LIC BIMA JYOTI is a non linked, non participating Individual Life assurance Plan. Bima Jyoti plan offers an attractive combination of protection and savings. Here, you pay premium for entire duration. After completion of premium payment duration, you get maturity amount from the policy.
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LIC Bima Jyoti Plan 860- Key Features & Eligibility
- You pay for entire duration
- At maturity you get sum assured and bonus and final additional bonus
- Tax benefit on premium paid.
- Tax Free maturity
| Minimum Basic Sum Assured | Rs. 1,00,000 |
| Maximum Basic Sum Assured(The Basic Sum Assured shall be in multiples of Rs. 5,000/-) | No limit |
| Premium Paying Term | 15, and 20 years) |
| Minimum Policy Term | policy term – 5 yrs |
| Minimum Age at entry | 90 days |
| Maximum Age at entry | 60 years (nearest birthday) |
| minimum maturity Age | 18 years Completed |
| Maximum Maturity Age | 75 years (nearest birthday) |
Benefits under LIC Bima Jyoti Policy
Maturity Benefit
On maturity of policy, basic Sum Assured along Guaranteed additions are paid.
Here, Guaranteed Additions at the rate of Rs. 50 per thousand Basic Sum Assured are added to the policy at the end of each policy year.
for instance if the sum assured is Rs 5 lac and you pay for 21 years than the guaranteed additions will be
50/1000*500000 *21 =5,25,000
Death benefit
The amount death benefit is paid, depends on when the event( death) occurred:
Death During the Policy Term BEFORE commencing Risk
The premium paid till date will be given back to the nominee.
Death During the Policy Term AFTER commencing Risk
On death of the Life Assured (During policy term) the nominee will get higher of the following
- 125% of Sum Assured + guaranteed Additions
- or
- 7 times of annualised premium+ guaranteed Additions
*At any point of time the death benefit will not be lower than 105% of annual premium paid till date.
The amount death benefit is paid, depends on when the event( death) occurred:
Option to take Death Benefit in instalments:
One can choose to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for
Different modes of payments being as under:
LIC Jeevan Jyoti Plan- Death benefit Payout in instalments
Riders
The policyholder has an option of availing following Rider benefit(s):
- LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death -Accidental death Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident), an
- LIC’s Accident Benefit Rider -In case of accidental death, the Accident Benefit Sum Assured will be payable in lump sum.
- LIC’s New Term Assurance Rider – The additional term assurance rider sum assure will be given, in case of death of policyholder.
- LIC’s New Critical Illness Benefit Rider -on diagnosis of any of specified illness 15 critical Illness Sum Assured shall be payable
- LIC’s Premium Waiver Benefit Rider-this rider shall be allowed under the policy wherein the Life Assured is Minor. If this rider is opted for, on death of proposer, payment of premiums of base policy will be waived off.
Rider sum assured cannot exceed the Basic Sum Assured.
What if you do not pay Premium -(Paid-up)
The policy acquires a paid up value if you stop paying premium and the paid up value is given at the policy maturity date.
The paid up value depends on premium payment duration.The below mentioned policy paid up value is given.
If less than TWO years’ premiums have been paid
All the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable.
If at least TWO full years’ premiums have been paid
The policy will acquire paid up value and it will be paid at maturity.
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)].
Here, reversionary bonus will also be paid.
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]
Here, reversionary bonus will also be paid.
For Example, if you paid premium for 3 years only and the policy premium paying term was 15 year than the paid up value will be
3/15* Sum Assured
Surrender Value:
The policy can be surrendered at any time provided premiums have been paid for at least two consecutive years.
On surrender of the policy, the Corporation shall pay higher of the Surrender Value equal to the Guaranteed Surrender Value or Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation 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.
What is maturity amount of LIC Bima Jyoti
Age of the life assured (Nearer Birthday) – 35 years
Policy Term (Years)- 20 years
Premium paying Term- 15 years
Premium Payment Mode- yearly
Basic Sum Assured- Rs.1,00,000
Sum Assured on Death – 12,50,000
Premium (excluding Taxes)-Rs. 78,770
Guaranteed Additions per Rs 1000 per year – Rs 50
Maturity Amount
Basic Sum Assured – Rs 10,00,000
Bonus + FAB. – Rs. 10,00,000
Total Maturity Amount – Rs 20,00,000
LIC Bima Jyoti Benefits
- No hassle Saving cum insurance plan
- Low premium amount and high benefits
- Premium can be paid in monthly or other mode Instalment
- Dual benefit – Take maturity and life cover still continues
- maturity amount is tax free in nature
- tax benefit under section 80C.
LIC Bima Jyoti Plan Disadvantages
- Low returns: LIC Bima Jyoti returns are very low i.e in range of 5-6%.
- Low Liquidity: In case of you want to withdraw entire money in between, then you are eligible to take loan, but no access to your money in between.
- In case you decide to not to pay premium, your policy acquire reduced benefits, paid up status and in case of surrender you get 30% or more premium paid. Thus you have to bear huge losses in such as case.
- Compulsory payment for entire duration
LIC Bima Jyoti Plan 860 Review
LIC plan 860 is a simple endowment plan, wherein you pay premium for a fixed duration. After this time, you get sum assured and bonus payment. This is a good plan for risk averse investor, however if you can take some amount of risk, then better investment options are available such as Mutual Fund SIP.
If you are looking for safe return options then you may consider opting for PPF, For moderate risk NPS also provides good returns.
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