LIC Bima Jyoti

LIC Bima Jyoti offers a multitude of features and benefits that perfectly cater to the needs of the policyholders. Let’s discuss them in detail!

1. Death Benefit

This is the biggest benefit and feature of LIC Bima Jyoti that attracts most users to look for this policy.

If the policyholder, however, dies during the period of the policy, then the nominee/family members shall receive the premium amount (excluding extra premium, taxes, etc.). But there’s a condition that the misshape must have happened before the beginning of the date of commencement of risk.

Talking about the other scenario, if the policyholder dies after the date of commencement of risk but during the period of the policy, then the family shall receive the sum assured and guaranteed additions.

Coming to the question: What would be the sum assured on death?

Well, it would be 7X of annualized premium or 125% of basic sum assured.

2. Guaranteed Additions

This is another major benefit that a policyholder will receive with LIC Bima Jyoti!

At the end of each policy tear, there shall be guaranteed additions at the rate of Rs. 50 per thousand minimum sum assured will be added to the policy. But there’s a condition that the premium payments should have been made.

If the policyholder, however, dies during the period of the policy, then the family members shall receive the guaranteed addition for the complete year of the plan. But on the other hand, if the user hadn’t paid premiums on time, the Guaranteed Additions shall cease to accrue under a policy.

Coming to the surrender of the policy, the guaranteed addition shall be added on an equivalent basis in response to the amount of the premium received for that year.

3. Grace Period

This is another major feature that comes under the LIC Bima Jyoti policy!

During the period of the policy, a policyholder will likely get 30 days of grace period to make the payment for yearly or half-yearly, or quarterly premiums. According to the rules of the policy, the plan will be considered in force with the risk covered without any difficulty. However, if the policyholder fails to make the premium payment even during the grace period, then the policy will lapse.

Note: Remember that the aforementioned grace period applies to rider premium that should be paid in addition to the premium for the base policy.

4. Paid-up value

Another major benefit that comes into play is none other than “Paid-Up Value”. If the policyholder has already paid premiums for less than 2 years during the policy period but failed to pay the subsequent premium, then all the benefits under the policy shall be terminated.

Taking another scenario into consideration, if he/she has made the premium payments for a minimum of 2 years without duly paying the subsequent premium amount, then the plan will remain active but it would act as a paid-up policy till the end of the policy term.

5. Surrender

Surrender benefit is something that every user adheres to while choosing an insurance plan.

The term simply means that the plan can be surrendered but he/she should have paid the premiums for 2 full years. Once the policy has been surrendered, the company shall pay the amount of surrender which is equal to higher Guaranteed Surrender Value or Special Surrender Value.

The Special Surrender Value is subject to change and may be adjusted by the Company with IRDAI’s prior consent.

6. Loan Against Policy

This is one of the biggest benefits that a policyholder may get a loan at the time of need.

It is important for a user that he/she should have paid a minimum of 2 years of the full premium to avail of the loan. However, the company’s terms and conditions may change from time to time. Talking about the maximum loan, a user may get up to 90% for in-force policies and up to 80% for paid-up policies.

At periodic periods, the interest rate to be levied for the policy loan and as applicable for the whole term of the loan will be set.

7. Free Look Period

What if you are not happy with the guidelines of the policy? Well, exactly, this is where the importance of this feature comes in!

If the Policyholder is unhappy with the terms and conditions of the policy, then he/she may return the plan to the company within 15 days of buying the policy. On the other hand, if the user had bought the policy using online mode, then he/she can return the policy within 30 days of buying the policy.

8. Waiting Period

If the Policy is bought via Point of Sales Persons-Life Insurance (POSP-LI) & CPSC-SPV, the Company will reimburse the complete premiums paid if the Life Assured dies within the first 90 days of the risk beginning, provided the policy is in force and death is not caused by an accident.

The “Sum Assured on Death” will be paid if a person dies in an accident during the waiting period. If the Life Assured’s age at the time of entry is less than eight years, this provision will not apply.

9. Payment of Premiums

Last but not the least, a policyholder has the opportunity to make the premium payment on different bases like monthly, quarterly, yearly, or half-yearly at their convenience.