LIC Bima Shree
What is LIC Bima Shree(Plan No. 948)?
LIC Bima Shree is one of the popular plans of LIC (Life Insurance Corporation) that offers a perfect combination of protection and savings. It is a money-back, participating, and non-linked life insurance plan, introduced on 1st February, 2020.
What's more?
You get a lump sum amount at the time of maturity, along with the guaranteed periodic payment after a certain survival period. Also, you get a share in the company's profit, and your return is not affected by the stock market performance.
In case of death, it also benefits the family of the policyholder and provides financial security.
Key Features Of LIC Bima Shree
Features of a plan explain everything about it. It becomes important for any buyer to know everything about the Bima Shree LIC Plan. Let's understand:
| Key Features | Explanation |
|---|---|
| Policy Term | 14, 16, 18, and 20 years |
| Premium Payment Term | Policy term-4 years (10, 12, 14, and 16 years) |
| Sum Insured (Minimum) | Rs. 10,00,000 |
| Sum Insured (Maximum) | No Limits |
| Participating Plan | Offers a share in LIC's profit. |
| Money-Back Facility | Lump sum amount after policy maturity. |
| Non-Linked Plan | No impact of the stock market on returns. |
| Premium Payment Frequency | Annual, Half-Yearly, Quarterly, or Monthly premium payment. |
Check the Eligibility Criteria Of LIC Bima Shree
Here are the eligibility criteria that you should know before purchasing the plan:
| Criteria | Explanation |
|---|---|
| Minimum Age | 8 years |
| Maximum Age | 55 years for the policy term of 14 years.51 years for the policy term of 16 years.48 years for the policy term of 18 years.45 years for the policy term of 20 years. |
| Maturity Age | 69 years for the policy term of 14 years.67 years for the policy term of 16 years.66 years for the policy term of 18 years.65 years for the policy term of 20 years. |
Benefits Of LIC Bima Shree
Here are some benefits of the LIC Bima Shree plan that will give you the reason to purchase this plan:
- 01
Death Benefit
If the policyholder dies during the policy term, LIC pays a death benefit. Here is how it works:
If death occurs within the first 5 years, the nominee will receive the Sum Assured on Death plus any Guaranteed Additions made till then.If death occurs after 5 years but before the policy ends, the nominee will receive the Sum Assured on Death, Guaranteed Additions, and Loyalty Additions (if any).Now, Sum Assured on Death is the highest of the following three:
10 times the annual premium.The amount given in the Sum Assured on Maturity.125% of the Basic Sum Assured.Note: The total death benefit will never be less than 105% of the premiums paid (excluding taxes, extra premiums, or rider charges).
- 02
Survival Benefit
If the policyholder is alive at certain stages of the policy term, they receive a fixed percentage of the Basic Sum Assured. Here is how much and when to pay:
Policy Term Payout% of Basic Sum Assured When To Pay 14 years 30% (twice) End of 10th and 12th year 16 years 35% (twice) End of 12th and 14th year 18 years 40% (twice) End of 14th and 16th year 20 years 45% (twice) End of 16th and 18th year
Note: These payments are made only if all premiums have been paid on time. - 03
Maturity Benefit
If the policyholder is alive during the policy term and has paid all the premiums, a set percentage of the Basic Sum Assured will be given. The percentage depends on the policy term of the plan. The benefit percentages on the sum insured are as follows:
Policy Term Sum Assured on Maturity (in %) 14 years 40% of Basic Sum Assured 16 years 30% of Basic Sum Assured 18 years 20% of Basic Sum Assured 20 years 10% of Basic Sum Assured
₹50 per ₹1,000 of Basic Sum Assured for the first 5 years.₹55 per ₹1,000 from the 6th year till the end of the premium term.
Note: Guaranteed Additions are added at the end of each policy year during the premium payment term, if all premiums are paid.
