LIC’s Bima Shree
LIC Bima Shree is the newest feather in the exceptionally crafted products of Life Insurance Corporation of India. The LIC Bima Shree plan of was launched on 13th June 2018. LIC has introduced this insurance policy as a money back insurance policy that guarantees payment to the policyholder at regular intervals. The Bima Shree plan is designed to provide financial stability and security to the policyholder and to their family in case of unfortunate death of the bread-winner during the tenure of the policy. Being a money-back plan the LIC Bima Shree plan guarantees periodic payments to the policyholder at specific intervals and in lump sum on policy maturity. Let us understand the LICs Bima Shree Plan in detail.
What are key highlights of the LIC Bima Shree Plan?
The LICs Bima Shree Plan offers following key features to the policyholders
- LIC Bima Shree is a traditional non-linked plan
- The LIC Bima Shree plan is a money-back plan i.e. the plan gurantees periodic payment at specific intervals
- Guaranteed addition payment is paid on full premium payment tenure
- The plan offers flexibility of choosing the policy term as per the convenience of the policyholder
- The plan takes care of financial requirements of the policyholders by offering policy loan facility
- The Bima Shree plan offers survival benefits to the policyholder and the policyholder’s have an option to defer with survival benefits
What are the benefits offered by LIC Bima Shree Plan?
Following are the key benefits of availing the LICs Bima Shree Plan :
- Maturity Benefit
Maturity benefit is payable on survival of the life assured through the entire Policy Term.
Maturity Benefit = Sum Assured on Maturity + Guaranteed Additions + Loyalty Additions, if any
The policyholder’s of Bima Shree Plan are eligible to get Guaranteed Additions and the Loyalty Additions along with maturity payouts depending upon the policy tenure.
The Sum Assured on Maturity is defined as :
- 40% of the Basic Sum Assured for 14 years of policy tenure
- 30% of the Basic Sum Assured for 16 years of policy tenure
- 20% of the Basic Sum Assured for 18 years of policy tenure
- 10% of the Basic Sum Assured for 20 years of policy tenure
- The rest of the benefit is paid as survival benefit during the policy tenure as per the pre-defined schedule.
- Settlement Option: Maturity Benefits in Installments
Taking the maturity benefit in instalment is also called as the Settlement Option under the LICs Bima Shree Plan. The policyholder has an option to take the Maturity Benefits in instalments and for that tenure an interest is earned by the policyholder.
Under this option :
- The maturity benefits are payable over 5, 10 or 15 years after the maturity of the plan
- In a yearly, half-yearly, quarterly or monthly mode, as selected by the policyholder provided the minimum amount requirement is met
- For availing this option the policyholders are eligible to receive interest as per the rate decided by LIC.
- If the net claim amount is less than the minimum amount requirement, then the Settlement Option cannot be availed
- Minimum Requirement Amount is defined as :
- Rs 5,000 for a monthly mode
- Rs 15,000 for a quarterly mode
- Rs 25,000 for a semi-annual mode and
- Rs 50,000 for a yearly mode
- Survival Benefit
The policyholders of Bima Shree Plan on survival during the term of the policy are eligible for receiving the survival benefit as under:
|Policy Tenure||% of Sum Assured paid as Survival Benefit||Survival Benefit years||Maturity Benefit = % of Basic Assured + Guaranteed Additions + Loyalty Additions||Total Benefit = Survival Benefit + Maturity Benefit (As % of Basic Sum Assured + Guaranteed Additions + Loyalty Additions|
|14 years Policy||30%||10th & 12th Policy Year||40%||100%|
|16 years Policy||35%||12th & 14th Policy Year||30%||100%|
|18 years Policy||40%||14th & 16th Policy Year||20%||100%|
|20 years Policy||45%||16th & 18th Policy Year||10%||100%|
- Death Benefit
The payment of death benefit is different for these 2 scenarios as under :
- Within the first 5 years of the plan
If the death of the Life Assured is during the first 5 policy years then the nominee would receive the Basic Sum Assured on Death + accrued Guaranteed Additions
- After the first 5 years but before maturity
If the Death of the life assured is after completing the first 5 policy years then the nominee would receive the Basic Sum Assured on Death + accrued Guaranteed Additions + Loyalty Additions, if any
- Kindly note that the Sum Assured on Death is higher of the following :
- 10 x Annualised premium
- 125% of the Basic Sum Assured
- Sum Assured on Maturity
- Within the first 5 years of the plan
- Guaranteed Additions
The policyholders of LIC Bima Shree Plan are eligible to receive Guaranteed Additions as under :
- During the first 5 policy years: Guaranteed Additions are paid as Rs. 50 per Rs. 1,000 of the Basic Sum Assured
- After the first 5 policy years: Guaranteed Additions are paid as Rs. 55 per Rs. 1,000 of the Basic Sum Assured
- Surrendering a policy or paid-up plan:
In the case of surrendering a plan or a paid-up plan, the Guaranteed Addition would be calculated on a proportionate basis as per the last premium received.
