LIC New Bima Jyoti Plan 890: Benefits, Eligibility, Premium, Guaranteed Additions & Maturity
LIC’s New Bima Jyoti Plan 890 is a non-par, non-linked, individual life savings plan that combines life protection and long-term savings. The plan is a limited-premium endowment plan offering guaranteed additions of 6% of Total Annualized Premiums in respect of premiums paid during the policy term. Policyholders can choose a 15 to 20-year policy term, with a premium-paying period of 10 to 15 years
LIC New Bima Jyoti Plan 890: Benefits, Eligibility, Premium & Maturity Details
LIC’s New Bima Jyoti Plan 890 is a non-par, non-linked, individual life savings plan designed to provide a combination of life protection and long-term savings. The plan offers guaranteed additions during the policy term, making it suitable for individuals looking for a structured savings plan with life insurance protection.
According to the brochure, the plan is LIC’s New Bima Jyoti, Plan No. 890, UIN: 512N395V01. It is a limited-premium endowment plan with guaranteed additions.
Key Features of LIC New Bima Jyoti Plan 890
- Plan: LIC’s New Bima Jyoti
- Plan No.: 890
- UIN: 512N395V01
- Type: Non-Par, Non-Linked, Individual Life Savings Plan
- Policy Term: 15 to 20 years
- Premium Paying Term: 10 to 15 years
- Minimum Basic Sum Assured: ₹1,25,000
- Maximum Basic Sum Assured: No limit, subject to LIC's underwriting policy
- Guaranteed Additions: 6% of Total Annualized Premiums in respect of premiums paid
- Loan facility: Available subject to policy terms
- Settlement option: Maturity and death benefits can be received in instalments.
What Makes Plan 890 Different?
One of the major features of LIC New Bima Jyoti is its guaranteed additions. For an in-force policy, guaranteed additions accrue at the end of each policy year.
The standard rate specified in the brochure is 6% of Total Annualized Premiums in respect of premiums paid. Certain eligible policies may receive additional incentives through an increased rate of guaranteed additions.
Since this is a non-participating plan, the benefits are guaranteed and fixed according to the policy terms. The policy does not participate in bonuses or surplus.
LIC New Bima Jyoti Plan 890 Eligibility
The brochure specifies the following eligibility conditions:
| Feature | Details |
| ------------------------- | --------------------------------- |
| Minimum Entry Age | 30 days completed |
| Maximum Entry Age | 60 years |
| Minimum Maturity Age | 18 years |
| Maximum Maturity Age | 75 years |
| Minimum Policy Term | 15 years |
| Maximum Policy Term | 20 years |
| Premium Paying Term | Policy Term minus 5 years |
| Minimum Basic Sum Assured | ₹1,25,000 |
| Maximum Basic Sum Assured | No limit, subject to underwriting |
For policies purchased through POSP-LI/CPSC-SPV, different age restrictions apply as specified in the brochure.
Death Benefit
If the Life Assured dies during the policy term while the policy is in force, the death benefit is:
Sum Assured on Death + Accrued Guaranteed Additions
The Sum Assured on Death is the higher of:
- 125% of Basic Sum Assured, or
- 7 times the Annualized Premium
The Death Benefit is also subject to a minimum of 105% of Total Premiums Paid, as specified in the brochure.
Maturity Benefit
If the Life Assured survives until the maturity date and the policy remains in force, the maturity benefit is:
Basic Sum Assured + Accrued Guaranteed Additions
The brochure specifies that the Sum Assured on Maturity is equal to the Basic Sum Assured.
Premium Payment Options
Premiums can be paid through:
- Yearly
- Half-yearly
- Quarterly
- Monthly through e-NACH/NACH, subject to eligibility
- Salary Savings Scheme (SSS), where applicable
For Basic Sum Assured below ₹1,50,000, yearly and half-yearly payment modes are allowed. For ₹1,50,000 and above, yearly, half-yearly, quarterly and eligible monthly modes are available.
Sample Premium for ₹10 Lakh Basic Sum Assured
The brochure provides sample annual premiums for standard lives under offline sales:
| Age | 15-Year Term | 18-Year Term | 20-Year Term |
| --: | -----------: | -----------: | -----------: |
| 20 | ₹1,22,300 | ₹93,200 | ₹82,550 |
| 30 | ₹1,22,850 | ₹93,900 | ₹83,400 |
| 40 | ₹1,25,600 | ₹97,200 | ₹87,150 |
| 50 | ₹1,34,300 | ₹1,06,650 | ₹97,500 |
These are sample annual premiums for a ₹10 lakh Basic Sum Assured and are exclusive of applicable taxes, if any.
High Sum Assured Incentive
Plan 890 also provides incentives for higher Basic Sum Assured in the form of an increased rate of Guaranteed Additions.
For example, for a premium-paying term of 15 years, the brochure specifies an additional Guaranteed Addition rate ranging from 0.75% to 1.25%, depending on the Basic Sum Assured.
There is also an online-sale incentive, subject to the conditions specified in the brochure. The additional rate is 1.25% for 10 to 14 years premium-paying terms and 1.50% for a 15-year premium-paying term.
Loan Facility
LIC New Bima Jyoti also provides a loan facility, subject to the applicable policy conditions. This can provide liquidity during the policy term when funds are required.
Settlement Option
The policyholder can choose to receive the maturity benefit in instalments instead of taking the entire amount as a lump sum.
The settlement period can be:
- 5 years
- 10 years
- 15 years
Instalments can be received monthly, quarterly, half-yearly or yearly, subject to the minimum instalment amounts specified in the brochure.
The same type of instalment option is available for the death benefit, subject to the policy terms.
Premium Grace Period
The brochure provides:
- 30 days grace period for yearly, half-yearly and quarterly premiums
- 15 days for monthly premiums
During the grace period, the policy continues with risk cover according to the policy terms.
Paid-Up and Surrender Benefits
If at least one full year's premium has been paid and subsequent premiums are not paid, the policy may continue as a paid-up policy, subject to the conditions specified in the brochure. The death and maturity benefits are then reduced according to the applicable paid-up calculations.
The policy can be surrendered after completion of the first policy year, provided one full year's premium has been paid. The applicable surrender value is determined according to the policy terms.
Optional Riders
Subject to eligibility and applicable conditions, LIC New Bima Jyoti provides options for riders such as:
- LIC's Accidental Death and Disability Benefit Rider
- LIC's Accident Benefit Rider
- LIC's New Term Assurance Rider
- LIC's Premium Waiver Benefit Rider
- LIC's Critical Illness Health Rider
Additional premium is applicable for rider benefits.
Who Can Consider LIC New Bima Jyoti Plan 890?
This plan may be considered by people who are looking for:
✔ Life insurance protection
Financial protection for the family during the policy term.
✔ Long-term savings
A structured savings approach over 15 to 20 years.
✔ Guaranteed additions
Guaranteed additions accrue during the policy term for an in-force policy.
✔ Limited premium payment
Premiums are payable for a period shorter than the overall policy term.
✔ Higher Sum Assured incentives
Eligible higher Basic Sum Assured levels can qualify for additional Guaranteed Addition rates.
LIC New Bima Jyoti Plan 890: Quick Summary
LIC Plan 890 combines life insurance protection with long-term savings through a non-linked, non-participating structure. With policy terms of 15 to 20 years, premium payment terms of 10 to 15 years, and guaranteed additions, it can be considered as part of a long-term financial planning strategy.
The right policy depends on your age, income, financial goals, required protection and premium affordability. Always review the policy document and benefit illustration before purchasing.
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