LIC Bima Jyoti (860) All Details with Premium and Benefit Calculators
(Last Updated On: February 18, 2021)
LIC of India has decided to introduce a new limited payment endowment plan, Bima Jyoti – Plan number 860- with effect from 22nd February 2021. Bima Jyoti can be defined as a Non-linked, Non-Participating, individual, limited premium payment Life Insurance Savings plan. In other words, Bima Jothi is a guaranteed fixed benefit scheme whose premium payment term is lower by five years compared to the term of the plan.
Let us have a detailed look at the benefit pattern and premium structure of Bima Jyoti plan.
The most important feature of Jeevan Jyoti (Plan 860) is the guaranteed additions which shall be added to the policy account at the rate of 50 per 1000 sum assured per year for the entire term of the plan. In the era of rapidly dwindling interest rates, a plan with guaranteed maturity benefit was something unexpected. LIC of India is apparently taking bold steps here to provide a plan with benefits that can be reckoned while joining the scheme itself.
LIC’s Bima Jyoti -who all are eligible for the plan
Eligibility Conditions and RestrictionsConditionMinimumMaximumBasic Sum Assured1,00,000No LimitAge at entry90 days(Completed)60 Years(nbd)Age at maturity18 Years(Completed)75 Years(nbd)Premium Paying Term(Policy Term Less 5) YearsSum Assured Multiples25,000
Guaranteed additions – Unique feature of Bima Jyoti
For all in-force policies, Guaranteed Additions at the rate of 50 per 1000 sum assured shall be accrued to the policy account every year till the end of the term. For Example, for a 10 lakh sum assured policy with term 20 years, the guaranteed additions accrued to the policy account shall be as shown below.
Bima Jyoti – Benefits available
1. Maturity Benefit
On the life assured surviving the term of the plan, basic Sum Assured + Guaranteed additions accrued to the policy account shall become payable. So the maturity benefit of the plan is simple to calculate and can be known well in advance.
2. Death Benefit
If the death occurs after the commencement of Risk, Sum Assured on Death + Accrued Guaranteed additions shall become payable.
Sum Assured on Death = Higher of (125% of sum Assured ) and (7 times of annualized premium)
But if the death occurs before the date of commencement of risk, all premiums excluding the rider premium shall be returned.
Date of Commencement of Risk: Age at entry less than 8 years ->2 Years from the date of commencement or from the policy anniversary coinciding/immediately following 8 years of age, whichever is earlier. For all others, the risk cover will start immediately.
LIC’s Jeevan Jyoti – Premium and Benefits – Online Calculator
Jeevan Jyoti – online calculator is intended to provide all the benefits of the plan in an easy to understandable manner.
This section is under construction and will be available soon…
Optional Riders available
1. LIC’s Accidental Death and Disability rider (AD& DB)
An amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the rider is in force at the time of the accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit. Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums, if any, shall also be waived in respect of this Rider and the premium for Base Policy corresponding to Basic Sum Assured equal to Accident Benefit Sum Assured.
Period of availability: Available till the end of the term
2. LIC’s Accident Benefit Rider (AB)
If this benefit is opted for and if the Life Assured is involved in an accident leading to death within 180 days from the date of an accident then an amount equal to the Accident Benefit Sum Assured is payable. However, the policy shall have to be in force at the time of accident irrespective of whether or not it is in force at the time of death.
Period of availability: Available till the end of Premium Paying Term Only
3. LIC’s New Term Assurance Rider
An amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the Policy Term, provided the Rider cover is inforce.
Period of availability: Available till the end of the term
4. LIC’s New Critical Illness Rider
If this rider is opted for, on the first diagnosis of any one of the 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable subject to the conditions specified.
Period of availability: Available till the end of the term
5. LIC’s Premium Waiver Benefit
If this Rider is opted for, on death of Proposer of the Base Policy (on whose life this Rider has been opted for) during the Rider Term, premiums payable in respect of Base Policy, falling due on and after the date of death till the expiry of Rider Term, shall be waived.
LIC’s Jeevan Jyoti – Plan 860 – Premium Chart
A Ready Reckoner for calculating the premium of plan Jeevan Jyoti is provided below. Click the link provided below to download the pdf premium chart.
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Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.
