Query regarding income tax section 10(10) d

Dear Sir,

I have question regarding Section 10(10) D.

LIC Insurance policy agent says that returns of LIC policy ( Including sum assured and guranteed returns which is 7.5% per year and loyality bonus declared (if any )  is exempt from Section 10(10) D.

1 )Policy is yet to be taken, i.e it may start during year 2013.

2) Sum assured is 2 Lakhs

2) Policy annual premium is around Rs 30,000 and term is 8 years ( It makes total premium paid during tenure of policy is 240,000).

Is the insureance agent correct by saying that entire returns will be tax free under section 10(10)D.

Thanks

yogesh