Ministry of Finance

LIC OF INDIA launches new plan- LIC’s BIMA JYOTI

Goa – LIC is All India no.1 in Single Premium (SP) growth as on date

Posted On: 22 FEB 2021 5:11PM by PIB Mumbai

Goa, 22 February 2021

Life Insurance Corporation of India has introduced LIC’s Bima Jyoti a Non-Linked, Non-Participating, Individual, Savings Plan, which offers an attractive combination of protection and savings.  This plan provides guaranteed lumpsum payment at maturity and financial support to the family in case of the unfortunate death of the policyholder during policy term. It can be purchased Offline through agent /other intermediaries as well as Online directly through website www.licindia.in.

Guaranteed Additions at the rate of Rs.50 per thousand Basic Sum Assured will be added to the policy at the end of each policy year.

On death during the policy term after the date of commencement of risk, “Sum Assured on Death” and Accrued Guaranteed Additions as per policy conditions is payable. On Life Assured surviving the stipulated Date of Maturity provided the policy is in-force, “Sum Assured on Maturity” along with Guaranteed Additions, shall be payable. The plan also provides an option to receive death/maturity benefits in instalments subject to certain conditions

The Minimum Basic Sum Assured is Rs 1,00,000/- with no upper limit. The Policy can be taken for a term of 15 to 20 years with premium paying term calculated as Policy term minus 5 years. The minimum age at entry is 90 days completed and maximum age at entry is 60 yrs. Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only) or through salary deductions. Loan facility is also available to meet liquidity needs.

In the current scenario of rapidly declining interest rates, the guaranteed additions offered along with risk cover is an attractive feature in LIC’s BIMA JYOTI.

At Goa, LIC is All India no.1 in Single Premium (SP)  growth as on date and has already achieved its SP and First Year Premium Income (FYPI) budget.  LIC, Goa is committed to serve its customers to their utmost satisfaction.

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Plan

LIC’s BIMA JYOTI (UIN – 512N339V01)

LIC’s BIMA JYOTI is a Non-linked, Non-participating, Individual, Limited Premium Payment, Life Insurance Savings Plan. Under this plan, Guaranteed Additions shall accrue at the rate of Rs.50 per thousand Basic Sum Assured at the end of each policy year throughout the policy term. This plan will also be available through online application process.

Feature

> Available through Online mode (https://www.licindia.in/—-> “Buy Policy online” )

> Endowment plan with policy Term 15 to 20 years with mode of payment as Yearly, Half Yearly, Quarterly, and Monthly (NACH only)

> Minimum Sum assured- Rs. 1,00,000/-. Maximum- No limit

Benefits

> On death during the policy term before the date of commencement of risk: Return of premiums paid excluding taxes, any extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.
Death Benefit > On death during the policy term after the date of commencement of risk“Sum Assured on Death” along with accrued Guaranteed Additions
> Where “Sum Assured on Death” is defined as the higher of 125 % of Basic Sum Assured or 7 times of annualized premium. This death benefit shall not be less than 105% of all the premiums paid upto the date of death. Premiums referred above shall not include taxes, any extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.
Maturity Benefit > On the life assured surviving to the end of the policy term, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable.
Guaranteed Additions > Provided the policy is inforce, a Guaranteed Addition at the rate of Rs.50 per thousand Basic Sum Assured shall accrue at the end of each policy year for which full year’s premiums have been paid throughout the policy term. In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy.
Optional rider benefits
  • LIC’s Accidental Death and Disability Benefit Rider UIN (512B209V02)
  • LIC’s Accident Benefit Rider UIN (512B203V03)
  • LIC’s New Term Assurance Rider (UIN 512B210V01)
  • LIC’s New Critical Illness Benefit Rider (UIN 512A212V02)
  • LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)Please see FAQ for more details.
Option available under the base plan > Settlement Option (for Maturity Benefit): Settlement Option is an option to receive Maturity Benefit in installments over the chosen period of 5 or 10 or 15 years. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals.
> Option to take Death Benefit in Instalments: This is an option to receive Death Benefit in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount under an inforce as well as paid up policy.
Rebate for online Sale Proposal to be completed under online sales shall be eligible for rebate on tabular premium at the following rates:

