5 Lakh Savings & Life Security On Monthly Premium Of Rs 2,000; Know The LIC Policy
Introduction:
In today’s uncertain world, it is essential to secure not only our present but also our future. Life insurance policies play a vital role in providing financial protection to our loved ones in case of unforeseen events. The Life Insurance Corporation (LIC) offers a wide range of policies designed to meet different individuals’ needs. One such policy is LIC Jeevan Azad, a non-linked, non-participating individual life insurance plan that provides a combination of life insurance coverage, savings, and tax benefits. This essay aims to provide a detailed understanding of the LIC Jeevan Azad policy, including its features, benefits, eligibility criteria, premium payment options, and how to join the policy.
Overview of LIC Jeevan Azad Policy:
LIC Jeevan Azad is a traditional life insurance plan offered by the Life Insurance Corporation of India. It was launched on 19th January 2023 with the objective of providing individuals with a comprehensive insurance solution that offers both life security and savings. The policy is specifically designed to offer financial protection to the policyholder’s family in the event of the policyholder’s untimely demise during the policy term, while also building a corpus through regular premium payments.
Eligibility Criteria:
To join the LIC Jeevan Azad policy, individuals must meet certain age requirements. The minimum age at entry is 90 days, and the maximum age is 50 years. The policyholder should also be between 18 and 70 years of age at the time of maturity. The policy allows a minimum sum assured of Rs 2 lakh and a maximum sum assured of Rs 5 lakh. In the unfortunate event of the policyholder’s death during the policy term, the nominee will receive the basic sum assured, which is seven times the annual premium paid at the time of purchasing the policy.
Policy Term and Premium Payment Options:
The policy term for LIC Jeevan Azad can be chosen between 15 to 20 years. It is structured as a limited premium plan, where the policyholder pays premiums for a shorter duration compared to the policy term. For instance, if a policyholder purchases a 20-year policy, they will only need to pay premiums for 12 years. Similarly, for a 15-year policy, the premium payment period is 7 years, and for an 18-year policy, it is 10 years. Premiums can be paid on a monthly, quarterly, half-yearly, or annual basis, providing flexibility and convenience to policyholders.
Benefits of LIC Jeevan Azad Policy:
1. Life Insurance Coverage: The primary benefit of the LIC Jeevan Azad policy is the life insurance coverage it provides. In the unfortunate event of the policyholder’s death during the policy term, the nominee will receive the basic sum assured, ensuring financial security for the policyholder’s family.
2. Savings and Maturity Benefit: Along with life insurance coverage, the policy also helps policyholders build savings over the policy term. Upon completion of the policy term, the policyholder will receive the maturity value, which is a lump sum amount that includes the premiums paid along with returns. This maturity amount can be a significant financial asset and can provide a sense of security for the policyholder’s future.
3. Tax Benefits: LIC Jeevan Azad policy offers tax benefits under the prevailing tax laws. The premiums paid towards the policy are eligible for deductions under Section 80C of the Income Tax Act, 1961. Additionally, the maturity proceeds or death benefit received by the policyholder or nominee, respectively, are tax-free under Section 10(10D) of the Income Tax Act.
How to Join
LIC Jeevan Azad policy can be purchased online or through LIC branches. One can visit the LIC website www.licindia.in and purchase the policy online.
Conclusion:
Securing one’s life and future is of utmost importance in today’s unpredictable world. The LIC Jeevan Azad policy offered by the Life Insurance Corporation of India presents a compelling solution for individuals seeking life insurance coverage and savings. With its comprehensive features, including life security, savings, and tax benefits, the policy ensures financial protection for the policyholder’s family in the event of an untimely demise, while also providing a corpus through regular premium payments.
By understanding the eligibility criteria, policy term options, premium payment flexibility, and the benefits associated with LIC Jeevan Azad, individuals can make informed decisions about their life insurance needs. It is crucial to assess one’s financial circumstances and consult with LIC representatives or financial advisors to determine the most suitable sum assured, policy term, and premium payment options.
Life insurance is an essential component of a well-rounded financial plan, and LIC Jeevan Azad offers a reliable and convenient solution for individuals looking to secure their family’s financial future. By taking advantage of the policy’s features and benefits, individuals can provide their loved ones with the necessary protection and create a savings corpus that ensures stability and peace of mind.
