LIC’s Bima Jyoti Plan is one of the most trusted guaranteed return insurance policies in India. For those looking to build a secure financial future with zero risk, this plan offers fixed returns along with life cover — making it ideal for middle-class families, salaried individuals, and long-term savers in 2025.
In this guide, we explain everything about the LIC Bima Jyoti Plan — features, benefits, returns, maturity, and who should consider it.
What is LIC Bima Jyoti Plan
LIC Bima Jyoti (Plan No. 860, UIN: 512N339V02) is a non-linked, non-participating, individual, savings, life insurance plan. That means:
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It’s not linked to the stock market (zero risk)
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It doesn’t offer bonuses, but gives fixed guaranteed returns
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You get life insurance + guaranteed maturity benefit
It’s a limited premium paying policy, meaning you don’t need to pay for the full term — only for a few years.
Key Features of LIC Bima Jyoti
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Guaranteed ₹50 per ₹1000 of sum assured every year (as guaranteed addition)
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Choice of policy term: 15 to 20 years
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Premium paying term is policy term minus 5 years
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Minimum sum assured: ₹1 lakh
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Maximum: No upper limit (subject to underwriting)
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Available for ages: 90 days (child) to 60 years (adult)
How Does LIC Bima Jyoti Work
Let’s say you take a 15-year policy with a sum assured of ₹5,00,000.
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You pay premiums for only 10 years
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From year 1 to 15, LIC adds ₹50 per ₹1000 every year (₹25,000 per year)
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At the end of 15 years, you get:
Maturity = ₹5,00,000 (Sum Assured) + ₹3,75,000 (Guaranteed Additions) = ₹8,75,000
This maturity is guaranteed and tax-free under Section 10(10D).
Premium Example (For ₹5 Lakh Sum Assured)
| Age | Policy Term | Annual Premium (approx) |
|---|---|---|
| 25 | 15 years | ₹36,500 per year |
| 35 | 15 years | ₹38,800 per year |
| 45 | 15 years | ₹41,200 per year |
Note: Premiums vary slightly depending on age and health
Benefits of LIC Bima Jyoti Plan
1. Guaranteed Returns
Every year, LIC adds a fixed guaranteed addition — this gives you clarity and assurance, unlike market-linked plans.
2. Life Insurance Cover
In case of the policyholder’s death, the nominee gets:
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125 percent of sum assured or
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7 times of annual premium
(whichever is higher) + all guaranteed additions
3. Tax Benefits
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Premiums are eligible under Section 80C
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Maturity is tax-free under Section 10(10D)
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Death benefits are also tax-exempt
4. Loan Facility
Policyholders can take a loan after 2 years, using the policy as collateral.
Who Should Buy LIC Bima Jyoti
This plan is best suited for:
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Parents planning for child’s education/marriage
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Salaried individuals who want risk-free long-term savings
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Those who want guaranteed maturity + insurance in one plan
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People looking for alternatives to fixed deposits with life cover
LIC Bima Jyoti vs FD
| Feature | LIC Bima Jyoti | Fixed Deposit (FD) |
|---|---|---|
| Returns | Guaranteed + Insurance | Fixed, but no insurance |
| Life Cover | Yes | No |
| Tax-Free Maturity | Yes (Under 10(10D)) | No (FD interest is taxable) |
| Lock-in | Medium (15-20 years) | Short (1-5 years) |
| Loan Option | Yes | Yes |
Final Words
LIC Bima Jyoti is a safe and disciplined savings plan that guarantees returns and protects your family. If you’re not comfortable with risky investments and still want a decent return with life cover, this is a great option to consider in 2025.