Premium Calculation Guide For LIC Bima Shree
This easy guide with examples shows how the premium changes with age, policy term, and payment term. In every example, the Basic Sum Assured is ₹10 crore. Let's understand the Premium Payment Calculation Guide for the LIC Bima Shree plan:
| Name Of The Policyholder | Age (in Years) | Policy Term-14 (Premium Payment Term-10) | Policy Term 16 (Premium Payment Term-12) | Policy Term 18 (Premium Payment Term-14) | Policy Term 20 (Premium Payment Term-16) |
|---|---|---|---|---|---|
| Rajat | 20 Years | ₹10,80,450 | ₹9,07,480 | ₹7,81,060 | ₹6,93,840 |
| Aman | 30 Years | ₹10,85,840 | ₹9,13,360 | ₹7,88,410 | ₹7,02,660 |
| Sushant | 40 Years | ₹11,08,870 | ₹9,39,330 | ₹8,16,830 | ₹7,34,020 |
| Tarun | 50 Years | ₹11,73,060 | ₹10,05,970 | - | - |
Available Riders For The LIC Bima Shree Plan
Here is a list of available riders and benefits offered by them:
| Rider Name | When Can You Buy | Benefit Type | Key Features |
|---|---|---|---|
| LIC's Accidental Death & Disability Benefit Rider (UIN: 512B209V02) | Anytime during an active policy (PPT must be at least 5 years left) | Accidental Death + Disability | Lump sum on accidental deathMonthly payout for 10 years on disabilityFuture premiums waived |
| LIC's Accident Benefit Rider (UIN: 512B203V03) | Anytime during an active policy (PPT must be at least 5 years left) | Accidental Death | Lump sum paid on accidental death only |
| LIC's New Term Assurance Rider (UIN: 512B210V01) | Only at the start of the policy | Death Cover | Extra sum assured paid on death during the policy term |
| LIC's New Critical Illness Benefit Rider (UIN: 512A212V01) | Only at the start of the policy | Critical Illness | Lump sum on first diagnosis of any of the 15 listed critical illnesses |
| LIC's Premium Waiver Benefit Rider (UIN: 512B204V03) | Anytime during the policy (only for minor life assured & proposer) | Premium Waiver | Waives future premiums if the proposer dies or is disabledAvailable only if Life Assured is a minorThe rider term is limited based on age rules |
How To Buy LIC Bima Shree Plan Online?
To buy the LIC Bima Plan online, you have to go through the given steps:
Step 1
Go to the official LIC website (www.licindia.in).
Step 2
On the homepage, go to Buy Policies Online or select the plan category (like Endowment or Money Back).
Step 3
Choose the specific plan you want to buy.
Step 4
Click on “Learn More” to open the application page.
Step 5
Fill in the form and upload the required documents.
Step 6
Submit the form and make the payment online.
Terms and Conditions Of The LIC Bima Shree Plan
Here are some of the considerable terms and conditions that you should know before purchasing the Bima Shree LIC plan:
Grace Period
If you miss paying your premium on the due date, LIC gives you a grace period to make the payment without losing your policy benefits. During this time, your policy remains active, and your life insurance coverage continues uninterrupted.The grace period depends on your payment mode:30 days for yearly, half-yearly, or quarterly payments15 days for monthly payments
Rebate Details
Mode of Premium Payment Rebate:
Payment Mode Rebate on Tabular Premium Yearly 2% Half-Yearly 1% Quarterly / Monthly / Salary Deduction No Rebate (NIL) High Basic Sum Assured Rebate::
Basic Sum Assured (BSA) Rebate on Tabular Premium ₹10,00,000 to ₹19,00,000 NIL ₹20,00,000 to ₹49,00,000 ₹0.30 per ₹1,000 of BSA (0.30 ‰) ₹50,00,000 and above ₹0.50 per ₹1,000 of BSA (0.50 ‰) Revival of Lapsed Policy
If you miss the grace period, your policy will lapse. You can still revive it:Within 5 years of the first unpaid premiumBefore the policy maturesDuring the life of the insuredTo revive the policy:Pay all pending premiums + interestSubmit any documents or medical reports if neededLIC may:Approve on original or modified terms, orDecline the revivalThings to Remember:Revival is complete only after LIC accepts it and issues a receipt.