Premium Paying Term Online Sale (Rate of rebate)
10 to 14 years 7.5%
15 years 10%
Rebate for Higher Basic Sum Assured
Basic Sum Assured (B.S.A) Rebate on tabular premium per Rs 1000 B.S.A.(Rs.)
1,00,000 to 2,75,000   NIL
3,00,000 to 4,75,000  4.00
 5,00,000 to 9,75,000   5.00
10,00,000 and above   6.00

Eligibilty

Minimum Sum Assured > Rs. 100,000
Maximum Sum Assured > No limit
Minimum age at entry > 90 days (completed) (However for online plans, minor life is not allowed. You can purchase offline from any nearest branch.
Maximum age at entry > 60 Years (nearer birthday)
Maximum Maturity age > 75 years (nearer birthday)
Minimum Maturity age > 18 years (Completed)
Policy Term > 15 to 20 years
Premium Paying Term > Policy Term less 5 years
Mode of payment > Yearly, Half Yearly, Quarterly, and Monthly (NACH only)
Surrender > The policy can be surrendered at any time during the Policy Term provided atleast two full year’s premium have been paid.
Loan > Loan facility is available under this plan, after payment of premiums for atleast two full year’s have been paid.

FAQ

What is LIC’s Online Bima Jyoti Plan?

→ LIC’s Bima Jyoti is a Non-linked, Non-participating, Individual, Limited Premium Payment, Life Insurance Savings Plan. Under this plan, Guaranteed Additions shall accrue at the rate of Rs.50 per thousand Basic Sum Assured at the end of each policy year throughout the policy term.

What is best in this plan? 

→ Bima Jyoti insurance plan has unique feature of guaranteed additions. The maturity amount is totally guaranteed. Provided the policy is inforce, a Guaranteed Addition at the rate of Rs.50 per thousand Basic Sum Assured shall accrue at the end of each policy year for which full year’s premiums have been paid throughout the policy term.

Do I Need A Medical Exam To Apply?

→ The plan will be available for both Non-medical and medical schemes depending on total Non medical limit,age and chosen sum assured.

How can I buy this Policy?

→ Login to LIC’s website https://www.licindia.in/ and click “BUY POLICY ONLINE

→ Select “LIC’s Bima Jyoti” and click on “CLICK TO BUY ONLINE

→ Fill contact details i.e. Name, Date of birth, mobile no, email ID and nearest City to create access id and OTP.

→ Enter captcha and submit. You will receive a 9 digit access id and OTP on your mobile no and email.

→ Enter OTP and proceed further.

→ Give sum assured and term to calculate premium, click in radio button yes and proceed for filling the form.

→ After successful submission of proposal, confirm the details and proceed for payment.

→ You can pay premium by Net banking/credit card etc.

→ After payment you will get introductory mail.

→ Upload all required documents on our portal. Link will be shared to you. Non medical cases will completed based on submitted documents.

→ For medical MSP will contact you. After medical, LIC will underwrite the case.

→ After getting the decision LIC will allot the policy number and will send details on your registered email ID.

→ Copy of Policy will be sent to you by mail as well by post.

What are the various benefit options available under this plan?

→ 1.BENEFITS UNDER THE BASE PLAN:

a) Death Benefit: In case of death of the Life Assured before the stipulated Date of Maturity provided the policy is inforce, the benefit payable shall be as under:

On death during the policy term before the date of commencement of risk: Return of premiums paid excluding taxes, any extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.

On death during the policy term after the date of commencement of risk: “Sum Assured on Death” along with accrued Guaranteed Additions Where “Sum Assured on Death” is defined as the higher of 125 % of Basic Sum Assured (or) 7 times of annualized premium.

