LIC Bima Account 1 is a non-linked life insurance policy that offers life cover along with guaranteed returns. The policy does not require any medical examinations and offers a wide range of benefits along with adequate life cover.
Eligibility Criteria for LIC Bima Account 1 Plan
|Minimum age at entry||11 years|
|Maximum age at entry||50 years at nearest birthday|
|Minimum age at maturity||18 years|
|Maximum age at maturity||57 years at nearest birthday|
|Minimum policy term||5 years|
|Maximum policy term||7 years|
|Minimum annual premium||Rs. 7,000|
|Maximum annual premium||Rs. 14,000|
|Minimum sum assured||10 times the annualised premium|
|Maximum sum assured||Up to the age of 35 years- 20 times the annualised premium 36 to 45 years- 14 times the annualised premium 46 to 50 years- 10 times the annualised premium|
Key Features of LIC Bima Account 1 Plan
|Type||Non linked insurance plan|
|Policy terms||5 to 7 years|
|Premium payment terms||Same as the policy term|
|Premium payment mode||Annually, bi-annually, quarterly and monthly|
|Minimum premium payment||Yearly- Rs. 7,000 Half yearly- Rs. 4,000 Quarterly- Rs. 2,000 Monthly- Rs. 600|
|Maximum premium payment||Yearly- Rs. 14,000 Half yearly- Rs. 7,000 Quarterly- Rs. 3,500 Monthly- Rs. 1,100|
|Minimum top up premium||Rs. 1,000|
|Maximum top up premium||Sum total of all the premiums paid up until then|
|Death benefit||In case of the unfortunate death of the life insured during the policy term, the nominee will be paid sum assured along with the balance in the policyholder's account.|
|Maturity benefit||Balance in the policyholder's account will be paid as the maturity benefit on surviving the maturity date of the policy|
|Top up premium||The policyholder can pay top up premium in the multiple of Rs. 1,000|
|Decrease in benefits||The plan provides the flexibility of reducing the sum assured during the term of the policy (subject to the minimum limit).|
|Free look period||15 days|
|Grace period||One month (30 days)|
|Guaranteed returns||The guaranteed interest paid is applicable only on the policyholder's account and not on the gross premium paid by the policyholder.|
|Policy cover||Death benefit, maturity benefit along with guaranteed returns|
|Loan facility||Loan facility is available after successful completion of one year of the policy given that the year's premiums have been paid completely.|
|Policy revival||The policy can be revived within the first 12 months from the date of the first unpaid premium in case of lapse of the policy|
Benefits of LIC Bima Account 1 Plan
Listed below are the benefits of the LIC plan.
- Death Benefit- The policy offers death benefit in case of the unfortunate death of the insured. The sum assured along with the remaining balance in the policyholder's account will be paid as death benefit to the nominee.
- Maturity Benefit- In case of survival until the maturity date of the policy, the nominee will be paid the balance in the policyholder's account as maturity benefit.
- Loan Benefit- One can avail loan under the policy once they've completed one year into the policy with all the premiums paid completely.
- Surrender Benefit- The policy will acquire surrender benefit as soon the first premium is paid. But the surrender benefit is payable only after the policy completes three years.
- Low premium
- The policy can be purchased online
How does the Plan Work?
Consider the example of Mr. Satish, a 30 year old professional who opts for LIC Bima Account 1 for a policy term of 7 years and an annual premium of Rs.10,000. By the end of the 7th year, the total account value of policyholder at maturity will be Rs.78,938, considering the return is paid at 6% p.a.