LIC New Bima Gold Plan
The LIC New Bima Gold Plan is a unique insurance offering that combines elements of both a money-back plan and an endowment plan, providing extended coverage beyond the premium paying term.
Due to its distinctive features, it falls under the category of Special Plans. It's important to note that this is a non-unit-linked insurance plan, emphasizing stability and guaranteed returns. In celebration of its golden jubilee year, LIC introduced a special policy known as LIC Bima Gold. However, it's worth noting that this policy was issued for a limited tenure and has since been withdrawn, making it a unique and historical offering from LIC.
The LIC's New Bima Gold Plan presents a unique offering with income distributed in instalments, coupled with an extended life cover beyond the policy term. While the policyholder receives instalments throughout the policy term, the life cover persists for half of the entire policy term. This plan also allows policyholders to augment benefits and coverage by attaching an optional add-on or rider. Beneficiaries are entitled to either survival or death benefits. The policy is available for terms of 12, 16, or 20 years, with premium mode rebates and increased sum assured options.
Benefits of the LIC New Bima Gold Plan
The LIC New Bima Gold Plan, presented by LIC of India, encompasses a comprehensive array of benefits, ensuring financial security and flexibility for policyholders and their families. These benefits are as follows:
- Death Benefit: In the unfortunate event of the policyholder's demise during the policy term, the plan provides a substantial lump sum amount to the nominee or legal heir. Moreover, if the policyholder passes away during the extended term, a significant benefit of 50% of the sum assured is guaranteed to the nominee, enhancing the financial support for the family.
- Maturity Benefit: Policyholders who diligently complete the entire policy term are entitled to attractive maturity benefits. The maturity benefit is calculated as the sum of all premiums paid till date, complemented by loyalty additions. This feature not only ensures financial stability but also rewards long-term commitment to the policy.
- Survival Benefit: The plan offers survival benefits at key intervals, providing a valuable source of income for policyholders who outlive the policy term. Depending on the policy term:
1. For a 12-year term, 15% of the sum assured is paid at the end of the fourth and eighth years.
2. For a 16-year term, 15% is paid at the end of the fourth, eighth, and twelfth years.
3. For a 20-year term, 15% is paid at the end of the fourth, eighth, twelfth, and sixteenth years. These survival benefits ensure periodic financial support throughout the policy tenure.
- Flexibility to the Policyholder: Recognizing the diverse financial needs of policyholders, the plan offers flexibility in premium payments. Payments can be made monthly, quarterly, half-yearly, or annually, providing convenience and accommodating various financial situations.
- Loan Facility: Policyholders can avail themselves of loans against their policy, providing a valuable source of liquidity. Additionally, the option to surrender the policy after three years further enhances the financial flexibility of the plan.
- Enhanced Coverage through Riders: Policyholders can opt for additional coverage through the accidental death benefit and disability benefit riders. These riders provide extra financial protection in the case of accidental death or disability due to an accident, offering a more comprehensive safety net for unforeseen events.
- Auto Cover Benefit: The plan introduces the Auto Cover Benefit, ensuring that full death cover continues for two years if at least two full years' premiums have been diligently paid. This feature adds an extra layer of security, allowing policyholders a grace period to manage their premiums without immediately losing their coverage.
- Tax Benefit: The plan provides attractive tax benefits under Section 80C of the Income Tax Act. Policyholders can claim a deduction of up to Rs.1.5 lakh in their taxable income. Moreover, the premium paid towards the plan qualifies for a tax deduction under this section, making it a tax-efficient investment option. Furthermore, the maturity benefit received from the LIC New Bima Gold Plan is tax-free under Section 10(10D) of the Income Tax Act, providing an added incentive for tax-conscious investors.
- Additional Bonuses: LIC New Bima Gold Plan goes beyond the basic benefits by offering bonuses that enhance the overall returns and maturity value of the policy. This additional bonus feature provides an opportunity for policyholders to maximize their investment.
Eligibility - Who is the LIC's New Bima Gold Plan for?
The following conditions provide a comprehensive overview of the age limits, term options, and sum assured details for both the basic plan and the accident benefit rider option under the New Bima Gold Plan:
FOR BASIC PLAN:
- Minimum Age at Entry: Individuals must have completed 14 years.
- Maximum Age at Entry: The maximum entry age varies based on the term selected:
1. Term 12 years: 57 years (nearest birthday)
2. Term 16 years: 51 years (nearest birthday)
3. Term 20 years: 45 years (nearest birthday)
- Age at Expiry of Extended Term: The extended term's maximum age at expiry is 75 years (nearest birthday).
- Term Options: The basic plan is available for terms of 12, 16, and 20 years.
- Minimum Sum Assured: The minimum sum assured for the basic plan is Rs.50,000.
- Maximum Sum Assured: There is no specified maximum limit for the sum assured.
- Sum Assured Increment: Sum assured will be in multiples of Rs.5,000 only.
FOR THE ACCIDENT BENEFIT RIDER OPTION:
- Minimum Age at Entry: Individuals must be 18 years or older.
- Maximum Age at Entry: The maximum entry age varies based on the term selected:
1. Term 12 years: 57 years (nearest birthday)
2. Term 16 years: 51 years (nearest birthday)
3. Term 20 years: 45 years (nearest birthday)
- Minimum Sum Assured: The minimum sum assured for the accident benefit rider is Rs.50,000.
- Sum Assured Increment: Sum assured will be in multiples of Rs.5,000 only.
