Which LIC Policy Assures Guaranteed Returns? Check Out LIC’s Bima Jyoti Plan!

Since 1956, LIC has singularly driven the life insurance space in India and continues to occupy the largest market share even today with several private insurers in the mix. The popularity of LIC can be attributed to its wide-ranging insurance policies that serve the different needs of its customers. Additional features such as bonuses guaranteed returns, and loyalty additions make the insurance plans by LIC very attractive for the general public.

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About LIC’s Bima Jyoti Plan 

LIC’s Bima Jyoti Plan offers several important benefits that can help you and your family maintain a quality standard of living. Some of the benefits of this plan are:

  • Death Benefit - Sum assured on death is payable in addition to the guaranteed additions described above. The benefit amount is either 7 times the annual premium or 125% of the sum assured, whichever is higher. However, if death occurs before the risk of the policy commences, the premium amount is paid back to the beneficiary.

  • Maturity Benefit - If the life assured survives the complete duration of the policy, LIC is liable to pay the sum assured on maturity.

  • Rider Benefits - You can avail of enhanced protection under this plan against accidental death, disability, and critical illnesses by opting for a suitable rider benefit. 

What Are the Guaranteed Returns? 

If you are on the lookout for life insurance cover, you are also most likely interested in knowing about the kinds of returns that you are entitled to, in addition to the basic sum assured. Fortunately for you, there are several schemes in the life insurance space today that come with bonuses and loyalty additions. Experts believe that insurance plans that offer guaranteed returns are an excellent way to maximize your savings. 

Guaranteed returns are added periodically to the base sum assured and the cumulative amount is paid on death or maturity of the policy. The additions are defined as a percentage of the sum assured and continue to accrue for as long as the policy is in force.

LIC has introduced the Bima Jyoti plan which offers guaranteed additions to the base sum assured. 

LIC’s Bima Jyoti Plan with Guaranteed Returns

LIC currently offers the Bima Jyoti Plan with provision for guaranteed additions, provided that the policy is still active and all the due premium payments have been made. The guaranteed additions are fixed at Rs.50 per Rs.1000 Basic Sum Assured, accrued annually till the end of the policy term or death of the policyholder. Please note that the additions are not paid out to the life assured every year. Instead, the accrued lump sum amount is paid out to the beneficiary or the life assured on death of the life assured or on the maturity of the policy, respectively.   

Criteria to be eligible for Guaranteed Additions with LIC's Bima Jyoti

The aforementioned benefits are only payable by the insurance company under the following conditions.

  • The policy has to be in force for the amount to be added into the sum assured. 

  • The premiums have to be duly paid, or else the amount ceases to accrue. 

  • On surrendering the policy, a proportionate amount shall be added to the base policy for the year wherein the last premium payment was made.   

  • Under a paid-up policy as well, an amount that is proportionate to the last premium received for that particular policy year is paid. 

The amount under guaranteed returns is calculated based on the sum assured and not the premium amount, which in turn ensures higher returns. Further, these additions are tax-free which again maximizes your savings.    

Benefit Illustration with Guaranteed Additions under LIC’s Bima Jyoti Plan

Let’s assume a 30 years old person who has opted for a basic sum assured of Rs.10 Lakhs. 

  • Policy term - 15 years

  • Premium payment term - 10 years

  • Annual premium - Rs 82,545

Guaranteed additions at Rs.50 per 1000 basic sum assured comes out to be Rs.50,000 per year. This means that on maturity after 15 years, the amount of guaranteed additions will stand at Rs.7,50,000.

Therefore, the maturity benefit payable at the end of the policy term of 15 years will be calculated as a sum of Rs.10 Lakhs plus Rs.7,50,000. The total maturity benefit as a result comes out to be Rs.17,50,000. 

Summing Up

LIC’s Bima Jyoti Plan has been curated to offer some exciting benefits for the policyholder. The amount of guaranteed additions that accrue annually could prove to be a saving grace in case of an emergency. This extra amount can be used to serve various other needs of your family or you can add it to your capital reserves for future needs. It will be a wise decision to invest in a policy such as this, with the surety of extra income.

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