LIC Bima Ratna Plan If you want an insurance plan in your budget, then LIC’s Bima Ratna policy can prove to be a better option for you. In this you are given many benefits.
LIC Bima Ratna Plan: LIC Bima Ratna Plan is a savings plan provided by the Life Insurance Corporation of India. It is a non-linked, non-participating, individual plan that can be availed through Corporate Agents, Brokers, Insurance Marketing Firms (IMF) and Common Service Centers (CSC).
This scheme helps in meeting various financial needs from time to time. It provides financial assistance to the family of the policyholder on his death during the policy term.
The premium for LIC Bima Ratna plan can be paid monthly, quarterly, half-yearly or annually. If you miss paying any premium then you also get a grace period of a few days. This is 30 days for annual, half-yearly or quarterly premiums and 15 days for monthly premiums.
What are the details of this plan
If your policy has lapsed then it can be revived within five years (before the maturity period) from the date of first premium payment. If less than two full years’ premiums have been paid, the policy will be treated as completely void, whereas if at least two years’ premiums have been paid, it will continue as a paid-up policy till the end of the policy term
After payment of two full years’ premiums, the policy can be surrendered and a surrender value equal to the Guaranteed Surrender Value will be paid by LIC. You can also take a loan against this policy after paying premiums for at least two years. For in-force policies, up to 90 percent of the surrender value can be provided to you.
You also get these benefits
LIC Bima Ratna plan offers several benefits to the policyholders, such as death benefit, survival benefit, maturity benefit and guaranteed growth. The death benefit is payable on the death of the policyholder during the policy term and consists of the Sum Assured on Death along with guaranteed additions, which will be higher of seven times the annualized premium or 125 percent of the Basic Sum Assured.
Survival Benefit as a lump sum Basic Sum Assured paid at the end of 13th and 14th year for a policy term of 15 years, every 18th and 19th year for a policy term of 20 years and every 23rd and 24th year for a policy term of 25 years also includes. The maturity benefit is equal to a guaranteed 50% return of the Basic Sum Assured.
What is eligibility
There are certain conditions to be fulfilled for LIC Bima Ratna plan. The basic sum assured should be a minimum of Rs 5 lakh, while there is no limit on the maximum amount. The policy term can be 15 years, 20 years or 25 years and the premium paying term varies with the policy term. The age of the policyholder should be minimum 5 years for 15 years policy and maximum 55 years for 25 years policy. The age limit for maturity of the policy is 70 years.
How much profit is received
Suppose, you decide to take LIC Bima Ratna plan and you choose for yourself a sum assured of 10 lakhs for a policy term of 20 years. Since the premium paying term is 16 years for a policy term of 20 years, accordingly an amount of 50,000 will have to be deposited as premium every year for the next 16 years.
- During the policy term, in case of death, the nominees will receive the death benefit. 10 Lakhs (Basic Sum Assured) and get a guaranteed return of 3.5 Lakhs.
- 5 lakh (50% of Basic Sum Assured) will be received on maturity of the policy.
- You will also be eligible to receive survival benefit. 2.5 lakh will be given at the end of 18th and 19th policy year.
