1000 BSA |
|---|---|
| ₹2,00,000 – ₹2,75,000 | NIL |
| ₹3,00,000 – ₹3,75,000 | 0.50% |
| ₹4,00,000 – ₹4,75,000 | 1.50% |
| ₹5,00,000 | 2.00% |
Policy Loan, Surrender & Paid-up Value
| Facility | Available After | Notes |
|---|---|---|
| Loan | 2 policy years | Subject to surrender value |
| Surrender | 2 policy years | Minimum 2 full years premium must be paid |
| Paid-up Value | After 2 years | Formula: SA × (Premiums Paid / Total Premiums Payable) |
LIC Jeevan Azad Example
Let’s take an example of Mr. Vinod, aged 34, who buys this plan with:
- Sum Assured: ₹5,00,000
- Policy Term: 20 years
- Premium Paying Term: 12 years
- Purchase Year: 2023
🎯 Premium Details
| Year | Annual Premium (with GST) |
|---|---|
| 1st Year | ₹25,120 |
| 2nd Year Onward | ₹24,578 |
| Total Premium Paid over 12 years | ₹2,95,478 |
🎯 Maturity Details
| Maturity Year | Age at Maturity | Maturity Amount |
|---|---|---|
| 2043 | 54 years | ₹5,00,000 (GSA) |
🎯 Death Benefit Illustration
Let’s assume Mr. Vinod unfortunately passes away in 2033 (after 10 years of policy), when he is 44 years old.
| Year | Premium Paid So Far | Death Benefit (Normal) | Death Benefit (Accidental) |
|---|---|---|---|
| 2033 | ₹2,21,744 | ₹5,00,000 | ₹10,00,000 (if rider taken) |
Year-wise Premium and Cover Table
| Age | Premium | Life Cover | Accidental Cover |
|---|---|---|---|
| 34 | ₹25,120 | ₹5,00,000 | ₹10,00,000 |
| 35–45 | ₹24,578 (each year) | ₹5,00,000 | ₹10,00,000 |
| 46–54 | ₹0 | ₹5,00,000 | ₹10,00,000 |
| 54 (Maturity) | – | – | ₹5,00,000 Payout |
LIC Jeevan Azad: Summary Table
| Feature | Details |
|---|---|
| Plan Type | Endowment (Traditional, Non-linked) |
| Premium Term | Policy Term – 8 Years |
| Death Benefit | Higher of BSA or 7 × Annual Premium |
| Maturity Benefit | Guaranteed Sum Assured |
| Risk Start Date | From Day 1 |
| Loan | After 2 policy years |
| Surrender | After 2 years of premium payment |
| Riders | ADDB & PWB Riders available |
| Medical | No medical for up to ₹3L SA |
| Revival | Within 5 years from unpaid premium |
| Tax Benefits | Sec 80C and 10(10D) compliant |
Why Choose LIC Jeevan Azad Plan 868?
✅ Short Premium Commitment
Just pay for (Policy Term – 8) years and enjoy full-term coverage and returns.
✅ Zero Market Risk
Fixed maturity amount, no dependency on profits or stock market.
✅ Guaranteed Returns
Know exactly what you’ll receive on maturity the day you start the plan.
✅ Insurance + Savings
Secure your family’s future while saving for a specific life goal.
✅ Tax-Free Returns
Maturity under Section 10(10D) is fully exempt from tax.
Conclusion
LIC Jeevan Azad Plan 868 is ideal for individuals seeking secure, fixed returns and short-term premium commitment. It works well as a goal-based savings plan—whether for your child’s education, daughter’s marriage, or retirement fund.
If you’re a risk-averse investor who wants guaranteed returns, family protection, and peace of mind, this plan deserves your attention.
