Discover the benefits of LIC’s Bima Jyoti Plan, a life insurance savings plan - Illustration of a family with two adults and two children standing under a blue umbrella labeled 'Life Insurance', symbolizing protection and security.

LIC’s Bima Jyoti Plan for 2024: a comprehensive guide

Unlock the Benefits of LIC’s Bima Jyoti Plan: Secure Your Future Today

In today’s uncertain world, securing your future and that of your loved ones is more crucial than ever. The Life Insurance Corporation of India (LIC) presents an exceptional opportunity with its Bima Jyoti plan, a non-linked, non-participating, individual, limited premium, life insurance savings plan. This plan is designed to provide financial security along with guaranteed additions, ensuring you a stable and prosperous future. Here’s an in-depth look at the key features, benefits, and eligibility criteria of the LIC’s Bima Jyoti plan.

Key Features of LIC’s Bima Jyoti Plan

Guaranteed Additions

One of the standout features of the Bima Jyoti plan is the Guaranteed Additions. The policy guarantees an addition of ₹50 per ₹1,000 Basic Sum Assured at the end of each policy year. These additions are provided throughout the policy term, enhancing the maturity benefit significantly.

Death Benefit

In the unfortunate event of the policyholder’s death during the policy term, the nominee will receive the Death Benefit, which is the sum of the “Sum Assured on Death” and the accumulated Guaranteed Additions. The “Sum Assured on Death” is defined as the higher of:

  • 125% of Basic Sum Assured, or
  • 7 times of annualized premium.

Maturity Benefit

Upon survival of the policyholder till the end of the policy term, the Maturity Benefit payable will be the “Sum Assured on Maturity” along with the accumulated Guaranteed Additions. The “Sum Assured on Maturity” is equal to the Basic Sum Assured.

Eligibility Criteria and Policy Details

Criteria Details
Minimum Basic Sum Assured ₹1,00,000
Maximum Basic Sum Assured No Limit
Policy Term 15 to 20 years
Premium Paying Term Policy Term minus 5 years
Minimum Age at Entry 90 days (completed)
Maximum Age at Entry 60 years (nearest birthday)
Minimum Age at Maturity 18 years (completed)
Maximum Age at Maturity 75 years (nearest birthday)

Premium Details

Age (Nearer Birthday) Policy Term (15 years) Policy Term (18 years) Policy Term (20 years)
20 ₹1,13,217 ₹87,541 ₹77,153
30 ₹1,13,609 ₹88,031 ₹77,790
40 ₹1,15,667 ₹90,481 ₹80,534
50 ₹1,22,135 ₹97,488 ₹88,178

Annual Premiums for Different Policy Terms

Loan Facility

LIC’s Bima Jyoti plan includes a loan facility to cater to liquidity needs, making it a flexible option for policyholders. Here are the detailed provisions and conditions regarding the loan facility under this plan:

  • Loan Availability: Loans can be availed under the policy provided at least two full years’ premiums have been paid.
  • Maximum Loan Amount:
    • For in-force policies: Up to 90% of the surrender value
    • For paid-up policies: Up to 80% of the surrender value
  • Interest Rate: Determined at periodic intervals, not exceeding the 10-year G-Sec rate p.a. compounding half-yearly as at the last trading date of the previous financial year plus 300 basis points.
  • Example: For loans sanctioned from 1st May 2020 to 30th April 2021, the interest rate was 9.5% p.a. compounding half-yearly.
  • Outstanding Loan Recovery: Any outstanding loan amount along with interest will be recovered from the claim proceeds at the time of exit, which could be at the time of maturity, surrender, or death claim.

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If you have any questions or would like to learn more about our policy, please do not hesitate to contact us. To prepare a proposal for the LIC policy you are interested in, please click the button below and fill out the form.

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Tax Benefits

LIC’s Bima Jyoti plan offers several tax benefits, making it an attractive choice for policyholders looking to secure financial protection while optimizing their tax liability. Here are the key tax benefits associated with this plan:

  • Tax Deduction on Premiums Paid (Section 80C):
    • Deductions up to ₹1.5 lakh per financial year.
    • The premium paid should not exceed 10% of the sum assured.
  • Tax-Free Maturity Proceeds (Section 10(10D)):
    • Exemption on maturity proceeds if the premium does not exceed 10% of the sum assured and the policy is active for at least five years.
    • No upper limit on the exempt amount.
  • Tax-Free Death Benefits (Section 10(10D)): The death benefits received by the nominee are fully exempt from income tax.

Premium Waiver Benefit

The Premium Waiver Benefit Rider ensures that the policy remains in force even in the unfortunate event of the proposer’s death. Here’s how this benefit works:

  • Eligibility: The Premium Waiver Benefit Rider can be opted for under an in-force policy at any time coinciding with the policy anniversary, with at least five years of premium paying term left.
  • Proposer’s Age Limit: The rider term plus the proposer’s age should not exceed 70 years.
  • For Minor Life Assured: The rider term will be the lesser of the remaining policy term or (25 minus the age of the minor).
  • Benefit: Waiver of all future premiums for the base policy until the expiry of the rider term. The policy continues with all benefits intact, and future premiums after rider term expiry must be paid by the Life Assured.

