LIC Bima Shree Plan is a non-linked, with profits, limited premium payment money back plan. This plan offers a combination of protection and savings. This plan is specially designed for High Net-worth Individuals (HNI). This plan provides financial support for the family in case of unfortunate death of the policyholders during the policy term. Periodic payments shall also be made on survival of the policyholder at specified durations during the policy term and a lump sum payment to the surviving policyholder at the time of maturity. The age limit is between 8 and 55 years.
1) This plan is eligible for paid-up immediately after the completion of 2 years where as for all other policies of LIC, paid up feature is applicable only after completion of at least 3 years.
2) Policy can be surrendered after completion of 2 years.
3) You can avail the loan after a year of the policy.
4) Premiums can be paid yearly, half-yearly, quarterly or monthly.
5) Risk coverage is available for the entire policy term though this is a limited premium payment plan.
6) There is guaranteed addition of Rs.50 per Rs.1,000 Sum Assured for the first 5 years and Rs.55 per Rs.1,000 Sum Assured from 6th year onward till policy premium paying term.
7) The plan also provides Loyalty Addition after 5 years onwards.
8) Options are available to defer survival benefits and death benefits by nominee.
9) Death benefit will be Sum Assured + Guaranteed Addition during the first 5 years of the policy period and Sum Assured + Guaranteed Addition + Loyalty Addition from 6th year to policy maturity date.
10) Survival benefits is calculated as follows
• For 14 Yrs Policy-30% of Basic Sum Assured on each 10th and 12th policy year.
• For 16 Yrs Policy-35% of Basic Sum Assured on each 12th and 14th policy year.
• For 18 Yrs Policy-40% of Basic Sum Assured on each 14th and 16th policy year.
• For 20 Yrs Policy-45% of Basic Sum Assured on each 16th and 18th policy year.
11) Maturity Benefits are as follows
• For 14 Yrs Policy-40% of Basic Sum Assured+Guaranteed Addition+Loyalty Addition.
• For 16 Yrs Policy-30% of Basic Sum Assured+Guaranteed Addition+Loyalty Addition.
• For 18 Yrs Policy-20% of Basic Sum Assured+Guaranteed Addition+Loyalty Addition.
• For 20 Yrs Policy-10% of Basic Sum Assured+Guaranteed Addition+Loyalty Addition.
12) There are rebates on the mode of payment and for high Basic Sum Assured
13) This plan offers the riders like Accidental Death and Disability Benefit, Accident Benefit, New Term Assurance Rider, Critical Illness rider and premium waiver rider. One can avail a maximum of 4 riders in this plan.
14) One can avail tax benefits under section 80C for the premium paid.