| Plan | Entry age | Maximum age at maturity | Policy term | Sum assured | Premium payment | Premium payment frequency |
| LIC’s Dhan Rekha | 0 (90 age) – 60 Years | 60 / 55 | Single & Limited Premium | 2l- Maxium no limits | 20 – 10 30 – 15 40 – 20 |
All |
| LIC’s New Bima Bachat | 15 – 50 | 75 | 9/12/15 | 35/50/70 | Single | Single |
The benefits provided by LIC DhanRekha plan are as follows:
The “Sum Assured on Death” plus Accrued Guaranteed Additions shall be paid on death during the policy period following the date of commencement of risk. For a single premium payment, the policyholder will receive 125% of the basic sum assured as the “Sum Assured on Death”. Whereas, for limited premium payment, the policyholder will receive 125% of the basic sum assured or 7 times the yearly premium as the “Sum Assured on Death”.
A specific percentage 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. The following is the fixed percentage for several policy terms:
If the life assured survives the given date of maturity while the policy is in force, the “Sum Assured on Maturity” will be paid, along with any Accrued Guaranteed Additions.
Guaranteed Additions will be paid if the insurance remains in force and the premiums are paid on time. From the 6th policy year to the conclusion of the policy term, the Guaranteed Additions will accumulate at the end of each policy year. The rate of Guaranteed Additions will rise in lockstep with the policy’s duration, as shown below:
Here’s the list of the features and benefits of LIC New Bima Bachat;
If the person dies during the five initial years of the policy period, then the nominee shall receive the “Sum Assured on Death”.
If the person dies after the completion of five policy years, then they will receive the sum assured on death along with the loyalty addition.
The “Sum Assured on Death” is defined as the higher of the two amounts.
Taxes, extra premiums, and rider premiums, if applicable, are not included in the above-mentioned single premium.
Where “Sum Assured on Maturity” matches the Single Premium paid, excluding the premium of the rider, taxes, and additional premium.
Death benefit – If the policyholder dies during the term of the policy, then the policy will pay out sum assured on death and accrued bonuses, if any, shall be paid to the nominee and the policy will terminate. Sum assured on death will be higher of 10 times of annual premium or 125% of basic sum assured. The survival benefit amount paid in the policy will not be deducted from the death benefit sum assured. All this will be paid out on the condition that policy is in force and all due premiums have been paid.
Maturity Benefit – The policyholder will receive 40% of the Sum assured, along with accrued bonuses (simple reversionary bonuses and Final Additional bonus, if any) that will be paid in lump sum on survival when the policy will terminate. The maturity benefit will be paid out provided the policy is active and all due premiums have been paid by the policyholder.
Survival Benefits – The survival benefit of 20% will be paid to the policyholder at the end of 5th, 10th, and 15th policy term, if the policyholder is alive on those specific durations.
Benefits of LIC Money Back Policy 20 Years include Death benefits, survival benefits, Maturity benefits.
Participation in Profits – The LIC Money back policy is participating, which means that it will pay out simple receive Simple Reversionary Bonuses and a final additional bonus, if any, provided the policy is active and all premiums have been paid.
Optional rider to enhance the value of the policy
LIC’s Accidental Death and Disability Benefit Rider – The rider provides an extra financial benefit to the policyholder in case the death is due to an accident. The minimum sum assured of the rider is INR 1 lakh and the maximum sum assured of the rider is INR 1 crore. The minimum age of entry is 18 years and maximum age of coverage under this rider is 70 years. The accidental death benefit sum assured will be paid in lump sum in addition to the death benefit.
In case of accidental permanent disability happening to the policyholder due to an accident (in 180 days from the date of accident), the sum assured which is equal to accidental benefit will be paid over 10 years and all future premiums will be waived off in the policy.
Following are the key features and benefits of the LIC New Money Back Plan that promises to work for the betterment of its customers.
The plan comes with a special feature under which the policyholder is required to pay premiums for a period of 20 years and can avail of the plan’s benefits up to 25 years.
This policy offers a death benefit that is payable in case of death of the life assured. The amount of death benefit is equal to the sum assured which will not be less than 105% of the total premiums paid up to the date of death. The policyholders also have the flexibility to opt for the method in which they can receive the death benefit. They can either avail of the benefit amount in installments or lump sum amount. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments.
The plan also provides customers with survival benefits under which 15% of the sum assured amount is paid as the benefit amount at the end of each of the 5th, 10th, 15th & 20th policy years.
Upon maturity of this plan, the policyholder is provided with the maturity benefit amount which is equal to 40% of the basic sum assured amount and includes accrued bonus amount, if any. Customers also have the flexibility to receive their maturity amount either in the form of installments or lump sum amounts.
