Disclaimer: This review is for educational purposes. Insurance is subject to market risk (non-market linked). Please consult LIC advisor before purchase.
Life Insurance Corporation of India (LIC) – India’s most trusted insurer with over ₹45 lakh crore assets under management has launched Jeevan Azad Plan 868 as a limited premium paying, non-linked, participating endowment plan.
Who should read this review?
- Salaried individuals looking for guaranteed savings
- First-time insurance buyers (age 18-45)
- Parents saving for child’s education/marriage
- Conservative investors wanting capital protection
What is LIC Jeevan Azad Plan 868?
LIC Jeevan Azad Plan 868 is Non-Linked Participating Endowment Plan (UIN: 512N330V01)
Simple Explanation: You pay premiums for a limited period (5, 6, or 7 years), but the policy runs for 15-20 years. At maturity, you get:
- Basic Sum Assured (100% guaranteed)
- Loyalty Additions (bonus declared by LIC)
- Final Additional Bonus (if applicable)
How LIC Jeevan Azad Plan 868 works:
we see below the working of this plan
Pay premium → For limited years (5/6/7)
Policy continues → For 15-20 years (no premium after PPT)
At maturity → Get SA + accumulated bonuses
Death anytime → Family gets SA + bonusesLIC Jeevan Kiran Plan 870 Premium Calculator | Calculate Premium & Maturity Online
LIC Jeevan Azad Plan 868 Key Features
| Feature | Details |
|---|---|
| Premium Payment Term | 5, 6, or 7 years (fixed) |
| Policy Term | 15, 16, 17, 18, 19, or 20 years |
| Bonus Participation | Yes (Simple Reversionary Bonus) |
| Loan Facility | Available after 2 years |
| Tax Benefits | u/s 80C & 10(10D) |
| Surrender Value | Available after 2 years |
| Grace Period | 30 days (yearly), 15 days (monthly) |
LIC Jeevan Azad Plan 868 Eligibility Criteria
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age | 8 years | 55 years |
| Maturity Age | 23 years | 70 years |
| Policy Term | 15 years | 20 years |
| Premium Paying Term | 5 years | 7 years |
| Sum Assured | ₹2,00,000 | ₹5,00,000 |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, Monthly |
Important: SA cannot exceed ₹5 lakh (unlike other LIC plans with higher limits).
LIC Jeevan Azad Plan 868 Benefits Explained
✔ Maturity Benefit
At the end of policy term, you receive:
Maturity Benefit = Basic Sum Assured + Accrued Bonuses + Final Additional Bonus (if declared)Example: SA ₹3 lakh, term 20 years, PPT 7 years → At age 45, you receive ₹3L + bonuses (estimated ₹60k-1L)
✔ Death Benefit (Family Protection)
If policyholder dies during term:
Death Benefit = Sum Assured on Death + Accrued Bonuses
Where Sum Assured on Death = Higher of:
* Basic Sum Assured (₹2-5 lakh)
* 10 × Annualized Premium
* 105% of all premiums paidMinimum death benefit guarantee: ₹2 lakh
✔ Survival Benefits
None – This is a pure endowment plan. No partial payouts during term.
✔ Loan Benefit
- Available after 2 years
- Up to 90% of surrender value
- Interest rate: ~9-10% (varies)
✔ Tax Benefits
- 80C: Premiums up to ₹1.5 lakh deductible
- 10(10D): Maturity proceeds fully tax-free (subject to premium <10% of SA)
Bonus & Returns Analysis
How LIC Bonus Works
LIC declares Simple Reversionary Bonus annually (₹ per thousand SA).
- Historical range: ₹35-50 per ₹1000 SA
- Not guaranteed – depends on LIC’s performance
Expected Returns Calculation
| Investment Option | Expected IRR (5-7 years PPT) | Risk Level |
|---|---|---|
| LIC Jeevan Azad | 4-6% per annum | Low (Guaranteed) |
| Bank FD (5 years) | 7-7.5% | Low |
| PPF | 7.1% (tax-free) | Low |
| NCD/Bonds | 8-9% | Moderate |
| Mutual Funds (Debt) | 6-8% | Low-Moderate |
Verdict: Returns are lower than FD/PPF because you pay for life cover. Good for protection + savings, not for wealth creation.