If revival happens after a survival benefit was due, LIC will pay the balance amount. Riders can be revived only with the main policy.Policy Loan
You can take a loan under your policy if you have paid at least two full years' premiums. This facility is provided based on the terms and conditions of the LIC.The maximum loan amount depends on the type of policy:In-force policies Up to 90% of the surrender valuePaid-up policies Up to 80% of the surrender valueThe interest rate on the loan is determined at regular intervals by the Corporation, based on a method approved by IRDAI.
Taxes on the Policy
If there are any taxes set by the Government of India or tax authorities, you have to pay them.This includes:Tax on the base policy premium.Tax on rider(s) (if added).Tax on any extra premium (if applicable).Important points:Taxes are charged extra, over and above your premium.The tax amount will not be included when calculating the benefits under the policy. For any questions about income tax savings or rules, please talk to your tax advisor.
Free Look Period
If you are not satisfied with the terms and conditions of your policy, you can return it to the Corporation within 15 days from the date you receive the policy bond. You need to mention the reasons for returning the policy.Once the Corporation receives your request, it will cancel the policy and refund the premium you paid, after deducting:Proportionate risk premium (for the base plan and rider, if any) for the days you were coveredMedical test expenses, if anyCharges for any special reports, if doneStamp duty charges
Paid Up Policy
If you stop paying premiums for 2 years, the policy lapses, and nothing is paid. But, after 2 full years, the policy becomes paid-up with reduced benefits:Reduced death and maturity benefits based on how many premiums were paid.Guaranteed and loyalty additions (if any) are added.Survival benefits are also reduced.Riders will not continue under a paid-up policy.Loyalty addition is paid only if 5 full years' premiums are paid.
Surrender Value
You can surrender the policy anytime after paying 2 full years' premiums. On surrender, you will get the higher of:Guaranteed Surrender Value (GSV)Special Surrender Value (SSV)GSV = (Total premiums paid excluding taxes, extra, and rider premiums) × applicable GSV factor- (any survival benefits already paid)SSV is decided by the Corporation from time to time with IRDAI approval.
Exclusions Of LIC Bima Shree Plan
If the life assured (sane or innesa) dies by suicide within 12 months, the policy becomes void.If it happens within 12 months of policy start, only 80% of premiums paid (excluding taxes and extra charges) will be returned if the policy is active.If it happens within 12 months of policy revival, the higher of the following will be paid:80% of premiums paid, orSurrender value on the date of death.
FAQs
LIC Bima Shree is a money-back life insurance plan specially designed for high-net-worth individuals. It offers life cover, guaranteed returns, and periodic payouts during the policy term, along with maturity benefits and loyalty additions. It also provides loan and rider options.
LIC Bima Shree (Plan 848) offers the following benefits:
- Guaranteed additions during the first 5 years.
- Loyalty additions after 6 years, based on company performance.
- Survival benefits are paid at regular intervals.
- Maturity benefit (final payout with bonuses).
- Death benefit to the nominee if the policyholder dies during the term.
- Loan facility after 2 years.
- Tax benefits under Sections 80C and 10(10D).
Plan 948 is the revised version of Plan 848, with similar benefits but updated features:
- Higher guaranteed additions
- Money-back payouts at fixed intervals
- Lump sum maturity benefit
- Loyalty additions (if declared)
- Death benefit for financial protection
- Optional riders for extra coverage
- Loan and surrender options after 2 years
LIC does not officially guarantee a fixed 10% return on any policy. However, money-back plans and some high bonus plans like:
- LIC Jeevan Labh
- LIC Bima Shree
- LIC Jeevan Shiromani
All three plans may offer returns close to 10% over the long term, depending on bonuses and loyalty additions. Actual returns vary based on policy term, age, and LIC's performance.