LIC Bima Jyoti: Policy Details, Benefits, and Eligibility

LIC Bima Jyoti Plan 860 is a non-linking and non-participating plan that offers protection and savings. This plan has the potential to provide financial protection to the policyholder and their loved ones in the event of their demise during the tenure of the policy. The LIC Bima Jyoti offers guaranteed payments to the policyholder during the maturity period when the policyholder is alive. In order to avail LIC Bima Jyoti, individuals can make the purchase of the plan via the online mode or by visiting the official LIC portal. 

In this article, we will walk you through the LIC Bima Jyoti plan, its features, benefits, and eligibility criteria, and also give you an illustration of premium plans. 

LIC Bima Jyoti Benefits

There are multiple benefits of LIC Bima Jyoti 860 mentioned below:

Maturity Benefits

If the policyholder completes the date of maturity, then the sum assured will be payable along with other additions. The sum assured at the time of maturity will be equivalent to the assured base sum. However, the installments shall be payable half-yearly, quarterly, monthly, or year in advance as selected. The below-mentioned table will give you an idea of the subject minimum amount of installments via the different modes of payment:

Guaranteed Additions

At the end of each year, for the policy of INR 50,000, the sum assured amount will be supplemented with guaranteed additions. If the policyholder is no longer alive, then these additions shall be for a complete policy year in the death year. If the individual hasn’t paid the premiums, the guaranteed additions might terminate to accumulate under the plan.

Death Benefits

• If the policyholder dies within the policy tenure subsequently to the date of initiation of risk, then the sum assured amount will be payable in such cases, along with the accumulated guaranteed additions. Additionally, with seven times the annual premium, the sum assured becomes well-defined. 

• If the policyholder’s demise is before the date of initiation of risk, the premium is payable excluding the total taxes and other additional charges because of the extra benefit premium and underwriting decision.

Note: Both of the above-mentioned death benefits should not be any lower than 105 percent of the total premium paid till the date of death.

LIC Bima Jyoti Key Features

For a better understanding of LIC Bima Jyoti, check out the following points:

• This LIC plan offers a variety of different payment options like monthly, quarterly, half-yearly, and yearly.
• Under the LIC Bima Jyoti, loan facility is also available.
• The policy term of the plan ranges from 15 to 20 years. So, an individual who has opted for a 20-year policy, the premium payment term will be around 15 years.
• Both online and offline modes are available for making the purchase of a plan.
• In case the policyholder is not satisfied with the policy’s terms and conditions, then the company has the provision to refund the premium paid by the policyholder.

LIC Bima Jyoti: Maturity Details

Maturity payment of LIC Bima Jyotiis guaranteed in case the policyholder survives the maturity period. Additionally, this policy enforces a Guaranteed Addition of INR 50/ thousand Basic Sum Assured. It may accrue at the end of each year of policy for which the full year’s of premium has been paid by the policyholder through the policy term. The maturity age in LIC Bima is the policy term minus five years, and the policy is about 15 to 20 years. 

Illustration of Premium Sample

The below-mentioned table gives you a raw idea of the annual premium for SA or INR 10 lakh for standard life:

Eligibility Criteria of LIC Bima Jyoti

Check out the below-mentioned table to get a better understanding of the eligibility criteria for Jyoti Bima:

Calculation Example of LIC Bima Jyoti

Let’s get a better understanding of the Bima Jyoti LIC 860 premium calculator:

Suppose Aryan, whose age is 40, buys this LIC plan with the below-mentioned parameters.

Sum Assured will be equivalent: INR 10,00,000.

Policy Term will be equivalent: 15 years.

Premium Payment Term: 10 years.

On the basis of the above-mentioned details and the LIC Bima Jyoti premium calculator, the annual premium will be INR 1,13,217 + Taxes.

As Aryan’s age is more than 8 years old at the plan’s inception, the risk cover will initiate instantly. 

Case 1 – Aryan dies after paying the premium for 7 years.

The annual guaranteed additions will be included as follows:

INR 50/1,000 sum assured. Therefore, every year 50 × 10,00,000/1,000 will be equivalent to INR 50,000 and will be included as Guaranteed Additions. In that case, for 7 years, the AGA will be around INR 3,50,000.

Aryan’s nominee will receive a death benefit that is more than the guaranteed additions:

• 7 times the annualised premium will be equivalent to INR 7,92,519.
• 125% of the basic sum assured will be equivalent to 1.25 × 10,00,000 and the total figure will look something like INR 12,50,000.

INR 12,50,000 is higher, so his nominee will get INR 3,50,000 + 12,50,000, which will be equivalent to INR 16,00,000 as the Death Benefit.

Moreover, if Aryan dies post premium payment term, even at that time, his nominee will receive the death benefit by the termination of the policy.

Case 2 – Raghav survives for 2 decades till the maturity of the policy.

Raghav will receive the accumulated guaranteed additions of two decades, with an additional sum assured.

• Sum Assured is equivalent to INR 10,00,000
• Guaranteed Additions are equivalent to 20 × 50,000 and will be equivalent to INR 10,00,000

Hence, Raghav gets INR 20,00,000 as the amount of maturity.

LIC Bima Jyoti Term and Conditions

There is a wide array of terms and conditions that an individual has to agree to before availing of the LIC Bima Jyoti. The brief terms and conditions of LIC Bima Jyoti are mentioned below:

Grace Period

To protect the policy from lapsing, LIC Bima Jyoti has a grace period of 30 days for the annual, half-yearly, and quarterly premium payments. However, the grace period for the monthly base premium payment is about 15 days. If the individual fails to make the payment of the premium within the grace period, the policy may lapse.

Freelook Period

LIC Bima Jyoti has the feature of rolling back the policy. If the policyholder is dissatisfied with the service, benefits, features, and terms and conditions, they have the option to get rid of the policy. The period is two weeks from the receipt date in the offline medium and four weeks in the online medium. If the individual may receive the premium amount from the company after the cancellation of the policy.

Surrender Benefit 

The LIC Bima Jyoti plan offers the option of surrendering the policy if the policyholder has continued for a period of two years. In such cases, the insurer pays out the surrender value, which is equivalent to the guaranteed surrender value or higher surrender value.

Revival 

One thing that is understood is that if the policyholder fails to make the premium payments on time, then the policy will lapse. However, to tackle this situation, the LIC Bima Jyoti provides the policyholder with an option for the revival of the lapsed policy for five consecutive years. The revival can be done only before the maturity date.

Tax 

A policyholder has to pay taxes on the insurance policies to the government as per the prevailing tax laws. However, the tax rate is subject to periodic change.

Discounts 

To Sum Up

LIC Bima Jyoti Plan 860 is a plan that offers protection and savings. The maturity age in LIC Bima is the policy term minus five years, and the policy is about 15 to 20 years. To calculate the Sum Assured in the LIC Bima Jyoti plan, there is a basic form which is Sum Assured + Bonuses + Final Additional Bonus. The LIC Bima Jyoti has an online portal on which individuals can enroll themselves from the comfort of their homes. Moreover, the LIC Bima Jyoti offers guaranteed payments to the policyholder during the maturity period, which makes it more secure.

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