On October 14, 2024, LIC launched its revised Bima Jyoti Plan, (Plan No. 760). This policy, a non-linked, non-participating, limited premium paying plan, comes with enhanced guaranteed additions and life insurance coverage. Below, we explore the key features, eligibility criteria, benefits, modifications, and more.
Also see: Which upcoming LIC plan will be launched on 18th November?
Key Features of LIC Bima Jyoti Plan
- Guaranteed Additions: Bima Jyoti offers policyholders the benefit of guaranteed additions, ensuring a robust financial return upon policy maturity.
- Flexible Premium Payment Options: This plan is a limited premium paying plan, allowing policyholders to pay premiums for a term shorter than the total policy term, reducing the financial burden over time.
- Life Insurance Coverage: The plan provides comprehensive life insurance protection, safeguarding the future of the policyholder’s dependents in case of untimely demise.
Eligibility Criteria and Basic Policy Terms
The Bima Jyoti Plan is designed to cater to individuals across a wide age range, offering a combination of financial security and savings.
- Minimum Age at Entry: 30 days (completed)
- Maximum Age at Entry: 60 years (nearer birthday)
- Minimum Policy Term: 15 years
- Maximum Policy Term: 20 years
- Premium Paying Term (PPT): Policy term minus 5 years
- Maximum Maturity Age: 75 years (nearer birthday)
- Minimum Basic Sum Assured: ₹125,000/-
- Maximum Basic Sum Assured: No upper limit
Also see: LIC Jeevan Umang 745 vs LIC Jeevan Utsav 771
Basic Sum Assured
The Basic Sum Assured shall be in multiples of amount as specified below:
| Basic Sum Assured Range | Sum Assured Multilpe |
|---|---|
| From Rs. 1,25,000/- to Rs. 2,75,000/- | Rs. 5,000/- |
| Above Rs. 2,75,000/- | Rs. 25,000/- |
Age at entry for the policy holder is to be taken as age near birthday except for the minimum age at entry i.e. 18 years, where it is in completed years.
Also see: LIC New Policy on Premium Refunds for Lapsed Policies in Moradabad
12 Major Modifications in LIC Bima Jyoti Plan 760
Here are the 12 major modifications in LIC Bima Jyoti Plan 760:
- Increase in Minimum Basic Sum Assured: Raised from ₹100,000 to ₹125,000, enhancing the minimum coverage.
- Reduced Minimum Age at Entry: Now set at 30 days (completed) instead of the previous 90 days, broadening eligibility.
- Revised Premium Rates: Adjusted to reflect the updated benefits and features of the plan.
- Surrender Value Availability: Now available after completing just one full year’s premium, as opposed to two years.
- Enhanced Death Benefit for Paid-Up Policy: Guaranteed minimum of 105% of total premiums paid until the date of death.
- Modified Policy Loan Quantum: The loan percentage of the surrender value has been revised for better policyholder liquidity.
- Exclusion of LIC New Critical Illness Benefit Rider: This particular rider is no longer available under Bima Jyoti.
- Settlement Option Introduction: Available for maturity benefits if purchased through PoSP-LI/CPSC-SPV, allowing for flexible payouts.
- Updated Customized Benefit Illustration: The benefit illustration is tailored to reflect plan updates for clarity.
- Inclusion of Customer Information and Need Analysis Documents: These documents are now part of the policy to enhance transparency.
- Extended Free Look Period: Now set at 30 days for policy review, providing additional time for assessment.
- Cap on Rider Premiums: Total premiums for life insurance riders cannot exceed 30% of premiums under the base plan, providing regulated additional coverage options.
These changes significantly enhance the plan’s flexibility, accessibility, and policyholder benefits, making it a more attractive insurance solution.
Also see: Press Release: LIC Reports 61% Market Share, Record Growth in H1 FY2025
Modified Rider Options
Several riders are available to enhance the plan’s protection:
- LIC Accidental Death & Disability Benefit Rider
- LIC Accident Benefit Rider
- LIC New Term Assurance Rider
- LIC Premium Waiver Benefit Rider
Rider premiums are capped at 30% of premiums under the base product. These riders add layers of protection by covering incidents such as accidents, disability, and untimely death.
Premium Payment Modes
LIC Bima Jyoti Plan offers multiple premium payment modes such as yearly, half-yearly, quarterly, monthly (NACH) and SSS
| Basic sum assured opted for | Allow able mode of premium payment |
|---|---|
| Less than Rs. 1,50,000 | Yearly & Half-yearly |
| Rs. 1,50,000 & above | yearly, half-yearly, quarterly and monthly through (NACH) & SSS |
For basic sums assured below ₹150,000, only yearly and half-yearly modes are available, while larger sums offer all payment options.
