Bima Jyoti

What this product is

A fixed-term, non-participating savings-cum-protection plan that pays a guaranteed lump sum plus fixed yearly additions at maturity, alongside a guaranteed death benefit throughout the term.

You might need this if…

• You might need this if you want a fixed, guaranteed maturity payout timed to a specific milestone (child's education/marriage, retirement) 15-20 years out, without market risk.
• You might need this if you prefer certainty over the higher-but-variable returns of a participating (bonus-based) plan.
• You might need this if you want life cover starting from very early in life (entry from 30 days old).
• You might need this if you want the option to bolt on accident or premium-waiver riders cheaply.

How it actually works

• Entry age 30 days to 60 years; policy term 15, 18 or 20 years; premium payment term is always 5 years shorter than the policy term.
• Minimum Basic Sum Assured ₹1,25,000, no stated maximum.
• Every year the policy earns a fixed Guaranteed Addition of ₹50 per ₹1,000 of Basic Sum Assured, added to the payout regardless of market performance.
• Death benefit is the higher of 125% of Basic Sum Assured or 7x the annualised premium, plus accrued guaranteed additions, with a floor of 105% of premiums paid.
• Maturity benefit is Basic Sum Assured plus all accrued guaranteed additions.
• Optional riders: accidental death & disability, accident benefit, term assurance, premium waiver (combined rider premium capped at 30% of base premium).

Worked example

The tiers

Worth knowing before you decide

• This is a non-participating plan: no bonuses or surplus sharing — additions are fixed and guaranteed from the start.
• Guaranteed surrender value only kicks in after 2 years' premiums are paid, and early surrender factors can be as low as 30%.
• Policy loans are capped at 80% of surrender value and only after 2 premiums are paid.

Official source

⌟ Official product brochure

Learn about this category

Read the full traditional life insurance explainer → · See all traditional savings products →