LIC New Bima Bachat

LIC’s New Bima Bachat is a participating, non-linked, life assurance savings cum protection plan, where premium is paid in lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term. In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.

Death Benefit-

Death benefit payable in case of death of the Life Assured during the policy term is as under:

On death during the first five policy years-

“Sum Assured on Death”

On death after completion of five policy years-

“Sum Assured on Death” along with Loyalty Addition, if any.

Where “Sum Assured on Death” is defined as higher of

• 1.25 times the single premium; or
• Basic Sum Assured.

Single Premium referred above shall not include taxes, extra premium and rider premium(s) if any.

Survival Benefits-

On the Life Assured surviving to the end of the specified durations during the policy term, a fixed percentage of Basic Sum Assured is payable. The fixed percentage for various policy terms is as below

For policy term 9 years- 

15% of the Basic Sum Assured at the end of each of 3rd & 6th policy year

For policy term 12 years- 

15% of the Basic Sum Assured at the end of each of 3rd, 6th & 9th policy year

For policy term 15 years-

15% of the Basic Sum Assured at the end of each of 3rd, 6th, 9th & 12th policy year

Maturity Benefit-

On Life Assured surviving to the end of the policy term, “Sum Assured on Maturity” along with Loyalty addition, if any, shall be payable.

Where “Sum Assured on Maturity” is equal to Single Premium paid excluding taxes, Rider premium(s) and extra premium, if any.

Loyalty Addition-

Depending upon the Corporation’s experience the policies shall participate in the profits of the Corporation and shall be eligible for Loyalty Addition. The Loyalty Addition, if any, shall be payable on death after completion of five policy years or on policyholder surviving to maturity, at such rate and on such terms as may be declared by the Corporation.

Eligibility Conditions And Other Restrictions- 

Date of commencement of risk under the plan-

Risk will commence immediately on acceptance of the risk, including minor lives.

Date of vesting under the plan-

If the policy is issued on the life of a minor, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Rider Benefits-

The following two optional riders are available under this plan by payment of additional premium.

• Accidental Death and Disability Benefit Rider
• New Term Assurance Rider

High Sum Assured Rebates-

Rebate as a percentage of Tabular Premium is as under:

Policy Loan-

Loan can be availed under this plan any time after completion of one policy year. The loan shall be equal to 90% of the surrender value as on date of sanction of loan.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

 LIC Single Premium Endowment Plan

LIC’s Single Premium Endowment Plan is a Non linked, Participating, Individual, Life Assurance, savings plan which offers an attractive combination of savings and protection features. The premium is paid in lump sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

Death Benefit-

On death during the policy term before the date of commencement of risk-

Return of single premium (excluding taxes, extra premium and rider premiums if any), without interest.

On death during the policy term after the date of commencement of risk-

Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium and rider premiums, if any).

Maturity Benefit -

On Life Assured surviving the policy term, Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any, shall be payable. Where “ Sum Assured on Maturity” is equal to Basic Sum Assured.

Participation in profits -

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.

The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with the provisions in this regard under LIC Act, 1956.

Eligibility Conditions and Other Restriction -

Date of Commencement of risk-

In case the age of Life Assured at entry is less than 8 years, risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

Rider Benefits-

Rebate For High Sum Assured -

Policy Loan- 

Loan can be availed under this plan any time after completion of one policy year. The loan shall be equal to 90% of the surrender value as on date of sanction of loan.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.