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Risk Commencement Date in LIC Bima Jyoti Plan

Risk Commencement Date in LIC Bima Jyoti Plan
Risk Commencement Date in LIC Bima Jyoti Plan

In the LIC Bima Jyoti Plan, the life cover does not start immediately in all cases. It would depend on the age of the policyholder at the time of taking the plan. Let us understand this better in this post.
  • If the policyholder dies before the risk commencement date, only the premiums paid so far are returned to the nominee.
  • If the policyholder dies after the risk commencement date, the Sum Assured on Death + Accumulated Guaranteed Additions are paid to the nominee.

Sum Assured on Death, is the higher of:
  • 125% of Basic Sum Assured
  • 7 times the Annualised Premium

So it is important to understand from when the risk is covered.
  • In case the age of the policyholder is less than 8 years at the time of taking the policy - The risk cover benefits will only start one day before the policy completes 2 years or one day before the policy anniversary immediately after the child turns 8.
  • In case the age of the policyholder is 8 years or more - The risk cover starts immediately.
 
Let us understand the “Risk Commencement” date in LIC Bima Jyotu Plan with the help of a few examples:

Example 1
 
Suppose policy start date = 25th March, 2021
Age of Policyholder = 3 years
Risk Commencement date = 24th March, 2023

 
Example 2

Suppose policy start date = 25th July, 2021
Age of Policyholder = 7 years
Risk Commencement date = 24th July, 2022
 

Example 3
 
Suppose policy start date = 25th July, 2021
Age of Policyholder = 8 years
Risk Commencement date = 25th July, 2021

Hope this makes it absolutely clear when the risk cover starts for the policyholder. If you have any queries regarding this, please add a comment below and we would be happy to help.

Want to know more about this plan - Read the LIC Bima Jyoti Plan Review.

Deepak Yohannan
Deepak Yohannan is the CEO of MyInsuranceClub. He enjoys writing on Personal Finance and contributes regularly on sites like Reuters & Moneycontrol. He is a strong proponent of online insurance and is often found pointlessly babbling about it!

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