India’s largest insurer Life Insurance Corporation or LIC announced on Friday the launch of its new savings life insurance plan called Bima Ratna. This life insurance plan is a “non-linked, non-participating, individual savings life insurance plan”, which features both insurance and savings.
LIC ‘Bima Ratna’ Product Launched For Domestic Market
LIC’s latest product especially targets the domestic market, which can be availed through the brokers and corporates including, Corporate Agents, Insurance Marketing Firms (IMF), Brokers, CPSC-SPV, and POSP-LI, as well as other intermediaries such as Corporate Agents, Insurance Marketing Firms (IMF).”
Bima Ratna Plan offers great benefits to the family of a policyholder who dies unexpectedly during a valid term. Plus, periodical payments are also issued to a policyholder to fulfill its financial needs during tough economic conditions to survive at benchmarked frequency.
Moreover, this plan also takes care of the liquidity issue by offering a loan to the policyholder.
Key Benefits Of Latest LIC Plan ‘Bima Ratna’
Sum Assured on Death
The policy offers a great financial amount on the occasion of the death of a family member assured under the policy during the term plan after the risk initiation period.
LICs death benefit includes that the compensating amount will be 125 percent of the sum assured or seven times the annual premium. The total amount paid will not be less than 105 percent of the total premium paid till the date of death (“excluding any extra premium, any rider premium (s), and taxes”).
Meanwhile, in a minor’s case who dies at a young age of below 8 years, on the death before risk initiation the benefit will include just the refund of premiums paid without any interest (“excluding taxes, any extra premium, and rider premium(s), if any”).
As per policy, as survival benefits, if the plan term is 15 years, the LIC will compensate with 25 percent of the basic sum assured at the end of the 13th and 14th policy years respectively. If that term plan is of 20 years, then LIC will pay the 25 percent of the basic sum assured when the 18th and 19th year of the policy ends respectively. If the term plan is 25 years, then LIC will make sure to pay 25 percent in each 23rd and 24th year’s end.
As maturity benefits in its policy brochure, the company explains that “that on Life Assured surviving the stipulated Date of Maturity provided the policy is in force, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable. Where “Sum Assured on Maturity” is equal to 50% of Basic Sum Assured.”
Under this plan, LIC is guaranteed to pay the additional price of ₹50 on the basic pay of each ₹1000 promised from the first year to the fifth year of the policy. Moreover from the 6th year until the 10th year of the policy, the LIC will pay ₹55 on behalf of every ₹1000 basic sum promised. Similarly, from the 11th to the 25th policy year, LIC guarantees to pay an increased amount of ₹60 on every ₹1000 sum assured.
Conditions of Eligibility, Restrictions
- LIC offers a minimum of ₹5 lakh of basic sum assured, and there is no such limit on its maximum side, however, the amounts will have to be multiples of ₹25,000.
- Normally purchased policies will have term plans of 15,20,25 years respectively. Meanwhile, if the policy is bought through POSP-LI/CPSC- SPV the holders will get the term plans of 15 or 20 years.
- Bima Ratna policyholders will have to deposit the premium for 11 years for 15 years termed plan. Similarly for 20 years and 25 years term plans the applicants will have to pay the premium till 16 years and 21 years respectively.