LIC’s Bima Jyoti (UIN: 512N339V01)

LIC's Bima Jyoti Plan is a non-participating, non-linked, individual savings plan which provides a combination of savings & protection. The plan offers financial protection to the nominees of the policyholder in case of the unfortunate death of the policyholder during the term. And it offers a guaranteed payout in case of survival of the policyholder at the maturity of the policy. The plan can be purchased online through LIC's official website as well as in offline mode through agents.

1. Eligibility criteria and other specifications

2. Commencement of risk coverage

In case the age of the policyholder is less than 8 years, the risk coverage will start either 2 years from the date of start of the policy or from the anniversary of policy coinciding with the attainment of 8 years of age. The risk coverage will start immediately if the age of the life assured is more than 8 years.

Also Read: How to Become LIC Agent?

3. Benefits

• Death Benefits

In case of death of the policyholder during the policy term but before the commencement of risk, then the premiums paid will be returned. 

In case of death during the term and after the commencement of risk of policy, sum assured on death and guaranteed additions will be payable. 

The "Sum Assured on Death" has been defined as an amount higher of:

• 125% of B.S.A
• 7x of annualized premium
• Maturity Benefits

On the survival of policyholder till the date of maturity, "Sum Assured on Maturity" will be payable wherein the amount will be equal to the basic sum assured.

• Guaranteed Additions

An amount as guaranteed addition at the rate of Rs.50 per 1,000 basic sum assured will be added at the end of each year. 

4. Additional Riders

The policy is also offering 5 additional rider options which can be availed by policyholders by paying additional premiums. The policyholder will have the option to choose only one of the riders among the LIC’s Accidental Death and Disability Benefit Rider & LIC's Accident Benefit Rider.

• LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
• LIC’s Accident Benefit Rider (UIN:512B203V03)
• LIC’s New Term Assurance Rider (UIN: 512B210V01)
• LIC’s New Critical Illness Benefit Rider (UIN:  512A212V02)
• LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)

5. Maturity Benefits Payout Option

The policyholder will have the option to take the maturity benefits of the policy in installments for a chosen term of 5,10,15 or 20 years. The facility can be availed for part or full amount of the maturity benefit.

The installments will be paid in advance as per the chosen frequency option i.e monthly, quarterly, half-yearly, or yearly. 

6. Death Benefit Payout Option

Like the previous option, the policyholder can choose the receipt of death benefits by his/her nominees in installments during the term of the policy. The minimum amount in the case of benefit payout will be the same in all frequency options as in the case of maturity benefits.

7. Premium Payment Option

The life assured can choose to make premium payments regularly as monthly, quarterly, half-yearly, or yearly intervals or by the way of deductions from the salary.

8. Loan Facility 

The policy also offers a facility to avail loans to the policyholders provided they have paid at least 2 years of premium. The maximum amount allowed for a loan under the following cases are:

• In-force policy - Upto 90%
• Paid-up policy - Upto 80%

The interest rate for the loans issued during the 1 year period starting from 1 May 2020 to 30 April 2021 will be 9.5% p.a. compounding half-yearly for the whole term. The interest rates on the loan will not exceed the 10Y G-sec rate as on the last day of last financial year plus 3%.

9. Sample Illustration

For a basic sum assured of Rs.10 lakhs, the annual premiums are as follows

^exclusive of taxes

10. Rebate

The following kind of rebates are available with the plan: 

• Mode Rebate

• High Sum Assured Rebate

• Online Sale Rebate

11. Free-look Period

In case the policyholder is not satisfied with the terms & conditions of the policy, then it can be returned to the LIC within 15 days (30 days in online mode) of the receipt of bond documents.

12. Exclusions

• If the policyholder dies by suicide within the 12 months from the start of risk coverage, the LIC will not be payable for the cover except for 80% of the premiums paid excluding the taxes, extra premium payments, or other charges.
• If the policyholder dies by suicide after 12 months from the start of risk coverage, the LIC will be payable for an amount higher of the 80% of the premiums paid till death or surrender value available at the time of death.

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