LIC Bima Jyoti vs LIC Bima Ratna endowment plans: A point-by-point comparison

The Life Insurance Corporation of India (LIC) offers many plans which come with double benefit of savings potential and insurance coverage. LIC offers two endowment plans which are aimed at providing financial security and protection of insurance to policyholders. Two such policies are- LIC Bima Jyoti and LIC Bima Ratna.

LIC Bima Jyoti Plan: Entry Age, Benefits and Premium Paying Term

The LIC Bima Jyoti policy is a non-linked, non-participating individual savings plan with assured returns at maturity. Anyone between the ages of 90 days and 60 years can purchase this plan. Under the LIC Bima Jyoti plan the policy term is of 15 years and 20 years. Premiums for the policy can be paid monthly, quarterly, half-yearly and yearly.

LIC Bima Jyoti is a guaranteed returns endowment investment insurance policy that offers live cover and adds to the policyholder’s investment along with providing tax benefits.  

This is an investment insurance plan that offers guaranteed additions at Rs 50 per 1,000 sum assured, which are also added every year. The minimum sum assured is Rs 1,00,000 and there is no maximum limit.

If the policyholder dies before the risk commencement date all his or her premiums paid will be returned to the nominee. Alternatively, if the policyholder dies after the date of commencement of risk, the nominee will get the sum assured along with the accrued guaranteed additions.

The sum assured on death will be 7 times the annualised premium, or 125 per cent of the basic sum assured, whichever is higher.

Besides the death benefit, the maturity benefit would offer the policyholder the opportunity to receive the sum assured plus all guaranteed additions till the maturity date.  

LIC Bima Ratna Plan: Entry Age, Benefits and Premium Paying Term

LIC Bima Ratna policy is a non-linked, non-participating individual savings life insurance policy that also offers the policyholder protection and savings benefits.  

Besides the additional bonus and accidental death or disability rider benefits, loan facility can also be availed under this policy.

Rebates in premiums are also allowed for choosing a high level of sum assured and for paying premiums annually or half-yearly.

The LIC Bima Ratna plan comes with multiple policy terms of 15 years, 20 years and 25 years. The minimum basic sum assured is Rs 5,00,000 with no upper limit. The minimum entry age is 90 days and the maximum entry age is 65 years.

On the maturity of the plan, the Sum Assured on Maturity along with accumulated Guaranteed Additions shall be payable to the policyholder, in which the Sum Assured on Maturity is equal to 50 percent of the Basic Sum Assured.

It also offers the death benefit like LIC Bima Jyoti, in which the policyholder’s nominee receives a sum assured along with the accumulated guaranteed additions in case of death after the date of commencement of risk period. In this case, the higher of 125 percent of the basic sum assured or 7 times the annualised premium will be paid as death benefit and it cannot be less than 105 per cent of the total premium paid.