Saturday 17 March 2018

LIC Bima Shree Policy | Features & Benefits

LIC Bima Shree Policy | Features & Benefits

LIC Bima Shree Policy | Features & Benefits

Life Insurance Corporation of India launched its new money back policy called LIC Bima Shree on 16th March 2018. LIC Bima Shree policy offers a combination of protection and savings. LIC Bima Shree policy is specially designed for High Net-worth Individuals. In this post, let us take a look at the features and benefits of LIC Bima Shree policy.



LIC Bima Shree Policy

LIC Bima Shree policy is a non-linked, with profit, guaranteed additions, limited premium payment money back life insurance policy. LIC Bima Shree policy is almost similar to LIC Jeevan Shiromani policy except for few changes. Minimum sum assured in LIC Bima Shree policy has reduced 10 lakh, as compared to 1 Crore in Jeevan Shiromani policy. This policy provides financial help to the family in the event of unfortunate death of the policyholders during the policy term. The policyholder shall also get periodic payments at specified durations during the policy term and a lump sum payment at the time of maturity.



Eligibility Conditions for LIC Bima Shree Policy

Following are the eligibility conditions for LIC Bima Shree policy
1. Minimum Sum Assured - Rs. 10 lakh
2. Maximum Sum Assured – There is no maximum limit. However, the Sum Assured shall be in multiples of Rs. 1 lakh.
3. Policy Term - 14, 16, 18 and 20 years
4. Premium Paying Term - (Policy term – 4) years
5. Minimum Age at entry - 8 years (completed)
6. Maximum Age at entry - 55 years for policy term 14 years.
                                      - 51 years for policy term 16 years.
                                      - 48 years for policy term 18 years.
                                      - 45 years for policy term 20 years.
7. Maximum Age at Maturity - 69 years for policy term 14 years.
                                             - 67 years for policy term 16 years.
                                             - 66 years for policy term 18 years.
                                             - 65 years for policy term 20 years.



Date of commencement of risk under LIC Bima Shree Policy

Under LIC Bima Shree policy the risk will commence immediately from the date of acceptance of the risk including minor lives.

Also read: LIC's E-Term Plan | Features & Benefits

Key Features of LIC Bima Shree Policy

Key features of LIC Bima Shree policy are:
1. LIC Bima Shree policy is a limited premium payment money back life insurance plan.
2. Guaranteed Additions under LIC Bima Shree policy.
a) Guaranteed Addition @ Rs 50/- per 1000 Sum Assured for first 5 policy years.
b) Guaranteed Addition @ Rs 55/- per 1000 Sum Assured from 6th year onwards.
3. Five optional riders are available under this plan by payment of additional premium.
a) Accidental Death and Disability Benefit Rider
b) Accident Benefit Rider
c) New Term Assurance Rider
d) New Critical Illness Benefit Rider
e) Premium Waiver Benefit Rider
However, you can opt for either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of four riders can be availed under LIC Bima Shree policy.
4. The policy can be surrendered at any time provided two full years premiums have been paid.
5. You can avail the loan during the policy term provided the policy has acquired a surrender value.
6. You can pay premiums yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only).
7. Policyholder shall have an option to defer the Survival benefits available for the policy.
8. Option to receive Maturity benefit in installments over the chosen period of 5 or 10 or 15 years.
9. Option to receive the Death benefit in installments over the chosen period of 5 or 10 or 15 years
10. Loyalty additions provided the policy has completed five policy years.


Benefits under LIC Bima Shree Policy

Following benefits are payable under LIC Bima Shree policy

1. Death Benefit

a) On death during first five years: “Sum Assured on Death” and accrued Guaranteed Addition shall be payable.
b) On death after completion of five policy years but before the date of maturity: “Sum Assured on Death” and accrued Guaranteed Addition and Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Death” is defined as the highest of the below
i) 10 times of annualized premium.
ii) 105% of all the premiums paid as on date of death.
iii) 125% of Basic Sum Assured.

2. Survival Benefit

On the life assured surviving, a fixed percentage of the Basic Sum Assured (BSA) shall be payable to each of the specified durations during the policy term. The fixed percentage for various policy terms is given below.
a) For policy term 14 years: 30% of BSA on each of 10th and 12th year of the policy.
b) For policy term 16 years: 35% of BSA on each of 12th and 14th year of the policy.
c) For policy term 18 years: 40% of BSA on each of 14th and 16th year of the policy.
d) For policy term 20 years: 45% of BSA on each of 16th and 18th year of the policy.

3. Maturity Benefit

If the policyholder survives up to the end of the policy term, “Sum Assured on Maturity” along with Guaranteed Additions and Loyalty Addition (if any), shall be payable to the policyholder.
Where “Sum Assured on Maturity” is given below.
i) 40% of BSA for policy term 14 years.
ii) 30% of BSA for policy term 16 years.
iii) 20% of BSA for policy term 18 years.
iv) 10% of BSA for policy term 20 years.


4. Guaranteed Additions

LIC Bima Shree policy offers guaranteed additions at the end of each policy year during the Premium Paying Term. The rate of Guaranteed Additions shall be as given below. 
a) Guaranteed Addition @ Rs 50/- per thousand BSA for first 5 policy years.
b) Guaranteed Addition @ Rs 55/- per thousand BSA from 6th policy year till end of Premium Paying Term.

5. Optional Benefits

1. Rider Benefits
2. Option to defer the Survival Benefits
3. Settlement Option (for Maturity Benefit)
4. Option to take Death benefit in installments





Also read: Direct mutual funds platforms in India to invest online

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LIC Bima Shree Policy | Features & Benefits




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