LlC’s Bima Jyoti is a Non-linked, Non-participating, Individual, Limited Premium Payment, Life Insurance Savings Plan.
Its a new LIC’s Insurance Policy launched on 22 feb 2021 for all individuals.
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 .
ELIGIBILITY CONDITIONS AND RESTRICTIONS FOR BASE PLAN:
a)Minimum Basic Sum Assured : Rs. 1,00,000-
b) Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of Rs. 25,0001-)
c) Policy Term : 15 to 20 years
d) Premium Paying Term (PPT) :(Policy term less 5) years
e) Minimum Age at entry : 90 days (completed)
f) Maximum Age at entry :60 years (nearer birthday)
g) Minimum Age at Maturity 18 years (completed)
h) Maximum Age at Maturity : 75 years (nearer birthday)
Date of Commencement of Risk:
In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier.
For those aged 8 years or more, risk will commence immediately.
BENEFITS UNDER THE BASE PLAN:
The benefits payable under an in force policy are as under:
a) Death Benefit:
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 annualised 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.
GUARANTEED ADDITIONS:
Provided the policy is in force by payment of due premiums, Guaranteed Addition at the rate of Rs.50 per thousand Basic Sum Assured shall accrue at the end of each policy year. In case of death under in force policy, the Guaranteed Addition in the year of death shall be for full policy year. In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy.
In case of a paid-up policy or on surrender of a policy, the Guaranteed Addition for the policy year in which the last premium is received (i.e. wherein full year‘s premiums have not been received) will be added on proportionate basis in proportion to the premium received for that year.
GRACE PERIOD FOR PAYMENT OF PREMIUM:
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.
If the death of the Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as inforce and the benefits will be paid after deduction of the said unpaid premium and also the balance premium(s) falling due before the next policy anniversary.
If case of death of Life Assured under an inforce policy wherein all the premiums due till the date of death have been paid and where the mode of payment of premium is other than yearly, balance premium(s), if any, falling due from the date of death and before the next policy anniversary shall be deducted from the claim amount.
Mode Yearly mode =2%
Half-yearly mode. =1%
Quarterly, Monthly =Nill
(through NACH only) & Salary deduction (SSS)
LOAN under Bima Jyoti Insurance Policy:
Loan facility is available under this plan, after payment of premiums for at least 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%
b) The rate of interest to be charged for the loan amount would be determined by the Corporation from time to time.
c) The loan during the minority of Life Assured can be availed by the proposer provided the loan is raised for the benefit of the minor Life Assured.
d) In the event of default in payment of loan interest on the due dates and when the outstanding loan amount along with interest is to exceed the surrender value, the Corporation would be entitled to foreclose such policies. Such policies when being foreclosed shall be entitled to payment of the difference of surrender value and the outstanding loan amount along with interest, if any.
e) In case the policy shall mature or surrendered or becomes a claim by death, the amount of outstanding Loan together with all interest shall be recovered from the claim benefit payment.
SUICIDE CLAUSE:
Notwithstanding the provision of benefits payable on death mentioned anywhere in this Circular, the provisions related to claim payment in case of death due to Suicide shall be subject to the conditions as specified herein under:
I.lf the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under this policy except for 80% of the total premiums paid excluding any taxes, extra premium and Rider premiums other than term assurance rider, if any, provided the policy is in–force. This clause shall not be applicable in case age at entry of the Life Assured is below 8 years.
ll.lf the Life Assured (whether sane or insane) commits suicide within 12 months from date of” revival, an amount which is higher of 80% of the total premiums paid (excluding any taxes, extra premium and Rider premiums other than term assurance rider, if any) till the date of death or surrender value available as on date of death shall be payable. The Corporation will not entertain any other claim under this policy.
This clause shall not be applicable:
- In case the age of the life assured is below 8 years at the time of revival, or
- For a policy lapsed without acquiring paid up value and nothing shall be payable under
such policies.
The relaxation (claim concession) mentioned above under Paid-up Value provisions (Para.13)
shall not be applicable in case of death due to suicide.
Premium Waiver Benefit Rider is applicable on the life of the proposer and hence the
applicable proportion of the PWB rider premium shall be paid back on suicide by the Proposer.
FREE LOOK PERIOD:
If a Policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation stating the reasons of objections, within 15 days ( 30 days in case of online purchase) from the date of receipt of the policy.
