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. From the 6th to the 10th policy year, LIC will pay Rs 55 per Rs 1000 basic sum promised, and from the 11th to the 25th policy year, the guaranteed increase will be Rs 60 per Rs 1000 basic sum assured.
In the event of death while the insurance is still in force, the Guaranteed Addition in the year of death will be for the entire policy year.
The Guaranteed Additions under a policy will stop accruing if the premiums are not paid on time.
The Guaranteed Addition for the policy year in which the last premium is received will be added proportionately in proportion to the premium received for that year in the case of a paid-up policy or on surrender of a policy.
Date of commencement of risk
If the Life Assured’s age at entry is less than 8 years, the risk under this plan will begin 2 years from the date of commencement or 2 years from the policy anniversary coinciding with or immediately following the achievement of 8 years of age, whichever comes first .
Risk will begin immediately for individuals who are 8 years old or older.
Date of vesting
“If the policy is issued on the life of a minor, the policy shall automatically vest on the Assured Life on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Assured Life, ”as per the LIC brochure.
According to the LIC brochure copy, “LIC Settlement Option is an option to receive Maturity Benefit in installations over a period of 5 years instead of a lump sum amount under an in-force as well as Paid-up policy. This option can be exercised by the Policyholder during a minority of the Assured Life or by the Assured Life aged 18 years and above, for full or part of the maturity proceeds payable under the policy. The amount opted for this option by the Policyholder / Life Assured (ie Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable. ”