Life Insurance Corporation of India (LIC) introduced a new plan, Bima Ratna, with effect from May 27. Bima Ratna is a non linked, non-participating, individual, savings life insurance plan which offers a combination of protection and savings.
It is a limited premium paying money back plan with guaranteed additions.
The plan is available for a term of 15, 20 and 25 years. Premium paying term is four years less than policy term. The plan provides 25 per cent of basic sum assured as survival benefit at the end of each year for the last two years of policy term (T-2 & T-1) provided the policy is in force and on maturity balance 50 per cent of sum assured is payable along with guaranteed additions.
The guaranteed additions will increase in steps with the duration of the policy.
The plan provides financial support for the family in case of unfortunate death of the life assured during the term of the policy after the commencement of risk.
The sum assured on death under the plan is higher of the 125 per cent of basic sum assured or seven times of annualised premium and will not be less than 105 per cent of total premiums paid excluding Taxes, any extra premium and premium paid for riders.
The plan also takes care of liquidity needs through loan facility. Optional riders are available under this plan on payment of additional premium subject to conditions.
Settlement option is available to receive maturity/death benefit in instalments over a period of 5 years instead of lump sum under an inforce as well as paid up policy.
The minimum sum assured under this plan is Rs 5 lakh and can be increased on multiples of Rs 25,000. There is no limit for maximum sum assured. The minimum age at entry ranges from 90 days to 5 years depending upon chosen policy term.
The plan is available for purchase only through LIC’s corporate agents (including banks), insurance marketing firms (IMF), brokers, CPSC-SPV and POSP-LIs engaged by these intermediaries.