LIC’s Bima Jyoti (Plan No. 760/860, latest UIN 512N339V03 as per updated brochures) is a non‑linked, non‑participating, individual, limited premium payment savings plan. It offers life cover during the policy term and a guaranteed lump‑sum at maturity through fixed yearly guaranteed additions, making it suitable for conservative investors who want visibility of returns.
Key features
- Non‑linked, non‑participating endowment‑type savings plan with life cover plus guaranteed benefits.
- Limited premium payment: Premium paying term is policy term minus 5 years (for example, 15‑year term with 10‑year PPT, 20‑year term with 15‑year PPT).
- Guaranteed Additions at a fixed rate of ₹50 per ₹1,000 of Basic Sum Assured every policy year, payable along with maturity or death benefit, provided premiums are paid.
- Life cover throughout the policy term: If the life assured dies during the term, the nominee receives Sum Assured on Death plus accumulated guaranteed additions.
- Can be purchased offline through agents/branches and online through LIC’s “Buy Policy Online” portal, subject to LIC’s rules for minors in online purchase.
Eligibility and basic parameters
Indicative eligibility as per current Bima Jyoti brochures and portals:
- Minimum age at entry: 90 days completed (for offline cases; online purchase may require major life assured).
- Maximum age at entry: 60 years (age nearer birthday).
- Minimum maturity age: 18 years (completed).
- Maximum maturity age: 75 years (age nearer birthday).
- Policy term: 15 to 20 years.
- Premium Paying Term (PPT): Policy term minus 5 years (e.g., term 15/PPT 10, term 20/PPT 15).
- Minimum Basic Sum Assured: ₹1,00,000, in multiples of ₹25,000.
- Maximum Basic Sum Assured: No upper limit, subject to LIC underwriting.
- Premium modes: Yearly, half‑yearly, quarterly and monthly (NACH/eNACH), depending on channel.
Benefits at a glance
Maturity benefit
If the life assured survives till the end of the policy term and the policy is in force, LIC pays:
- Basic Sum Assured, plus
- Total Guaranteed Additions (₹50 per ₹1,000 of Basic Sum Assured for each completed policy year).
This creates a predictable lump‑sum that can be earmarked for goals like children’s education, marriage, or retirement supplementation.
Death benefit
If the life assured dies during the policy term, and all due premiums have been paid, the nominee receives the Sum Assured on Death plus accrued guaranteed additions.
For many versions of Bima Jyoti, Sum Assured on Death is defined as the higher of:
- 125% of Basic Sum Assured, or
- 7 times the annualised premium,
and will not be less than 105% of total premiums paid (excluding taxes, extra premiums and rider premiums) up to the date of death.
Exact formula can vary slightly by product version and should be confirmed from the latest LIC sales brochure.
Who should consider LIC Bima Jyoti?
- Conservative savers who want a guaranteed‑addition plan with known upside rather than market‑linked or bonus‑dependent returns.
- Parents planning predictable future lumpsums for children’s goals while simultaneously keeping life cover in place during the accumulation years.
- Individuals who like limited‑pay structures (pay for term minus 5) but want cover and guaranteed growth to continue till the end of the policy term.
Example: A 35‑year‑old buys a 20‑year Bima Jyoti with 15‑year PPT; premiums stop at age 50 but the policy continues with guaranteed additions till age 55, when a lump‑sum maturity benefit becomes available for children’s higher‑education funding.
Important points and disclaimers
- LIC Bima Jyoti is non‑participating; there are no reversionary or terminal bonuses, only fixed guaranteed additions.
- Actual returns will depend on term, age, premium band and tax treatment; clients should see an illustration to understand internal rate of return (IRR) clearly.
- Surrender value, paid‑up value and loan availability are as per LIC’s rules once the policy acquires a guaranteed surrender value.
- Clients should read the latest LIC Bima Jyoti sales brochure, Customer Information Sheet and policy document for full terms, conditions, exclusions and definitions.
- Tax benefits on premiums and benefits are governed by the Income‑tax Act and may change; personalised tax advice is recommended.