As the covid-19 pandemic continues to impact livelihoods, the Life Insurance Corporation (LIC), has introduced several insurance plans to provide financial support in case of the unfortunate demise of its policyholders. One such policy plan is LIC Bima Jyoti Insurance Plan.
Launched in December 2021, the LIC Bima Jyoti Insurance plan is a non-linked, non-participating, individual, life assurance savings plan that provides protection and savings to the policyholders and their families. In case of the policyholder's unfortunate death during the policy term, the plan will provide financial assistance to the policyholder’s family. Moreover, guaranteed payments are also offered to the policyholders in the form of lump sump amounts, if they survive until the end of the policy term.
The insurance plan can be purchased online and offline and has a policy term from 15 years to 20 years. The plan can be availed as early as completion of 90 days after birth to 60 years of age. The maturity age of the plan ranges from 18 years to 75 years. The policy term for the plan ranges from 15 years to 20 years.
The installment of the policy can be paid in monthly, quarterly, half-yearly, and yearly modes. The policyholder would require to make a minimum amount of payment of Rs 5,000 for monthly installments, Rs 15,000 for quarterly installments, Rs 25,000 for half-yearly installment as well as Rs 50,000 for yearly installment.
In case of the policyholders’ death during the policy term before the date of commencement of risk, the return of premiums is paid excluding taxes, extra premium, and rider. If the policyholders’ dies after the date of commencement of risk, the sum assured amount and the accrued guaranteed additions will be paid to the policyholder’s family. Notably, the sum assured amount is 125 per cent higher or 7 times of annualized premium. Both the benefits shall not be less than 105 per cent of the total premiums paid up to the date of death.
In case the policyholder survives the maturity of the policy term, he/she will get sum assured along with guaranteed additions. Notably, in this case, the sum assured on maturity will be equal to the basic sum assured.
Apart from death and maturity benefits, the policyholder would also receive guaranteed additions at the rate of Rs 50,000 basic sum assured at the end of each policy year. In case of the policyholder’s demise, these additions will be provided for the full policy year in the year of death. If the premium is not paid, then the guaranteed additions will be terminated.
