LIC Bima Jyoti Plan: Eligibility, Key points, Benefits and Risks

Hello, today in this article we will discuss Life Insurance Corporation of India’s policy, the Bima Jyoti Plan. We will try to give all the information related to this plan here in an easy language. The main objective of bringing this plan to the market is to provide tax savings and a guaranteed return for the insured. You can take this policy in your own name, or you can also take it in the name of your child. If you are looking for tax savings and guaranteed returns, then this policy is best for you.

With this policy, you can also plan for the future of your child. Here in this policy, “guaranteed return” means Rs 50 will be added to the sum assured of Rs 1000 every year. For example, if you take a sum assured of one lakh, then you will get 5000 rupees added to the sum assured every year.

What is the Bima Jyoti Plan?

A lump sum payment will be available after the maturity of the Bima Jyoti scheme. Apart from this, in the event of the untimely death of the policyholder, his family members will also get financial help. At the end of each policy year, an additional Rs 50 per thousand rupees will be added to the basic sum assured. According to LIC, insurance of at least Rs 1 lakh will be available in the Bima Jyoti Plan, although no limit has been set on the maximum.

Who can take this policy?

A Bima Jyoti policy can be taken for 15 to 20 years. From a 90-day old child to less than 60 years old, people will be able to take the Bima Jyoti policy. It is a completely non-affiliated, non-participating, individual savings plan. In this case, the policyholder gets the option of saving along with insurance. This is a very good plan to make the future safe.

Eligibility for LIC’s Bima Jyoti Plan

Policy Period Min. Age Max. Age PPT
20 years 0 year 55 years 15 years
19 years 0 year 56 years 14 years
18 years 0 year 57 years 13 years
17 years 1 year 58 years 12 years
16 years 2 years 59 years 11 years
15 years 3 years 60 years 10 years

Here, PPT means premium paying term. In this plan, PPT is 5 years less than the policy term.

Minimum age of maturity: The minimum age of maturity in this plan is 18 years.

Maximum Age of Maturity: The maximum age of maturity in this plan is 75 years.

The minimum sum assured in this policy is Rs. 1,00,000 and there is no maximum sum assured.

Key points related to the LIC Bima Jyoti Plan

  • This policy of LIC can be taken for a period of 15 to 20 years. But the premium payment term has been kept lower than the policy term by 5 years. For example, if a person buys a policy for a period of 17 years, he will have to pay the premium for only 12 years.
  • A loan facility has been given by the company on this policy. If the insured needs a loan in the middle of the policy term, then he can take a loan against the sum insured.
  • If the life insured attains age before the commencement of risk, the premium will be returned to him. In case the life assured dies during the term of life, he/she will be paid the sum assured and the guaranteed return added thereon.
  • This policy of LIC can be taken for three months, i.e., from a child of 90 days to a person of 60 years of age. whereas the minimum age of policy maturity is 18 years and the maximum age is 75 years.
  • LIC has given the facility to take advantage of five types of riders, like term insurance, with this insurance plan. These include riders offering the facility of accidental death and disability benefits, accident benefits, term assurance benefits, critical illness benefits, and premium waiver benefits. These, however, will be paid in addition to the premium.
  • LIC will add a guaranteed return of Rs 50 to the sum assured for every Rs 1,000 at the end of every year during the insurance period under this plan. For example, if the sum assured of an individual is Rs. 10,00,000, then at the end of the first year, a guaranteed return of Rs. 50,000 will be added to his sum assured. Similarly, it will increase every year.
  • In case the individual does not die during the policy term, the Sum Assured along with the Guaranteed Return will be paid on maturity of the policy.
  • The premium of the Bima Jyoti scheme can be paid on a yearly, half-yearly, quarterly or monthly basis. In addition to this, the facility of deducting the premium directly from the salary is also available. This policy can be bought through an LIC agent as well as online.

LIC Bima Jyoti Policy Riders

There are five types of riders available in this policy, whose names are given below.

  • Rider for Accidental Death and Disability Benefits
  • The Accidental Benefits Rider

You can choose any one rider out of these two riders.

  • New Term Assurance Rider
  • Rider with Critical Illness
  • Riders Benefit from Premium Waiver

If you are taking the policy here in the name of your child, then definitely take the Premium Waiver Benefit Riders because if there is any untoward incident with the parents, then all the premiums will be waived and all the benefits will continue to be available.

Grace and surrender period in the LIC Bima Jyoti Plan

Grace Period:

Here, “grace period” means the extra time which is available for making premium payments while all the coverage of the policy continues. That is called the grace period. If the claim comes during the grace period, then LIC will pay it.

The grace period depends on the point at which you have taken your premium payment.

If you have taken your monthly turn, then you get a grace period of 15 days.

If you have changed your quarterly, half-yearly, or yearly premium payment, then you get a grace period of 30 days.

Surrender Period:

Under this plan, you can get the policy done after paying the premium for 2 years. But remember that surrendering the policy can result in a loss, so make this decision after thinking carefully.

Benefits of LIC’s Bima Jyoti Plan

Loan Facility

The loan facility in this policy is available after 2 years of premium payment. The policy amount depends on the number of years the policy has run and its surrender value.

  • 90% of the loan surrender value is available for inforce policy.
  • The loan for a paid-up policy is 80% of the surrender value.

Tax Benefit

  • Any premium you pay for this policy is exempt under section 80C of Income Tax.
  • Death/Maturity Benefit: The amount of death benefit and maturity benefit in this policy is fully exempt under section 10 (10D) of income tax.

Risks in the Bima Jyoti Plan

You know that this policy is for children, so it is very important to know when the risk will start.

  • If the child is 8 years of age or over 8 years of age, the risk will start immediately.
  • If the child is under the age of eight, the policy term is two years; otherwise, if the child is over the age of eight, the policy term is two years.
  • Whichever of the two happens first, the risk will start.

The LIC Bima Jyoti Plan will further secure the future

Generally, people are not very serious about insurance in India. This is also proved by the fact that most people insure only on the behest of the insurance agent or on getting the scheme, whereas you should take a plan like Bima Jyoti as soon as possible without thinking because it gives you many benefits in one premium. is aYou will get full help from LIC in case of any untoward incident in the future.

From this article, I hope you have got all the information related to the LIC Bima Jyoti Plan. For any queries related to LIC Bima Jyoti Plan,  You can contact us in the comments section below.

Frequently Asked Questions (FAQ’s)

Q1. What is the full form of LIC?

Ans. Full form: Life Insurance Corporation of India

Q2. In which year did LIC start its Bima Jyoti Plan?

Answer In the year 2021,

Q3. Where can we get the LIC Bima Jyoti Plan?

Ans. Offline mode: You can get it through the LIC insurance agents.

Online mode: You can get it by visiting the official website of LIC.

Q4. What is the official website of the Life Insurance Corporation of India (LIC)?

Ans. The official website of LIC is www.licindia.com.

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