LIC Bima Jyoti: What Benefits Does the Bima Jyoti Plan Offer?

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LIC Bima Jyoti: What Benefits Does the Bima Jyoti Plan Offer?

LIC Bima Jyoti: An Overview

Investing in an insurance policy is very important to secure yourself and your family from unexpected events. It is also important to save some of your hard-earned money for the future so that it can come to use in times of emergency or need. It is important to have a diversified portfolio. At times, it is difficult to manage your portfolio if you have investments in various securities. That is when new plans have started to come up in which you can invest in a diversified pool of assets by putting your money in just one place. Mutual Funds are a perfect example of this. But not many know that you can also buy an insurance policy which also helps you by putting a part of your premium payment into savings.

An Endowment Policy comes with dual functionality of insurance coverage along with savings for the future; And so does this plan. The Bima Jyoti plan by the LIC is an endowment plan which offers insurance coverage along with some amount of premium into savings for the future. This article covers the Bima Jyoti LIC Policy details and covers everything that you need to know about the policy before investing in it.

What is the Bima Jyoti Plan?

The Bima Jyoti new LIC Plan is a new plan by the Life Insurance Corporation of India. It is also called as LIC Bima Yojana Plan. It is an individual, non-linked, non-participating, life assurance savings insurance plan. By investing in this policy, a part of your premium payments will go towards life coverage, while the other part will go towards savings. This way, you get the option to secure yourself and your family from any unexpected events occurring in the future. You have the option to purchase the policy either by visiting the nearest LIC branch or through the tips of your fingers, anytime, anywhere, online.

This policy offers guaranteed additions to the sum assured, thereby making it more attractive. It also carries very low risk as the returns are guaranteed, if you pay all your premiums.

Further in the article, you will the LIC Jeevan Jyoti plan details in depth

Bima Jyoti Plan Details

The following are the Bima Jyoti LIC policy details that you must know to be eligible for the policy and invest in it.

  • It is an endowment plan policy.
  • It comes under table number 860.
  • The minimum sum assured is Rs.1,00,000
  • There is no maximum limit to the sum assured.
  • The minimum entry age is the completion of 90 days.
  • The maximum entry age is 60 years.
  • The minimum maturity age is the completion of 18 years. 
  • The maximum maturity age is 75 years.
  • The policy term is for 15-20 years.
  • The premium paying term is the policy term minus 5 years.

LIC Bima Jyoti Features

The following are the key features of the policy:

  • The sum assured increases by 25% in case of the demise of the insured, as soon as all the premiums are paid.
  • Guaranteed additions are at Rs.50 per Rs.1000 sum assured every year. These guaranteed additions are accrued and are given at the time of policy maturity.
  • Different premium payment options are offered such as monthly, quarterly, half-yearly, and yearly.
  • One also has access to the loan feature.
  • You have the option to buy it online through their website or offline by visiting their branch.

LIC Bima Jyoti Benefits

The benefits of the Bima Jyoti LIC plan are as follows:

  • Maturity Benefit: On the date of policy maturity, the insured is eligible to receive the sum assured along with the accrued guaranteed additions.
  • Death Benefit: This is provided to the beneficiaries/nominees of the insured, in case the insured dies before the policy matures. In this case, the beneficiary/nominee receives the sum assured, which is either 125% of the basic sum assured or 7 times of annualized premium paid. Other than this, the beneficiary also receives the guaranteed additions. This benefit can either be received in a lump sum amount or installments of 5, 10, or 15 years.
  • Guaranteed Addition Benefit: There is Rs.50 per Rs.1000 sum assured every year. These guaranteed additions are accrued and are given at the time of policy maturity.

