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HomeMutual FundLIC Jeevan Azad (868) - Why you could NOT make investments?

LIC Jeevan Azad (868) – Why you could NOT make investments?


LIC Jeevan Azad (868) was launched on nineteenth January 2023. Nevertheless, contemplating the options, eligibility and return expectations, must you make investments?

LIC Jeevan Azad (868)

LIC’s Jeevan Azad is a Non-Linked, Non-Collaborating, Particular person, and Financial savings plan which gives a mix of financial savings and safety plan.

This plan is accessible solely via OFFLINE mode.

Eligibility of LIC Jeevan Azad (868)

The eligibility situations are as under.

  • Minimal age at entry – 90 days
  • Minimal age at maturity – 18 years
  • Most age at entry – 50 years
  • Most age at maturity – 70 years
  • Coverage Time period – 15 years to twenty years
  • Premium paying time period – Coverage Time period minus 8 years. Therefore, in case you select 15 years coverage, then the coverage fee time period might be 7 years and for 20 years coverage, will probably be 12 years.
  • Minimal Sum Assured – Rs.2 lakh
  • Most Sum Assured – Rs.5 lakh
  • The whole Fundamental Sum Assured beneath all insurance policies issued to a person beneath this plan shall not exceed Rs 5 lakh.
  • This plan gives a settlement choice (to get the maturity advantages in installments).
  • This plan gives the loss of life profit additionally in installments.
  • Premiums might be paid usually at yearly, half-yearly, quarterly or month-to-month intervals (month-to-month premiums via NACH solely) or via wage deductions.

Advantages of LIC Jeevan Azad (868)

# Maturity Profit

On Life Assured surviving the stipulated Date of Maturity, ’Sum Assured on Maturity’ which is the same as ‘Fundamental Sum Assured’ shall be payable.

# Loss of life Profit

The loss of life profit payable on the loss of life of the life assured in the course of the coverage time period after the date of graduation of danger however earlier than the date of maturity shall be “Sum Assured on Loss of life” the place “Sum Assured on Loss of life” is outlined as increased of ‘Fundamental Sum Assured’ or ‘7 instances of Annualized Premium’.

This Loss of life Profit shall not be lower than 105% of “Complete Premiums Paid” as much as the date of loss of life.

Nevertheless, within the case of minor Life Assured, whose age at entry is under 8 years, on loss of life earlier than the graduation of Threat (as laid out in Para 2 under), the Loss of life Profit payable shall be a refund of premium(s) paid (excluding taxes, further premium and rider premium(s), if any), with out curiosity.

How a lot returns you possibly can count on from LIC Jeevan Azad (868)?

Allow us to take an instance from the LIC brochure itself.

LIC Jeevan Azad (868) Premium

Now allow us to take an instance of a 30-year-old man choosing 20 years coverage. Therefore, his premium paying time period is 12 years. Primarily based on that if we calculate the returns on funding, it’s equal like your financial savings account rate of interest!!

LIC Jeevan Azad (868) Returns Expectation

If we add the tax, then returns will once more scale back. I’m not positive why LIC launched this plan the place nothing is new and within the present increased curiosity regime, who can go for such insurance policies?

LIC Jeevan Azad (868) – Why you could NOT make investments?

Allow us to think about this as pure insurance coverage merchandise (for time being ignore the returns half), you then observed that the utmost sum assured is simply Rs.5 lakh. Assume for what number of years your loved ones can survive in your absence with this loss of life profit. A 12 months or to the utmost two years. Then how this plan goes to be thought-about a safety plan??

If we focus on the returns half, you then observed from the above calculation that it’s lower than 4%. Regardless of no matter manner you calculate, the returns is not going to cross past 5%. When within the present situation of high-interest charges enticing merchandise can be found means why one will make investments for 15 to twenty years and fulfill with a meager financial savings account fee.

LIC has a historical past of launching a brand new product in the course of the month of December or January. Primarily to focus on tax-saving people. This plan I feel a hurriedly launched product targetting such people.

Contemplating all these pointers, I strongly recommend you keep away from this product. Investing in merchandise like PPF provides you a superior return than this product.

HOWEVER, IF YOU ARE HAPPY WITH 4% TO 5% RETURNS FOR YOUR LONG-TERM INVESTMENT OF 15-20 YEARS, THEN PLEASE GO AHEAD AND INVEST!!

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