Surrender Value in LIC’s Bima Jyoti Plan

The surrender value is the amount payable to the policyholder if they decide to terminate the policy before its maturity date. The surrender value is a key feature of life insurance policies, including LIC’s Bima Jyoti plan, allowing policyholders to access a portion of the policy benefits if they decide to discontinue the plan. Here’s a detailed explanation of how the surrender value works for LIC’s Bima Jyoti plan:

Guaranteed Surrender Value

The Guaranteed Surrender Value (GSV) is calculated based on the total premiums paid, excluding any extra premiums, rider premiums, and taxes. The calculation depends on the policy term and the number of premiums paid. The GSV factors are predetermined percentages of the total premiums paid, which increase with the duration of the policy. Here are the general GSV factors:

  • Up to 3 years of premiums paid: 30% of the total premiums paid.
  • After 3 years of premiums paid: 50% of the total premiums paid.
  • Thereafter: 50% plus an additional percentage for each year beyond the third policy year.

Special Surrender Value

In addition to the Guaranteed Surrender Value, LIC’s Bima Jyoti plan also offers a Special Surrender Value (SSV), which may be higher than the GSV. The Special Surrender Value is determined by LIC and can vary depending on the prevailing market conditions and the policy’s performance. The SSV is generally calculated as the sum of the vested Guaranteed Additions and a percentage of the paid-up sum assured.

Calculation Example

Let’s consider a policy with the following details:

  • Basic Sum Assured: ₹10,00,000
  • Annual Premium: ₹1,13,217
  • Policy Term: 20 years
  • Premium Paying Term: 15 years

If the policyholder decides to surrender the policy after paying premiums for 10 years, the Guaranteed Surrender Value would be calculated as follows:

  1. Total Premiums Paid: ₹1,13,217 * 10 = ₹11,32,170
  2. Guaranteed Surrender Value Factor: Assuming 50% after 3 years plus additional percentage, let’s assume it totals 60% for simplicity.
  3. Guaranteed Surrender Value: 60% of ₹11,32,170 = ₹6,79,302

The Special Surrender Value would be calculated based on the paid-up sum assured and vested Guaranteed Additions, and could potentially be higher than the Guaranteed Surrender Value.

Surrender Value Summary

Criteria Details
Guaranteed Surrender Value (GSV) Calculated as a percentage of the total premiums paid, increasing with policy duration.
Special Surrender Value (SSV) Determined by LIC, potentially higher than GSV, based on vested Guaranteed Additions and paid-up sum assured.


The surrender value provides policyholders with financial flexibility, allowing them to access a portion of their policy benefits if they choose to terminate the policy before maturity. While the Guaranteed Surrender Value ensures a minimum return, the Special Surrender Value offers the potential for a higher payout based on the policy’s performance and market conditions.

Settlement Option Benefits

The Settlement Option offers policyholders flexibility in receiving the maturity and death benefits in installments over a chosen period instead of a lump sum amount. Here’s a detailed explanation:

  • Eligibility for Maturity Benefit: Policyholder or Life Assured aged 18 years and above.
  • Installment Payment Frequency: Yearly, Half-Yearly, Quarterly, Monthly.
  • Minimum Installment Amount:
    • Monthly: ₹5,000
    • Quarterly: ₹15,000
    • Half-Yearly: ₹25,000
    • Yearly: ₹50,000
  • Interest Rate for Installments: 10-year G-Sec rate p.a. compounding half-yearly minus 200 basis points (Example: 4.71% p.a. for 2020-2021).
  • Withdrawal of Settlement Option: Allowed upon written request; lump sum amount will be the higher of the discounted value of future installments or the original amount less already paid installments.
  • Eligibility for Death Benefit: Policyholder during the minority of the Life Assured or Life Assured aged 18 years and above.
  • Installments to Nominee: Continued as per the original plan with no alterations allowed by the nominee.

Why Choose LIC’s Bima Jyoti Plan?

Financial Security and Peace of Mind

With LIC’s Bima Jyoti plan, you can ensure financial stability for your family even in your absence. The substantial Death Benefit guarantees that your loved ones will be taken care of financially.

Savings and Insurance Combined

This plan uniquely combines savings and insurance, offering you the dual benefits of life cover and wealth accumulation through guaranteed additions. It’s an ideal choice for those looking to build a secure financial future while enjoying the protective cover of life insurance.

Flexibility and Convenience

The plan provides flexible policy terms and premium paying terms, allowing you to choose a policy that best suits your financial planning needs. Additionally, the premium payment options are designed to provide convenience and ease of payment.

Tax Benefits

Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Moreover, the maturity proceeds are tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions.

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How to Apply for LIC’s Bima Jyoti Plan?

Applying for LIC’s Bima Jyoti plan is straightforward. You can visit the nearest LIC branch, consult an LIC agent, or apply online through the official LIC website. Ensure you have all necessary documents, including proof of identity, address, and income, to facilitate a smooth application process.


LIC’s Bima Jyoti plan is a robust financial product that offers the perfect blend of savings and life insurance. Its guaranteed additions, flexible terms, comprehensive coverage, and various benefits make it an excellent choice for anyone looking to secure their financial future. Don’t wait – secure your future and that of your loved ones with LIC’s Bima Jyoti plan today!

For more detailed information and personalized advice, consult an LIC agent or visit the official LIC website.

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