Insurance plan

LIC Bima Ratna Life Insurance Plan: 9 Things to Know

has a new life insurance product called Bima Ratna, an unlinked, non-participating individual savings life insurance product that combines protection and savings. The policy was launched on May 27, 2022.

Here is an overview of the key details of the LIC Bima Ratna policy as per the product brochure available on the LIC website.

Policy objective

This plan provides financial assistance to the family of the policyholder in the event of the premature death of the policyholder during the term of the policy, as well as periodic payments on the survival of the policyholder for predetermined periods of time. to meet a variety of financial needs. With a loan facility, this approach addresses liquidity issues.

How to buy LIC Bima Ratna

This product can currently be purchased through corporate agents, insurance companies, marketing companies (MFIs), brokers, CPSC-SPVs and POSP-LIs engaged by these intermediaries viz. corporate agents, insurance marketing companies (IMFs) and brokers.

Death benefit

The “Sum insured at death” plus the accrued guaranteed top-ups will be paid on the death of an insured person during the period of insurance following the start date of the risk.

Where “Sum insured at death” means the greater of 125% of the basic sum insured or seven times the annual premium.

According to the LIC brochure, “This death benefit payment shall not be less than 105% of the total premiums paid (excluding any additional premiums, any rider premiums and taxes) up to the date of death.”

Survivor benefit

A specific proportion of the Basic Sum Insured will be paid if the Life Insured survives each of the stated durations during the Policy Period, provided the Policy is in force.

Maturity benefit

According to the LIC Bima Ratna pamphlet, “On the life insured surviving the stipulated maturity date provided the policy is in force, the ‘sum insured at maturity’ together with the accrued guaranteed additions, will be payable. Where “Sum insured at maturity” is equal to 50% of the basic sum insured.”

Guaranteed additions

LIC will pay guaranteed increases of Rs 50 every basic sum of Rs 1000 insured from the first to the fifth year. From the 6th to the 10th year of insurance, LIC will pay Rs 55 per basic sum of Rs 1000 promised, and from the 11th to the 25th year of insurance, the guaranteed increase will be Rs 60 per basic sum of Rs 1000 insured.

In the event of death while the insurance is still in force, the guaranteed supplement in the year of death will be for the entire insurance year.

Guaranteed supplements under a policy will cease to accrue if premiums are not paid on time.

The guaranteed supplement for the policy year in which the last premium is received will be added pro rata to the premium received for that year in the case of a paid-up policy or when a policy is surrendered.

Risk start date

If the insured’s entry age is less than 8 years, risk under this plan will begin 2 years from the start date or 2 years from the policy anniversary coinciding with or immediately following reaching age 8, whichever comes first. .

The risk will start immediately for people aged 8 or over.

Acquisition date

“If the policy is issued on the life of a minor, the policy will automatically vest in the insured on the policy anniversary coinciding with or immediately following the age of 18 and shall be deemed, upon such vesting, be a contract between the company and the insured life,” according to the LIC brochure.

Settlement option

According to the copy of the LIC brochure, “The LIC Settlement Option is an option to receive a maturity benefit in installments over a 5-year period instead of a lump sum under a policy in force and paid. This option may be exercised by the Policyholder during the Insured’s minority or by the Insured aged 18 or over, for all or part of the maturity proceeds payable under the policy. The amount chosen for this option by the policyholder/insured (i.e. the net loss amount) can be either in absolute value or as a percentage of the total loss proceeds to be paid. »

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