Life Insurance Corporation of India has introduced LIC Jeevan Azad Policy. Within 10-15 days the policy has made tremendous advancement in the non-participating insurance sector and has sold 50,000 policies in less than a month. It is a success for the state insurer for its savings-based life insurance policy. Now you might be wondering what made Jeevan Azad Policy invincible. Read further to know more.
A guaranteed lump sum payment to policyholders of the savings-based life insurance plan Jeevan Azad upon maturity is what makes it unique. A person choosing 18-year insurance will only be required to make premium payments for 10 years because the policy’s payment period is equal to the policy term minus 8 years. The policy’s terms range from 15 to 20 years, and the lowest and maximum sums insured are Rs 2 lakh and Rs 5 lakh, respectively.
For a 30-year-old paying Rs 12,083 for 10 years, the policy’s maturity value will be Rs 2 lakh after 18 years, yielding a net interest rate of 4-5 percent. If the annualised premium falls below 105 percent of all premiums paid, the death benefit will be the lesser of the basic sum assured or seven times the annualized premium.
Jeevan Azad is one of the non-participating plans that LIC emphasises heavily since it may provide its investors with higher margins. The business is still committed to maintaining a portfolio mix that maximises value for all stakeholders while steadily and profitably increasing the number of non-participating businesses.
The net profit for the quarter that ended December 31, 2022, for LIC, increased significantly from the prior year’s Rs 235 crore to Rs 6,334 crore. The transfer of Rs 5,670 crore from its non-participating fund to the shareholder’s fund is largely responsible for this growth. In fact, the company saw a 15% growth in net premium income, going from Rs. 97,620 crore in Q3FY22 to Rs. 1.1 lakh crore in Q3FY23.
