Lic Bima Jyoti Policy (Plan No. 860)


The LIC Bima Jyoti Plan 860 is an endowment plan which looks into the profits of the company to provide a backbone to the families who have lost their bread earners. Launched in February 2021, the plan is very new and is ready to provide stability and strength. It is a non-participating plan and very easy to purchase online at a discounted rate.

It provides both maturity benefit and death benefit to the policyholders and their families with guaranteed profits.

Key features of LIC Bima Jyoti plan

Now that we know a little about the plan, let us di into the major key features required to take note of.

  • Guaranteed benefit investment plan as well as an insurance
  • Additions of Rs. 50/1000 sum assured every year
  • Tax benefits are provided over death benefits and maturity benefits adhering to Section 10D and 80C of the income tax act 1961
  • A loan facility is available
  • Receive death benefits in instalments

Major Benefits provided by LIC Bima Jyoti

Here we have listed for you some of the major benefits that are provided with this plan:

  • Death Benefit- If the policyholder passes away before the date of ‘Risk of Commencement’ then all the premiums paid will reverberate to the nominee. Extra premiums or rider benefits will not be paid.
  • If the policyholder dies after the date of risk of commencement then the nominee will get the Sum Assured on Death
  • Sum Assured on death is 7 times the annual premium
  • 125% of Basic Sum assured + Guaranteed Additions accumulated will be provided to the nominee
  • Option on death benefits- The policyholder can choose to provide the death benefit to the nominee on basis of yearly, half-yearly, quarterly and monthly throughout 5,10, or 15 years
  • Maturity Benefit- On reaching maturity the assured receives a lump sum amount. Sum Assured + Guaranteed Additions accumulated till date.
  • Guaranteed additions are added every year at a rate of Rs. 50 per Rs. 1000 Sum assured


To avail of the policy, one must meet all the criteria of eligibility

Minimum age of entry 90 days
Maximum age of entry 60 years
Policy term 15-20 years
MInimum Sum Assured Rs. 1,00,000
Minimum Sum Assured No limit
Premium Paymate Modes Annually, semi -annually, quarterly and Monthly
Minimum Maturity Age 18 years
Maximum Maturity Age 75 years


Date of Commencement of Risk

Below are the details over the date of commencement of risk according to the plan

  • Entry age is less than 8- The risk under this plan will be commenced either in 2 years from the date of commencement or from the policy anniversary when the assured turns 8 or immediately after the assured attains 8 years.
  • Entry age of 8 years or more- The risk of commencement will be immediate

Add-On Benefits of the Plan

If you wish to include additional benefits over the basic coverage, LIC has brought several options to choose from.

  • Accidental Death and Disability RiderIn case of accidental death, an additional amount will be added over the benefit coverage of the basic sum assured. In case of disability due to an accident, a monthly instalment will be provided to the assured over 10 years
  • Accident Benefit Rider- If the assured suffers a demise due to an accident, then the company will provide an additional amount over the sum assured
  • New Term Assurance Rider- If the policyholder dies, then an additional amount will be provided to the nominee on account of this rider.
  • New Critical Illness Benefit- If the insured is diagnosed with any of the 15 mentioned critical illness, then an additional amount will be credited on top of the basic sum assured
  • Premium Waiver Benefit Rider- If the policyholder dies within the policy term then all his or her future premiums will be waived off.

Additional Benefits provided by the company

Along with the major benefits and the add-on riders, the company provides a few additional benefits. They are listed as follows:

  • Paid-up value– If premiums are not paid for at least 2 years after which nothing has been paid, then the policy will become void after the grace period and no benefits will be payable. If premiums are paid for at least 2 years, and nothing after the grace period, it will not be void and will continue as a paid-up policy for the rest of the years.
  • Surrender Value- If the premiums are paid for at least two years then the policy can be surrendered, upon which the company will pay a guaranteed surrender value after the approval of IRDAI
  • Freelook period- The company provides a free look period of 15 days. If the individual is not happy with the terms and conditions of the company of the policy itself, he or she can terminate the policy within 15 days from the date of issue.


  1. Is a Loan facility available with this plan?

Yes, a loan will be provided against the plan once it gets to the surrender value.

  1. When can I surrender my plan?

After paying premiums for 3 years successfully, you will be eligible to surrender your plan after which you will get a surrender value

  1. Do I get a lump sum on my death benefit?

Yes, however, the assured has the option to choose death benefits in instalments to provide a steady cash flow

  1. When can I revive my policy if void?

A lapsed policy can be revived within 5 years from the date of the first unpaid premium

  1. What do I need to do to revive my policy?

You will be required to pay all your remaining premiums with interest at the rate decided by LIC. This should be done before the date of Maturity.

  1. What is the minimum death benefit I can get?

The death benefit will not be less than 105% of the premiums paid

  1. Will I get my guaranteed additions if I miss on premiums?

No, Guaranteed Additions will not be credited if your premiums are unpaid.

  1. Who are the authorised service providers?, and

  1. Can I buy the Bima Jyoti policy online?

Yes, on investing in the Bima Jyoti policy online, you will be offered discounts

  1. For how long can I pay premiums?

With a policy term of 5 years, you can pay premiums for 10-15 years

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