28 May 2021 – Insurance

LIC Bima Jyoti Plan (860)

LIC Bima jyoti

LIC launches its new Guaranteed policy, Bima jyoti (860) on 22 February 2021. It will not only provide you High risk coverage but also Guaranteed return on the maturity.

LIC offers a vast variety of plans in each of the categories but one among all of them gives the best return which is LIC’s guaranteed plan.

But how guaranteed plan gives the best return ?

Let’s understand this with the meaning and the assurity given by the LIC in its guaranteed plan –


What is LIC Guaranteed Policy?


When the amount of additional bonus given on maturity or on death of the policyholder is guaranteed by the insurance company then that plan is termed as guaranteed return plan.

These plans give the higher return as compared to other plans because in other plans of LIC the amount of bonuses fluctuates according to the performance of the LIC in that period of time.


In other plans every year the amount of bonuses are accumulated every year according to the profit and losses LIC has borne in that particular financial year,

But in case of guaranteed return plan LIC adds a fixed amount of money per year in the form of bonuses in the policyholders policy amount irrespective to the LIC’s performance in that particular financial year.


Benefits Of LIC Bima Jyoti (860)


#1 Higher Return 

As a fixed amount of bonuses is added at the end of every financial year the rate of return increases eventually, generally in most of the plans it is 2x of the sum assured money.


#2 High risk cover

The risk cover is also high as the bonuses are added in the fixed amount every year irrespective to the performance of the company.


#3 Assurity of fixed return 

In the case of a guaranteed plan there is an assurity in the rate of return that – “In the end I will get this amount for sure irrespective of the market situation


#4 Non – taxable 

All of the sum assured money plus the bonuses you get on maturity are exempted from the tax i.e. the amount you get on maturity is tax free you don’t have to pay any kind of tax on maturity amount to the government.


#5 Saves tax

Last but not the least you save upto 30% of your tax every year during the whole policy term period. 

Whenever LIC wants to take over the market they release a guaranteed plan during the closing of the financial year so that most of the people can avail the benefit of tax saving, bonus accumulation of that year etc.  

So, this year right after the covid situation in 2020 the LIC has brought its guaranteed plan in the second month of year 2021 so that during the closing of the financial year they can take over the market.


LIC Bima jyoti plan no 860 


LIC Bima Jyoti is a guaranteed plan which gives the assurity of bonus every year with 5% on the total amount of sum assured in simple words in the end of policy term the amount of bonus will be two times of the sum assured money.

let’s if you taken a bima jyoti policy with sum-assured of 10 lakh then every year 5% will be given on the total sum assured amount (10 lakh)

for 1st year its 50,000, 2nd year 1,00,000 it will increase till your sum assured gets the double. (20 lakhs). But if something happens to you in between the policy term you will get sum assured + Guaranteed Bonus

Let’s say Insured die in the 5 year then he/she will get 10,00,000 (sum assured) + 2,50,000 (Guaranteed Bonus of 5 years), Total 12,50,000 on death.

Key features –

  1. Bonuses are guaranteed.
  2. Premium payment term is less than the terms.
  3. High risk cover.
  4. Non taxable
  5. Saves upto 30% of tax every year


Eligibility criteria


Minimum age at entry –

3 years (Nearest birthday) for term of 15

2 years (Nearest birthday) for term of 16  

1 years (Nearest birthday) for term of 17 

0 years (Nearest birthday) for term of 18 

0 years (Nearest birthday) for term of 19 

0 years (Nearest birthday) for term of 20


Maximum age at entry –

60 years (Nearest birthday) for term of 15

59 years (Nearest birthday) for term of 16  

58 years (Nearest birthday) for term of 17 

57 years (Nearest birthday) for term of 18 

56 years (Nearest birthday) for term of 19 

55 years (Nearest birthday) for term of 20


Minimum maturity age –

18 years (completed)

Maximum maturity age –

75 years (Nearest birthday)

Minimum Sum assured –

Rs 1,00,000/-

Maximum Sum assured

No limit

Guaranteed Bonus-

Rs.50/- per 1000 Sum assured for throughout the policy term.

On Death –

125% of sum assured plus the whole bonus accumulated till the death of the policyholder or Sum assured + Guaranteed Bonus whichever is high.

On Survival or we can say – “Maturity”

Basic Sum assured plus the guaranteed bonus.

So, this is the Overview of the LIC Bima jyoti plan, I hope you understand each and every point, But If you still have confusion, then let us know in the comment section or write an email at mail@apnipolicy.com. We will reach out to you and provide you with further assistance.

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