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LIC Bima Jyoti Plan

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Summary of LIC Bima Jyoti Plan - Table No. 860

LIC Jeevan Umang is a non-participating, guaranteed returns endowment investment insurance plan. It offers live cover and adds to your investment along with providing tax benefits. This plan can be purchased through agents or online at a discounted rate. We will understand the working of this plan in detail in the section below.
 
Plan Name LIC Bima Jyoti
Policy Type Endowment
Plan Details Plan No. 860
UIN 512N339V01
Launch Date 22nd February, 2021


Key Features of LIC Bima Jyoti Policy - Table No. 860

  • This is an insurance cum guaranteed benefit investment plan
  • Guaranteed Additions @ Rs. 50 per 1,000 Sum Assured is added every year
  • Tax Benefits on Premiums, Death Benefit & Maturity Benefits
  • You can avail a loan against this policy


Benefits of LIC Bima Jyoti Policy - Table No. 860

Listed below are the LIC Bima Jyoti Plan Benefits.

Death Benefit
  • If the policyholder dies before the “Risk Commencement Date” - All the premiums paid will be returned to the nominee. Any extra premium charged or rider premiums will not be paid. 
  • If the policyholder dies after the “Risk Commencement Date” - The nominee will get the Sum Assured on Death.

Sum Assured on Death is the highest of the following:
  • 7 times the Annualised Premium
  • 125% of Basic Sum Assured + Guaranteed Additions accumulated

The Death Benefit will never be less than 105% of all premiums paid.

The premiums referred in the Death Benefit do not include taxes.

Click to understand details of the Risk Commencement Date of LIC Bima Jyoti Plan.

Option to receive Death Benefit in Instalments - Policyholder can choose to make the death benefit available to the nominee monthly, quarterly, half-yearly or annual modes also over a period of 5, 10 or 15 years. This is done to ensure a regular amount of cash being available to the nominee, instead of a lumpsum amount. 

Maturity Benefit

On reaching the date of maturity, you would receive Sum Assured + All Guaranteed Additions accumulated till date.
As mentioned earlier, the Guaranteed Additions are added every year @ Rs. 50 per 1,000 Sum Assured.


Loan Facility

You will be eligible to get a loan against this policy once it acquires a Surrender Value. This plan gets a Surrender Value only after 3 full years of premiums have been paid. The loan amount and interest rate would depend on the prevailing at the time of taking the loan.
 

LIC Bima Jyoti Plan Example

Let us understand this plan with the help of an example:

Suppose Dheeraj who is 40 years old buys this plan with the following parameters.

Sum Assured = Rs. 10,00,000
Policy Term = 15 years
Premium Payment Term = 10 years

Based on this the yearly premium will be Rs. 1,13,217 + Taxes

Since his age is greater than 8 years at the time of taking the plan, the risk cover will start immediately. 

Scenario 1 - Dheeraj dies after 7 years of paying the premium.

Every year Guaranteed Additions will be added as follows:

Rs. 50 per 1,000 Sum Assured. So every year 50 x 10,00,000/1,000 = Rs. 50,000 will be added as Guaranteed Additions. So for 7 years the accumulated Guaranteed Additions will be Rs. 3,50,000.

His nominee will get the Death Benefit which is higher of the following and the Guaranteed Additions:
  • 7 times the Annualised Premium = Rs. 7,92,519
  • 125% of Basic Sum Assured = 1.25 x 10,00,000 = Rs. 12,50,000
Clearly Rs. 12,50,000 is higher, so the nominee will get Rs. 3,50,000 + 12,50,000 = Rs. 16,00,000 as the Death Benefit.

Also, if Gaurav dies anytime after the premium payment term, his nominee will get the Death Benefit and the policy will terminate.


Scenario 2 - Gaurav survives for 20 years, when the policy matures.

He will get the Sum Assured + Accumulated Guaranteed Additions of 20 years. 

Sum Assured = Rs. 10,00,000
Guaranteed Additions = 20 x 50,000 = Rs. 10,00,000

So he gets Rs. 20,00,000 as the Maturity Amount.
 

Other Optional Benefits of LIC Bima Jyoti Policy

The following riders can be taken by paying an additional premium:
  • Accidental Death and Disability Benefit Rider - In case of Accidental death, the rider sum assured selected will be paid in addition to the base sum assured. In case of disability due to an accident, the extra sum assured selected is paid out in monthly instalments spread over 10 years. The future premiums for the base sum assured are also waived upto extra sum assured selected.
  • Accident Benefit Rider - In case of Accidental death, the rider sum assured selected will be paid in addition to the base sum assured.
  • New Term Assurance Rider - In case of death of the policyholder, an additional amount of cover as selected in this rider will be paid
  • New Critical Illness Benefit Rider - In case the policyholder is diagnosed with any of the 15 Critical Illness covered in this plan, the Critical Illness Sum Assured will be paid out.
  • Premium Waiver Benefit Rider - in case of death of the policyholder, all future premiums will be waived.
 

Eligibility condition of LIC Bima Jyoti Policy

 
  Minimum Maximum
Sum Assured Rs. 1,00,000 No Limit
Policy Term 15 to 20 years
Policy Term Policy Term minus 5 years
Age at Entry 90 days 60 years
Premium Payment Modes Yearly, Half-Yearly, Quarterly, Monthly
 

Other conditions in LIC Jeevan Umang


Revival of the policy

If premiums are not paid on time, even after the grace period, the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the date of Maturity. You will need to pay all the due premium with interest (compounding half-yearly) at a rate fixed by LIC.


Paid-up Value

If less than 2 years’ premiums have been paid and policy has not been revived, all the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable. If at least 2 full years’ premiums have been paid and any subsequent premiums are not duly paid, the policy shall not be void but shall continue as a paid-up policy till the end of policy term. 

The Sum Assured on Death under a paid-up policy shall be reduced to a sum called “Death Paid-up Sum Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable) * Sum Assured on Death].

The Sum Assured on Maturity under a paid-up policy shall be reduced to a sum called “Maturity Paid-up Sum Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable)*(Sum Assured on Maturity)].


Surrendering the Policy

The policy can be surrendered at any time provided premiums have been paid for at least 2 consecutive years. On surrender of the policy, LIC shall pay the Surrender Value equal to the higher of Guaranteed Surrender Value and any applicable Special Surrender Value. 

The Special Surrender Value is reviewable and shall be determined by the Insurer from time to time subject to prior approval of IRDAI. 

The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered


Free look period

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to LIC within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same LIC shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for base plan and rider, if any) for the period on cover and stamp duty charges.


If you have any questions on this plan, please comment below and we would be happy to help.
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