Also see: LIC Revised Jeevan Anand Plan 715
Benefits of LIC Bima Jyoti Plan
Here are some benefits of LIC Bima Jyoti Yojana
Maturity Benefit
On maturity, policyholders will receive the Sum Assured along with accrued Guaranteed Additions:
- Maturity Benefit = Sum Assured + Guaranteed Additions
- Guaranteed Additions: ₹50 per ₹1,000 of the sum assured for each year of the policy term.
This predictable return makes the Bima Jyoti Plan an attractive choice for those seeking stable, long-term financial growth.
Death Benefit
The death benefit depends on the policy status at the time of the insured’s demise. For an in-force policy, the nominee will receive the higher of:
- 125% of the Basic Sum Assured or
- 7 times the annualized premium.
In case the policy has become paid-up, the nominee will receive 105% of the premiums paid up to the date of death.
Surrender Benefit
The plan provides a surrender benefit after completion of one full year’s premium payment. This offers policyholders a safety net in case of unforeseen financial needs.
Also see: LIC Jeevan Tarun Plan 734
Loan Facility
Policyholders can avail of a loan facility after paying premiums for one full year, with the loan amount varying based on policy status:
| Policy Status | Before payment of 2 full years premium | After payment of 2 full years premium |
|---|---|---|
| Under In-force Policies | 50% | 80% |
| Under Paid-up Policies | 40% | 75% |
- For in-force policies: 50% (before 2 years’ premiums paid) and 80% (after)
- For paid-up policies: 40% (before 2 years’ premiums paid) and 75% (after)
Additional Policy Benefits
- Policy Revival: Policies can be revived within 5 years from the date of lapse, provided the policyholder meets the required conditions.
- Settlement Option: Available for maturity benefits under certain purchase channels, providing a flexible payout structure.
- Customer Documentation: The plan includes a Customer Information Sheet and Need Analysis Document, offering transparency and ensuring suitability for policyholders.
- Free Look Period: The free look period has been extended to 30 days, giving policyholders more time to review their purchase.
Also see: LIC Bima Shree Plan 748
Tax Benefits
Under Section 80C of the Income Tax Act, policyholders may avail of tax deductions on premiums paid. Additionally, the maturity benefit may be tax-free under Section 10(10D), making it a tax-efficient investment.
Conclusion
The LIC Bima Jyoti Plan (Plan No. 760) combines robust life insurance coverage with guaranteed additions, making it a reliable choice for individuals seeking a balance of financial security and savings. Its revamped features, enhanced entry options, and flexible premium modes cater to a diverse customer base, ensuring the plan’s suitability across varied financial goals.
FAQs for LIC Bima Jyoti Plan
What are the key benefits of LIC Bima Jyoti Plan?
The LIC Bima Jyoti Plan offers guaranteed additions of ₹50 per ₹1,000 of the sum assured annually, a maturity benefit that combines the sum assured with accrued additions, and comprehensive life insurance coverage. It also provides a death benefit, loan facility, and flexible premium payment options.
Can I apply for LIC Bima Jyoti Plan for my child?
Yes, you can apply for this plan for your child, as the minimum entry age is 30 days. This feature makes it suitable for securing financial protection for children and planning for their future.
When does the LIC Bima Jyoti Plan acquire a surrender value?
The plan acquires a surrender value after paying premiums for just one full year, giving policyholders flexibility if they need to discontinue the policy early due to financial constraints.
Is there a limit to the maximum sum assured under this plan?
No, there is no maximum limit on the sum assured for the Bima Jyoti Plan. However, the minimum sum assured is ₹125,000, with increments based on specific ranges and multiples for customization.
Are there any riders available with the Bima Jyoti Plan?
Yes, several optional riders are available to enhance coverage, including the LIC Accidental Death & Disability Benefit Rider, LIC Accident Benefit Rider, LIC New Term Assurance Rider, and LIC Premium Waiver Benefit Rider.
Disclaimer: This article provides general information on LIC Bima Jyoti Plan (Plan No. 760) and is intended for educational purposes only. Policy terms, benefits, and eligibility criteria are subject to change as per LIC guidelines. Please consult official LIC documentation or a certified insurance advisor for personalized advice before making any financial decisions related to this plan.