LIC Jeevan Azad Calculator: Plan 868 Limited Pay Guide
Finding an affordable, risk-free savings policy with a short premium payment window is essential for middle-income households, first-time policyholders, and parents saving for short-term goals. LIC Jeevan Azad (Plan No. 868) is a non-linked, non-participating, individual limited-pay endowment plan introduced by the Life Insurance Corporation of India (LIC). It features a unique **limited premium paying term equal to Policy Term minus 8 Years**, providing guaranteed capital preservation and life insurance security.
Our free online LIC Jeevan Azad Calculator enables policyholders, small savers, and insurance advisors to compute exact annual premium installments, view PPT savings windows, project guaranteed maturity payouts, and evaluate life cover Sum Assured protection.
What is LIC Jeevan Azad (Plan 868)?
LIC Jeevan Azad is designed as an accessible, guaranteed endowment savings policy:
- Limited Premium Payment Window: Pay premiums for only 7 to 12 years while enjoying insurance protection for 15 to 20 years (`PPT = Policy Term - 8 Years`).
- Affordable Sum Assured Slabs: Basic Sum Assured ranges from ₹2,00,000 (2 Lakhs) to ₹5,00,000 (5 Lakhs).
- 100% Tax-Free Guaranteed Maturity: Receive the full Basic Sum Assured as a guaranteed lump sum payout at maturity.
- Dual Death Cover Protection: Life cover Sum Assured on death is defined as the higher of Basic Sum Assured or 7 times Annualized Premium.
Policy Term & PPT Calculation Matrix
| Policy Term | Premium Paying Term (PPT = Term - 8 Yrs) | No-Premium Risk Cover Period | Guaranteed Maturity Benefit |
|---|---|---|---|
| 15 Years Term | 7 Years PPT | 8 Years Free Cover | 100% Basic Sum Assured |
| 16 Years Term | 8 Years PPT | 8 Years Free Cover | 100% Basic Sum Assured |
| 17 Years Term | 9 Years PPT | 8 Years Free Cover | 100% Basic Sum Assured |
| 18 Years Term | 10 Years PPT | 8 Years Free Cover | 100% Basic Sum Assured |
| 19 Years Term | 11 Years PPT | 8 Years Free Cover | 100% Basic Sum Assured |
| 20 Years Term | 12 Years PPT | 8 Years Free Cover | 100% Basic Sum Assured |
Key Policy Eligibility Criteria
| Parameter | Official LIC Guidelines (Plan 868) |
|---|---|
| Minimum Entry Age | 90 Days (Completed) |
| Maximum Entry Age | 50 Years (Near Birthday) |
| Maximum Maturity Age | 70 Years |
| Minimum Maturity Age | 18 Years (Completed) |
| Minimum Basic Sum Assured | ₹2,00,000 (2 Lakhs) |
| Maximum Basic Sum Assured | ₹5,00,000 (5 Lakhs) per individual |
How the LIC Jeevan Azad Calculator Works
The LIC Jeevan Azad Calculator computes premium installments and maturity payouts using exact actuarial parameters:
- Base Premium Rate Calculation: Computes base rate based on age, policy term (15 to 20 yrs), and PPT.
- High Sum Assured Rebates: Applies high SA rebates (up to ₹4.0 per ₹1,000 SA for SA >= ₹4 Lakhs).
- GST Addition: Adds 4.5% GST in Year 1 and 2.25% in Year 2 onwards.
- Total Outflow vs Maturity Comparison: Multiplies installment premium by PPT to display total investment outgo vs ₹5 Lakhs guaranteed maturity lump sum.
Worked Financial Example & Limited Pay Returns
Consider a 30-year-old individual purchasing **₹5,00,000 (5 Lakhs) Basic Sum Assured** under a **20-Year Policy Term (12-Yr PPT)**:
| Policy Component / Milestone | Financial Details & Maturity Projections |
|---|---|
| Basic Sum Assured (Life Cover) | ₹5,00,000 (5 Lakhs) |
| Premium Paying Term (PPT) | 12 Years (Pay from Age 30 to Age 41) |
| Policy Term | 20 Years (Covered from Age 30 to Age 50) |
| Approx. Annual Premium (incl. GST) | ~₹19,200 / year |
| Total Premiums Paid (12 Yrs Outflow) | ₹2,30,400 (Approx ₹2.30 Lakhs) |
| Guaranteed Maturity Lump Sum (Age 50) | ₹5,00,000 (5 Lakhs Tax-Free Lump Sum) |
| Net Wealth Gain (Profit) | +₹2,69,600 (Over 2.1x Total Premiums Invested!) |
Strategic Comparison: LIC Jeevan Azad (868) vs LIC Aadhaar Stambh (943)
| Comparison Parameter | LIC Jeevan Azad (Plan 868) | LIC Aadhaar Stambh (Plan 943) |
|---|---|---|
| Premium Payment Terms | Limited Pay (PPT = Term - 8 Yrs) | Regular Pay (PPT = Policy Term) |
| Gender Restriction | Open to All (Male, Female, Children) | Male Lives Only |
| Max Sum Assured Cap | ₹5,00,000 (5 Lakhs) | ₹5,00,000 (5 Lakhs) |
| Return Type | Non-Participating Guaranteed SA | Participating Loyalty Addition (LA) |
Tax Exemptions under Section 80C & Section 10(10D)
- Section 80C Tax Deduction: Annual premiums paid qualify for income tax deduction up to ₹1,50,000 per financial year.
- Section 10(10D) Tax-Free Maturity: The full ₹5 Lakhs maturity lump sum and death claim proceeds are 100% tax-free.
How to Use the LIC Jeevan Azad Calculator
- Select Policy Term: Pick a term from 15 to 20 years (PPT updates automatically).
- Set Proposer Entry Age: Input age (0 to 50 years).
- Enter Basic Sum Assured: Specify sum assured (min ₹2,00,000 to max ₹5,00,000).
- Select Payment Frequency: Choose Yearly, Half-Yearly, Quarterly, or Monthly.
Frequently Asked Questions (FAQs)
What is LIC Jeevan Azad Plan 868?
LIC Jeevan Azad (Plan 868) is a non-linked, non-participating, individual limited-pay endowment savings plan. It features a unique limited premium paying term calculated as Policy Term minus 8 Years, providing affordable life cover and guaranteed maturity returns.
How is the Premium Paying Term (PPT) calculated?
The Premium Paying Term (PPT) is always equal to Policy Term minus 8 Years. For example, a 15-year policy term requires only 7 years of premium payments, while a 20-year policy term requires only 12 years of premium payments.
What are the Sum Assured limits under Jeevan Azad?
The Minimum Basic Sum Assured is ₹2,00,000 (2 Lakhs) and the Maximum Basic Sum Assured is ₹5,00,000 (5 Lakhs) per individual, making it an ideal affordable micro-savings plan.
What entry ages and maturity ages are allowed?
Entry age ranges from 90 days completed up to 50 years (near birthday). The maximum maturity age limit is 70 years, with policy terms ranging from 15 to 20 years.
What is the death benefit payout under Plan 868?
If the life assured dies during the policy term, the nominee receives the Sum Assured on Death, defined as the higher of the Basic Sum Assured or 7 times the Annualized Premium (minimum 105% of total premiums paid).
Are maturity returns under LIC Jeevan Azad tax-free?
Yes, the full maturity lump sum payout and death claim proceeds are 100% tax-free under Section 10(10D). Annual premiums paid qualify for tax deductions under Section 80C.