LIC Bima Jyoti (Plan 860)

Benefits of LIC Bima Jyoti

1. Death Benefit

   It is payable in the case of the unfortunate demise of the policyholder within the policy tenure.

   • death occurs before the risk starts, the premium amount is returned by LIC, after excluding the taxes or any additional charges.

   • Subsequently, if death occurs after the risk cover starts, the sum assured amount is paid along with the accumulated guaranteed additions. The sum assured on death in such cases is defined as 7 times the annualized premium.

2. Maturity Benefit

   If the life assured survives the specified maturity date (provided the policy is in the active phase), then LIC will pay the basic sum assured along with the accumulated guaranteed additions.

   You can request the maturity amount in monthly, quarterly, half-yearly, or yearly installments as well. This is subject to a minimum amount as under -

   Installment Payment Mode	Minimum Amount of Instalment (in Rs.)
   Yearly	50,000
   Half-yearly	25,000
   Quarterly	15,000
   Monthly	5,000

3. Guaranteed Additions

   Guaranteed Additions will be supplemented to the policy at the end of each year of the policy at the rate of Rs.50 per 1000 sum assured. In case of the policyholder’s death, these additions shall be made till the year of death.

   For a sum assured of Rs.1 Crore, you get a guaranteed addition of Rs.5 lakhs every year starting from the 1st policy anniversary till the last. Over 20 years, your Bima Jyoti policy will have accrued a total of Rs.1 Crore through guaranteed additions alone.

   Here’s an example to help you understand the benefits better.

Benefit Illustration - Invest 1 Crore in LIC & Get 2 Crores Guaranteed at Maturity

Let’s understand this with the help of an example. Assuming the following -

• Age - 30 years

• Sum Assured – Rs.1 Crore

• Policy Term - 20 years

• Premium Paying Term - 15 years

Using the LIC Bima Jyoti premium calculator, the annual premium comes out to be Rs.7,77,900, excluding taxes.

The benefits applicable under the following events are -

1. If you die after 5 policy years

   1. Your family can claim 125% of the basic sum assured, which is equal to Rs.1.28 Crores.

   2. Further, guaranteed additions for 5 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 5 = Rs.25 Lakhs.

   This brings the death benefit to Rs.1.53 Crores.

2. If you die after 15 policy years

   1. Your family can claim 125% of the basic sum assured, which is equal to Rs.1.28 Crores.

   2. Further, guaranteed additions for 15 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 15 = Rs.75 Lakhs.

   This brings the death benefit to Rs.2.03 Crores.

3. If you survive the entire policy term of 20 years

   1. You will get the assured maturity sum of Rs.1 Crore.

   2. Further, guaranteed additions for 20 years will be added, which is equal to (50 x 1,00,00,000/1,000) x 20 = Rs.1 Crore.

   This brings the final maturity value to Rs.2 Crores.