Sample Return Calculation
Age: 30 | SA: ₹3,00,000 | PPT: 7 years | Term: 20 years
Yearly Premium: ~₹32,000 (approx)
Total Premium Paid: ₹2,24,000
Maturity (Age 50): SA ₹3,00,000 + Bonus (~₹70,000) = ₹3,70,000
IRR: ~4.8% per annum
LIC Jeevan Azad Plan 868 Premium Calculation Examples
| Age | SA (₹) | PPT (Years) | Term (Years) | Yearly Premium (₹) | Maturity Value* (₹) |
|---|---|---|---|---|---|
| 25 | 2,00,000 | 5 | 15 | ~18,500 | ~2,40,000 |
| 30 | 3,00,000 | 7 | 20 | ~32,000 | ~3,70,000 |
| 35 | 4,00,000 | 7 | 18 | ~44,000 | ~4,90,000 |
| 40 | 5,00,000 | 6 | 16 | ~58,000 | ~6,10,000 |
*Assuming bonus rate ₹45/1000 SA annually (estimated, not guaranteed)
Calculator Tip: Use LIC premium calculator online for exact quote.
LIC Jeevan Azad Plan Pros and Cons
Advantages
| Pro | Explanation |
|---|---|
| Short premium payment | Stop paying after 5-7 years, policy continues |
| Capital protection | 100% guaranteed Basic SA return |
| Life cover included | Family gets SA + bonus if death occurs |
| Tax benefits | Under 80C & 10(10D) |
| Loan facility | Emergency liquidity after 2 years |
| LIC’s trust factor | Government-backed security |
LIC Jeevan Azad Plan Disadvantages
| Con | Explanation |
|---|---|
| Low returns | 4-6% vs FD (7%) vs PPF (7.1%) |
| Low SA cap | Maximum ₹5 lakh only |
| Lock-in period | Money stuck for 15-20 years |
| Inflation risk | Returns may not beat inflation (6%+) |
| Bonus not guaranteed | Depends on LIC’s annual declaration |
| Low surrender value | Heavy loss if surrendered early |
Comparison with Other LIC Plans
| Feature | Jeevan Azad (868) | Jeevan Utsav (872) | New Endowment (914) |
|---|---|---|---|
| Premium Paying Term | 5-7 years (limited) | Throughout term | Throughout term |
| Policy Term | 15-20 years | 15-20 years | 12-35 years |
| Max SA | ₹5 lakh | No upper limit | No upper limit |
| Loyalty Addition | Yes (bonus) | Yes + guaranteed addition | Yes (bonus) |
| Regular Income | No (lumpsum) | Yes (after PPT) | No (lumpsum) |
| Best For | Small goal, limited budget | Retirement income | Higher coverage |
Which is better?
- Choose Jeevan Azad: If you have limited budget and want short payment term
- Choose Jeevan Utsav: If you want regular retirement income
- Choose New Endowment: If you need higher sum assured (>₹5 lakh)
Who Should Buy This Plan?
✅ Ideal for:
- Conservative savers – Want guaranteed returns, no market risk
- Young earners (25-35 years) – Start small savings habit
- Parents saving for child – Child education/marriage goal (15-20 years)
- Low budget buyers – Minimum SA ₹2 lakh only
- First-time insurance buyers – Understand how endowment plans work
- Salaried individuals – Tax benefit under 80C
Example Scenario:
Rahul (28), monthly salary ₹40,000, wants to save ₹2,500/month for 7 years. After 20 years (age 48), he gets ~₹4 lakh for child’s higher education. Life cover protects family during this period.
Who Should Avoid This Plan?
