Endowment Plans
LIC's New Bima Jyoti (890)
Limited-pay endowment with 6% yearly Guaranteed Additions and 5 years less to pay
- Entry age
- 30 days (completed) to 60 years (nearer birthday); through POSP-LI/CPSC-SPV: 65 years minus policy term
- Policy term
- 15 to 20 years
- Premium paying term
- Policy term minus 5 years (10 to 15 years)
- Min. sum assured
- ₹1,25,000
Plan overview
LIC's New Bima Jyoti is a non-participating, limited premium endowment plan that combines life cover with savings. You choose a policy term of 15 to 20 years and pay premiums for 5 years less than the term, while Guaranteed Additions build up every year. It suits people, including parents buying for children, who want a fixed maturity amount without depending on bonuses.
New to endowment plans? Read our simple guide: What Is an Endowment Plan? A Simple Guide →Key benefits
- Policy term of 15 to 20 years; premiums paid for policy term minus 5 years (10 to 15 years)
- Guaranteed Additions of 6% of Total Annualized Premiums paid, added every policy year
- Death cover of the higher of 125% of Basic Sum Assured or 7 times the annualized premium
- Death benefit never less than 105% of total premiums paid
- Low entry point: minimum Basic Sum Assured of ₹1,25,000
- Extra Guaranteed Additions for high sum assured and online purchase
- Entry from 30 days of age; also sold through POSP-LI/CPSC-SPV
Eligibility at a glance
- Plan number
- 890
- UIN
- 512N395V01
- Plan type
- Non-Par, Non-Linked, Life, Individual, Savings Plan
- Entry age
- 30 days (completed) to 60 years (nearer birthday); through POSP-LI/CPSC-SPV: 65 years minus policy term
- Maximum maturity age
- 75 years (nearer birthday); 65 years through POSP-LI/CPSC-SPV
- Policy term
- 15 to 20 years
- Premium paying term
- Policy term minus 5 years (10 to 15 years)
- Minimum sum assured
- ₹1,25,000
- Maximum sum assured
- No limit (subject to underwriting); Sum Assured on Death up to ₹25 lakh through POSP-LI/CPSC-SPV
- Premium payment modes
- Yearly, Half-yearly, Quarterly, Monthly (e-NACH/NACH only), Salary deduction (SSS); only Yearly and Half-yearly if Basic Sum Assured is below ₹1,50,000
How the plan works
LIC's New Bima Jyoti (Plan 890) is a non-participating, non-linked limited premium endowment plan. You choose a policy term between 15 and 20 years and pay premiums for 5 years less than the term. Since it is a non-par plan, benefits are fixed at the start and there is no bonus. Instead, Guaranteed Additions of 6% of the Total Annualized Premiums paid accrue at the end of each policy year.
| Eligibility | Details |
|---|---|
| Entry age | 30 days (completed) to 60 years (nearer birthday) |
| Maturity age | 18 years (completed) to 75 years (nearer birthday) |
| Policy term | 15 to 20 years |
| Premium paying term | Policy term minus 5 years (10 to 15 years) |
| Minimum Basic Sum Assured | ₹1,25,000 |
| Maximum Basic Sum Assured | No limit, subject to underwriting |
Basic Sum Assured must be in multiples of ₹5,000 from ₹1,25,000 to ₹2,75,000, and in multiples of ₹25,000 above ₹2,75,000.
For a child under 8 at entry, risk cover starts 2 years from policy commencement or from the policy anniversary on or after age 8, whichever is earlier. The policy vests in the child at age 18.
Death benefit
If the life assured dies during the policy term after risk has started, and the policy is in force, the nominee receives the Sum Assured on Death plus accrued Guaranteed Additions. Sum Assured on Death is the higher of 125% of Basic Sum Assured or 7 times the Annualized Premium. The death benefit will not be less than 105% of total premiums paid, and the Guaranteed Addition for the year of death is counted for the full year.
For a child aged below 8 at entry who dies before risk starts, the premiums paid (excluding taxes, extra and rider premiums) are returned without interest.
Maturity benefit
On surviving to the end of the policy term with the policy in force, LIC pays the Basic Sum Assured (Sum Assured on Maturity) plus accrued Guaranteed Additions. Once all premiums are paid, Guaranteed Additions continue to accrue until maturity.
