LIC’s Bima Jyoti (860)


Photo by Anna Tarazevich from Pexels

LIC’s Bima Jyoti Plan is a life insurance product of LIC (Life Insurance Corporation of India). This is an endowment or traditional plan- which means it is not linked to stock market. Special feature of policy is guaranteed lumpsum payment to the surviving policyholder at the time of maturity and life risk cover till maturity. This policy also provide quick liquidity need as loan during policy term. To know more about this policy let us start with its features:

 Premium paying term: 5 years less than policy term

 Policy term (time until your policy matures):15 to 20 years

 Minimum Sum Assured: 100000

 Maximum Sum Assured: No limit (may require income proof and special medical report for Higher SA)

 Minimum Entry Level Age: 90 days ( Completed )

 Maximum Entry Level Age: 60 Years (Age Nearer Birthday)

Minimum Maturity Age: 18 Years ( Completed )

 Maximum Maturity Age: 75 Years (Age Nearer Birthday)

 Maximum Accidental Death and Disability benefit rider applicable up to age of 70 years

 Maturity Benefit: Sum Assured on Maturity + Guaranteed Additions  (for illustration keep on reading)

 Minimum years to pay premium: 2years (after paying premium for 2 years one can stop paying premium; your money will be safe to withdraw or for loan

 Loan and Surrender: after 2 years of policy period considering there is no unpaid premium in first 2 years of policy period.

 Revival: Policy can be revived within 5 years of lapsation.

 Benefit illustration:

Sandeep Panday  a software engineer has purchased Bima Jyoti, 20 years term of Sum assured 1000000 INR at the age of 28 years, in name of his daughter Astha (3 years old) with PWB (Premium Wavier Benefit) after considering following benefit illustration:-

Adhar Stambh (943) Benefit Illustration
Policy Term 15 17 20
Premium Paying term 10 12 15
Sum Assured 1000000 1000000 1000000

Per Day Premium

(1st Year/after 1st year)

327/319 273/267 223/218

Monthly Premium

(1st Year/after 1st year)

10165/9946 8500/8317 6943/6793

Quarterly Premium

(1st Year/after 1st year)

30495/29839 25501/24952 20830/20381

Half Yearly Premium

(1st Year/after 1st year)

60337/59038 50449/49363 41201/40314

Yearly Premium

(1st Year/after 1st year)

119367/116797 99795/97647 81486/79731

Total Premium Paid

(Based on Yearly Mode)

1170540 1173912 1197720
Maturity Benefit
Sum Assured 1000000 1000000 1000000

Guaranteed Additions

( 50/- per 1000 sum assured

per policy year )

750000 850000 1000000
Total 1750000 1850000 2000000

All of these maturity is tax free under income tax act 10 (D)

*all maturity projection is based on current rate of bonus paid by LIC.