Another special feature of this plan is that it comes with a variety of add-on riders that allow customers to enhance their coverage. At present, there are four optional riders available with this plan. These riders are-
Please note that the customer can opt between either of the LIC’s Accidental Death and Disability Rider or LIC’s Accident Benefit Rider. This means that a maximum of only three riders can be availed under this policy.
This plan also provides customers with a special benefit under which they can avail loan facility with this policy. Policyholders are required to pay at least two full years’ premiums in order to avail of this benefit. The maximum loan allowed under the policy, as a percentage of Surrender Value is given below:
One of the best parts of this insurance plan is that it allows customers to avail tax benefits on the premium amount as per sections 10D and 80C of the Income Tax Act.
LIC Jeevan Shiromani offers a multitude of features and benefits to the policyholder that makes it one of the best insurance plans to consider for financial protection. Let’s discuss them in detail!
This is the biggest benefit that is offered by the policy in case of the death of the policyholder.
The term assures that if you, unfortunately, die during the first five years, then you are entitled to receive “Sum Assured on death” along with the cumulative guaranteed and loyalty addition.
For those who don’t know, the “Sum Assured on Death” simply means that 125% of the minimum sum is assured or 7X the annualized premium. The benefit of the death shall be equal to 105% of the total of all the premiums that have been paid until the death date.
If the person who owns the policy lives for a particular time during the policy term, then a specific proportion of the Basic Sum Assured will be paid. But at the same time, there is a condition that all the due premiums should have been paid. Here’s the fixed percentage for different periods of the policy:
It is often regarded as both the feature and benefit of LIC Jeevan Shiromani. It states that all the potential advantages of the policy will come to an end if the grace period expires from the date of the first unpaid premium or the premium payment of less than 1 year is paid.
If the policy is not void after at least premium payment of 1 full year has been paid, the policy will remain as a paid-up policy until the completion of the period of the policy. The Sum Assured on Death is lowered in a paid-up policy to a sum known as the ‘Death Paid-up Sum Assured,’ which is equal to the Total Assured on Death computed by multiplying the complete period for which premiums have already been paid by the total term of the policy.
This could be the biggest benefit for any policyholder that he/she always wanted while choosing the policy. It allows the user to make the payment for premium on either a monthly basis, quarterly, half-yearly, or yearly basis.
During the Premium Paying Term (PPT), Guaranteed Additions will accrue after each policy year if all required premiums have been paid to date. In the case of a paid-up policy or on surrender of a policy, 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.
If the life assured lives to the end of the period of the policy and all required premiums have been paid, the “Sum Assured on Maturity” will be paid. And not only this, the accrued Guaranteed Additions and Loyalty Addition shall also be paid.
Let’s take a look at the sum assured on maturity:
Here’s the list of the 15 critical illnesses covered under LIC Jeevan Shiromani policy.
Here’s the list of the features and benefits of the LIC Bima Shree Plan that help the policyholder offer financial protection to the family. Let’s discuss them!
This is the biggest benefit that entices users to look for this policy. If the policyholder, unfortunately, dies during the first five years of the policy term, then “sum assured on death” and “guaranteed addition” shall be paid to the nominee/family members.
For those who don’t know, the sum assured on death is 125% of the minimum sum assured or you could say, “7X of the annualized premium”. Talking about the minimum amount, the death benefit won’t be less than 105% of all the premiums paid up to the death period of the user.
Note: The premium (mentioned above) doesn’t include rider premium, additional premium, or taxes if applicable.
This is the second benefit and feature that a policyholder will get after availing of the insurance plan.
During the period of the policy, if the policyholder survives at the end, then he/she is entitled to receive the minimum sum assured. But here’s the catch!
All premiums should have been paid by the user then only he/she shall receive the amount. Let’s take a look at the different policy terms:
Just like the survival benefit aforementioned, this benefit states that if the policyholder survives till the end of the period of the policy, he/she is entitled to receive “Sum Assured on Maturity” along with loyalty and guaranteed addition. But there’s a condition that he/she should have paid all the amount of the premium during the period of the policy.
This is one of the biggest features of LIC Bima Shree, making it a popular plan among its segment. If the policyholder (due to some reason) fails to pay the premium on the first date, then he/she will likely receive a grace period of 30 days for yearly, half-yearly, or quarterly premiums.
During the period of the policy, if the user fails to pay the premium even before the grace period expires, then the policy will lapse.
Note: Keep in mind that the grace period is also applied to the rider premiums that should be paid on time.
As the name suggests, if the policyholder fails to pay the amount of the premium (for less than 2 years of the policy period), then he/she shall not get any benefits under the policy and later, the company will cease the policy.
Talking about another scenario, if the policyholder, fortunately, paid the premium amount of the full 2 years but failed to pay any subsequent premiums, then the policy may not be completely cancelled but shall subsist as a paid-up policy till the conclusion of the period of the policy.