Optional riders
Available on payment of extra premium (not for policies bought through POSP-LI/CPSC-SPV). Either of the two accident riders can be chosen, plus the other three subject to eligibility:
- LIC's Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC's Accident Benefit Rider (UIN: 512B203V03)
- LIC's New Term Assurance Rider (UIN: 512B210V02) - at inception only
- LIC's Premium Waiver Benefit Rider (UIN: 512B204V04) - on the proposer's life where the life assured is a minor
- LIC's Critical Illness Health Rider (UIN: 512B227V01) - at inception only; 15 major critical illnesses (Option 1) or 40 critical illnesses with Assisted Living Benefit (Option 2)
Loan, surrender & revival
Loan: Available after the first policy year once one full year's premium is paid, within the surrender value.
| Policy status | Before 2 full years' premiums | After 2 full years' premiums |
|---|---|---|
| In-force | 50% of surrender value | 80% of surrender value |
| Paid-up | 40% of surrender value | 75% of surrender value |
Loan interest for loans sanctioned from 1 May 2026 to 30 April 2027 is 9.50% p.a., compounded half-yearly.
Surrender: Allowed after the first policy year if one full year's premium is paid (Special Surrender Value). The Guaranteed Surrender Value is acquired after premiums for at least two consecutive years. LIC pays the higher of GSV (plus surrender value of accrued Guaranteed Additions) or SSV.
Paid-up: If premiums stop after at least one full year's premium, the policy continues as paid-up till the end of the term with proportionately reduced sum assured and Guaranteed Additions.
Revival: A lapsed policy can be revived within 5 consecutive complete years from the first unpaid premium and before maturity, by paying arrears with interest and showing continued insurability. The revival interest rate for 1 May 2026 to 30 April 2027 is 9.50% p.a., compounded half-yearly.
Other key terms
- Grace period: 30 days for yearly, half-yearly and quarterly premiums; 15 days for monthly.
- Free-look period: 30 days from receipt of the policy document.
- Premium modes by sum assured: Below ₹1,50,000 - yearly and half-yearly only; ₹1,50,000 and above - yearly, half-yearly, quarterly, monthly (e-NACH/NACH) or salary deduction.
- Settlement option: Maturity benefit can be taken in instalments over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
- Death benefit in instalments: Can be chosen over 5, 10 or 15 years.
- High sum assured incentive (extra Guaranteed Addition rate):
| PPT | ₹1,25,000 to below ₹3,00,000 | ₹3,00,000 to below ₹5,00,000 | ₹5,00,000 to below ₹10,00,000 | ₹10,00,000 and above |
|---|---|---|---|---|
| 10 to 14 years | Nil | 0.50% | 0.85% | 1.00% |
| 15 years | Nil | 0.75% | 1.10% | 1.25% |
- Online purchase incentive: Extra 1.25% (PPT 10 to 14) or 1.50% (PPT 15).
- Suicide exclusion: Within 12 months of risk commencement or revival, the higher of 80% of premiums paid or the surrender value is payable (not applicable if age at entry/revival is below 8).
- POSP-LI/CPSC-SPV purchases: 90-day waiting period for non-accidental death, no riders, maximum Sum Assured on Death ₹25 lakh.
Who should buy LIC's New Bima Jyoti?
- Savers wanting a fixed maturity amount backed by yearly Guaranteed Additions
- Parents planning for a child's future (entry from 30 days of age)
- People who want to stop paying premiums 5 years before the policy matures
- Buyers with a smaller budget, since the minimum sum assured is ₹1,25,000
- Those who prefer non-bonus, fixed-benefit savings with life cover
Frequently asked questions
How long do I pay premiums under LIC New Bima Jyoti 890?
Premiums are paid for the policy term minus 5 years. With a policy term of 15 to 20 years, you pay for 10 to 15 years.
What Guaranteed Additions does New Bima Jyoti offer?
Guaranteed Additions accrue at 6% of the Total Annualized Premiums paid at the end of each policy year for an in-force policy. Extra rates apply for higher sum assured and online purchase.
What is the minimum sum assured?
₹1,25,000. It must be in multiples of ₹5,000 up to ₹2,75,000 and multiples of ₹25,000 above that. There is no maximum, subject to underwriting.
Can I buy this plan for my child?
Yes. The minimum entry age is 30 days. For children under 8, risk cover starts after 2 years or from the policy anniversary on or after age 8, whichever is earlier.
What is paid on death during the policy term?
The higher of 125% of Basic Sum Assured or 7 times the annualized premium, plus accrued Guaranteed Additions. It is never less than 105% of total premiums paid.
Can I pay premiums monthly?
Monthly (through e-NACH/NACH), quarterly and salary deduction modes are allowed only if the Basic Sum Assured is ₹1,50,000 or more. Below that, only yearly and half-yearly modes are allowed.