Introduction
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 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.
Table No.
848
Plan Type
Money Back
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
8 years
(completed age)
Maximum :
- 55 years – for 14 year term
- 51 years – for 16 year term
- 48 years – for 18 year term
- 45 years – for 20 year term
Maturity Age
Minimum
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Maximum
- 69 years – for 14 year term
- 67 years – for 16 year term
- 66 years – for 18 year term
- 65 years – for 20 year term
(nearest age)
Basic Sum Assured
Maximum
Rs. 10,00,000
Minimum
No Limit
Policy Term
14, 16, 18 & 20 years
Policy Paying Term
Policy Term – 4 years
Premium Payment Frequency
Yearly, Half-Yearly, Quarterly, Monthly
Date Of Commensment Of Risk
Immidietly from the date of insurance of policy
Coverage
Death Benefit
- Death Benefit
- Survival Benefit
- Maturity Benefit
- Guranteed Additions
- Participation In Profit
Key Features
- Unlike the typical traditional plans of LIC, this plan will be eligible for paid-up immediately after the completion of 2 years. For all other policies of LIC, paid up feature will be applicable if you paid the premium for at least 3 years.
- As the policy is eligible for paid up after 2 years, you are eligible to surrender the policy immediately after the 2nd year completion.
- You can avail the loan after a year of the policy.
- This plan offers the riders like Accidental Death and Disability Benefit, Accident Benefit, New Term Assurance Rider, Critical Illness rider and premium waiver rider. However, the policyholder can opt either Accidental Death and Disability Benefit or Accident Benefit. Hence, one can avail the maximum of 4 riders in this plan.
- You can pay the premium yearly, half-yearly, quarterly or monthly.
Policy Benefits
Death Benefit
On death during first five years: Death Benefit defined as 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 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 annualised premium; or
- Sum Assured on Maturity as defined in 1. c) below; or
- Absolute amount assured to be paid on death, i.e. 125% of Basic Sum Assured.
Survival Benefit
On the life assured surviving to each of the specified durations during the policy term, provided all due
premiums have been paid, a 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.
Maturity Benefit
On the life assured surviving to the end of the policy term, provided all due premiums have been paid, “Sum Assured on Maturity” along with accrued Guaranteed Additions and Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Maturity” is as under:
- 40% of Basic Sum Assured for policy term 14 years
- 30% of Basic Sum Assured for policy term 16 years
LIC’s Bima Shree 2
- 20% of Basic Sum assured for policy term 18 years
- 10% of Basic Sum assured for policy term 20 years
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 till date. The rate of Guaranteed Additions shall be as follows:
- Rs. 50 per thousand Basic Sum Assured for first five years
- Rs. 55 per thousand Basic Sum Assured from 6th policy year till end of PPT
In case of a paid-up policy or on surrender of a policy the Guaranteed Addition for the policy year in which the last premium is received will be added on proportionate basis in proportion to the premium received for that year.
Rebate
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Profit Participation
Provided the policy has completed five policy years and atleast 5 full years’ premium have been paid, then depending upon the Corporation’s experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation. Under a paid-up policy, Loyalty Addition shall be payable for the completed policy years for which the policy was inforce.
In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of policy during the policy term, provided the policy has completed five policy years and atleast 5 full years’ premium have been paid. In case of surrender of policy, Loyalty Addition shall be payable for the completed policy year for which the policy was inforce.
Ideal Plan
This plan is specially designed for High Net-worth Individuals.
Tax Benefits
Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C under current Income Tax Rules. The Maturity Benefit is also tax free under section 10(10)D subject to fulfilment of all terms and conditions. These tax rebates may be revised from time to time.
Loans
Loan can be availed during the policy term provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.
The interest rate to be applied for policy loan and as applicable for full term of the loan shall be determined at periodic intervals. For loan sanctioned in Financial Year 2017-18, the applicable interest rate is 9.5% p.a. payable half-yearly for entire loan term.
The maximum loan as a percentage of surrender value shall be as under:
- For inforce policies- upto 90%
- For paid-up policies- upto 80%
Any loan outstanding along with interest shall be recovered from the survival benefits or claim
proceeds at the time of exit.
Other Benefits
Apart from the above-mentioned benefits, LIC’s Bima Shree Plan offers the following:
- Option to defer the survival benefits(s) where a policyholder can get increased survival benefits. This is a combination of the original deferred benefit(s) plus interest.
- Settlement option for maturity benefit and death benefit where the policyholder can choose to receive the benefits in instalments over a period of 5, 10 or 15 years.
Riders
Accidental Death and Disability Rider
This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term is atleast 5 years. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.
Accident Benefit Rider
This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term is atleast 5 years. The benefit cover under this rider shall be available during the premium paying term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan.
LIC’s New Term Assurance Rider
LIC’s Bima Shree 2
This rider is available at inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on death of the Life Assured during the policy term.
LIC’s New Critical Illness Benefit Rider
This rider is available at the inception of the policy only. The cover under this rider shall be available during the policy term. If this rider is opted for, on first diagnosis of any one of the specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall be payable.
LIC’s Premium Waiver Benefit Rider
This rider shall be available on the life of Proposer of the plan where the life assured is a minor. This rider can be opted for at any time within the premium paying term of the Base plan provided the outstanding premium paying term is atleast 5 years. If this rider is opted for, the payment of the premiums in respect of the base plan falling due after the date of death of the proposer shall be waived.
Surrender Value
As the policy is eligible for paid up after 2 years, you are eligible to surrender the policy immediately after the 2nd year completion. Currently, the interest rate is 9.5% per annum. This may change from time to time. The maximum loan amount depends on the surrender value of the plan:
- If policy is in-force – 90% of Surrender Value
- For paid-up policies – 80% of Surrender Value
Guaranteed Surrender Value
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Special Surrender Value
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Paid Up Period
To get the tag of a paid-up policy, you must pay all your premiums for two years without a miss. In case you miss paying a premium on your policy before the completion of two years then your policy will cease to exist at the end ofthe grace period. However, not paying any premium after the two year mark will ensure that it is considered as a paid-up policy until the end of the policy tenure.
Rebates
Rebate on Premium Payment Mode
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of the Tabular premium
Quarterly, Monthly (NACH) & Salary deduction- NIL
Rebate on Sum Assured
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High Sum Assured and Mode 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 | .03% of Basic Sum Assured |
| 50, 00,000 and above | .05% of basic Sum Assured |
Other Details
Revival Period
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Free Look Period
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Grace Period
The grace period available is 30 days for yearly, half-yearly and quarterly payments and 15 days for monthly payments.
Nomination
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Assignment
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Exclusions
Suicide
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Claim Process
Death Claim
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Maturity Claim
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Surrender Claim
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Examples
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FAQs
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