Sum Assured and Premium Range- What You Get and What It Costs
- Sum assured – The policy is available for a minimum sum assured of Rs.50,000 with no limit on the maximum sum assured. Based on the policyholder's requirements, he/she can choose to increase the sum assured in multiples of Rs.5,000 only. Moreover, the policyholder is also entitled to rebates on the high sum assured. The sum assured is also one of the base factors for calculation of premium along with premium payment mode that indicates the intervals for premium payment.
- Premium – The policyholder has the flexibility to choose the premium payment mode, which is available in yearly, half-yearly, quarterly, or monthly intervals. Additionally, the policyholder can opt for salary deductions. The premium value is based on the sum assured, premium payment mode, and other factors. If the policyholder has opted for a rider, he/she will need to pay an additional premium amount based on the cover.
Plan Coverage- What the LIC's New Bima Gold Plan covers
Death benefit | In case of policyholder's death during the policy term, the nominee will be entitled to the death sum assured. If the death occurs during the extended term, 50% of the sum assured will be payable. The death sum assured is equal to the sum assured chosen at the inception of the policy. |
Survival benefit | If the policyholder survives till the end of the policy term, he/she will be entitled to the following survival benefits:·
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Nomination | At any time during the policy term, the policyholder can get in touch with Life Insurance Corporation to change the details of the beneficiary. |
Riders / Add-On Plans – Additional coverage under the LIC's New Bima Gold Plan
LIC's New Bima Gold Plan offers an option to attach a rider to increase the coverage and benefits. It can be bought for a premium of Rs.1 per thousand Accident Benefit Rider Sum Assured. In any case, the Accident Benefit Rider will not be exceedingexceed the sum assured under the basic plan with an overall limit of Rs.50 lakh. The rider benefits are applicable during the policy term only and not extended as the life cover under the base plan.
In case of death arising due to an accident, an additional amount equal to the sum assured under the Accident Benefit Rider will be payable. If the accident results in total and permanent disability within 180 days from the date of accident and it disables the life assured from carrying out any work to earn the living, the policyholder will receive the sum assured in monthly installments over a period of 10 years.
In order to buy the Accident Benefit Rider, the following eligibility criteria are taken into consideration:
Minimum age at entry | 18 years |
Maximum age at entry |
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Minimum Sum Assured | Rs. 50,000 |
Exclusions - What the LIC's New Bima Gold Plan doesn’t cover
Suicide exclusion – Suicide within 1 year from the policy inception date, whether sane or insane, is excluded under this policy. The nominee has the option to claim for the premiums paid till the date of death.
Other Key Features – Free-look Period, Surrender Values, Grace Period, etc.
Free-look period | The policy offers a 15 days free-look period to the policyholder to cancel/return the policy if he/she doesn't agree with any of the terms and conditions of the policy. In order to cancel/return the policy for a refund, the policyholder is required to send the original policy document along with a statement of objection to Life Insurance Corporation. The refund will be sent to the customer after the deduction of applicable charges. |
Guaranteed surrender values | The policy acquires surrender value after the completion of 3rdthe 3rd policy year provided all the premiums have been paid. The guaranteed surrender value is 30% of the total premiums paid excluding the premiums for the first policy year. |
Grace period | Grace period is the time allowed to pay the premium after the due date. The policy offers a grace period of one month for premiums paid in yearly, half-yearly, and quarterly intervals. If the premiums are being paid on a monthly basis, a grace period of 15 days is applicable. If the premiums are not paid within the grace period, the policy will lapselapse, and the cover will cease to continue. |
Policy revival | A lapsed policy can be revived by making the payment for the due premiums within 5 years from the due date of the first unpaid premium. |
Policy loan | Once the policy gains the paid uppaid-up value, the policyholder can apply for a policy loan. The rate of interest on the loan will be decided by the insurer which is subject to change based on various factors. |
Tax benefits – How you can save with LIC's New Bima Gold Plan
The policy offers tax benefits under the SectionSection 80C and Section 10(10D) of the Income Tax Act, 1961. The premiums paid for this plan are eligible for tax deductions while the benefits are exempted from tax. Tax rules are subject to change. Customers are advised to consult a qualified advisor before buying this policy.
Other benefits – How you can save with the LIC's New Bima Gold Plan
In addition to the features and benefits listed above, the following factors are also needed to be considered to make an effective policy buying decision:
- Policy information – Any customer or individual can contact Life Insurance Corporation to obtain more details on the policy. The insurer can be contacted through multiple communication channels such as telephone, email, branch, etc.
- Policy notifications - The insurer will send important policy notifications to the customers reminding them about important policy events such as premium due date, policy renewal date, etc. The notifications are sent through emails and text SMS.
- EMI calculator – The LIC's EMI calculator (on the company's website) is useful when it comes to determining the premiums payable based on factors such as policy term, premium payment term, sum assured, etc.
Why you should buy the LIC's New Bima Gold Plan from Life Insurance Corporation?
The LIC's New Bima Gold Plan helps the customers in gettingcustomers get regular payments throughout the policy term while the life extends for another half period of the total policy term. Moreover, the policyholder is entitled to survival benefits and the family is covered with a death sum assured. The benefits and cover can be enhanced with the attachment of the Accident Benefit Rider thatwhich offers a minimum sum assured of Rs.50,000, the same as the base policy. Life Insurance Corporation is the largest insurance provider in India whoand has a pan-India presence. The customer service team is fully trained and qualified to assist the customers to highestthe highest standards. The company has received many awards for excellence in services offered to the customers and also for building a trust factor that has been increasing the LIC's customer base for pastthe past few decades.
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