LIC Bima Ratna life insurance plan: 9 things to know
LIC has a new life insurance product called Bima Ratna, a non-linked, non-participating, individual savings life insurance product that combines protection and savings. The policy was launched on May 27, 2022.
Here is a look at key details of the LIC Bima Ratna policy as per the product brochure available on the LIC website.
Goal of the policy
This plan provides financial assistance to the policyholder’s family in the event of the policyholder’s untimely death during the policy term, as well as periodic payments on the policyholder’s survival for predetermined periods of time to meet a variety of financial needs. Through a loan facility, this approach addresses liquidity concerns.
How to buy LIC Bima Ratna
This product can be currently purchased through corporate agents, Insurance, marketing firms (IMF), brokers, CPSC-SPV and POSP-LI engaged by these intermediaries viz. corporate agents, insurance marketing firms (IMF) and brokers.
The “Sum Assured on Death” plus Accrued Guaranteed Additions will be paid on the death of a Life Assured within the policy period following the date of the beginning of risk.
Where “Sum Assured on Death” means the higher of 125 percent of the Basic Sum Assured or seven times the yearly premium.
According to the LIC brochure, “This Death Benefit payment shall not be less than 105% of total premiums paid (excluding any extra premium, any rider premium (s) and taxes) upto date of death.”
A specific proportion of the Basic Sum Assured will be paid if the life assured survives for each of the stated durations during the policy period, providing the policy is in force.
According to the LIC Bima Ratna brochure, “On Life Assured surviving the stipulated Date of Maturity provided the policy is in-force, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable. Where “Sum Assured on Maturity” is equal to 50% of Basic Sum Assured.”
LIC will pay guaranteed increases of Rs 50 every Rs 1000 base sum assured from the first to the fifth year.