LIC Jeevan Jyoti Bima is specifically designed for people aged between 18 years to 50 years with a savings bank account and provides the facility to enable mode of auto-debit. This scheme provides a cost-effective and pocket-friendly insurance cover for those in need.
LIC Jeevan Jyoti Bima Yojana is a 1-year cover that is renewable every year and offers death cover. It is a life insurance plan launched by the Central Government of India for the welfare of the low-income and the poor sections of society. This plan is available for individuals between 18 years to 50 years of age.
As mentioned, it is a renewable term plan that offers annual life coverage of Rs. 2 lacs in case of policyholder’s demise, at a low premium rate of Rs. 330 for a year. Let’s discuss the unique features and benefits of the LIC Bima yojana in detail:
The savings bank account holders of participating banks who come under the age bracket of 18 years to 50 years are eligible to open this account. The policyholders registered under this scheme can enable/join the auto-debit facility according to the modality.
People who joined after the starting enrolment period up to August 31, 2015, or November 30, 2015, are required to provide a self-attested certificate mentioning good health and that he/she does not suffer from any of the mentioned critical illnesses as on the enrolment date.
|Age at Entry
|Minimum: 18 years Maximum: 50 years
|Maturity Age (Maximum)
|Term of policy
|1 year i.e., renewable each year
|Rs. 2 lacs
Coverage - All the account holders aged between 18 years to 50 years in the participating banks are eligible to enroll under the scheme. If an individual has multiple savings accounts in one or different banks, he/she would be entitled to enroll under the scheme through one savings bank account only. Aadhar card would be considered as the primary KYC document for the bank account.
Enrolment Period – The period of enrolment of LIC Bima Yojana is June 1st of every year to May 31st of the subsequent year. At the time of enrolment period, individuals are required to enroll and give their consent of auto-debit. If the policyholder wishes to purchase the plan after June 1st, then he/she is required to pay the amount of premium of each year of policy as a one-time payment from the joining month.
Premium – The LIC Jeevan Jyoti Bima provides coverage towards the policy at a minimum premium price of Rs. 330/ year. This is specifically designed for lower-income sections of society. The premium of the plan remains constant for all the policyholders aged between 18 years to 50 years.
Tax Benefit – The policyholders can get the tax benefit on premium paid towards the LIC Jeevan Jyoti Biman as per the prevailing laws of the Income Tax Act, 1961.
Mode of Premium Payment - The bank allows the auto-debit mode from the savings account of the policyholders. The renewal period of LIC Jeevan Jyoti Bima Yojana is between May 25th to May 31st. The premium amount of the policy renewal is also auto-debited from the policyholder’s account. If a policyholder wants to discontinue the plan, then he/she can submit a cancellation request.
Death Benefit: A death coverage of Rs 2 lakhs will be provided to the beneficiary of the life assured in case of unfortunate death of insured.
Maturity Benefit: This plan does not provide any surrender or maturity benefit
Coverage of Risk: One year of risk coverage is provided under this plan. This is a renewable plan which can be renewed each year.
The claim settlement process of LIC Bima Yojana is quite easy and smooth. Here’s a quick laydown:
In case of an untimely demise of the policyholder, the nominee is required to visit the life assured’s bank, from where the individual’s savings account is linked to the plan. The nominee is required to submit the insured’s death certificate.
The beneficiary can take the form from an insurer, or the participating bank.
Then the nominee is required to fill the claim application form completely and then submit it along with the requested documents.
After submitting the claim form, the bank will validate all the documents.
Then, the bank submits the document to LIC. The documents required are:
Duly filled claim application form
Receipt of discharge
Photocopy of the canceled cheque of the nominee
The insurance company will again verify the documents.
After the successful claim application verification, the claim amount will be transferred to the beneficiary’s bank account.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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