LIC Bima Jyoti (Plan 860)

LIC Bima Jyoti- An Overview

The LIC Bima Jyoti Plan is a non-participating and non-linked savings plan that offers guaranteed additions and assured benefits. This plan provides financial support to the family in case of the unfortunate death of the policyholders during the policy term. It guarantees a lump sum payment to the surviving policyholder at maturity. This plan can be purchased online as well as offline.

Key Features of LIC Bima Jyoti

• LIC Bima Jyoti offers Guaranteed additions that accrue at Rs. 50 per thousand Basic Sum Assured every year.

• This plan allows the policyholder to choose from different premium payment options such as yearly, half-yearly, quarterly, and monthly.

• The policyholders can avail of the loan against their LIC Bima Jyoti policy.

Eligibility Criteria of LIC Bima Jyoti

Benefits of LIC Bima Jyoti

1. Death Benefit

   Death Benefit is paid to the nominee in case of the unfortunate demise of the policyholder within the policy tenure.

   • If the policyholder dies before the coverage starts, the premiums they paid (excluding taxes and additional fees) will be refunded.

   • If the policyholder dies after the coverage starts, the nominee will receive a death payout equal to the “Sum Assured on Death” and Accrued Guaranteed Additions.

   “Sum Assured on Death” is either higher of 125% of Basic Sum Assured or 7 times of annualised premium.

   **Death Benefit will not be less than 105% of the total premiums paid up to the date of death, excluding any extra fees, rider premiums, and taxes.

2. Maturity Benefit

   If the life assured survives the specified maturity date (provided the policy is active), the company will pay the basic sum assured along with the accumulated guaranteed additions.

3. Guaranteed Additions

   Guaranteed additions will be supplemented to the policy at the end of each year at the rate of Rs.50 per 1000 sum assured. In case of the policyholder’s death, these additions shall be made till the year of death.

   For a sum assured of Rs.1 Crore, you get a guaranteed addition of Rs.5 lakhs every year from the 1st policy anniversary till the last. Over 20 years, your Bima Jyoti policy will have accrued a total of Rs.1 Crore through guaranteed additions alone.

   Here’s an example to help you understand the benefits better.

Benefit Illustration of LIC Bima Jyoti

Let’s understand this with the help of an example. Assuming the following -

• 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 comes out to be Rs.7,77,900, excluding taxes.

The benefits applicable under the following events are -

1. If you die after 5 policy years

   1. Your family can claim 125% of the basic sum assured, which is equal to Rs.1.28 Crores.

   2. Further, guaranteed additions for 5 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 5 = Rs.25 Lakhs.

   This brings the death benefit to Rs.1.53 Crores.

2. If you die after 15 policy years

   1. Your family can claim 125% of the basic sum assured, which is equal to Rs.1.28 Crores.

   2. Further, guaranteed additions for 15 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 15 = Rs.75 Lakhs.

   This brings the death benefit to Rs.2.03 Crores.

3. If you survive the entire policy term of 20 years

   1. You will get the assured maturity sum of Rs.1 Crore.

   2. Further, guaranteed additions for 20 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 20 = Rs.1 Crore.

   This brings the final maturity value to Rs.2 Crores.

Sample Premium Illustration

The below table illustrates the annual premium for SA of Rs.10 lacs for standard lives:

*Premiums are excluding of all taxes

*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply

Additional Rider Benefits

The plan offers five rider options that a policyholder can add by paying an additional premium.

1. Accidental Death and Disability Benefit Rider

   In case of accidental deaths, the sum assured amount of accidental death benefit is paid in lump sum along with the amount of death benefit under the existing Bima Jyoti LIC plan.

2. Accidental Benefit Rider

   In case of accidental death, the accidental death sum assured amount is paid along with the benefit of death under the existing plan. This rider cannot be opted for if the first rider is already added.

3. New Term Assurance Rider

   It is available at the start of the policy. The sum assured under this rider plus the death benefit shall be offered if death occurs for any reason during the policy tenure.

4. New Critical Illness Benefit Rider

   It is available at the commencement of the policy and the benefits under this rider shall be offered on the first diagnosis of any of the 15 critical illnesses mentioned in the policy.

5. Premium Waiver Benefit Rider

   This rider waives off all future due premium payments following the policyholder's death.

LIC Bima Jyoti Policy Details

1. Grace Period

   In the Bima Jyoti LIC plan, 30-day grace period is allowed for the payment of yearly, half-yearly, or quarterly premiums and 15-day grace period for monthly premium payment from the premium due date. If the premium is not paid before the expiry date of the grace period, then the policy will lapse.

2. Freelook Period

   If the policyholder is not satisfied with the policy’s features, benefits, and terms and conditions, then there is an option to return the policy to the company. This can be done within 15 days from the receipt date (offline) and 30 days in case of online policy purchase.

3. Surrender Benefit

   This plan provides the option of surrendering the policy any time after continuing the policy for two continuous years. In such situations, the insurer pays the surrender value equivalent to the higher of the special surrender value or the guaranteed surrender value.

4. Revival

   The policy lapses if the premiums are not paid during the grace period. The 860 LIC plan provides an option to revive the lapsed policy within 5 consecutive years. It can only be revived before the maturity date.

5. Paid-Up Value

   • If less than 2 years of premiums have been paid and any subsequent premium is not paid, the benefits offered by the policy will cease.

   • If premiums for a minimum of two years have been paid, the risk cover will remain active, but the policy will remain a paid-up policy.

6. Tax Benefits

   Statutory taxes are payable on insurance policies by the Government of India or any other constitutional authority of India as per the prevailing tax laws. The tax rates may change from time to time. Tax exemptions can be availed under sections 80C and 10(10D) of the Income Tax Act.

7. Policy Loan

   A loan can be taken under the LIC Bima Jyoti plan after paying two full years' premiums, subject to the Corporation’s conditions. The loan amount is based on the surrender value, with a higher percentage available for in-force policies.

8. Waiting Period

   In case of life assured’s death within the first 90 days from the commencement risk date, the insurer refunds the total amount of premium paid, provided it is active policy and the reason of death is not accident.

9. Rebates

   Mode Rebate
   Mode	Rebate
   Yearly	2%
   Half-yearly	1%
   Quarterly and Monthly	NA

How To Buy LIC Plans from Policybazaar?

Step 1: To buy LIC Bima Jyoti, visit LIC of India

Step 2: Fill in the form with your name and contact number

Step 3: Next, fill in your age and current city

Step 4: Once done, on the next page you can check the plans available and customize the amount and period for your investments

Step 5: Choose the plan, and pay your premiums online.

Note: Policybazaar also provides door-to-door advisors to resolve your queries.

Exclusion

Suicide – If the life assured commits suicide within 12 months from the date of commencement of the policy, then the company will not provide any claim under the plan. The family can, however, claim 80% of the premiums paid excluding all the taxes, additional premium amount, and rider premiums.

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