LIC's Bima Jyoti Plan | Benefits Of Bima Jyoti Plan

As the country’s leading life insurance provider, LIC has been there for Indians for the better part of six decades.It employs over 2,000 people each location and has a network of over 14 lakh agents to help people select the finest insurance policies.All Indians have traditionally preferred LIC because of the company’s unparalleled reputation and service.

Insurance and investing opportunities are included in LIC Bima Jyoti plan 860, a non-linked individual life assurance savings plan.
If the policyholder passes away during the policy term, his beneficiaries will receive the death benefit, and at the end of the period, the policyholders who are still alive will receive the assured returns and the maturity benefit.
While your money is being invested to earn you extra returns, Bima Jyoti LIC will keep you safe. Section – 80C & Section – 10 (10D) of the Income Tax – Act, 1961 allow for tax savings on both the premium and the benefits received under this plan.

The Bima Jyoti plan, provided by the Life Insurance Corporation (LIC) of India, is a non-linked, individual life assurance savings insurance policy that does not involve any participation from any other insurance companies.If something were to happen to you, this insurance policy would provide you with a financial safety net while also allowing you to preserve money for your future requirements.

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Benefits of Maturity

In the event that the life assured remains alive on the policy’s maturity date, and the policy is still in force, LIC will pay out the initial sum assured plus any accrued guaranteed additions. Payments toward the maturity amount can be made on a monthly, quarterly, semiannual, or annual basis, per your request.

Access to Funding : Once the policy has a Surrender Value, you can use it as collateral to secure a loan. Once premiums have been paid for a total of three years, you will receive a Surrender Value for this plan. Both the size of the loan and the interest rate would be set by market conditions at the time the loan was taken.

Benefit upon Death

Death benefits are paid out during the policy’s term if the insured person passes away.If you pass away before the risk begins to accrue, LIC will reimburse your premiums to you, less any applicable taxes or fees.When death occurs after risk coverage has begun, the beneficiary receives the sum insured plus any guaranteed additions that have been accrued.In this situation, the death benefit is equal to seven times the policy’s annual premium.

Death Benefit Payout Options:The policyholder has the option to pay the death benefit to the nominee over 5, 10, or 15 years, in monthly, quarterly, semiannual, or annual installments.The goal is to provide the nominee with a steady stream of income rather than a large sum all at once.

Constant Growth Guaranteed

The policy will be increased by Rs.50 per 1,000 in sum assured per year in the form of Guaranteed Additions.

In the event of the policyholder’s death, these increases will continue through the calendar year of the insured’s passing.

Starting on the first policy anniversary and continuing through all subsequent anniversaries, you will receive an annual increase of Rs.5 lakhs in addition to the base sum assured of Rs.1 crore.

Over the course of 20 years, the guaranteed additions to your Bima Jyoti policy will have grown to a whopping Rs.1 Crore.

Other

In the event of accidental death, the rider sum assured chosen will be paid in addition to the base sum assured. Payments for the additional sum assured chosen are spread out over 10 years and made in equal monthly installments in the event of accidental disability.
Any upcoming premiums for the initial sum assured are cancelled, up to the maximum of the additional sum assured you choose. Adding an Accident Benefit Rider to your life insurance policy will increase the payout in the event of your death due to an accident by the amount of the rider sum assured you choose.
In the event of the policyholder’s death, the new Term Assurance Rider will kick in and pay out the additional coverage amount chosen by the policyholder. The Premium Waiver Benefit Rider will be activated, and the policy’s remaining premiums will be cancelled.
The Critical Illness Sum Assured will be paid out in the event that the policyholder is diagnosed with one of the 15 Critical Illnesses included in this plan, thanks to the new Critical Illness Benefit Rider.

Bottom Line

If premiums have been paid for at least two years in a row, the policy can be surrendered at any time. Guaranteed Surrender Value plus any applicable Special Surrender Value is the amount that LIC will pay out if you surrender your policy.
The Insurer, with IRDAI’s prior approval, can change the Special Surrender Value at any time. The Guaranteed Surrender Value paid out during the policy’s term is calculated by multiplying the total premiums paid by the Guaranteed Surrender Value multiplier.
Each policy’s Guaranteed Surrender Value is calculated using a formula that takes into account the policy’s term and the year of surrender.

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