Benefits of LIC Bima Jyoti

Death Benefit

Death Benefit is paid to the nominee in case of the unfortunate demise of the policyholder within the policy tenure.

If the policyholder dies before the coverage starts, the premiums they paid (excluding taxes and additional fees) will be refunded.

If the policyholder dies after the coverage starts, the nominee will receive a death payout equal to the “Sum Assured on Death” and Accrued Guaranteed Additions.

“Sum Assured on Death” is either higher of 125% of Basic Sum Assured or 7 times of annualised premium.

**Death Benefit will not be less than 105% of the total premiums paid up to the date of death, excluding any extra fees, rider premiums, and taxes.

Maturity Benefit

If the life assured survives the specified maturity date (provided the policy is active), the company will pay the basic sum assured along with the accumulated guaranteed additions.

Guaranteed Additions

Guaranteed additions will be supplemented to the policy at the end of each year at the rate of Rs.50 per 1000 sum assured. In case of the policyholder’s death, these additions shall be made till the year of death.

For a sum assured of Rs.1 Crore, you get a guaranteed addition of Rs.5 lakhs every year from the 1st policy anniversary till the last. Over 20 years, your Bima Jyoti policy will have accrued a total of Rs.1 Crore through guaranteed additions alone.

Here’s an example to help you understand the benefits better.

Benefit Illustration of LIC Bima Jyoti

Let’s understand this with the help of an example. Assuming the following -

Age - 30 years

Sum Assured – Rs.1 Crore

Policy Term - 20 years

Premium Paying Term - 15 years

Using the LIC Bima Jyoti premium calculator, the annual premium comes out to be Rs.7,77,900, excluding taxes.

The benefits applicable under the following events are -

If you die after 5 policy years

1. Your family can claim 125% of the basic sum assured, which is equal to Rs.1.28 Crores.

2. Further, guaranteed additions for 5 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 5 = Rs.25 Lakhs.

This brings the death benefit to Rs.1.53 Crores.

If you die after 15 policy years

1. Your family can claim 125% of the basic sum assured, which is equal to Rs.1.28 Crores.

2. Further, guaranteed additions for 15 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 15 = Rs.75 Lakhs.

This brings the death benefit to Rs.2.03 Crores.

If you survive the entire policy term of 20 years

1. You will get the assured maturity sum of Rs.1 Crore.

2. Further, guaranteed additions for 20 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 20 = Rs.1 Crore.

This brings the final maturity value to Rs.2 Crores.

*Premiums are excluding of all taxes

*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply

Additional Rider Benefits

The plan offers five rider options that a policyholder can add by paying an additional premium.

Accidental Death and Disability Benefit Rider

In case of accidental deaths, the sum assured amount of accidental death benefit is paid in lump sum along with the amount of death benefit under the existing plan.

Accidental Benefit Rider

In case of accidental death, the accidental death sum assured amount is paid along with the benefit of death under the existing plan. This rider cannot be opted for if the first rider is already added.

New Term Assurance Rider

It is available at the start of the policy. The sum assured under this rider plus the death benefit shall be offered if death occurs for any reason during the policy tenure.

New Critical Illness Benefit Rider

It is available at the commencement of the policy and the benefits under this rider shall be offered on the first diagnosis of any of the 15 critical illnesses mentioned in the policy.

Premium Waiver Benefit Rider

This rider waives off all future due premium payments following the policyholder's death.

Terms and Conditions of LIC Bima Jyoti

Grace Period

30 days of grace period is allowed for the payment of yearly, half-yearly, or quarterly premium and 15 days of grace period for monthly premium payment from the premium due date. If the premium is not paid before the expiry date of the grace period, then the policy will lapse.

Freelook Period

If the policyholder is not satisfied with the policy’s features, benefits, and terms and conditions, then there is an option to return the policy to the company. This can be done within 15 days from the receipt date (offline) and 30 days in case of online policy purchase.

Surrender Benefit

This plan provides the option of surrendering the policy any time after continuing the policy for two continuous years. In such situations, the insurer pays the surrender value equivalent to the higher of the special surrender value or the guaranteed surrender value.

Revival

The policy lapses if the premiums are not paid during the grace period. LIC Bima Jyoti provides an option to revive the lapsed policy within 5 consecutive years. It can only be revived before the maturity date.

Paid-Up Value

If less than 2 years of premiums have been paid and any subsequent premium is not paid, the benefits offered by the policy will cease.

If premiums for a minimum of two years have been paid, the risk cover will remain active, but the policy will remain a paid-up policy.

Tax Benefits

Statutory taxes are payable on insurance policies by the Government of India or any other constitutional authority of India as per the prevailing tax laws. The tax rates may change from time to time. Tax exemptions can be availed under sections 80C and 10(10D) of the Income Tax Act.

You May be Interested in other LIC plans

LIC Bima Jyoti

LIC Bima Jyoti-860 is an endowment plan that offers dual protection of savings and protection. The plan provides financial security to policyholders’ loved ones in case of his/her unfortunate demise during the policy tenure. A guaranteed payment is also made to the policyholder at maturity if he/she survives it.

Read More

LIC Jeevan Amar

The LIC Jeevan Amar Term Assurance Plan provides essential financial protection to your loved ones in case of your unfortunate death during the policy term. The plan allows the policyholder to choose from Level Sum Assured or Increasing Sum Assured and provides flexibility to choose Single, Regular, or Limited Premium Payments

Read More

LIC Jeevan Umang Plan

LIC Jeevan Umang Plan is a whole-life assurance plan, designed to offer a dual benefit of income and protection to your family in your absence. This plan provides yearly survival benefits from the end of the premium-paying period until maturity. It also offers a lump sum payout at maturity or in the event of the policyholder's death during the policy term

Read More

LIC New Jeevan Shanti

LIC New Jeevan Shanti 858 is a single premium deferred annuity pension plan designed to protect the policyholder's post-retirement life. The plan offers guaranteed returns and comes with 2 annuity options. It is available both online and offline, giving policyholders the flexibility to buy it at their convenience

Read More

LIC SIIP Plan

LIC SIIP is a unit-linked insurance plan that combines insurance protection and investment opportunities. It comes with a mix of equity and debt fund options that policyholders can choose as per their risk profile to generate higher returns. Over the years, the hard-earned savings of investors grow into a sizeable corpus that they can use to finance important life events.

Read More