LIC issued a special policy on its golden jubilee year called the LIC Bima Gold. This policy was issued for a limited tenure and is now withdrawn. However, let’s check out the policy in details –

Overview of LIC Bima Gold Plan

LIC Bima Gold is a traditional money back policy which pays money back benefits at regular intervals. The policy, therefore, provides liquidity through money-back benefits which help you deal with your financial needs. The plan also pays loyalty additions which help in boosting the benefit that you receive.

Key features of LIC Bima Gold Plan

Here are some key features which are offered by the plan –

  1. Money-back benefits are paid from the 4th policy year and after every 4 years thereafter
  2. On maturity, loyalty additions are also added to the sum assured
  3. The plan offers auto cover benefit wherein the coverage continues for two years even if the premiums are not paid
  4. There is an optional rider which covers accidental death and disabilities
  5. You can avail a policy loan if you are in need of funds
  6. Attractive premium discounts are offered by the plan which saves your hard-earned money

Benefits of LIC Bima Gold Plan

Here are the different types of benefits which LIC Bima Gold offers –

  1. Survival benefits

    As the plan is a money-back plan, it pays survival benefits over the policy tenure if you are alive. The payment of benefits depends on the policy term that you choose. There are three options of the policy term and the benefits under each are as follows –

    • If the term is 12 years
    • The time when survival benefit is paid

      Amount of survival benefit

      End of the 4th policy year

      15% of the sum assured

      End of the 8th policy year

      15% of the sum assured

    • If the term is 16 years
    • The time when survival benefit is paid

      Amount of survival benefit

      End of the 4th policy year

      15% of the sum assured

      End of the 8th policy year

      15% of the sum assured

      End of the 12th policy year

      15% of the sum assured

    • If the term is 20 years
    • The time when survival benefit is paid

      Amount of survival benefit

      End of the 4th policy year

      10% of the sum assured

      End of the 8th policy year

      10% of the sum assured

      At the end of the 12th policy year

      10% of the sum assured

      At the end of the 16th policy year

      10% of the sum assured

  2. Maturity benefit

    When the plan matures, the maturity benefit is calculated as follows –

    (Aggregate premiums paid over the policy duration + loyalty additions) – survival benefits already paid

  3. Death benefit

    If the insured dies during the term of the policy, the full sum assured is paid to the nominee. This sum assured would not be reduced by the survival benefits already paid.

  4. Auto cover benefit

    If you have paid the policy premiums for at least two policy years and then you are unable to pay the subsequent premiums, the coverage would not reduce. The policy would provide you with an auto cover facility wherein your policy would continue for the next two years even if the premiums for such years are not paid.

  5. Guaranteed surrender value

    If you want to exit from the policy before the completion of the tenure, you can surrender the plan. When you surrender the policy, you get a guaranteed surrender value. However, the guaranteed surrender value would be payable only if premiums of at least three full policy years have been paid and if the policy has completed at least 3 years. The guaranteed surrender value would be calculated as follows –

    30% * (aggregate premiums paid during the policy year – first-year premiums – survival benefits already paid – rider premiums paid if any)

  6. Paid-up value

    If you have paid at least three full years’ premiums and future premiums are not paid, the auto cover benefit would become applicable. Moreover, even after the auto cover period is over, the coverage would not terminate. In such cases, the policy would become paid-up and acquire a paid-up value. The paid-up value would be calculated as follows –

    Paid-up value = aggregate premiums paid till lapse – survival benefits paid earlier

  7. Loan

    You can avail a loan under the plan if you need. Loans are available if the policy has acquired a paid-up value. The loan would be available up to a specified limit.

  8. Revival

    If your policy has lapsed and you want to revive it, you can do so by paying the outstanding premiums along with interest thereon. Proof of insurability would also be required. Revivals are allowed within five years of lapse of the policy.

  9. Premium discounts

    LIC Bima Gold offers two types of premium discounts which are as follows –

    • Modal discount
    • If you pay premiums annually, you get a premium discount of 2%. On the other hand, if you pay premiums half-yearly, the premium discount would be 1%.

    • High sum assured discount
    • Discounts are also allowed if you choose high levels of sum assured. The discounts are as follows –

      Sum assured level

      Available discount

      INR 50,000 to INR 99,999

      INR 2.5 per INR 1000 sum assured

      INR 1 lakh to INR 199,999

      INR 7.5 per INR 1000 sum assured

      INR 2 lakhs and above

      INR 10 per INR 1000 sum assured

Rider benefit under LIC Bima Gold Plan

Under LIC Bima Gold you get an optional Accidental Death and Disability Benefit Rider. This rider covers deaths and disablements suffered in an accident. In case of accidental death, the rider sum assured would be paid in addition to the basic sum assured of the policy. In case of accidental disablement, on the other hand, the rider sum assured is paid in monthly instalments over a period of 10 years.

