India’s largest insurance company LIC has launched a new money back insurance policy on 27 May. This is the first policy launched by the insurance company after its listing in the market. Bima Ratna policy comes with a non-linked, non participant, personal savings and life insurance policy category. This policy gives the benefit of both protection and savings. The company has introduced this policy keeping in mind the need of the market.
The special feature of Bima Ratna Yojana policy is that in case of death of the policyholder during the policy term, financial assistance is given to the family of the policyholder. At the same time, to meet the financial assistance of the people, it also pays Rs. Apart from this, the facility of taking loan is also available in this policy. Let us know all the things related to this policy and what are the benefits you can get in it?
This LIC product can be purchased through Corporate Agents, Insurance Marketing Firms (IMF), Agents, CPSC-SPV and POSP-LI.
Death Benefit: After taking this policy, death benefit is given to the people. The insurance company pays the death benefit as well as the guaranteed deposit amount. According to LIC, the sum assured on death is 125 per cent of the Basic Sum Assured or more than seven times the annual premium. The death payout shall not be less than 105 per cent of the premiums paid till the date of death.
Survival Benefit: If the term of the plan is 15 years, LIC will pay 25% of the Basic Sum Assured at the end of every 13th and 14th policy year. LIC will pay 25% of the Basic Sum Assured in the 18th and 19th policy years for a 20 year term plan. If the policy is for a term of 25 years, LIC will pay 25% in the 23rd and 24th policy years.
Maturity Benefit: If an Insured survives to the stipulated date of maturity, the “Sum Assured on Maturity” along with the Guaranteed Addition accrued will be payable. Under this policy, a guaranteed bonus of Rs 50 per Rs 1,000 will be given from the first year to the 5th year. Whereas from 6th to 10th policy year, LIC will give a bonus of Rs.55 per thousand and thereafter till the maturity period of Rs.60 per thousand per annum. However, the bonus benefit will not be available on maturity.
Eligibility and other conditions:
- LIC offers a minimum Basic Sum Assured of Rs.5 lakhs. There is no maximum Basic Sum Assured limit. However it should be in multiples of Rs 25,000.
- The policy term is 15 years, 20 years and 25 years. If the policy is purchased through POSP-LI/CPSC-SPV, the policy term will be 15 or 20 years.
- Under Bima Ratna, for a policy term of 15 years, you have to pay premiums up to 11 years. Whereas for 20 years and 25 years the premium paying term is 16 years and 21 years. The minimum age of Bima Ratna policy is 90 days and maximum age is 55 years.
- The minimum age for policy maturity is 20 years. Whereas the maturity age is ₹25 years for the policy term 25 years. The maximum age for maturity is 70 years.
- Monthly, quarterly, half-yearly and annual installments can be paid under this policy.
- The minimum monthly installment in this is Rs 5,000, with quarterly installments of Rs 15,000, half-yearly installments of Rs 25,000 and annual installments of Rs 50,000.