In May 2022, LIC introduced its Bima Ratna plan, which provides the policyholder with a risk cover and regular survival benefits.
This is a non-linked, non-participating, individual, savings life insurance plan by the LIC of India which is available through brokers, corporate agents, Insurance Marketing Firms (IMF) and Common Service Centres (CSC) of the LIC of India.
The LIC Bima Ratna insurance premium can be paid monthly (through NACH only), quarterly, half-yearly, or yearly.
From the first unpaid premium, the grace period is as follows:
30 days for yearly, half-yearly, or quarterly premiums
15 days for monthly premiums
Rebates on LIC Bima Ratna insurance premiums are applicable if the basic sum assured is higher than ₹10 Lakh.
After the payment of at least 2 years’ premium, a loan can be availed against the LIC Bima Ratna plan. The loan will be granted as follows:
Up to 90% of surrender value for policies in force.
Up to 80% of surrender value for paid-up policies.
The free-look period for the LIC Bima Ratna plan is 30 days.
If the policyholder dies during the policy term, the nominee can claim 125% of the basic sum assured or 7 times the annual premium amount, whichever is higher.
With the LIC Bima Ratna plan, 25% of the basic sum assured will be paid in each of the following years as a survival benefit-
For a policy term of 15 years, the survival benefit will be paid at the end of the 13th and 14th year.
For a policy term of 20 years, the survival benefit will be paid at the end of the 18th and 19th year.
For a policy term of 25 years, the survival benefit will be paid at the end of the 23rd and 24th year.
If the policyholder survives the complete policy term, 50% of the basic sum assured along with accrued guaranteed additions is paid out to them.
LIC makes guaranteed additions to the sum assured (per ₹1000 basic sum assured) at the end of every policy year as per the following rates:
₹50 from 1st to 5th policy year
₹55 from 6th to 10th policy year
₹60 from 11th to 25th fifth policy year