LIC of India introduced the LIC Bima Ratna plan under its endowment product portfolio. This plan comes with a risk cover for the policyholder and regular survival benefits to help meet his/her expenses in the future. Like other LIC endowment-based savings plans, LIC Bima Ratna also offers a lot of flexibility to policyholders, which helps them customize the benefits according to their needs.
It is an insurance policy that covers the life assured against the risk of death. In the event of his/her death, the family can claim the death benefit amount. However, if the policyholder survives the policy term, he/she is entitled to survival benefits at specific years and a final maturity benefit. In this way, LIC Bima Ratna acts as a savings avenue for policyholders in the long term.
The death and maturity benefits come with extra guaranteed additions, which increases the final payout.
Instead of a lump sum payout, one can choose to receive the death and maturity benefits in installments through the Settlement Option.
Premiums against the desired coverage amount can be paid monthly, quarterly, half-yearly, or annually, depending on the convenience of the buyer.
Buyers of LIC Bima Ratna can also enjoy discounts on premiums if they choose half-yearly or yearly premium payments.
Rebates on premiums are also applicable if the basic sum assured is higher than Rs.10 Lakhs.
Loans up to 90% of the surrender value can be availed if premiums have been paid for at least two full years.
To be eligible to receive all the benefits of the policy, customers must note the following conditions.
| Policy Term | 15 Years | 20 Years | 25 Years |
| Minimum Entry Age | 5 years (Completed) | 90 days (Completed) | 90 days (Completed) |
| Maximum Entry Age | 55 years | 50 years | 45 years |
| Minimum Maturity Age | 20 years (Completed) | 20 years (Completed) | 25 years (Completed) |
| Maximum Maturity Age | 70 years | 70 years | 70 years |
| Premium Paying Term | 11 years | 16 years | 21 years |
| Minimum Basic Sum Assured | Rs.5,00,000 | ||
| Maximum Basic Sum Assured | No limit | ||
If the life assured dies during the chosen policy term, the nominee of the policy can claim whichever of the following amounts is higher -
125% of Basic Sum Assured
7 times the annual premium amount
The final death benefit amount is paid along with the guaranteed additions that have accumulated till the time of death.
Survival benefits in LIC are a fixed percentage of the sum assured paid to the life assured if he/she survives specific years in the policy term. With LIC Bima Ratna, 25% of the BSA will be paid in each of the following years -
| Policy Term | Policy Year |
| 15 Years | 13th and 14th policy year |
| 20 Years | 18th and 19th policy year |
| 25 Years | 23rd and 24th policy year |
If the life assured survives the whole policy term, 50% of the basic sum assured is paid out to them.
LIC makes guaranteed additions to the sum assured at the end of every policy year. The rate of addition with LIC Bima Ratna is defined as -
From 1st to 5th policy years, Guaranteed Additions accrue at Rs.50 per Rs.1,000 Basic Sum Assured.
From 6th to 10th policy years, Guaranteed Additions accrue at Rs.55 per Rs.1,000 Basic Sum Assured.
From 11th to 25th policy years, Guaranteed Additions accrue at Rs.60 per Rs.1,000 Basic Sum Assured.
The premiums paid towards LIC Bima Ratna and the final proceeds from the policy are eligible for tax benefits under sections 80C and 10(10D), respectively.
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