- Loyalty Additions
The policyholder’s of LICs Bima Shree Plan are eligible to receive the Loyalty Additions :
- After the completion of first 5 policy years, both for Death as well as Maturity Claim.
- The amount of loyalty addition is not fixed as it is declared by LIC at regular intervals.
- For Paid-up plans or for surrendering a policy, the Loyalty Additions would be calculated for the tenure the policy was inforce.
- Loyalty Additions would also be calculated for Special Surrender Value, provided the policy has been inforce for the first 5 policy years
Surrender Benefit of LIC Bima Shree Plan
- Surrendering the LIC Bima Shree Plan can be done provided that premiums of two full years are paid.
- On surrendering the LIC Bima Shree plan surrender value higher of either Guaranteed Surrender Value or Special Surrender value shall be paid to the policyholder.
- The Guaranteed Surrender Value payable during the tenure of the policy will be =
- Total premiums paid till the date of surrender X
- Guaranteed Surrender Value factor MINUS
- Any survival benefit due or payable.
- The Guaranteed Surrender Factor is represented as a % determined by the policy term and the year of surrendering the policy.
- Following is a tabular illustration of guaranteed surrender value factor of LICs Bima Shree Plan :
|Policy year of surrender||Policy term 14 years||Policy term 16 years||Policy term 18 years||Policy term 20 years|
- Deferred Survival Benefits
This is a unique advantage offered under the Bima Shree Plan.
- Policyholder has a choice to either avail or defer taking the survival benefits.
- The policyholder’s can avail the deferred survival benefit later at any given point during the policy tenure.
- The policyholders even have a choice to take the survival benefit along with the maturity benefit payout.
- The policyholders are eligible to receive interest on such deferred survival benefit.
- Death Benefit in Installment – The policyholder has an option to take the Death Benefit in instalments. The death benefit is payable over 5, 10 or 15 years. Additionally, the policyholders can also choose the mode of the death benefit payment namely yearly, half-yearly, quarterly or monthly. The policyholders are eligible to receive interest as per the rate decided by LIC.
What are the eligibility parameters for buying LICs Bima Shree Plan?
|Eligibility Parameters of LIC Bima Shree Plan|
|Min. Sum Assured||Rs 10 Lakhs|
|Max. Sum Assured||No Limit|
|Policy Term||14 Years, 16 Years, 18 Years and 20 Years|
|Premium Paying Tenure||Policy Term opted MINUS 4 Years|
|Min Entry Age||8 Years|
|Max Entry Age||For 14 Years of Policy Term 55 Years|
For 16 Years of Policy Term 51 Years
For 18 Years of Policy Term 48 Years
For 20 Years of Policy Term 45 Years
|Max Age of Policyholder at time of Policy Maturity||For 14 Years of Policy Term 69 Years|
For 16 Years of Policy Term 67 Years
For 18 Years of Policy Term 66 Years
For 20 Years of Policy Term 65 Years
|Date of Risk Commencement||Immediate|
Thus above are the main and important eligibility criteria that policyholder should fulfill in order to purchase the LICs Bima Shree Plan.
What are the steps to purchase LIC Bima Shree Plan?
Purchasing the LICs Bima Shree Plan is easy and simple. Life Insurance Corporation has simplified the ways in which the policy can be purchased. Anyone who wishes to purchase the LIC Bima Shree Plan can do it in the following ways :
- Through Offline Channel: The offline channel is the traditional way of purchasing LIC Plans. In the offline channel LICs Bima Shree policy can be purchased from LIC offices or Branch Offices directly. Alternatively, the plans can also be purchased from authorized agents and brokers of LIC. The authorized agents and brokers are appointed by LIC for facilitating the ease of buying and servicing of various policies issued by LIC
- Through Online Channel: Policyholder’s can now purchase the LICs Jeevan Bima Plan from the official website of LIC within few clicks. The online channel offers a safe and secure gateway to purchase the LICs Bima Shree Plan.
What are the documents required for purchasing the LIC Bima Shree Plan?