This death benefit shall not be less than 105% of all the premiums paid upto the date of death. Premiums referred above shall not include taxes, any extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.

b) Maturity Benefit: On the life assured surviving to the end of the policy term, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable. Where “Sum Assured on Maturity” is equal to the Basic Sum Assured.

What is the minimum and maximum cover that I can opt for in this plan?

→ Minimum SumAssured available is Rs. 1 lac and Maximum is “No Limit”.

What are age limit under this policy?

→ Minimum age is 90 days. However minor live proposal is not allowed for online plans. You can purchase offline from any nearest branch. Maximum age is 60 yrs.

What riders are available in this plan? 

→ LIC’s Accidental Death and Disability Benefit Rider UIN (512B209V02): LIC’s Accidental Death and Disability Benefit Rider is available as an optional Rider by payment of additional premium. Under an inforce policy, this Rider can be opted for at any time within the Premium Paying Term of the Base Plan provided the outstanding Premium Paying Term of the Base Plan is atleast 5 years If this benefit is opted for, an amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the Rider is inforce at the time of accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums, if any, shall also be waived in respect of this Rider and the premium for Base Policy corresponding to Basic Sum Assured equal to Accident Benefit Sum Assured. The premiums for other Rider(s), if opted for and premium for Base Policy corresponding to the difference in the Basic Sum Assured and Accident Benefit Sum Assured (if Basic Sum Assured exceeds the Accident Benefit Sum Assured) shall continue to be paid. If the policy becomes a claim by way of death or maturity before the expiry of the said period of 10 years, the disability benefit installments which have not fallen due will be paid along with the claim amount. Sum assured in this rider- An amount equal to the Basic Sum Assured or minimum Rs. 10,000/- subject to the maximum of Rs.100 lakhs overall limit taking all existing policies.

→ LIC’s Accident Benefit Rider UIN (512B203V03): LIC’s Accident Benefit Rider is available as an optional Rider by payment of additional premium. Under an inforce policy, this Rider can be opted for at any time within the Premium Paying Term of the Base Plan provided the outstanding Premium Paying Term of the Base Plan is atleast 5 years. The benefit cover under this Rider shall be available only during the Premium Paying Term of the Base Policy. Thereafter, the cover shall cease. If this benefit is opted for and if the Life Assured is involved in an accident leading to death within 180 days from the date of accident then an amount equal to the Accident Benefit Sum Assured is payable. However, the policy shall have to be inforce at the time of accident irrespective of whether or not it is inforce at the time of death. Sum assured in this rider- An amount equal to the Basic Sum Assured or minimum Rs. 20,000/- subject to the maximum of Rs.100 lakhs overall limit taking all existing policies.

→ LIC’s New Term Assurance Rider (UIN 512B210V01): LIC’s New Term Assurance Rider is available as an optional Rider at the inception of the policy by payment of additional premium. The additional premium for this Rider will need to be paid along with the premium of the Base Plan and any other Rider(s), if opted for, during the Premium Paying Term of the policy. If this benefit is opted for, an amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the Policy Term, provided the Rider cover is inforce. Sum assured in this rider- An amount equal to the Basic Sum Assured or minimum Rs. 1,00,000/- subject to maximum of Rs.25 lakhs overall limit taking all Term Assurance Rider Sum Assured under all existing policies of the Life Assured including the new proposal into consideration lakhs overall limit taking all existing policies.

→ LIC’s New Critical Illness Benefit Rider (UIN 512A212V02): LIC’s New Critical Illness Benefit Rider is available at the inception of the policy on payment of additional premium. The additional premium for this Rider will need to be paid along with the premium of the Base Plan and any other Rider(s), if opted for, during the Premium Paying Term of the policy. The cover under this rider shall be available during the Policy Term. If this rider is opted for, on first diagnosis of any one of the 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable. Sum assured in this rider- An amount equal to the Basic Sum Assured or minimum Rs. 1,00,000/- subject to maximum of Rs.25 lakhs overall limit taking all existing policies of the Life Assured under this Rider and the Critical Illness Sum Assured under the new proposal into consideration.

 LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03): LIC’s Premium Waiver Benefit Rider shall be allowed under a proposal / policy wherein the Life Assured is minor (i.e. upto age 17 years (nbd)) at the time of opting this Rider. This Rider is allowed on the life of eligible Proposer on payment of additional premium. On death of Proposer of Base Policy:- If this Rider is opted for, on death of Proposer of the Base Policy (on whose life this Rider has been opted for) during the Rider Term, premiums payable in respect of Base Policy, falling due on and after the date of death till the expiry of Rider Term, shall be waived

Note: The premium under LIC’s Accident Benefit Rider or LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium under the base product, the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base product. Any benefit arising under each of the riders shall not exceed the Sum Assured under Base product.

What are the available premium modes?

→ Yearly, Half Yearly, Quarterly, and Monthly (NACH only).

What is available policy term and premium payment term?

→ Minimum policy term is 15 yrs where as maximum policy term is 20 yrs. Premium payment term is Policy Term less 5 years.

If I am unable to pay my premium on time, how will it affect my policy?

→ In the event of non- payment of due premiums by the expiry of the grace period the policy will lapse. The cover will cease and no benefits will be payable.

What is the Grace Period under the plan?

→ A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly mode of premium payment. If premium is not paid before the expiry of the days of grace, the Policy lapses. The above grace period will also apply to Rider premiums, if opted, as the Rider premiums are to be paid along with the premium of the Base Plan.

How can the policy be revived / reinstated?  

If the premium is not paid within the days of grace, the policy lapses. The lapsed policy may be revived during the lifetime of the Life Assured, but within a period of 5 consecutive years from the date of First Unpaid Premium and before the date of maturity, as the case may be.

♦ What is Free Look cancellation? 

→ The free look period shall be applicable at the inception of the policy and the insured will be allowed a period of 15 days from the date of receipt of the policy document (30 days if the policy is purchased online mode) to review the terms and conditions of the policy and to return the same if not acceptable. LIC will refund the policy premium after the deduction of stamp duty charges, policy preparation charges and proportional risk premium for period of cover, if any.

Can I buy this plan for my family members? 

→ Yes, you can buy this plan for your spouse and children subject to overall financial limit.

Do I get any Tax Benefits in this plan? 

→You will be eligible for tax benefits under Section 80C of the Income Tax Act, 1961 on buying a policy for self, spouse.

Can an NRI apply for this Policy? 

→ Yes, This plan is available for NRI’s also with certain conditions.

How can I make payment towards Online Bima Jyoti plan ?

→ You can make payment through Netbanking, Debit card, Credit card, Amex card, NEFT/RTGS,UPI, IMPS and e-wallets..

What are the benefits if I pay online?

→ Proposal to be completed under online sales without any assistance of Agent / intermediary shall be eligible for rebate on tabular premium at the following rates:

Premium Paying Term Online Sale (Rate of rebate)
10 to 14 years 7.5%
15 years 10%

Is there any benefit for high sum assured under this product? 

→ Yes, there is rebate in basic premium for high sum assured as per given below.

Basic Sum Assured (B.S.A) Rebate on tabular premium per Rs 1000 B.S.A.(Rs.)
1,00,000 to 2,75,000 Nil
3,00,000 to 4,75,000 4.00
5,00,000 to 9,75,000 5.00
10,00,000 and above 6.00

Is there any benefit for premium payment mode under this product?

→ Yes, there is rebate in premium payment mode as per given below.

Mode Percentage
Yearly mode: 2% of tabular premium
Half-yearly mode: 1 % of tabular premium
Quarterly, Monthly (through NACH only): NIL
Salary deduction (SSS) Mode: NIL

Can a loan be taken under this product? 

→ Yes, Loan facility is available under this plan, after payment of premiums for atleast two full year’s subject to the following conditions:

a) The maximum loan that can be granted as a percentage of surrender value are as under:

  • For inforce policies – upto 90%
  • For paid-up policies – upto 80%

Can I surrender the policy? 