❌ Not suitable for:
- High return seekers – Expecting 10%+ returns (invest in mutual funds instead)
- Short-term goals – Need money in <10 years
- High coverage need – Need >₹5 lakh life cover (buy term insurance + invest separately)
- Stock market investors – Comfortable with market fluctuations
- Senior citizens (>55 years) – Maturity age up to 70 only
- Business owners – Need liquidity flexibility
Better Alternatives:
| If you want… | Instead of Jeevan Azad, consider… |
|---|---|
| Higher life cover | LIC Tech Term Plan + PPF/MF |
| Better returns | ELSS Mutual Funds + Term Insurance |
| Regular income | LIC Jeevan Utsav or Senior Citizen Scheme |
| Short-term (5-10 years) | Bank FD / Corporate Bonds |
LIC Jeevan Azad Plan 868 Latest Updates (2026)
LIC’s Strategic Shift:
- Focus on guaranteed return plans (Jeevan Azad, Jeevan Utsav)
- Reducing dependency on ULIPs (market-linked)
- Targetting rural and first-time buyers with low-ticket plans
Market Trends 2026:
- Rising demand for limited premium payment plans post-pandemic
- Customers prefer shorter commitment due to income uncertainty
- Competition from guaranteed return products from HDFC Life, SBI Life
Regulatory Updates:
- IRDAI pushing for more transparency in bonus illustrations
- Mandatory positive benefit disclosure for endowment plans
Expert Review & Rating
| Parameter | Rating | Comments |
|---|---|---|
| Returns | ⭐⭐ (2/5) | Lower than FD/PPF |
| Safety | ⭐⭐⭐⭐⭐ (5/5) | LIC + Government backing |
| Flexibility | ⭐⭐ (2/5) | Locked for 15-20 years |
| Life Cover | ⭐⭐ (2/5) | Max ₹5 lakh only |
| Tax Benefits | ⭐⭐⭐⭐ (4/5) | 80C + 10(10D) |
| Liquidity | ⭐⭐ (2/5) | Loan available but interest applies |
| Overall | ⭐⭐⭐ (3.5/5) | Good for specific use cases |
Final Expert Opinion:
“Jeevan Azad 868 is a decent plan for beginners with low budget who want life cover + guaranteed savings in one product. However, for pure wealth creation, separate term insurance + PPF/MF gives better returns. The ₹5 lakh SA cap is a major limitation. Buy only if you want a small, disciplined, safe savings plan for 15+ years.”
Verdict: Good for small goals, not for serious wealth creation.
FAQs
Q1. Is LIC Jeevan Azad a good investment?
A: For guaranteed savings with life cover, yes. For wealth creation, no (returns only 4-6%).
Q2. What is the maturity return percentage?
A: Approx 4-6% per annum (depends on LIC’s bonus declaration).
Q3. Can I surrender Jeevan Azad policy early?
A: Yes, after 2 years. But surrender value is very low (30-50% of premiums paid in early years).
Q4. Is loan available in Jeevan Azad?
A: Yes, after 2 years, up to 90% of surrender value.
Q5. What happens if I stop paying premiums after 3 years?
A: Policy lapses. You can revive within 2 years (with interest) or get reduced paid-up value.
Q6. Can I increase sum assured later?
A: No. Sum assured is fixed at policy inception.
Q7. Is nominee allowed?
A: Yes. You can assign nominee at policy start.
Q8. Are returns tax-free?
A: Yes, under Section 10(10D) if premium <10% of sum assured.
Q9. How is bonus calculated?
A: Simple Reversionary Bonus = (SA/1000) × Bonus rate × Number of years.
Q10. Is Jeevan Azad better than PPF?
A: PPF gives higher returns (7.1% vs 4-6%) but no life cover. Both have tax benefits.
Conclusion
Summary Table
| Aspect | Verdict |
|---|---|
| Best for | Conservative savers, beginners, small goals |
| Worst for | High return seekers, large coverage need |
| Returns | Low (4-6% p.a.) |
| Safety | Very high (LIC) |
| Lock-in | 15-20 years (long) |
| Life cover | Low (₹2-5 lakh) |
Final Recommendation:
✅ BUY Jeevan Azad IF:
- You have limited budget (₹2-5 lakh SA)
- You want to stop premiums early (5-7 years)
- You need guaranteed + tax-free maturity
- You’re a first-time insurance buyer
- Your goal is 15-20 years away (child education/marriage)
❌ DON’T BUY IF:
- You want >₹5 lakh life cover (buy term plan)
- You expect >7% returns (invest in PPF/MF)
- You may need money in <10 years
- You’re comfortable with market risk
Smart Strategy:
Term Insurance (₹1 crore cover) + PPF / Mutual Funds = Better returns + Higher protectionCall to Action:
- Use LIC Premium Calculator before buying
- Compare with PPF, ELSS, and bank FDs
- Consult LIC advisor for exact numbers
- Don’t mix insurance with investment for large goals