LIC Bima Jyoti Additional Riders Benefits

The following are the additional rider options that the policy offers. The same can be purchased by paying an additional premium amount. The riders are as follows:

  • Accidental Death and Disability Benefit Rider: The beneficiary of the insured gets the sum assured in case of accidental death of the insured. In this, an additional amount will be given due to the purchase of the rider. So, in case the insured dies due to an accident and has the accidental death rider then the beneficiary received the basic sum assured plus the extra sum assured. In case the insured meets with an accident and gets disabled and survives then he gets the extra sum assured, which is paid out in monthly installments over 10 years. The pending premiums to be paid in the future on the base sum assured are also waived up to the extra sum assured selected.
  • Accidental Benefit Rider: It is similar to the above rider, but it only provides the additional amount in case the insured dies in the accident. If the insured survives or gets disabled then no additional amount is paid. So an additional sum is paid along with the basic sum assured. This rider can be purchased only if the above rider is not purchased as the above rider covers this rider too.
  • New Term Assurance Rider: This rider is available at the beginning of the policy. When someone purchases this rider then he gets an additional amount of cover as selected, along with the basic sum assured at the time of death.
  • New Critical Illness Benefit Rider: In this, the plan mentions a list of 15 critical illnesses. If the insured is diagnosed with any of those illnesses then the plan covers it too and a critical illness sum assured is paid out.
  • Premium Waiver Benefit Rider: By purchasing this rider, all future premium payments are waived off, if the policyholder dies during the policy term.

Key Takeaways

  • The LIC Bima Jyoti Plan is a new endowment plan offered by LIC, which can be purchased online as well as offline.
  • A part of the premium paid is used for life coverage, whereas the other part is used for savings.
  • One can avail of tax exemptions under sections 80C and 10(10D) of the Income Tax Act of India.
  • The plan comes with 5 different rider options from which one can purchase by paying an additional premium amount.
  • The plan offers guaranteed returns and hence is considered a low-risk investment.

Bima Jyoti LIC Plan: Other Benefits

The following are the additional benefits provided in the Bima Jyoti Yojana Plan:

  • Grace Period: A 30 days grace period is offered for the premium payment of quarterly, half-yearly, and yearly plans. A 15 days grace period is offered for premium payment of the monthly plan. The grace period starts from the premium due date. If the insured does not pay the premium even during the grace period, the policy will lapse. Hence, this grace period is provided for safety as due to some reasons, the policyholder might not have been able to pay the premium on time.
  • Freelook Period: This is a period offered to the policyholders in which the policyholders can return the policy if he/she is not satisfied with the terms and conditions of the policy. This period is of 15 days in case of offline purchase of the policy and 30 days in case of online purchase of the policy.
  • Surrender Benefit: This plan comes with the option of withdrawal after holding the policy for two consecutive years. The higher of the guaranteed surrender value or the special surrender value is paid to the policyholders in case he wishes to withdraw the policy due to some reasons. He just needs to follow all the protocols required.
  • Revival: In case the policyholder forgets to pay the premium even during the grace period and the policy lapses then the policyholder has the option to revive the policy within 5 years of the lapsing of the policy. This is only possible when the policy is yet to mature.
  • Paid-up value: It is the option available to the policyholders in place of surrendering the policy. The paid-up value can be opted for after 2 years of policy purchase and timely premium payments, for the policy to continue with the risk cover. In case someone opts for a paid-up before two years of policy purchase then the benefits offered by the policy will cease
  • Tax benefits: The policyholder can avail of tax exemptions under sections 80C and 10(10D) of the Income Tax Act of India.
  • Rebates: It is not applicable in the case of monthly and quarterly payments, whereas a 1% rebate is offered in half-yearly payments, and a 2% rebate is offered in yearly payments.

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This endowment policy offered by LIC comes with many features and benefits and can be the perfect fit for many people. It comes with low risk and guaranteed returns. But, all people are different and have different investment goals. Some are willing to take more risks than others and try other investment avenues. One should list down their goals and match them with various options available before investing. This will ensure optimized returns. This plan excludes suicide committed within 12 months from the date of commencement of the policy.

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