LIC Bima Jyoti Plan No. 860: Amid falling interest rates on bank deposits, the Life Insurance Corporation of India (LIC) has launched a new plan – LIC’s Bima Jyoti – to offer a guaranteed tax-free returns to policyholders. The plan comes with a minimum basic sum assured (SA) of Rs 1 lakh with no upper limit. You can buy this policy for 15 to 20 years and pay premiums on monthly, quarterly, half-yearly or yearly basis.
This article provides all details of LIC Bima Jyoti Plan, including features and rules for calculation of benefits.
What is LIC Bima Jyoti Plan?
In an official statement, the insurance company said that LIC’s Bima Jyoti (Plan no. 860) is a Non-Linked, Non-Participating, individual, savings Plan which offers an attractive combination of protection and savings.
According to LIC, the Bima Jyoti Plan provides guaranteed lumpsum payment at maturity and financial support to the family in case of unfortunate death of the policyholder during the policy term.
What is LIC Bima Jyoti Plan guaranteed addition offer?
“Provided the policy is inforce, a Guaranteed Addition at the rate of Rs.50 per thousand Basic Sum Assured shall accrue at the end of each policy year for which full year’s premiums have been paid throughout the policy term. In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy,” LIC says on its official website.
How to buy LIC Bima Jyoti Plan?
You can buy LIC Bima Jyoti Plan Offline through agent /other intermediaries as well as Online directly through the official LIC website. You will have to pay less premium on buying the policy online.
LIC website says that the proposal to be completed under online sales without any assistance of Agent / intermediary shall be eligible for rebate on tabular premium at the following rates:
Premium Paying Term Online Sale (Rate of rebate)
10 to 14 years 7.5%
15 years 10%
Lic Bima Jyoti Plan 860 Calculator rules: How will benefit calculated?
Under the LIC Bima Jyoti Plan No. 860, guaranteed additions at the rate of Rs. 50 per thousand Basic Sum Assured (BSA) will be added to the policy at the end of each policy year.
For example: If you buy the policy for a BSA of Rs 10 lakh, every year Rs 50,000 (1000×50) will be provided as guaranteed additions. So with this guaranteed additions, a policy of Rs 10 lakh sum assured for 15 years will provide a guaranteed return of Rs 10 lakh + Rs 50,000×15 = Rs 17,50,000 lakh after 15 years.
Note: The Minimum Basic Sum Assured under LIC Bimay Jyoti Plan is Rs 1,00, 000 with no upper limit.
LIC Bima Jyoti Plan features: Premium paying term calculation
You can buy this policy for a term of 15 to 20 years. The premium paying term can be calculated as Policy term minus 5 years. That means, if you buy the 15-year policy, you will have to pay premium for 10 years. Similarly, for the 20-year policy, you will have to pay premium for 15 years.
LIC Bima Jyoti Plan eligibility: Age limit
The minimum age at entry is 90 days completed and maximum age at catty is 60 yes.
LIC Bima Jyoti Plan Death Benefits
LIC said that on death during the policy term after the date of commencement of risk, “Sum Assured on Death” and Accrued Guaranteed Additions as per policy conditions would be payable.
LIC Bima Jyoti Plan survival benefit
If the policy holder survives the stipulated Date of Maturity provided and the policy is in-force, he/she will get the ‘Sum Assured on Maturity along with Guaranteed Additions.
The policyholder will also get the option to receive death/maturity benefits in instalments subject to certain conditions. “Settlement Option is an option to receive Maturity Benefit in installments over the chosen period of 5 or 10 or 15 years. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals,” says LIC website.
Death Benefit can also be received in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount under an inforce as well as paid up policy.
LIC Bima Jyoti Plan: Sum Assured Limit
The Minimum Basic Sum Assured under Lic Bima Jyoti Plan is Rs 1,00, 000. There is no upper limit.
LIC Bima Jyoti Plan: Premium payment
Premiums for Lic Bima Jyoti Plan can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only) or through salary deductions.
LIC Bima Jyoti Plan: Loan facility
Under this plan, loan facility is also available to meet liquidity needs, LIC said
At a time when interest rates are declining, the guaranteed additions offered along with risk cover is an attractive feature in LIC’s BIMA JYOTI, the insurance company said .
LIC Bima Jyoti Plan: High Sum Assured benefit
LIC website says that there is rebate in basic premium for high sum assured as below:
| Basic Sum Assured (B.S.A) (Rs.) |
Rebate on tabular premium per Rs 1000 B.S.A. |
| 1,00,000 to 2,75,000 | Nil |
| 3,00,000 to 4,75,000 | 4.00 |
| 5,00,000 to 9,75,000 | 5.00 |
| 10,00,000 and above | 6.00 |
LIC Bima Jyoti Plan: Tax benefit
The policyholder will be eligible for tax benefits under Section 80C of the Income Tax Act, 1961 on buying the policy for self, spouse.
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