LIC's Bima Jyoti (Plan No. 860) is a non-linked, non-participating, individual savings plan offered by Life Insurance Corporation of India (LIC). This plan is designed to provide policyholders with a guaranteed return on their investment, along with life insurance coverage.
LIC Bima Jyoti Plan | Plan No. 860
- Policy Term: The policy term for Bima Jyoti is fixed at 15 years.
- Premium Payment Term: The premium payment term for the plan is 10 years.
- Premium Payment Mode: The plan allows policyholders to pay their premiums yearly, half-yearly, quarterly, or monthly.
- Minimum and Maximum Entry Age: The minimum age at which a person can buy this plan is 90 days, and the maximum age is 60 years.
- Maturity Age: The maturity age for the plan is 75 years.
- Sum Assured: The minimum sum assured under the plan is Rs. 1 lakh, and there is no maximum limit on the sum assured.
- Guaranteed Addition: Bima Jyoti offers a guaranteed addition of Rs. 75 per thousand sum assured for each completed policy year. This means that policyholders will receive a guaranteed addition of Rs. 1,125 for each year of the policy term.
- Death Benefit: In case of the policyholder's unfortunate demise during the policy term, the nominee will receive the sum assured along with the guaranteed additions. The death benefit payable will be a minimum of 110% of the total premiums paid till the date of death.
- Surrender Value: If the policyholder wants to surrender the policy before the completion of the policy term, he or she will be eligible for a surrender value. The surrender value will be a percentage of the total premiums paid till the date of surrender, subject to certain conditions.
- Loan Facility: The policyholder can take a loan against the policy after the completion of the first policy year, subject to certain conditions.
- Tax Benefits: The premiums paid and the maturity proceeds of the policy are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, respectively.
Explain Via Simple Example:
LIC's Bima Jyoti is a non-linked, non-participating, individual, savings life insurance plan that offers guaranteed returns to the policyholder. Let's understand this plan with a simple example.
Suppose Mr. Sharma, a 35-year-old individual, opts for LIC's Bima Jyoti plan for a sum assured of Rs. 5 lakh with a policy term of 15 years. He pays an annual premium of Rs. 50,000 for 15 years.
After the completion of the policy term, he will receive a guaranteed maturity benefit of Rs. 1,10,000 (i.e., 220% of the total premium paid). Additionally, if he survives till the end of the policy term, he will also receive a loyalty addition (if any) that will be declared by LIC.
In case of unfortunate death during the policy term, the nominee will receive a death benefit of Rs. 5 lakh (sum assured) along with the accrued guaranteed additions and loyalty additions (if any) till the date of death.
Thus, LIC's Bima Jyoti plan offers guaranteed returns with the benefit of life cover, making it a suitable investment option for risk-averse individuals who want to secure their family's financial future.
FAQ:
Q1. What is LIC's Bima Jyoti?
A1. LIC's Bima Jyoti is a non-linked, non-participating, limited premium payment life insurance plan offered by LIC.
Q2. What are the key features of this plan?
A2. The key features of this plan are:
- Limited premium payment term of 5 years or 7 years
- Guaranteed maturity benefit of 100.5% of total premiums paid
- Death benefit of sum assured plus accrued bonuses
- Option to choose between two sum assured options - Rs. 1 lakh or Rs. 1.5 lakh
- Option to take the maturity benefit as a lump sum or in installments
Q3. What is the premium payment term for this plan?
A3. The premium payment term for this plan is either 5 years or 7 years, depending on the policyholder's choice.
Q4. What is the minimum and maximum age limit to purchase this plan?
A4. The minimum age limit to purchase this plan is 18 years, while the maximum age limit is 60 years.
Q5. What is the policy term for this plan?
A5. The policy term for this plan is 15 years.
Q6. Is there any tax benefit available with this plan?
A6. Yes, policyholders can avail tax benefit under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Q7. Is there any surrender value available with this plan?
A7. Yes, policyholders can surrender the policy after payment of the first year's premium. The surrender value will be paid as per the terms and conditions of the plan.
Q8. Is there any loan facility available with this plan?
A8. Yes, The policyholder can take a loan against the policy after the completion of the first policy year, subject to certain conditions.
Q9. Can policyholders choose the installment option for maturity benefit?
A9. Yes, policyholders can choose to receive the maturity benefit in installments over a period of 5 years or 10 years, as per their choice.
Q10. Can policyholders switch their sum assured option during the policy term?
A10. No, policyholders cannot switch their sum assured option during the policy term. The sum assured option chosen at the time of policy purchase will remain fixed for the entire policy term.
