LIC Bima Jyoti Plan

Tax Benefits on the LIC Bima Jyoti Plan
When it comes to availing tax benefits on LIC Bima Jyoti Plan, there are two main sections under which the benefit can be claimed – Section 80C and Section 10(10D). Under Section 80C of the Income Tax Act, 1961, the policyholder can claim a maximum deduction of INR 1.5 lakhs in a financial year. This deduction is available for both the premium paid as well as the maturity proceeds received. As far as Section 10(10D) is concerned, no tax is levied on the death benefit or maturity proceeds received under this plan.
Maturity Benefits of the LIC Bima Jyoti Plan
LIC’s Bima Jyoti is a non-linked, with-profits endowment assurance plan which offers a combination of protection and savings. This plan provides financial support to the policyholder’s family in case of death during the policy term, as well as a lump sum payout at maturity.
The main features and benefits of the LIC Bima Jyoti Plan are as follows:
Death Benefit: In the unfortunate event of the policyholder’s death during the policy term, the nominee will receive Sum Assured on Death, along with accrued bonuses. This benefit is payable irrespective of whether or not the policy has been terminated before death.
Maturity Benefit: On survival of the policyholder till the end of the policy term, he/she will receive Sum Assured on Maturity along with accrued bonuses. The maturity benefit will be paid even if the policy has been terminated before maturity.
Loan Facility: Policyholders can avail a loan against their policy from LIC, provided it is in force for at least 3 years. The loan amount cannot exceed 75% of Surrender Value or 75% of Sum Assured on Maturity (whichever is lower). However, no loan will be available if premiums have not been paid for 2 consecutive years or if premium payment has ceased due to insufficient funds in account under auto debit facility arrangement.
Policy Termination or Surrender Option: The policy can be surrendered anytime after it
Optional Benefits of the LIC Bima Jyoti Plan
LIC Bima Jyoti is a non-participating, fixed benefit life insurance plan that offers financial protection to policyholders in the event of their untimely demise. The plan also provides for an additional sum assured in case of accidental death. It is a simple and affordable life insurance policy that offers comprehensive coverage at an affordable price. The main features and benefits of the LIC Bima Jyoti Plan are as follows:
1) Death Benefit: In the event of the policyholder’s death, the nominee will receive the sum assured as death benefit. If the policyholder dies due to accident, then the nominee will receive an additional sum assured as accidental death benefit.
2) Maturity Benefit: There is no maturity benefit under this plan.
3) Tax Benefits: The premiums paid towards this plan are eligible for tax deduction under Section 80C of the Income Tax Act.
4) Survival Benefits: There are no survival benefits under this plan.
5) Policy Term: The policy term ranges from 5 years to 30 years.
6) Premium Payment Term: The premium payment term is equal to the policy term.
Example of the LIC Bima
LIC Bima Jyoti is a unit-linked non-participating whole life insurance plan. This means that the policyholder does not have to worry about market fluctuations as the value of their investment is linked to the performance of underlying LIC investment funds. The policyholder also has the flexibility to choose how their money is invested, and can switch between investment funds at any time.
The main benefit of LIC Bima Jyoti is that it provides a death benefit to the policyholder’s family in the event of the policyholder’s death. The death benefit is equal to the sum assured plus any bonuses that have accrued on the policy. In addition, the policy provides a maturity benefit, which is paid out to the policyholder if they survive to the end of the policy term.
LIC Bima Jyoti also offers a number of other benefits, including:
– A loyalty bonus, which is paid out if the policyholder remains with LIC for a certain number of years
A terminal illness benefit, which pays out a lump sum if the policyholder is diagnosed with a terminal illness