HomePersonal FinanceLife InsuranceLIC Bima Jyoti Plan 860 - Features, Benefits Review

LIC Bima Jyoti Plan 860 – Features, Benefits Review

LIC Bima Jyoti Plan 860 is new plan by LIC in the year 2021. The new plan is being launch by keeping tax saving season in mind. The plan is expected to be launched on 22nd Feb, 2021. LIC Bima Jyoti is Non-linked, Non- participating, limited premium endowment plan. The guaranteed addition on this plan is already announced by LIC. LIC Bima Jyoti Plan 860 will give 50 Rs per thousand guaranteed additions.

LIC Bima Jyoti provides life cover during the policy term and sum assured and bonus on survival as maturity. This plan can be purchased offline as well as online.

LIC Bima Jyoti Plan

LIC Bima Jyoti Plan 860 Eligibility

Minimum Entry Age90 days (completed)
Maximum Entry Age    60 years (nearer birthday)
Policy Term15 years to 20 years
Premium Paying Term5 years less than policy term
Premium Paying ModeYearly, Half Yearly, (Quarterly and Monthly – ECS Only)
Sum Assured1 Lakh and above
Minimum age at Maturity18 years
Maximum age at Maturity75 years
LoanAfter 2 Years
SurrenderAfter 2 Years
RevivalWithin 5 Years from FUP

Key Features

  • Premium paying term is 5 years less than policy term.
  • No bonus is offered against this plan instead fixed guaranteed addition at rate of Rs.50 per thousand basic sum assured offered at end of each policy year.
  • On maturity sum assured along with Guaranteed additions is given to policy holder.
  • Options for additional term rider is available. You can get accidental, disability and critical illness rider.
  • Loan option is offered after 2 years
  • Settlement option available for maturity and death benefits in installment 5, 10 and 15 years

LIC Bima Jyoti Plan 860 Benefits

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 basic sum assured.  


Age 20 years, Policy Term 20 years

Premium Paying term in above case would be 15 years.

Sum assured – 10 Lakh

Maturity Amount – Sum Assured + Guaranteed Additions

Guaranteed Addition is fixed Rs.50 /1000 Sum assured yearly.

1 Lakh Sum Assured = 5000 Guaranteed Addition

10 Lakh Sum Assured = 50000 Guaranteed Addition

20 Years = (50000 x 20 years) = 10 Lakh Guaranteed Addition

Death Benefit

On death during the policy term 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.


Age 20 years, Policy Term 20 years

Sum Assured – 10 Lakh

Death of Policy Holder at 30 Years (During policy term)

Death Benefit = Sum assured + Guaranteed additions

Sum assured in above case would be 125% of basic sum assured or 7 times of annualized premium whichever is higher.

In above case death benefit would be 10 x 125% + (50000 x 10 years) = 12.5 Lakh + 5 Lakh = 17.5 Lakh

Other Benefits

Loan Facility – After 2 years

Surrender – After 2 years

Policy Revival – Within 5 years

Grace period – 15 days for monthly mode, 30 days for any other mode

Tax benefit – Premium under section 80C

Maturity / Death Benefit – Exempt under section 10(10D)

LIC Bima Jyoti Plan 860 – Review

Bima Jyoti is endowment plan. It is non- linked and non-participating plan. The main benefit of this plan is guaranteed addition. The policy will not offer any bonus.

On doing calculation it seems to be attractive. The premium detail of plan is not yet known but overall guaranteed addition would be 5% only. This means you will get return less than fixed deposit.

So if you are planning to purchase this product as insurance product you should avoid it and purchase term plan. From investment point of view also you should avoid this plan.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.