LIC’s Bima Shree plan offers a combination of protection and savings. This plan is specially designed for High Net-worth Individuals. This plan provides financial support for the family in case of unfortunate death of the policyholders during the policy term. Periodic payments shall also be made on the survival of the policyholder at specified durations during the policy term and a lump sum payment to the surviving policyholder at the time of maturity. This plan also takes care of liquidity needs through a loan facility.
Benefit
Maturity Benefit of LIC’s Bima Shree
Maturity Benefit of the LIC Bima Shree is a lot. Sum Assured on Maturity along with accrued Guaranteed Additions and Loyalty Addition (if any) will be payable. The Sum Assured on Maturity is 40% of Basic Sum Assured for a policy term of 14 years, 30% of Basic Sum Assured for a policy term of 16 years, 20% of Basic Sum assured for a policy term of 18 years, 10% of Basic Sum assured for a policy term of 20 years.
Death Benefit of LIC’s Bima Shree
There are following of death benefits in LIC Bima Shree. The benefit is as follows-
On death during the first five years: Death Benefit defined as the sum of Sum Assured on Death and accrued Guaranteed Addition shall be payable.
On death after completion of five policy years but before the date of maturity: Death Benefit defined as the sum of “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 10 times of the annualized premium
Sum Assured on Maturity: It can be defined as the Absolute amount assured to be paid on death, i.e. 125% of Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Survival Benefit of LIC’s Bima Shree
The survival benefit for LIC Bima Shree will e calculated as the fixed percentage of Basic Sum Assured shall be payable.
The fixed percentage for various policy terms is as below:
- For policy term 14 years: 30% of Basic Sum Assured on each of 10th and 12th policy anniversary.
- For policy term 16 years: 35% of Basic Sum Assured on each of 12th and 14th policy anniversary.
- For policy term 18 years: 40% of Basic Sum Assured on each of 14th and 16th policy anniversary.
- For policy term 20 years: 45% of Basic Sum Assured on each of 16th and 18th policy anniversary.
Guaranteed Additions
Guaranteed Additions shall accrue at the end of each policy year during the Premium Paying Term (PPT), provided all due premiums have been paid to date.
The rate of Guaranteed Additions shall be as follows:
- 50 per thousand on Basic Sum Assured for the first five years
- 55 per thousand on Basic Sum Assured from 6th policy year till the end of PPT
Optional Benefit of LIC’s Bima Shree
The following are the additional benefit of LIC Bima Shree
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC’s Accident Benefit Rider (UIN: 512B203V03)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
- LIC’s Premium Waiver Benefit Rider (UIN: 512B204V02)
- LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
- Settlement Option (for Maturity Benefit): Settlement Option is an option to receive Maturity Benefit in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This option can be exercised only by the Life Assured aged 18 years or above, for full or part of the maturity proceeds payable under the policy.
- Option to take Death benefit in installments: This is an option to receive Death Benefit in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This option can be exercised only by the Life Assured aged 18 years or above, for full or part of the Death proceeds payable under the policy.
Eligibility Conditions for LIC’s Bima Shree
| Minimum Basic Sum Assured | Rs. 10,00,000 |
| Maximum Basic Sum Assured | No limit |
| Policy Term | 14, 16, 18 and 20 years |
| Premium Paying Term | 4 years |
| Minimum Age at entry | 8 years |
| 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 |
| 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 |
Rebate
Mode Rebate
| Yearly mode | 2% of Tabular Premium |
| Half-yearly mode | 1% of the Tabular premium |
| Quarterly, Monthly (NACH) | NIL |
High Basic Sum Assured Rebate
| Basic Sum Assured (BSA) | Rebate on tabular premium(Rs.) |
| 10, 00,000 to 19, 00,000 | Nil |
| 20, 00,000 to 49, 00,000 | 0.30 ‰ BSA |
| 50, 00,000 and above | 0.50 ‰ BSA |
Surrender Value
The policy can be surrendered at any time provided two full years’ premiums have been paid. On surrender of the policy the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.
Revival
A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium by paying all the arrears of premium together with interest.
Policy Loan
The loan can be availed during the policy term provided the policy has acquired a surrender value. The interest rate to be applied for policy loan and as applicable for the full term of the loan shall be determined at periodic intervals. For Financial Year 2017-18, the applicable interest rate is 9.5% p.a. The maximum loan as a percentage of surrender value can be up to 80- 90%.
Free look period
The policy has a free lookup period of 15 days. Within 15 days from the date of receipt of the policy bond stating the reasons of objections and the amount of premium deposited after deducting the proportionate risk premium will be returned
Exclusion
In the case of suicide at any time within 12 months, the policy will be voided. In the instance of the suicide of the policyholder it would not matter if the policyholder is mentally fit or unfit but by committing suicide he/she would make the policy ineffective.
