LIC Bima Jyoti
LIC Bima Jyoti
LIC Bima Jyoti (Plan No. 860) is a non-linked endowment plan that offers a combination of savings and protection. The plan provides financial security to the policyholder’s family in the event of an unfortunate demise during the policy term. If the policyholder survives the policy tenure, a guaranteed maturity payout is provided.
LIC Bima Jyoti – Overview
LIC Bima Jyoti is a non-participating, non-linked savings plan that offers guaranteed additions and assured benefits. The plan provides financial support to the family in case of the policyholder’s death during the policy term and guarantees a lump-sum payment to the policyholder on maturity. The policy can be purchased both online and offline.
Key Features of LIC Bima Jyoti
- Guaranteed additions accrue at the rate of Rs. 50 per ₹1,000 of Basic Sum Assured every year.
- Multiple premium payment options are available: yearly, half-yearly, quarterly, and monthly.
- Policyholders can avail loans against their LIC Bima Jyoti policy.
Benefits of LIC Bima Jyoti
Death Benefit
The death benefit is payable to the nominee in case of the policyholder’s demise during the policy term.
- If death occurs before risk commencement, the premiums paid (excluding taxes and extra charges) are refunded.
- If death occurs after risk commencement, the nominee receives the Sum Assured on Death along with Accrued Guaranteed Additions.
Sum Assured on Death is the higher of:
- 125% of the Basic Sum Assured, or
- 7 times the annualised premium
The death benefit will not be less than 105% of the total premiums paid up to the date of death, excluding rider premiums, extra charges, and taxes.
Maturity Benefit
If the life assured survives the maturity date and the policy is in force, LIC will pay the Basic Sum Assured along with accumulated Guaranteed Additions.
Guaranteed Additions
Guaranteed additions accrue at the end of each policy year at the rate of Rs. 50 per ₹1,000 of Sum Assured. In case of death, guaranteed additions are calculated up to the policy year in which death occurs.
For example, with a Sum Assured of Rs. 1 Crore, the policy accrues Rs. 5 lakhs every year as guaranteed additions. Over a 20-year policy term, total guaranteed additions amount to Rs. 1 Crore.
Benefit Illustration of LIC Bima Jyoti
Let us understand the benefits with the following example:
- Age: 30 years
- Sum Assured: Rs. 1 Crore
- Policy Term: 20 years
- Premium Paying Term: 15 years
Using the LIC Bima Jyoti premium calculator, the annual premium is approximately Rs. 7,77,900, excluding taxes.
Scenario 1: Death after 5 policy years
- Death benefit (125% of Basic Sum Assured): Rs. 1.28 Crores
- Guaranteed additions for 5 years:
- (50 × 1,00,00,000 / 1,000) × 5 = Rs. 25 Lakhs
Total death benefit: Rs. 1.53 Crores
Scenario 2: Death after 15 policy years
- Death benefit (125% of Basic Sum Assured): Rs. 1.28 Crores
- Guaranteed additions for 15 years:
- (50 × 1,00,00,000 / 1,000) × 15 = Rs. 75 Lakhs
Total death benefit: Rs. 2.03 Crores
Scenario 3: Survival till maturity (20 years)
- Basic Sum Assured: Rs. 1 Crore
- Guaranteed additions for 20 years:
- (50 × 1,00,00,000 / 1,000) × 20 = Rs. 1 Crore
Total maturity value: Rs. 2 Crores
* Premiums are exclusive of all applicable taxes.
* Benefits are provided by the insurer as per the IRDAI-approved insurance plan. Standard terms and conditions apply.
Additional Rider Benefits
The policy offers the following optional riders for an additional premium:
Accidental Death and Disability Benefit Rider
In case of accidental death, the accidental death sum assured is paid in addition to the base policy death benefit.
Accidental Benefit Rider
Provides accidental death benefit along with the base policy death benefit. This rider cannot be selected if the Accidental Death and Disability Benefit Rider is already chosen.
New Term Assurance Rider
Available at policy inception. In case of death during the policy term, the rider sum assured is paid along with the base policy death benefit.
New Critical Illness Benefit Rider
Available at policy commencement. The rider benefit is payable upon first diagnosis of any of the 15 specified critical illnesses mentioned in the policy document.
Premium Waiver Benefit Rider
All future premiums are waived in the event of the policyholder’s death.
Terms and Conditions of LIC Bima Jyoti
Grace Period
A grace period of 30 days is allowed for yearly, half-yearly, and quarterly premium payments, and 15 days for monthly premium payments. If premiums are not paid within the grace period, the policy will lapse.
Free Look Period
If the policyholder is not satisfied, the policy can be returned within:
- 15 days from receipt (offline purchase)
- 30 days from receipt (online purchase)
Surrender Benefit
The policy can be surrendered after completing two continuous years. The surrender value payable is the higher of the Guaranteed Surrender Value or Special Surrender Value.
Revival
A lapsed policy can be revived within five consecutive years from the date of first unpaid premium, subject to revival conditions and before maturity.
Paid-Up Value
- If premiums for less than two years are paid and subsequent premiums are unpaid, the policy benefits cease.
- If premiums for at least two years are paid, the policy becomes paid-up, and risk cover continues as per paid-up terms.
