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LIC’s Bima Jyoti (Plan 760): Complete Guide, Benefits,
Features, Eligibility & Returns
Introduction
Life Insurance Corporation of India (LIC) is one of the most
trusted and established insurance providers in India. Over the decades, LIC has
launched several insurance and savings plans designed to meet the financial
needs of individuals and families across different income groups. One such plan
is LIC’s Bima Jyoti (Plan 760), a non-linked, non-participating,
individual savings life insurance plan.
LIC Bima Jyoti is designed for people who want guaranteed
maturity benefits, life cover, and tax advantages without
exposure to market risks. Since it is a non-linked plan, the returns are not
affected by stock market fluctuations, making it suitable for conservative
investors.
This article provides a complete, detailed, and unbiased
overview of LIC Bima Jyoti Plan 760, including its features, benefits,
eligibility criteria, premium structure, maturity benefits, death benefits, tax
treatment, and frequently asked questions. This guide is written purely for
informational purposes and follows SEO and Google AdSense content quality
guidelines.
What Is LIC Bima Jyoti (Plan 760)?
LIC Bima Jyoti (Plan No. 760) is a non-linked,
non-participating, individual savings life insurance policy. It offers a
combination of life protection and guaranteed savings over a
fixed policy term.
Since it is a non-participating plan, policyholders
do not receive bonuses. However, the plan compensates for this by offering guaranteed
additions and a guaranteed maturity payout, which is known at the
time of policy purchase.
This plan is particularly suitable for individuals who:
- Prefer
certainty in returns
- Do
not want exposure to market-linked products
- Want
life insurance along with savings
- Are
planning for long-term financial goals such as retirement, child’s
education, or wealth creation
Key Features of LIC Bima Jyoti
Below are the major features that define LIC Bima Jyoti Plan
760:
1. Non-Linked and Non-Participating Plan
- Not
linked to equity or debt markets
- Returns
are guaranteed and unaffected by market volatility
- No
bonuses are declared under this plan
2. Guaranteed Additions
- Guaranteed
additions accrue during the policy term
- These
additions increase the final maturity benefit
3. Limited Premium Payment Term
- Premiums
are paid only for a fixed number of years
- Policy
continues even after premium payment stops
4. Life Cover
- Provides
financial protection to the nominee in case of the policyholder’s death
during the policy term
5. Flexible Policy Terms
- Different
combinations of policy term and premium paying term are available
6. Loan Facility
- Policyholders
can avail loans against the policy after a certain period
Eligibility Criteria for LIC Bima Jyoti
Before purchasing LIC Bima Jyoti, it is important to
understand the eligibility requirements.
Minimum and Maximum Entry Age
- Minimum
Age at Entry: 90 days
- Maximum
Age at Entry: Varies depending on the policy term
Policy Term Options
LIC Bima Jyoti offers fixed policy terms such as:
- 15
years
- 20
years
Premium Paying Term (PPT)
- Premiums
are paid for a shorter duration than the policy term
- For
example, 15-year policy with 10-year premium payment
Minimum Sum Assured
- The
minimum sum assured under this plan is relatively high compared to
traditional policies
- This
makes the plan suitable for medium- to high-income individuals
Premium Structure of LIC Bima Jyoti
The premium under LIC Bima Jyoti depends on several factors,
including:
- Age
of the policyholder
- Sum
assured
- Policy
term
- Premium
paying term
- Mode
of premium payment
Premium Payment Modes
LIC allows premiums to be paid through:
- Yearly
- Half-yearly
- Quarterly
- Monthly
(via NACH or ECS)
Choosing an annual premium mode usually reduces the total
premium payable compared to monthly or quarterly options.
Death Benefit Under LIC Bima Jyoti
In the unfortunate event of the death of the policyholder
during the policy term, LIC pays a death benefit to the nominee.
Death Benefit Amount Includes:
The nominee receives the highest of the following:
- Sum
Assured on Death
- 125%
of the Basic Sum Assured
- 7
times the annual premium
Additionally:
- Accrued
guaranteed additions are also paid
- The
death benefit is not less than 105% of total premiums paid
(excluding taxes and extra premiums)
This ensures a minimum level of financial protection for the
family.
Maturity Benefit of LIC Bima Jyoti
If the policyholder survives till the end of the policy
term, a maturity benefit is paid.
