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LIC Jeevan Azad (Plan 868) Review & Benefits | Should you Buy (2025)?

Dev Ashish

LIC’s Jeevan Azad (Table & LIC Plan 868) is a traditional, non-participating, endowment policy by LIC, which offers guaranteed, tax-free maturity proceeds. Should you buy this traditional endowment plan from LIC in 2025?

If you want to know more about this LIC Jeevan Azad Review (2025) article, then you will get to know all the LIC Jeevan Azad plan Details and more importantly, the LIC Jeevan Azad Policy Benefits here.

LIC had launched Jeevan Azad Plan (No. 868) for the first time in 2023 under the Plan UIN 512N348V01.

LIC Website link to Policy page – Link

Let’s see the features now.

Features of LIC Jeevan Azad (Table 868)

Now let’s have a look at the Policy Details of LIC Jeevan Azad policy or LIC Plan 868. The Eligibility Criteria of the LIC Jeevan Azad Plan and its features are listed below:

Maturity Benefits of LIC Jeevan Azad (Plan 868)

When it comes to the maturity benefits of LIC Jeevan Azad Plan, its fairly simple. On successful completion of the policy tenure and if all the premiums are timely paid, the ‘Sum Assured on Maturity’ will be paid to the beneficiary.

There is a Settlement Option as well (for maturity benefit). Under this, the policyholder can choose to receive maturity benefits in installments over 5 years. The installments can be chosen as annually, half-yearly, quarterly, or monthly, subject to a minimum installment amount for different payment modes.

Death Benefits of LIC Jeevan Azad

The death benefit payable on the death of the policyholder or life assured during the policy tenure shall be “Sum Assured on Death” where “Sum Assured on Death” is defined as higher of:

One has the option to give death benefits to nominee in installments over 5 years rather than in a single lump sum payment. The installments can be paid at intervals of annually, half-yearly, quarterly, or monthly, subject to a minimum installment amount for different payment modes.

Sample Premium Illustrations of LIC Jeevan Azad Plan (2025)

Here is the sample premium illustration of the LIC Jeevan Azad plan. The premiums given below are are calculated for a Basic Sum Assured of Rs 2 lakh with different ages and premium paying terms.

So if you were looking for LIC Jeevan Azad Premium Calculator, then here are all the premium related details of the policy –

Some people have confusion about Will premium amount change during the tenure of the policy after they have bought the plan? The answer is No. Once the policy is issued, the annual premium will remain the same for the entire tenure of the policy if premiums are paid regularly within due date.

So that was how to find out the premium using LIC Jeevan Azad Premium Calculator if you are planning to purchase this LIC Jeevan Azad 868 Plan.

How much Returns does Jeevan Azad (LIC Plan 868) offer?

How much will the maturity benefit of the Jeevan Azad LIC Plan and how much returns can you expect?

This is a simple plan which simply pays the sum assured if you survive the policy term. There are no additional bonuses or benefits. So if you were to use a LIC Jeevan Azad Maturity Calculator to assess how much maturity amount you will get, then you will always get the answer that your maturity amount will be exactly equal to your sum assured at the time of purchasing the Jeevan Azad policy.

Let us use an example from the LIC brochure itself.

Suppose you are a 30-year-old person who buys LIC Jeevan Azad policy of Rs 2 lakh sum assured and opts for a 20-year policy. In this case, your premium paying term will be 12 years. Based on LIC Jeevan Azad Premium Chart above, we know that the annual premium will be Rs 9849 per year and this premium has to be paid only for the first 12 years. After that in 20th year, the policy will mature and pay Rs 2 lakh as sum assured maturity benefit.

Now let’s try to calculate the returns generated by this LIC Jeevan Azad example. For this we need to calculate the returns or IRR of Jeevan Azad plan.

If you calculate the IRR of this scenario to simulate LIC Jeevan Azad Maturity Calculator, the returns come to a pathetic 3.8% per cent only! Yes, it is that low. So that was a Jeevan Azad with an Example, which after our IRR Analysis of LIC Jeevan Azad plan, clearly shows how poor returns this policy generates which is nowhere near even the Bank FD interest rates. There are several other better return-yielding investment alternatives than this plan, even if we were to consider the taxation of the maturity amount.

Tax Benefits on LIC Jeevan Azad Plan

The premiums paid for LIC Jeevan Azad are exempted from tax under the Section 80C. The maturity benefit as well as the death benefit amounts are also exempted and are tax-free under the Section 10D(D) of the Income Tax Act, 1961.

Optional Riders Under LIC Jeevan Azad Plan

LIC Jeevan Azad offers several optional riders, through which the policyholder can add to their coverage by paying an additional premium:

Other Important Points of LIC Jeevan Azad Plan

Surrender of LIC Jeevan Azad

One can surrender the policy at any time only if all the premiums are paid for 2 years consecutively.

On surrendering the plan, LIC will pay a surrender value equal to special surrender value or the guaranteed surrender value, whichever of them is higher. The Guaranteed Surrender Value = Total premiums paid * Applicable Guaranteed Surrender Value factor.

How to purchase LIC Jeevan Azad Plan online?

Step-by-step process to buy LIC’s Jeevan Azad Plan Online:

That’s how you can buy LIC Plan 868 online with rebates of on purchase amount.

Should you buy LIC’s Jeevan Azad (Plan 868) in 2025?

LIC Jeevan Azad is a typical traditional endowment plan by LIC where you pay are supposed to premiums for a limited time & then at maturity, you receive a lump sum amount as the maturity benefit. You also get a small life cover during the policy term period. As we saw in the return analysis, it comes below 4% IRR. There is no loyalty addition or any other bonus for this policy and hence, the returns of this plan are even lower than many other endowment plans of LIC which receive bonuses regularly. And even the maximum sum assured is a small Rs 5 lakh, which is of no use to anyone who is looking for life insurance cover. For life insurance, best option is a simple term plan and as I have maintained earlier, avoid mixing investment and insurance.

Hopefully, you would have found this LIC Jeevan Azad Review of LIC’s newly launched endowment plan (UIN – 512N348V01) useful and the policy details and LIC Jeevan Azad Policy Benefits (2025) would be clear by now. But please make sure you understand and assess the suitability of this low-return, small life cover product first.

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