→ Yes. The policy can be surrendered at any time during the Policy Term provided atleast two full year’s premium have been paid.

Whether assignment and nomination available under this plan? 

→ Yes. Assignment and nomination is allowed in this plan.

a) Assignments: Assignment is allowed under this plan as per Section 38 of Insurance Act, 1938, as amended from time to time.

b) Nominations: Nomination by the holder of a policy of life assurance on his/her own life is required as per Section 39 of the Insurance Act, 1938, as amended from time to time.

Do I need to pay any taxes? 

→ Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional tax Authority of India shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.

The amount of applicable taxes, as per the prevailing rates shall be payable by the policyholder on premiums (for base policy and Rider(s), if any) including extra premiums, which shall be collected separately over and above in addition to the premiums payable by the policyholder. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

Where to apply for claim?

→ For any claim you need to approach to servicing branch. Address of servicing branch will be given to you after completion of policy. You will get all required information from the branch for requirement of claim.

What is section 45 of The Insurance Laws(Amendment) Act,2015?

Section 45 of The Insurance Laws (Amendment) Act, 2015:

(1) No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy, i.e. from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later.

(2) A policy of life insurance may be called in question at any time within three years from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later, on the ground of fraud:

Provided that the insurer shall have to communicate in writing to the insured or the legal representatives of nominees or assignees of the insured the grounds and materials on which such decision is based.

Explanation I—For the purposes of this sub-section, the expression “fraud” means any of the following acts committed by the insured or by his agent, with the intent to deceive the insurer or to induce the insurer to issue a life insurance policy:

(a) the suggestion, as a fact of that which is not true and which the insured does not believe to be true;

(b) the active concealment of a fact by the insured having knowledge or belief of the fact;

(c) any other act fitted to deceive; and

(d) any such act or omission as the law specially declares to be fraudulent.

Explanation II—Mere silence as to facts likely to affect the assessment of the risk by the insurer is not fraud, unless the circumstances of the case are such that regard being had to them, it is the duty of the insured or his agent, keeping silence to speak, or unless his silence is, in itself, equivalent to speak.

(3). Notwithstanding anything contained in sub-section (2), no insurer shall repudiate a life insurance policy on the ground of fraud if the insured can prove that the mis-statement of or suppression of a material fact was true to the best of his knowledge and belief or that there was no deliberate intention to suppress the fact or that such mis-statement of or suppression of a material fact are within the knowledge of the insurer: Provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the policyholder is not alive.

Explanation—A person who solicits and negotiates a contract of insurance shall be deemed for the purpose of the formation of the contract, to be the agent of the insurer.

(4). A policy of life insurance may be called in question at any time within three years from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later, on the ground that any statement of or suppression of a fact material to the expectancy of the life of the insured was incorrectly made in the proposal or other document on the basis of which the policy was issued or revived or rider issued: Provided that the insurer shall have to communicate in writing to the insured or the legal representatives or nominees or assignees of the insured the grounds and materials on which such decision to repudiate the policy of life insurance is based: Provided further that in case of repudiation of the policy on the ground of misstatement or suppression of a material fact, and not on the ground of fraud, the premiums collected on the policy till the date of repudiation shall be paid to the insured or the legal representatives or nominees or assignees of the insured within a period of ninety days from the date of such repudiation.

Explanation—For the purposes of this sub-section, the mis-statement of or suppression of fact shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer, the onus is on the insurer to show that had the insurer been aware of the said fact no life insurance policy would have been issued to the insured.

(5). Nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal.

♦ Where can I contact / write to know the status of my application? 

→ You can write to us at [email protected] or call landline number 022-67819291.

Disclaimer-This is not comprehensive information. For detailed product information and terms & Conditions please see the plan circular.

Source :

https://pib.gov.in/PressReleasePage.aspx?PRID=1699958

https://onlinesales.licindia.in/eSales/liconline/setprop

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