Tax benefit under LIC Bima Gold Plan

The premiums which are paid towards LIC Bima Gold policy are considered to be a tax-free deduction under Section 80C. These deductions lower your tax liability by up to a maximum of INR 1.5 lakhs. The survival benefits, death benefit or maturity benefit which you receive from the policy would also be considered to be fully exempted from tax under Section 10(10D). These benefits would, therefore, be a tax-free income in your hands.

Eligibility parameters of LIC Bima Gold Plan

Entry age

14 years to 63 years

Maximum maturity age

75 years

Policy term

12, 16 or 20 years

Sum assured

Minimum – INR 40,000

Maximum – no limit

Premium

Depends on age, the sum assured and policy term

Exclusions under LIC Bima Gold Plan

If the insured commits suicide and dies within 12 months of buying the plan, the premiums paid would be refunded.

Premium payment under LIC Bima Gold Plan

You are required to pay premiums throughout the term of the policy under LIC’s Bima Gold Plan. The sample premium rates for different policy tenures and at different ages are depicted below. The sum assured is assumed to be INR 5 lakhs and premiums are assumed to be paid yearly.

Age of the insured

Term 12 years

Term 16 years

Term 20 years

30 years

INR 28,445

INR 24,035

INR 16,660

35 years

INR 29,817

INR 25,260

INR 17,861

40 years

INR 32,365

INR 27,391

INR 19,796

45 years

INR 41,283

INR 30,576

INR 22,614

How does LIC Bima Gold Plan work?

To understand the working of the policy, let’s assume that you buy a policy for 16 years with a sum assured of INR 5 lakhs. The premium at age 35 years is INR 25,260. Here’s how the plan would work –

  • After the end of the 4th policy year, 8th policy year and 12th policy year 15% of the sum assured would be paid. Thus, you would get INR 75,000 at the end of the 4th, 8th and 12th policy year
  • On maturity of the plan, the aggregate premiums paid along with the loyalty additions would be refunded back after deducting the survival benefits of INR 225,000
  • In case of death during the policy tenure, INR 5 lakhs would be paid. Any survival benefits already paid under the plan would not be deducted from the sum assured and the full sum assured would be paid.

How to buy LIC Bima Gold?

LIC Bima Gold was a limited period insurance plan offered by LIC which currently stands withdrawn. So, you cannot apply for a new Bima Gold policy. You can, however, buy other money-back insurance plans offered by LIC or other insurance companies. 

However, you can buy other money-back insurance plans through Turtlemint. Turtlemint is an online platform which allows you to buy the best money-back insurance plans available in the market. To buy through Turtlemint, take the following steps –

  • Visit https://www.turtlemint.com/life-insurance and choose ‘investment and tax planning’ need
  • Enter the details which would help in determining the best coverage level and premiums. The details include your age, gender, annual income, smoking preference, investment period, investment amount, etc.
  • After the details are entered, you would be able to check the best money-back plans available in the market
  • Compare and choose the best policy for your needs
  • Pay the online premium and the policy would be bought

Making a claim under LIC Bima Gold

In case a survival claim falls due, you are required to submit a claim discharge form and an identity proof. After verifying the details, the survival benefit would be paid. Even in the case of maturity claims, a claim discharge form, policy bond and identity proof would be required. Based on the documents submitted, you would get the maturity claim.

In case of death of the insured, the nominee is required to inform the insurance company about the death. Claim Form 3783 is required to be filled and submitted to the insurance company. The nominee should also submit the following documents in case of a death claim –

  • Death certificate of the insured
  • Police FIR, inquest report, medical reports, post mortem report, etc. in case of accidental death
  • Policy bond
  • Identity proof of the nominee

The documents would be verified by LIC and the death claim would be settled.

You can also make your insurance claim through Turtlemint. This facility is allowed to you if you have bought the policy through Turtlemint. In that case, you can raise your claim with Turtlemint by calling them at 1800 266 0101 or by sending them an email at claims@turtlemint.com. Once the claim is raised, Turtlemint’s team would take the necessary steps on your behalf and get your life insurance claim settled.


FAQ’s

You can pay premiums annually, half-yearly, quarterly or monthly. Monthly premiums would be allowed under the Salary Saving Scheme.


The rate of loyalty additions is not fixed. It depends on the profit experience of LIC and is determined by LIC from time to time.


The interest charged on the loan that you avail under LIC Bima Gold Policy is 9% per annum.


Yes, there is a cooling-off period of 15 days available under the policy. This period is allowed so that you can cancel the policy after buying it if you are not satisfied. On cancellation, the premiums paid would be refunded after deducting the cost of issuing the policy and the mortality charge for the period for which the policy was in force.

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