Maturity Benefit Consists Of:
- Basic
Sum Assured
- Accrued
Guaranteed Additions
There is no bonus component, but the guaranteed
additions ensure a predefined maturity value that is known in advance.
This makes LIC Bima Jyoti suitable for goal-based planning
where the maturity amount is required at a specific time.
Guaranteed Additions Explained
Guaranteed additions are a key attraction of LIC Bima Jyoti.
- These
additions accrue at a fixed rate per ₹1,000 of Basic Sum Assured
- The
rate depends on the policy term
- Guaranteed
additions are added annually
The total guaranteed additions are paid either on:
- Maturity,
or
- Death
of the policyholder
Loan Facility in LIC Bima Jyoti
LIC Bima Jyoti allows policyholders to take a loan
against the policy after the policy acquires a surrender value.
Important Points:
- Loan
amount depends on the surrender value
- Interest
is charged as per LIC’s prevailing rates
- Outstanding
loan (if any) is deducted from claim amount
This feature provides liquidity in times of financial need.
Surrender Value of LIC Bima Jyoti
If the policyholder wishes to discontinue the policy after a
certain period, a surrender value may be available.
Types of Surrender Value:
- Guaranteed
Surrender Value (GSV)
- Special
Surrender Value (SSV)
The surrender value payable is the higher of GSV or SSV, as
determined by LIC.
It is generally advisable to continue the policy till
maturity for maximum benefits.
Tax Benefits Under LIC Bima Jyoti
LIC Bima Jyoti offers tax advantages under the Income Tax
Act, subject to prevailing laws.
Section 80C
- Premiums
paid are eligible for deduction under Section 80C
- Maximum
limit as per income tax rules
Section 10(10D)
- Maturity
and death benefits are usually tax-free
- Subject
to conditions specified in the Income Tax Act
Policyholders should consult a tax advisor for personalized
advice.
Who Should Buy LIC Bima Jyoti?
LIC Bima Jyoti is suitable for:
- Risk-averse
investors
- Individuals
looking for guaranteed returns
- People
planning long-term financial goals
- Those
who want insurance with savings
- Parents
planning future funds for children
It may not be ideal for:
- Investors
seeking high market-linked returns
- Individuals
with low budget due to higher minimum sum assured
Comparison: LIC Bima Jyoti vs Market-Linked Plans
|
Feature |
LIC Bima Jyoti |
ULIP / Mutual Fund |
|
Market Risk |
No |
Yes |
|
Returns |
Guaranteed |
Market-based |
|
Bonuses |
No |
Not applicable |
|
Transparency |
High |
Moderate |
|
Suitable For |
Conservative investors |
Aggressive investors |
Frequently Asked Questions (FAQs)
Is LIC Bima Jyoti a good investment?
LIC Bima Jyoti is suitable for those seeking safety and
guaranteed returns rather than high growth.
Is LIC Bima Jyoti taxable?
Premiums may qualify for tax deduction, and maturity
benefits are generally tax-free subject to conditions.
Can I stop paying premiums?
If premiums are stopped early, the policy may lapse or
acquire a reduced paid-up value depending on conditions.
Is there any bonus in LIC Bima Jyoti?
No, it is a non-participating plan and does not offer
bonuses.
Can NRIs buy LIC Bima Jyoti?
Eligibility for NRIs depends on LIC rules at the time of
purchase.
Important Things to Consider Before Buying
- Understand
the long-term commitment
- Compare
with other guaranteed return plans
- Check
premium affordability
- Read
the official policy brochure carefully
Disclaimer
This article is for educational and informational
purposes only. Policy features, benefits, tax rules, and eligibility
conditions are subject to change as per LIC of India and Government of India
regulations. Readers are advised to verify details from the official LIC
brochure or consult a licensed insurance advisor before making any financial
decision.
Conclusion
LIC’s Bima Jyoti (Plan 760) is a safe, guaranteed savings
life insurance plan designed for individuals who value financial stability
and predictability. While it may not deliver high market-linked returns, it
offers peace of mind through guaranteed benefits, life cover, and tax
advantages.
If your financial goals align with long-term savings,
capital protection, and guaranteed maturity benefits, LIC Bima Jyoti can be
a suitable addition to your financial portfolio.
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