LIC’s Bima Ratna Insurance Plan: What You Need to Know | India Business News
LIC on Friday launched an individual life insurance plan called Bima Ratna. Aimed at the domestic market, it offers a combination of protection and savings.
Here are some features of the plan:
Death benefit :
The death benefit is payable, on the death of the insured, for the duration of the policy after the date the risk begins. In its brochure, the “death face amount” is defined as the greater of 125% of the basic face amount or 7 times the annualized premium. The death benefit shall not be less than 105% of the total premiums paid (excluding any additional premiums, rider premiums and taxes) up to the date of death.
From the 1st to the 5th year, LIC will pay guaranteed supplements of Rs 50 per Rs 1000 basic sum insured. From the 6th to the 10th year of insurance, LIC will pay Rs 55 per Rs 1000 basic sum insured. LIC will pay a guaranteed supplement of Rs 60 from the 11th to the 25th year of insurance per basic sum of Rs 1000 insured. In the event of death under an in-force policy, the guaranteed bonus in the year of death will be for the full year of the policy.
Risk start date:
If the policyholder’s entry age is less than 8 years, risk under this plan will begin either 2 years from the effective date of the policy or from the of the policy coinciding with or immediately following the attainment of 8 years of age, whichever occurs first. For those aged 8 or over on entry, the risk will begin immediately from the date of issue.
Grace period :
A grace period of 30 days is granted for the payment of annual, half-yearly or quarterly premiums and 15 days for monthly premiums from the date of the first unpaid. If the premium is not paid before the expiration of the grace days, the policy lapses. If the death of the insured occurs during the grace period but before payment of the premium then due, the policy will be valid. Benefits are paid after deducting such unpaid premium and the remaining premium, if any, due from the date of death and before the next policy anniversary.