LIC Bima Shree Plan

Everyone knows that death is unfortunate so it better to be prepared for the uncertainties that might happen after your death. If you haven’t taken any life insurance plan then it is high time to buy one. You can have a look at the LIC Bima Shree Plan in which your life will be secured until the policy term expires. On the other hand, you will get a maturity benefit if you successfully survive the policy term. The company also gives you survival benefits if you after a certain duration of time and a lump sum payment will be made on maturity. If at any time during the policy term you want money then you can take a loan against the policy as well. So, you must explore all the key features of this plan.

Key Features of Bima Shree Policy

1. There is no maximum limit for the Amount of Sum Assured.
2. You have the option to divide the maturity benefits and survival benefits of the policy.
3. Your family will get death benefits as well.
4. You are free to choose the policy term and the amount of sum assured.
5. If you are unable to pay the premium on time then the company will give you a grace period.
6. Enjoy Tax Benefits in this plan.

Benefits of Bima Shree Plan

Now you must explore all the benefits of this plan that will help you to accumulate funds and protect your family. Go through these benefits deeply so that you can understand this plan better.

Death Benefits

1. The nominee will receive the death benefit on the unfortunate death of the insured and it will be as follows:-
2. The nominee will get the Sum Assured on Death and the Guaranteed Additions if the insured dies before the completion of the first five policy years.
3. The nominee will get Sum Assured on Death, Loyalty Additions, and the Guaranteed Additions if the insured after the completion of five policy years.
4. The Sum Assured on death will be the highest of the following:-
5. 125% of the Basic Sum Assured
6. 7 Times the Annualized Premium
7. The death benefit will never be less than 105% of all premiums paid up to the time of death.

Option to Take Death Benefits in Instalments

The company allows the nominee to take the death benefits in installments and you are free to choose the time span of 5 years, 10 years, and 15 years. It is not necessary to take the death benefit as a lump sum and you can see different payment modes.

1. Monthly – INR 5000
2. Quarterly – INR15000
3. Half-Yearly – INR 25000
4. Yearly – INR 50000

Survival Benefits

There are certain time periods defined by the company on the completion of which you will receive a percentage of the sum assured as the survival benefit for different policy terms. Survival benefits will only be paid if you have paid all the premiums. You can look at the percentages in the table given below.

Maturity Benefits

You will receive maturity benefits once the policy term is over and you will also receive the Guaranteed Additions and the Loyalty Additions. The Sum Assured on maturity will be as follows:-

Guaranteed Addition Benefits

The company will give you some guaranteed additions that will be payable as follows:-

1. INR 50 per thousand of the Basic Sum Assured for the first 5 Years.
2. INR 55 per thousand of the Basic Sum Assured from the 6th policy year until the expiry of the premium paying term.

Add Riders

You can also add riders to this plan to cover some more risks. So, the riders options available in the Bima Shree Plan are as follows:-

1. Accidental Death and Disability Benefit Rider
2. Accident Benefit Rider
3. New Term Assurance Rider
4. New Critical Illness Benefit Rider
5. Premium Waiver Benefit Rider

Various Modes for Paying the Premium

The company gives you different premium payment frequency modes for paying the premium amount. They are available on a yearly, half-yearly, quarterly and monthly basis. You can pay the premium through NACH Facility in which it will deduct the premium amount automatically from your savings account on the due date.

Surrender Benefits

You can surrender the LIC Bima Shree Plan and take the surrender value in case of an emergency. But you’ll only get the surrender benefits if you have paid all the premiums for two years without missing any premium. You will get the highest of the following:-

1. Guaranteed Surrender Value
2. Special Surrender Value

Loan Against Policy

You can also take a loan against this policy from the company if you don’t want to surrender it. But you are allowed to take a loan against the policy only if your policy has acquired a surrender value. Life Insurance Corporation of India (LIC) will charge the applicable interest on the loan borrowed against the policy. If the loan is taken during the premium paying term, the maximum loan amount will be:-

1. Up to 90% in the case of in-force policies
2. Up to 80% in the case of paid-up policies

Free-Look Period

You will get a free-look period of 15 days in this policy. It means that you can return the policy within 15 days if you don’t find its terms and conditions interesting. If you have purchased the policy online, you will get a grace period of 30 days.

Eligibility Criteria for LIC Bima Shree Plan