Life Insurance Corporation of India is the most trusted insurance company in India. LIC has recently launched “Bima Jyoti” Plan No. 860, which offers a combination of protection and savings. This policy is available in both online and offline mode. In this post, let us take a look at the features and benefits of the LIC Bima Jyoti Plan No. 860.
So if you are looking to know the features, benefits, and eligibility of the LIC Bima Jyoti plan, keep reading!
Table of Contents
LIC Bima Jyoti (Plan No. 860)
LIC Bima Jyoti policy is a non-linked, non-participating, individual, savings plan. This plan offers an attractive combination of protection and savings. This policy provides guaranteed lumpsum payment to the surviving policyholder at the time of maturity.
In the event of the unfortunate death of the policyholder during the policy term, the plan provides financial support for the family. This policy also takes care of liquidity needs through a loan facility.
The guaranteed additions will accrue at the rate of Rs.50 per 1000 basic sum assured (or 5%) at the end of each policy year throughout the policy term.
You can purchase this plan online through the website www.licindia.in as well as offline through agent /other intermediaries.
Features of Bima Jyoti Plan of LIC
Following are some of the key features of the LIC Bima Jyoti policy.
1. This policy is available through the online as well as offline mode.
2. This is a non-linked, non-participating, individual, limited premium payment, insurance savings policy.
3. The minimum age at entry is 90 days and the maximum age is 60 yrs. Note that a minor live proposal is not allowed for online plans.
4. A guaranteed addition at the rate of Rs.50 per 1000 basic sum assured shall accrue at the end of each policy year throughout the policy term.
5. The minimum sum assured for this policy is Rs.1,00,000 with no upper limit.
6. The policy can be taken for a term of 15 to 20 years.
7. You can choose to pay the premium yearly, half-yearly, quarterly, and monthly (NACH only).
8. Sum Assured on death along with accrued guaranteed additions will be payable on death during the policy term after the date of commencement of risk.
9. Loan facility is available under this plan to meet liquidity needs.
10. This plan is also available for NRI’s with certain conditions.
11. There is an option to receive death/maturity benefits in installments over the chosen period of 5, 10, or 15 years instead of a lump-sum amount.
Benefits of LIC Bima Jyoti Plan
Following are the benefits of this insurance policy.
1. Death Benefit
a) On death before the date of commencement of risk: Return of premiums paid excluding taxes, rider premium, etc. if any.
b) On death after the date of commencement of risk: Sum assured on death along with accrued guaranteed additions. Here the “Sum Assured on Death” is defined as the highest of 125 % of BSA (Basic Sum Assured) or 7 times of annualized premium.
The death benefit as mentioned in (b) shall not be less than 105% of the total premiums paid (excluding any extra premium, any rider premium, and taxes) up to the date of death.
2. Maturity Benefit
On the life assured surviving to the end of the policy term, the sum assured on maturity along with guaranteed additions, shall be payable. Here sum assured on maturity is equal to basic sum assured.
3. Guaranteed Additions
The guaranteed addition at the rate of Rs.50 per 1000 basic sum assured shall be added to the policy at the end of each policy.
4. Optional Riders Benefits
Below mentioned 5 five optional riders are available under this policy on payment of additional premium.
a) LIC Accidental Death & Disability Benefit Rider (UIN: 512B209V02)
b) LIC Accident Benefit Rider (UIN: 512B203V03)
c) LIC New Term Assurance Rider (UIN: 512B210V01)
d) LIC’s New Critical Illness Benefit Rider (UIN: 512A212V02)
e) LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
5. Option available under the base plan
a) Settlement Option (for Maturity Benefit)
It is an option to receive the maturity benefit in installments over the chosen period of 5, 10, or 15 years.
b) Option to take Death Benefit in Instalments
It is an option to receive the death benefit in installments over the chosen period of 5, 10, or 15 years instead of a lump-sum amount.
Eligibility criteria for LIC Bima Jyoti Plan
The following are the eligibility criteria for this policy:
- Minimum Sum Assured – Rs. 1,00,000
- Maximum Sum Assured – No limit
- Minimum age at entry – 90 days (completed). Note that a minor live proposal not allowed for online plans. However, you can purchase offline from any nearest branch.
- Maximum age at entry – 60 years (nearer birthday)
- Maximum maturity age – 75 years (nearer birthday)
- Minimum maturity age – 18 years (completed)
- Minimum policy term – 15 to 20 years
- Premium paying term – policy term less 5 years
- Mode of payment – Premiums to be paid yearly, half-yearly, quarterly, and monthly (NACH only)
- Surrender – The policy can be surrendered at any time provided at least 2 years’ premium has been paid.
- Loan – Loan facility is available after payment of premiums for at least 2 years have been paid.
LIC Bima Jyoti Plan Review
This policy offers three things namely Guaranteed, Safety, and Tax benefits, which are important to sell a product in India. This plan has a unique feature of guaranteed additions. Under this policy, the maturity amount is guaranteed. In the current scenario of falling interest rates of bank FDs, the guaranteed additions along with risk coverage is an attractive feature of the Bima Jyoti plan of LIC.
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