Jeevan Azad Plan 868
Jeevan Azad Plan 868: LIC of India new plan launched on 19th January 2023 which name is LIC Jeevan Azad Plan 868 (LIC Table no. 868) is a traditional plan which means not related to market. Jeevan Azad Plan 868 is a combination of insurance and savings. LIC’s Jeevan Azad Plan 868 is a Non-Linked, Non-Participating, Individual, Savings Life Insurance plan, limited Premium Endowment plan, main benefit of this plan is it has the limited premium payment option where the premium paying term is 8 years less than the policy term.
Why LIC Jeevan Azad is Popular in India
For most Indian families, financial security and guaranteed savings matter more than high-risk investments. In times when market-linked products fluctuate, LIC’s guaranteed return plans stand as a safe pillar of trust.
The LIC Jeevan Azad Plan 868 has become one of LIC’s most sought-after plans because:
- It offers limited premium payment option.
- Provides guaranteed maturity benefits.
- Ensures life cover + savings in one policy.
- Suitable for middle-class families, professionals, and business owners looking for a reliable savings plan.
Let’s explore everything about this plan in detail.
What is LIC Jeevan Azad Plan 868?
The LIC Jeevan Azad (Plan No. 868) is a non-linked, non-participating, endowment assurance plan.
That means:
- It is not linked to the stock market (stable & guaranteed).
- It offers fixed maturity benefits decided at the beginning.
- It comes with insurance protection + savings.
This plan is designed for individuals who want guaranteed lump sum payout at the end of policy term and family protection in case of untimely death.
Key Features of LIC Jeevan Azad 868
| Feature | Details |
|---|---|
| Plan Type | Non-linked, Non-participating Endowment |
| Plan Number | 868 |
| Entry Age | 90 days – 50 years |
| Maturity Age | Max 70 years |
| Policy Term | 15 to 20 years |
| Premium Paying Term | Policy Term – 8 years |
| Minimum Sum Assured | ₹2,00,000 |
| Maximum Sum Assured | ₹5,00,000 |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (ECS) |
| Loan Facility | Available after 2 years |
| Surrender Value | Available |
| Rider Options | Accidental Death & Disability Rider, Term Rider, Critical Illness Rider |
Benefits of LIC Jeevan Azad
1. Maturity Benefit
At the end of the policy term, the policyholder receives:
👉 Sum Assured on Maturity (Guaranteed).
Unlike participating plans, this plan doesn’t depend on bonuses, so payout is assured upfront.
2. Death Benefit
If the policyholder dies during the term, nominee gets:
👉 Sum Assured on Death (higher of 7x Annualized Premium or Basic SA) + Rider Benefits (if opted).
3. Limited Premium Payment
Policyholder pays premiums only for Policy Term – 8 years, but remains covered till maturity.
4. Loan Facility
Loan can be availed after 2 years of policy for emergency needs.
5. Tax Benefits
- Premiums qualify for Section 80C deduction.
- Maturity benefits are tax-free under Section 10(10D).
Example – LIC Jeevan Azad Premium & Benefits
Case Study: Mr. Ravi (Age 30) invests in Jeevan Azad 868
- Sum Assured: ₹5,00,000
- Policy Term: 20 years
- Premium Paying Term: 12 years (20 – 8)
- Annual Premium: ~₹26,000 (approx.)
Payout Illustration
| Event | Benefit | Amount |
|---|---|---|
| If Survives till 20 years | Maturity Benefit (Guaranteed) | ₹5,00,000 |
| If Dies in 10th year | Death Benefit (7x Premium or SA) | ₹7,00,000 approx. |
👉 This ensures risk-free guaranteed maturity + strong family protection.
Investor Scenarios
Scenario 1 – Young Salaried Individual (Age 25)
Pays premium for 12 years, gets maturity at 45. Perfect for child’s education planning.
Scenario 2 – Small Business Owner (Age 40)
Chooses 15-year policy. Pays premium till 47, gets guaranteed lump sum at 55. Good for retirement fund.
Scenario 3 – Parents Planning for Daughter’s Marriage
Invest in Jeevan Azad when daughter is 5. By age 25, parents get lump sum maturity for marriage expenses.
Analyst Insights on LIC Jeevan Azad
- Insurance Analysts: “LIC Jeevan Azad offers guaranteed returns, making it a safe choice for conservative investors.”
- Financial Planners: “Since maximum SA is ₹5 lakh, this plan is ideal for low-to-middle-income families who want a disciplined savings tool.”
- Investor Sentiment: “Returns are moderate (IRR ~5-6%), but tax benefits + insurance cover make it attractive.”
Real-Life Investor Examples
Example 1 – Child’s Education Fund
Mrs. Neha invested ₹20,000 yearly for 12 years. At maturity, she received ₹5 lakh, which fully covered her son’s MBA admission fees.
Example 2 – Retirement Planning
Mr. Arvind (Age 45) bought Jeevan Azad for ₹5 lakh SA. At age 65, he received the guaranteed payout, ensuring a financially secure retirement.
Comparison – LIC Jeevan Azad vs Other LIC Plans
| Plan | Best Feature | Premium Payment | Returns | Suitable For |
|---|---|---|---|---|
| Jeevan Azad (868) | Guaranteed Maturity (Fixed) | Limited | 5–6% | Safe Investors |
| Jeevan Labh (736) | Limited Premium + Bonuses | 10–16 years | 6–7% | Long-term Goals |
| Jeevan Anand (915) | Lifetime Cover after Maturity | Full term | 6–7% | Legacy Planning |
| Amritbaal (774) | Child-focused Savings | Flexible | Market-linked | Children’s Future |
👉 Jeevan Azad is best if you want guaranteed, fixed, risk-free maturity benefits.
Strengths & Limitations
Strengths ✅
- Guaranteed returns (risk-free).
- Limited premium payment.
- Suitable for child education, marriage, retirement.
- Tax savings under 80C & 10(10D).
Limitations ❌
- Returns lower than equity/ULIP.
- Maximum SA capped at ₹5 lakh.
- Not ideal for HNIs (High Networth Individuals).
FAQs – LIC Jeevan Azad Plan 868
Q1. What is special about Jeevan Azad?
👉 Guaranteed fixed maturity, irrespective of market conditions.
Q2. How much return can I expect?
👉 Generally, IRR (returns) are 5–6% depending on term & age.
Q3. Can NRIs buy LIC Jeevan Azad?
👉 Yes, subject to LIC rules.
Q4. Is loan facility available?
👉 Yes, after 2 years of premium payment.
Q5. What is the maximum maturity benefit?
👉 ₹5 lakh (basic SA) + death benefit option in case of early demise.
Final Thoughts – Should You Buy LIC Jeevan Azad 868 in 2025?
The LIC Jeevan Azad Plan 868 is best for those who:
- Want guaranteed lump sum maturity.
- Prefer safe savings + insurance cover.
- Don’t want to depend on market fluctuations.
- Need a plan for child’s future, retirement, or marriage goals.
It may not give very high returns, but it provides peace of mind, security, and tax benefits.
👉 If you are a middle-class investor looking for safe wealth creation + family protection, LIC Jeevan Azad is a strong choice in 2025.
