New Bima Gold is one of the most popular plans offered by the Life Insurance Corporation of India. Under this plan, the premiums that policyholders pay over the policy term are eventually paid back in the course of the policy term in the form of installments. The life cover under New Bima Gold is available during the term of the policy as well as during the plan’s extended term.
Benefits Offered by LIC New Bima Gold Policy:
The survival benefit is provided only when the life assured has survived throughout the term of the policy, paid regular premiums, and if the policy is still in force.
- If the term of the policy is 12 years: 15% of the basic sum assured amount (basic plan) which will be given at the termination of the 4th and 8th policy year
- If the term of the policy is 16 years: 15% of the basic sum assured amount (basic plan) which will be given at the termination of the 4th, 8th, and 12th policy year
- If the term of the policy is 20 years: 10% of the basic sum assured amount (basic plan) which will be given at the termination of the 4th, 8th, 12th, and 16th policy year
- If the policy has expired: In case the policy has reached its expiration date, the total premiums are paid by LIC which includes Loyalty Additions (if any)
- If the insured passes away during the term of the policy: LIC pays a portion of money that is equivalent to the sum assured under the basic plan, in case the Life Assured passes away during the term of the policy. For this provision, however, the life cover has to be in force.
- If the insured passes away during the extended term of the policy: LIC pays a portion of money that is equivalent to 50% of the sum assured amount under the basic plan, in case the Life Assured passes away during the extended term of the policy. The policy’s extended term is usually half the term of the policy post the policy term expiry.
Accidental Death and Disability Benefit:
If the policyholder’s death has been caused by an accident (road, railway, etc.), then LIC pays a certain extra component which is known as Accident Benefit Rider Sum Assured to his/her family members. In case the accident has caused permanent and total disability to the insured, then LIC pays the Accident Benefit Rider Sum Assured in installments (every month) over the timeframe of 10 years. However, the policy only provides the Rider sum assured money in case of disability, i.e. if the event has completely rendered the policyholder incapacitated and he/she is not able to perform any task to earn money. The following disabilities are typically covered under New Bima Gold policy:
- If both the eyes have been damaged beyond repair
- If both hands have been amputated at or over the wrists
- If both feet have been amputated at or over the ankles
- If one hand and one foot has been amputated at or over the wrists and ankle, respectively
Some of the Other Benefits Offered by LIC New Bima GoldPolicy:
New Bima Gold offers a facility for policyholders to avail loan, however, the policy has to have acquired the paid-up value. LIC determines the interest rate.
If a policy has lapsed, it can be revived by paying LIC arrears of premium alongside interest over a timeframe of 5 years from the date of the first unpaid premium.
LIC offers a grace period of one month to policyholders in order to pay premiums on a yearly, half-yearly or quarterly basis. For premiums paid on a monthly basis, the grace period is reduced to 15 days.
Cooling off period:
In case the policyholder is dissatisfied with the terms and conditions offered in the policy, he/she can return the same to LIC within the period of 15 days from the day of the purchase.
In order to understand the terms and conditions of LIC New Bima Gold in depth, one can read through the policy document of the same.