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LIC Jeevan Azad (868) – Why you will need to NOT make investments?


LIC Jeevan Azad (868) was launched on nineteenth January 2023. Nevertheless, contemplating the options, eligibility and return expectations, do you have to make investments?

LIC Jeevan Azad (868)

LIC’s Jeevan Azad is a Non-Linked, Non-Taking part, Particular person, and Financial savings plan which provides a mixture of financial savings and safety plan.

This plan is obtainable solely via OFFLINE mode.

Eligibility of LIC Jeevan Azad (868)

The eligibility circumstances are as under.

  • Minimal age at entry – 90 days
  • Minimal age at maturity – 18 years
  • Most age at entry – 50 years
  • Most age at maturity – 70 years
  • Coverage Time period – 15 years to twenty years
  • Premium paying time period – Coverage Time period minus 8 years. Therefore, for those who select 15 years coverage, then the coverage cost time period might be 7 years and for 20 years coverage, it is going to be 12 years.
  • Minimal Sum Assured – Rs.2 lakh
  • Most Sum Assured – Rs.5 lakh
  • The whole Primary Sum Assured beneath all insurance policies issued to a person beneath this plan shall not exceed Rs 5 lakh.
  • This plan provides a settlement possibility (to get the maturity advantages in installments).
  • This plan provides the demise profit additionally in installments.
  • Premiums could be paid commonly at yearly, half-yearly, quarterly or month-to-month intervals (month-to-month premiums via NACH solely) or via wage deductions.

Advantages of LIC Jeevan Azad (868)

# Maturity Profit

On Life Assured surviving the stipulated Date of Maturity, ’Sum Assured on Maturity’ which is the same as ‘Primary Sum Assured’ shall be payable.

# Dying Profit

The demise profit payable on the demise of the life assured in the course of the coverage time period after the date of graduation of danger however earlier than the date of maturity shall be “Sum Assured on Dying” the place “Sum Assured on Dying” is outlined as greater of ‘Primary Sum Assured’ or ‘7 occasions of Annualized Premium’.

This Dying Profit shall not be lower than 105% of “Complete Premiums Paid” as much as the date of demise.

Nevertheless, within the case of minor Life Assured, whose age at entry is under 8 years, on demise earlier than the graduation of Threat (as laid out in Para 2 under), the Dying Profit payable shall be a refund of premium(s) paid (excluding taxes, additional premium and rider premium(s), if any), with out curiosity.

How a lot returns you may anticipate from LIC Jeevan Azad (868)?

Allow us to take an instance from the LIC brochure itself.

LIC Jeevan Azad (868) Premium

Now allow us to take an instance of a 30-year-old man choosing 20 years coverage. Therefore, his premium paying time period is 12 years. Primarily based on that if we calculate the returns on funding, it’s equal like your financial savings account rate of interest!!

LIC Jeevan Azad (868) Returns Expectation

If we add the tax, then returns will once more cut back. I’m not certain why LIC launched this plan the place nothing is new and within the present greater curiosity regime, who can go for such insurance policies?

LIC Jeevan Azad (868) – Why you will need to NOT make investments?

Allow us to contemplate this as pure insurance coverage merchandise (for time being ignore the returns half), then you definitely seen that the utmost sum assured is simply Rs.5 lakh. Assume for what number of years your loved ones can survive in your absence with this demise profit. A 12 months or to the utmost two years. Then how this plan goes to be thought-about a safety plan??

If we focus on the returns half, then you definitely seen from the above calculation that it’s lower than 4%. Irrespective of no matter manner you calculate, the returns is not going to cross past 5%. When within the present state of affairs of high-interest charges enticing merchandise can be found means why one will make investments for 15 to twenty years and fulfill with a meager financial savings account charge.

LIC has a historical past of launching a brand new product in the course of the month of December or January. Primarily to focus on tax-saving people. This plan I believe a hurriedly launched product targetting such people.

Contemplating all these pointers, I strongly recommend you keep away from this product. Investing in merchandise like PPF provides you a superior return than this product.

HOWEVER, IF YOU ARE HAPPY WITH 4% TO 5% RETURNS FOR YOUR LONG-TERM INVESTMENT OF 15-20 YEARS, THEN PLEASE GO AHEAD AND INVEST!!

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