LIC Jeevan Azad Plan 868 is a non-linked, non-participating, limited premium endowment life insurance policy. This means your benefits do not depend on the share market and you do not receive participation in LIC’s profits. The plan is meant to provide a guaranteed lump-sum at the end of the term and financial support for your family in case of untimely demise during the policy tenure.​

This endowment plan blends insurance and savings, making it suitable for people who want straightforward benefits and peace of mind.

Launch Date and Withdraw Date

• Launch Date: January 19, 2023
• Withdraw Date: January 1, 2025

Jeevan Azad 868 was available for new sales only between these dates. It is no longer available for fresh purchase but existing policyholders will continue to receive all contractual benefits.

Key Features of LIC Jeevan Azad Plan 868

• Guaranteed payout on maturity​
• Limited premium payment: Pay premiums only for 8 years less than your policy term.
• Sum Assured options: Minimum ₹2,00,000; Maximum ₹5,00,000.
• Entry age: From 90 days (for minors) to 50 years.
• Policy term: Ranges from 15 years to 20 years.
• No market risk: Returns are fixed, not dependent on stock market or LIC profits.
• Death benefit: Higher of sum assured or 7 times annual premium; minimum of 105% of total premiums paid.

Who Should Consider This Plan?

LIC Jeevan Azad Plan 868 is suitable for:

• Individuals wanting a simple savings plan with guaranteed returns.
• Those looking for basic life coverage with no market risk.
• Families wishing to secure a modest corpus with affordable premiums.
• Parents seeking insurance for their children (from 90 days onwards).​

How Does the Premium Calculator Work?

A premium calculator helps you estimate the yearly or monthly premium you’ll pay, based on factors such as:

• Age of policyholder
• Policy term (15–20 years)
• Sum assured (₹2–5 lakh)
• Premium payment term (Policy term minus 8 years)
• GST and applicable rebates

These calculators use official LIC tables and take into account modal rebates, sum assured rebates, and occasionally GST rates, which are 4.5% for first-year premiums and 2.25% for subsequent years.liccalculators+1​

Important Terms and Policy Details

• Premium Payment Term (PPT): Equal to policy term minus 8. If you select 20 years, you pay premiums only for 12 years.
• Sum Assured: The guaranteed lump sum you get at the end of maturity or your family gets in case of death.
• Entry Age: 90 days to 50 years.youtube​
• Policy Surrender: Possible after paying at least two full years’ premiums.
• Loan Facility: Available after paying at least two years’ premiums.
• Paid-up Value: If premiums are discontinued after two years, the policy acquires a paid-up value rather than lapsing.
• Free-look Period: Up to 30 days to review the policy and cancel for a refund, subject to LIC deductions for expenses.​

Step-by-Step Guide to Using the Jeevan Azad Calculator

Choose your Details

• Enter your age (nearest birthday).
• Select desired policy term (15–20 years).
• Decide the sum assured you need (₹2 lakh to ₹5 lakh).

Find Premium Payment Term

Subtract 8 years from the chosen policy term. For example, policy term of 20 years = premiums paid for 12 years.

Enter Details into Calculator

Many online calculators (see LIC, Policy Bazaar, RenewBuy) ask for:

• Age
• Sum assured
• Policy term

Review Premium Estimates

Get the estimated annual, half-yearly, quarterly, and monthly premiums. Note the GST is applied: 4.5% first year, 2.25% later years.​

Compare Benefits

Check for modal rebates (2% for yearly payment, 1% for half-yearly), high sum assured rebates, and online purchase rebates.

Example Calculation

A 30-year-old opting for a ₹2,00,000 sum assured, policy term 20 years:

• Premium payment term: 12 years
• Annual premium: ₹9,849 (excluding GST)
• Maturity benefit: ₹2,00,000 at end of 20 years

Maturity and Death Benefits Explained

Maturity Benefit: On surviving to the end of policy term, you receive the Basic Sum Assured (₹2–5 lakh), matching what you originally chose. There are no bonuses or additions.​

Death Benefit: If the policyholder passes away during the policy term, the nominee receives the higher of:

• Basic Sum Assured, or
• 7 times the annualized premium

But never less than 105% of all premiums paid till death.

For minors (below age 8), if death occurs before commencement of risk, the premiums paid are just refunded without interest.​

Sample Premium Calculations

Below is a sample chart for a ₹2,00,000 sum assured shown for ages 15–50 (annual premium, policy term 20 years, PPT 12 years):​

Age	Yearly Premium
20	₹9,771
30	₹9,849
40	₹10,231
50	₹11,358

GST is extra. For other sums assured and terms, use online calculators for precise values.

Tax Benefits Under LIC Jeevan Azad Plan 868

• Premiums paid are eligible for deduction under Section 80C up to ₹1.5 lakh per annum.​
• Maturity and death benefits are tax-free under Section 10(10D) of the Income Tax Act.

Rebates, Loans, and Policy Surrender

Modal Rebates:​

Payment Mode	Rebate
Yearly	2%
Half-yearly	1%
Quarterly	NIL
Monthly	NIL

High Sum Assured Rebates (per ₹1,000 BSA):

• ₹3 lakh–₹3.75 lakh: 0.50
• ₹4 lakh–₹4.75 lakh: 1.50
• ₹5 lakh: 2.00

Online Sale Rebates:

• Premium PPT 7–9 years: 7.5%
• Premium PPT 10–12 years: 10%

Loan Facility:

• Up to 90% of surrender value (if policy is in force)
• Up to 80% for paid-up policies

Surrender Option:

Can be surrendered after 2 years of paid premiums, with higher of guaranteed or special surrender value paid.​

Frequently Asked Questions (FAQ)

Final Thoughts

LIC Jeevan Azad Plan 868 was a straightforward, low-risk insurance savings product from LIC, offering fixed returns with limited commitment. Its premium calculator made it easy for users to estimate costs and plan their savings. Though no longer available for new purchase, those with active policies still enjoy guaranteed benefits and family security. Use official calculators and brochures for accuracy.​