For purchasing the Bima Shree Plan the policyholders are required to submit the following documents :
- The latest passport sized photograph
- Xerox of Identity Proof like Aadhar Card, Pan Card, Passport etc
- Xerox of Address Proof like Electricity Bill, Passport, Gas Connection Bill etc
- Xerox of Age Proof like Birth Certificate, Passport etc
- Completely filled LIC Bima Shree Proposal form
- Cheque or Cash of Policy Premium
What are the premium rates of LIC Bima Shree Plan?
Premium rates of LIC Bima Shree Plan per 1,000 Rs Basic Sum Assured are as under :
|Age of the Policyholder (Nearer Birthday)||Particulars|
|For Policy Term of 14 Years and Premium Paying Term of 10 Years||For Policy Term of 16 Years and Premium Paying Term of 12 Years||For Policy Term of 18 Years and Premium Paying Term of 14 Years||For Policy Term of 20 Years and Premium Paying Term of 16 Years|
|20 Years of Age||110.25||92.60||79.70||70.80|
|30 Years of Age||110.80||93.20||80.45||71.70|
|40 Years of Age||113.15||95.85||83.35||74.90|
|50 Years of Age||119.70||102.65||NA||NA|
Let us understand with an example of how the tabular premium rate chart can be used to derive the premium amount of the LIC Bima Shree Plan.
- Mr X = Age 40
- Basic Sum Assured = Rs 3,00,000
- Policy Tenure = 16 years and PPT of 12 years
- Premium factor: 95.85
Annual Premium :
= 95.85/1000 * Rs 3,00,000
= Rs 28,755 + Tax
(Since premium rates are of Rs 1,000 per basic sum assured)
Things to know about premium payment
- Mode of premium can be Yearly, Half-Yearly, Quarterly, Monthly or through Salary Deductions.
- Payment can be through Net Banking, Debit Card, Credit Card, Cheque, Cash etc.
- Kindly note only the monthly premiums under the LIC Bima Shree Policy is done through NACH.
- LIC also allows a grace period for payment of unpaid premiums.
- If the policyholders fail to pay the premium on due date they still have a grace period for pay the unpaid dues.
- Grace period for
- Yearly or Half-Yearly or Quarterly mode of premium = ONE month
- Monthly mode = 15 days
If the policyholder fails to pay the premium even within the grace period then the Bima Shree policy shall lapse.
What are discounts and Rebates offered under Bima Shree Plan?
The LICs Bima Shree Plan offers attractive discounts and rebates on premium paying mode and High Basic Sum assured as under :
Premium Paying Mode Rebate :
- For yearly mode of premium payment 2% of rebate on tabular premium is offered
- For Half-Yearly Mode of Premium Payment 1% of rebate on tabular premium is offered
- For Quarterly, Monthly or salary deduction mode of premium payment NO rebate is offered
Rebates on High Basic Sum Assured :
- For Basic Sum Assured of Rs 10 Lakhs to Rs 19 Lakhs NO rebate is offered
- For Basic Sum Assured of Rs 20 Lakhs to Rs 49 Lakhs 0.30% rebate on basic Sum assured
- For Basic Sum Assured of Rs 50 Lakhs and more 0.50% rebate on basic sum assured
Yes, the LIC Bima Shree plan offers policy loan facility. The policyholders can avail loan against their bima shree policy provided the policy has acquired surrender value. The maximum loan amount that can be availed under this plan is as under :
- For in-force policies: 90% of the surrender value
- For paid-up policies: 80% of the surrender value
- For Maturity Claim the policyholder of Bima Shree Policy have to submit the completely filled discharge form along with the original policy document and cancelled cheque. Upon receipt of maturity claim request LIC shall process such request and credit the maturity claim amount in the policyholder’s bank account.
- For Death Claim the nominee has to submit all the required relevant documents to the corporation. Upon receipt and validation of all the relevant documents LIC shall credit the death claim in the nominee’s bank account.
LICs Bima Shree provides 5 riders in order to increase the benefits offered under the plan. The 5 riders under this plan are as under :
- LICs Accidental Death and Disability Rider
- LICs Accidental Benefit Rider
- LICs New Term Assurance Rider
- LICs New Critical Illness Benefit Rider
- LICs Premium Waiver Benefit Rider
Yes, the LICs Bima Shree Plan offers grace period for payment of premium. A grace period of 1 month is offered for Yearly, Half-Yearly and Quarterly mode of premium payment while 15 days grace period is offered for monthly and salary deduction mode of premium payment.