LIC Jeevan Azad is a non-participating, limited premium endowment plan that offers guaranteed additions and a flexible premium payment structure. The name reflects the plan's design philosophy - you pay for a shorter period and enjoy cover and growth for a longer term.

Core structure

Under Jeevan Azad, you pay premiums for a limited term (5 or 7 years), but the policy remains in force for the full selected term (ranging from 15 to 20 years). You get life cover throughout.

The plan accrues Guaranteed Additions of Rs 40 per Rs 1,000 Sum Assured per year for the first 5 years, and Rs 65 per Rs 1,000 Sum Assured per year from year 6 onwards.

Death benefit

On death during the policy term, the nominee receives the higher of:

  • ▸7 times the annualised premium
  • ▸105% of all premiums paid up to that date
  • ▸The basic Sum Assured

Additionally, all Guaranteed Additions accrued up to the date of death are also payable.

Maturity benefit

Sum Assured + all accumulated Guaranteed Additions.

Entry conditions

Minimum age: 8 years. Maximum: 55 years. Minimum Sum Assured: Rs 2 lakh. Maximum: No official upper limit, subject to underwriting. Policy terms: 15 or 20 years. Premium payment: 5 or 7 years.

Who is this plan for

The limited premium payment structure appeals to clients who expect their income to be high now but uncertain in the future. Business owners whose earnings are cyclical, professionals in their peak earning years, or anyone who wants to front-load their savings and then step back.

A 45-year-old who takes this plan with a 5-year premium payment and 15-year term will finish paying premiums at 50 and receive maturity at 60 - a neat retirement corpus timeline.

How it compares to Bima Jyoti

Both are guaranteed addition plans. Bima Jyoti has a longer premium payment period proportional to the policy term (5 years less than the full term). Jeevan Azad offers a more aggressive front-loading - pay for 5 or 7 years regardless of whether the policy is 15 or 20 years.

If you want to minimize the premium-paying years and have the financial capacity to pay higher annual premiums, Jeevan Azad is more suitable than Bima Jyoti.

Tax benefits

80C deduction on premiums. 10(10D) exemption on maturity, provided premiums do not exceed 10% of Sum Assured.

Call me at 9415313434 if you want to understand exactly how the Guaranteed Additions compound over the policy term and what your maturity amount will be for a given Sum Assured.