The product can be procured through corporate agents, Insurance Marketing Firms (IMFs), brokers, CPSC-SPVs, and POSP-LIs who are engaged by these intermediaries. Corporate Agents, Insurance Marketing Firms (IMFs), and Brokers
LICBima Ratna plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term and also provides periodic payouts for the survival of the policyholder over a specified period to meet various financial requirements.
In addition, the scheme takes care of the liquidity needs through a loan facility.
The salient features of the new scheme are as follows:
1. Death Benefit:
LIC offers death benefit payout on the death of the Life Assured during the policy term after the date of commencement of risk, along with guaranteed additions accrued.
LIC defines Sum Assured on Death as higher than 125% of the Basic Sum Assured or 7 times the annualized premium. This death benefit payment shall not be less than 105% of the total premiums (excluding any additional premium, any rider premium(s) and taxes) paid till the date of death.
However, in case of a minor who is less than 8 years of age, on death before the commencement of risk, the benefit payable shall be the return of the premiums paid (excluding taxes, any additional premium and rider premium). , if any), without interest.
2. Survival Benefit:
Among its survival benefits – LIC will pay 25% of the Basic Sum Assured at the end of every 13th and 14th policy year if the term of the plan is 15 years. For a 20 year term plan, LIC will pay 25% of the Basic Sum Assured at the end of each of the 18th and 19th policy years. If the policy plan is for 25 years, LIC will pay the same 25% at the end of every 23rd and 24th policy year.
3. Maturity Benefit:
Under its brochure of Bima Ratna, LIC states that if the Life Assured survives the stipulated date of maturity, provided the policy is in force, “Sum Assured on Maturity” along with accrued Guaranteed Extra, shall be payable. Where “Sum Assured on Maturity” is equal to 50% of the Basic Sum Assured.
4. Guaranteed Extras:
From 1st to 5th year, LIC will make guaranteed additional payment 50 per 1000 Basic Sum Assured. Whereas LIC will pay from 6th to 10th policy year 55 per 1000 will become the Basic Sum Assured, and the Guaranteed Addition 60 per year from 11th to 25th policy year 1000 Basic Sum Assured.
Notably, in case of death under an in force policy, the guaranteed addition in the year of death will be for the entire policy year.
However, if the premium is not duly paid, the guaranteed additions under the policy will cease to be available.
LIC said that in case of a paid-up policy or on surrender of the policy, the Guaranteed Addition for the policy year in which the last premium is received shall be added on a proportionate basis to the premium received for that year.
5. Eligibility Conditions and Other Restrictions:
LIC offers minimum Basic Sum Assured to the tune of 5 lakhs. There is no limit on the maximum Basic Sum Assured, however, it will be in multiples of 25,000.
The term of the policy varies from 15 years, 20 years and 25 years. However, the policy term will be 15 and 20 years if the policy is obtained through POSP-LI/CPSC-SPV.
Under Bima Ratna, the premium paying term is 11 years for a policy term of 15 years. Whereas it is 20 years for policy terms and 16 years and 21 years for 25 years.
The minimum age is to complete 5 years for the policy term of 15 years. Whereas 90 days for fulfillment of policy terms are for 20 and 25 years.
The maximum age for policy terms is 55 years 15 years, while the age is 50 years and 45 years for policy terms 20 years and 25 years.
Further, the policy can be opted for at the age of 65 years by reducing the term of the policy if purchased from POSP-LI/CPSC-SPV.
The minimum age for policy maturity is 20 years for policy terms 15 years and 20 years. while maturity age is 25 years for the policy term 25 years.
The maximum age for maturity is 70 years.
6. Date of Commencement of Risk:
If the age of entry of the Life Assured is less than 8 years, the risk under this plan will commence either 2 years from the date of commencement or with the policy anniversary or immediately after attaining the age of 8 years, whichever is is first. For those 8 years of age or older, exposure will begin immediately.
7. Settlement Options:
Settlement option is an option to avail maturity benefit in installments over 5 years instead of lump sum amount under a current as well as paid-up policy. This option can be exercised by the policyholder during the young life of the Life Assured or by the Life Assured of 18 years and above for full or part of the maturity amount payable under the policy.
The amount opted for this option by the Policyholder/Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim amount payable.
There are monthly, quarterly, half-yearly and annual installments under the policy.
Minimum monthly installment is 5,000, while quarterly it is 15,000, half yearly 25,000, and annually 50,000
If the net claim amount is less than the amount required to provide the minimum premium amount as exercised by the policyholder/insured, the claim amount will be paid in lump sum only.
8. Premium Payment:
Premiums can be paid at regular annual, half yearly, quarterly or monthly intervals (monthly premium only through NACH) or through salary deduction.
9. Grace Period:
A grace period of 30 days will be allowed for payment of annual or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of first unpaid premium. During this period, the policy shall be deemed to be in force with risk cover without interruption as per the policy terms. If the premium is not paid before the expiry of the grace days, the policy terminates.
The above grace period will also be applicable on the rider premium which is payable along with the premium of the basic policy.
10. Revival:
If the premium is not paid within the grace period, the policy will lapse. A lapsed policy can be revived but within 5 consecutive years from the date of first unpaid premium but before the date of maturity.