If you’ve researched LIC Bima Jyoti before, you probably know it was relaunched on August 10, 2026, as LIC’s New Bima Jyoti (Plan 890, UIN 512N395V01). Now, the guaranteed addition structure works completely differently from the earlier version most articles still describe. Here’s what the current plan actually offers, verified directly from LIC’s official sales brochure.
A Genuinely Important Note First
Older versions of Bima Jyoti (Plan 860, and later Plan 760) calculated Guaranteed Additions as a fixed amount per ₹1,000 of Sum Assured, commonly cited as ₹50 per ₹1,000. Both of those plans have since been withdrawn. The current version, Plan 890, calculates Guaranteed Additions completely differently: as a percentage of your total annualized premiums paid, not your sum assured. If you see the old “₹50 per ₹1,000” figure quoted anywhere, including in older comparison articles, it no longer applies to what LIC is actually selling today.
What Is LIC’s New Bima Jyoti?
It’s a non-participating, non-linked, limited premium endowment savings plan. “Non-participating” means your returns are fixed and guaranteed from the outset, not dependent on LIC’s profit performance or bonus declarations, unlike plans such as Jeevan Labh.
What Are the Actual Terms?
- Policy term: 15 to 20 years
- Premium paying term: Policy term minus 5 years, so 10 to 15 years
- Entry age: 30 days to 60 years
- Maturity age: 18 to 75 years
- Minimum Basic Sum Assured: ₹1,25,000, with no upper limit, subject to underwriting
- Sum Assured multiples: ₹5,000 for amounts between ₹1,25,000 and ₹2,75,000, then ₹25,000 above that
How Do the Guaranteed Additions Actually Work?
The base rate is 6% of your total annualized premiums paid, added at the end of every policy year. This isn’t the final rate for everyone, though. LIC offers two incentives that increase this rate:
High Sum Assured incentive, which scales with both your premium paying term and your sum assured band:
| Sum Assured | 10-14 Year PPT | 15 Year PPT |
|---|---|---|
| ₹1,25,000 to under ₹3,00,000 | Nil | Nil |
| ₹3,00,000 to under ₹5,00,000 | +0.50% | +0.75% |
| ₹5,00,000 to under ₹10,00,000 | +0.85% | +1.10% |
| ₹10,00,000 and above | +1.00% | +1.25% |
Online purchase incentive: an additional +1.25% (10-14 year PPT) or +1.50% (15 year PPT) if you buy directly online without an agent or intermediary.
These stack, so a buyer choosing a 15-year premium paying term, a sum assured above ₹10 lakh, and buying directly online could see a Guaranteed Addition rate as high as 6% + 1.25% + 1.50% = 8.75% of annualized premium, considerably higher than the 6% base rate.
What Do You Get at Maturity and on Death?
- Maturity Benefit: Basic Sum Assured plus all accrued Guaranteed Additions.
- Death Benefit: The higher of 125% of Basic Sum Assured or 7 times the annualized premium, plus accrued Guaranteed Additions, with a floor ensuring it’s never less than 105% of total premiums paid to date.
A Real Worked Example, Straight From LIC’s Brochure
This is can help you understand what to expect realistically, since it’s LIC’s official sample illustration, not a third-party estimate. For a 35-year-old choosing a ₹10,00,000 Basic Sum Assured, a 20-year policy term, and a 15-year premium paying term, the annual premium is ₹84,700.
Over the 15-year payment period, total premiums paid come to ₹12,70,500. By the end of the full 20-year policy term, accrued Guaranteed Additions reach approximately ₹11,97,446, bringing the total maturity benefit to roughly ₹21,97,446, nearly double the total premiums paid. Note that this example doesn’t include either incentive, so buyers who qualify for the high sum assured or online purchase incentives would see a somewhat higher figure.
Is GST Charged on This Plan?
No. LIC’s own brochure states this explicitly: GST is “currently exempted,” consistent with the broader GST Council decision that removed GST on individual life insurance premiums entirely from September 22, 2025.
What Riders Can You Add?
Five optional riders are available, one more than the previous version of this plan offered:
- Accidental Death and Disability Benefit Rider
- Accident Benefit Rider (you can choose either this or the Accidental Death and Disability Rider, not both)
- LIC’s New Term Assurance Rider, for additional pure term cover
- Premium Waiver Benefit Rider, waiving future premiums if a parent-proposer dies on a child’s policy
- Critical Illness Health Rider, new to this version, offering a choice between coverage for 15 or 40 major critical illnesses, with the 40-illness option including an Assisted Living Benefit paying 1% of the rider sum assured monthly for 36 months if diagnosed with certain conditions
Loan and Surrender Terms
You can surrender the policy after one full year of premiums, though the Guaranteed Surrender Value specifically only applies after two full years. Loans are available after one year, up to 50% of surrender value before two years of premiums, rising to 80% after two years for in-force policies.
To know more about the different LIC plans types that may suit your needs, have a look at our complete LIC plans guide here.
Frequently Asked Questions
What is the current Guaranteed Addition rate for LIC’s New Bima Jyoti?
The base rate is 6% of total annualized premiums paid, added annually. This can increase up to 8.75% depending on your sum assured, premium paying term, and whether you buy online, through stacking incentives.
Is this the same as the older LIC Bima Jyoti with ₹50 per ₹1,000 guaranteed additions?
No. That calculation method applied to earlier versions of this plan (Plan 860 and Plan 760), both since withdrawn. The current Plan 890 calculates Guaranteed Additions as a percentage of premiums paid, a fundamentally different structure.
What is the minimum sum assured for LIC’s New Bima Jyoti?
₹1,25,000, with no fixed upper limit, subject to underwriting approval.
Is GST charged on LIC’s New Bima Jyoti premiums?
No. LIC’s official brochure confirms the premium is currently exempt from GST, consistent with the broader removal of GST on individual life insurance policies from September 22, 2025.
What is the death benefit under this plan?
The higher of 125% of the Basic Sum Assured or 7 times the annualized premium, plus accrued Guaranteed Additions, with a guaranteed minimum of 105% of total premiums paid to date.
Can I get a better rate by buying this policy online?
Yes. Buying directly online without an agent adds an incentive of 1.25% (for a 10 to 14 year premium paying term) or 1.50% (for a 15 year term) to your Guaranteed Addition rate, on top of any high sum assured incentive you may also qualify for.
Last Updated on 23 hours ago by Team Paisaseekho
