LIC Bima Nivesh 2005 Plan

Key Features of LIC Bima Nivesh 2005

A few of the important features of the Bima Nivesh 2005 insurance policy offered by LIC are mentioned below:

1. The premium rate for the 5 year term is Rs 995 per Rs 1000 sum assured
2. For the 10 year term, premium rate is Rs 976 per Rs 1000 sum assured

Benefits of LIC Bima Nivesh 2005

Among the many benefits of availing Bima Nivesh 2005 insurance scheme, a few of the perks have been mentioned below:

1. Guaranteed additions are offered by the policy. Under the basic plan, having term of 5 years, Rs 50 for every Rs 1000 of the sum assured is added. For the policy with 10 years as term, Rs 55 per Rs 1000 of the sum assured is paid. These guaranteed additions are paid at the end of every completed year.
2. On maturity of the policy, basic sum assured and compounded guaranteed additions are paid to the life insured. Loyalty additions, if any and as decided by the Corporation, will be added to the maturity benefit.
3. In case the life assured dies before the end of the policy, the sum assured and the accrued guaranteed addition will be paid to the nominee.
4. Rebate of 1% is paid on the premium if it more than Rs 50,000. When the premium amount exceeds Rs 1,00,000, a rebate of Rs 500 plus 1.5% of the basic premium is paid.
5. Policyholders can avail loan under this insurance scheme, post the completion of 1 year.
6. The policy also comes with surrender value, which will be available to the policyholder, after the term period of one year.

How LIC Bima Nivesh 2005 Works

Aged 35 years Mr. Prasad, opts for LIC's Bima Nivesh 2005, paying a sum assured of Rs 1 lakh for a term of 10 years. He pays around Rs.97,124/- as single premium annually. On maturity of the policy, a sum of Rs 1,70,814 along with the loyalty addition, if any, will be paid to Mr Prasad. In case of of his untimely death before the policy's end, his nominee will be paid Rs.1 lakh sum assured plus the accrued guaranteed addition.

Premium Payment

The premium payment mode for both the main plan and term assurance scheme is single premium, which is done on an annual basis, depending on the policy opted by the life insured.

Riders

There is an optional Term Assurance Rider benefit for this LIC Endowment insurance policy. An additional single premium will have to be paid in order to avail this benefit. In case the life insured passes away before the policy term ends, the death benefit along with a sum equal to the term assurance rider is paid to the nominee/legal heir. In order to avail this optional benefit, the following eligibility criteria should be met:

1. Minimum age at entry: 18 years (completed)
2. Maximum age for availing the additional benefit: 50 years
3. Minimum sum assured: Rs 1,00,000
4. Maximum sum assured: Rs 25,00,000. This amount is calculated based on sum assured of all the term assurance rider under policies taken from the Corporation.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017