LIC Bima Ratna Plan
LIC Bima Ratna Plan is a non-linked, non-participating, individual, savings life insurance plan that is available through the corporate agents, brokers, Insurance Marketing Firms (IMF) and Common Service Centers (CSC) of Life Insurance Corporation of India.
This insurance plan helps meet various financial needs through periodical payments. On death of the policyholder during the term of the policy, this insurance plan offers financial support to the family. Here are more details on LIC Bima Ratna Plan.
Features of LIC Bima Ratna Plan
The following is the list of key features of LIC Bima Ratna Plan:
Features | Details |
Premium Payment | Premium can be paid in the following forms:
|
Grace Period | The grace period from the first unpaid premium is as follows:
|
Rebate | The rate of rebate for the respective rebate modes are as follows:
|
Revival | A lapsed policy can be revived before maturity within five consecutive years from the date of first premium payment. |
Paid-up Value |
|
Surrender | After payment of two full year’s premium, the policy can be surrendered by the policyholder and the surrender value equal to the higher of Special Surrender Value or Guaranteed Surrender Value, shall be paid by LIC. |
Policy Loan | After a payment of at least two years’ premium, a loan can be availed which will be granted as:
|
Free-look Period | 30 days |
Note:
- No surrender value is applicable on riders (if any).
- Revival of any applicable rider opted by the policyholder will be revived along with the base policy.
Benefits of LIC Bima Ratna Plan
Below is the list of benefits offered by the LIC Bima Ratna Plan:
Benefits | Details |
Death benefit | Payable will be sum assured on death along with guaranteed addition which will be seven time of annualized premium or higher of 125% of Basic Sum Assured. |
Survival benefit | The following list of a fixed Basic Sum Assured which will be paid to the life assured surviving for the respective policy duration:
|
Maturity benefit | Sum Assured on Maturity, which is equal to 50% of Basic Sum Assured along with accrued Guaranteed Additions will be paid on the date of maturity to the surviving life assured. |
Guaranteed additions | The Guaranteed Additions (per Rs.1000 Basic Sum Assured) will be payable as per the following rates:
|
Note:
- Death benefit will be payable on death of life assured during the policy term.
- In case of death benefit of the minor life assured, all the premiums paid will be refunded without interest excluding the extra premium, taxes or rider premium (if any).
- The death benefit of the minor life assured is applicable if a minor’s age is below 8 years.
- The survival benefits, maturity benefits, and the guaranteed additions will be payable provided the policy is in force up to the date of death of the life assured, date of maturity, or the guaranteed additions accrued at the end of each policy year, respectively.
Eligibility Criteria for LIC Bima Ratna Plan
The applicants must fulfil the criteria below to avail themselves of LIC Bima Ratna Plan:
Conditions | Eligibility |
Basic Sum Assured | Minimum: Rs.5 lakh Maximum: no limit |
Policy term |
|
Premium paying term | Policy term: Premium payment terms
|
Entry Age | Minimum:
Maximum (age nearer birthday):
LI/CPSC-SPV- 65 years minus policy term |
Age at Maturity | Minimum age: Policy term
Maximum age (age nearer birthday):
|
Note:
- Basic sum assured should be in multiple of Rs.25,000.
- Policy terms will be 15 and 20 years in case the policies procured through POSP-LI/CPSC- SPV.
Some Other Benefits of LIC Bima Ratna Plan
Here is the list of some other significant benefits of LIC Bima Ratna Plan:
- Rider benefit: Depending upon the eligibility, policyholders can avail themselves of any of the five optional riders available under this plan by paying an additional premium:
1. LIC’s Accidental Death and Disability Benefit Rider
2. LIC’s Accident Benefit Rider
3. LIC’s New Term Assurance Rider
4. LIC’s New Critical Illness Benefit Rider
5. LIC’s Premium Waiver Benefit Rider
- Mode of installment payment: Maturity and death benefit can be received on the following ways:
1. Monthly: Rs.5000
2. Quarterly: Rs,15,000
3. Half-yearly: Rs.25,000
4. Yearly: Rs.50,000
- Waiting period: LIC will refund the total premium paid on normal death of the life assured within 90 days of commencement of the risk.
Note:
- The waiting period benefit applicable if the policy is purchased through Point of Sales Persons-Life Insurance (POSP-LI) and CPSC-SPV.
- The waiting period clause is not applicable if the entry age of life assured is below eight years.
FAQs on LIC Bima Ratna Plan
- What is minimum amount of death benefit that can be paid?
The minimum amount of death benefit is 105% of the total premium paid up to the date of death of the life assured, which excludes the extra premium, taxes and rider premium (if any).
- What happens to policy, if premium not paid before the expiry of the grace period?
The policy will lapse if the premium is not paid before the grace period expires. During the grace period the policy considered in-force with risk coverage without any interruptions as specified under the policy terms.
- What amount of tax will be imposed on this insurance plan?
The applicable statutory tax imposed on the insurance plan will be as per the tax laws and amount will be as per the prevailing tax rates on the premium.
- What amount will be received by the beneficiary, if the life assured commits suicide?
The beneficiary or the nominee will receive 80% of total premium paid, if life assured commits suicide anytime within 12 months from the date of commencement of the risk. In case, suicide committed within 12 months from date of revival, an amount which is higher than 80% of total premium paid till date of death or the surrender value as on the date of death will be received by the nominee.
- Is suicide exclusion clause applicable for minor life assured?
No, the suicide exclusion clause under LIC Bima Ratna Plan is not applicable for minor life assured with age below eight years.
- How is the guaranteed addition calculated in the case of a paid-up policy?
The calculation for guaranteed addition is same for both the paid-up policy and a surrender policy. For the aforementioned cases, the guaranteed addition for the policy year in which the policyholder paid the last premium will be added in proportion to the premium paid for that year.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.