Calculators LIC plans Bima Jyoti Review
LIC Bima Jyoti (Plan 860) is a non-participating endowment that pays a contractually guaranteed addition of ₹50 per ₹1,000 basic sum assured per year — no bonus uncertainty, no LIC board approval required. For a 30-year-old buying ₹5 lakh sum assured for 20 years (PPT 15), the maturity is a guaranteed ₹10 lakh (2× the sum assured). The trade-off: the floor is absolutely certain, but there is no upside if LIC's with-profits fund performs well.
A risk-averse 35–55 year old who explicitly distrusts the subjectivity of LIC's annual bonus declarations and is willing to accept a slightly lower expected return in exchange for a contractually guaranteed outcome. The maturity amount is knowable on day one — a feature no participating plan can offer. The PPT-equals-term-minus-five structure (e.g., 15-year PPT for a 20-year policy) provides a 5-year premium-free tail without surrendering certainty.
Anyone willing to bear bonus-declaration risk for higher expected return — a 20-year participating endowment in its base scenario will typically out-deliver Bima Jyoti's guaranteed payout, sometimes by 1–2 percentage points of XIRR. Anyone seeking equity-like returns — the guaranteed floor is the ceiling here. Anyone at or above the 30% tax slab who could route the same money into PPF or NPS for the same §80C benefit and a directly-comparable tax-free yield.
Inflation outpacing the implicit guaranteed yield is the dominant risk — a 5% guaranteed return looks meaningfully worse if inflation sustains at 6%+ for the policy term. The plan offers no upside participation, so a strong LIC valuation cycle (as seen in 2025) leaves Bima Jyoti holders with exactly what was contracted, while participating-plan holders see meaningful additional bonuses. Surrender in years 1–3 incurs significant loss because the GA accrual is back-loaded.
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term), excludes optional rider premiums from the cash-flow base, and assumes the latest declared simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions on the Bima Jyoti calculator.
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