India's leading insurer LIC has launched a new policy Bima Ratna on Friday that seeks to provide protection and savings. The non-linked, non-participating, and savings life insurance plan has been launched keeping in mind the requirements of home market. The product can be bought via Insurance Marketing Firms (IMF), corporate agents, brokers.
The new offering of LIC has been launched with the goal of offering financial assistance to policyholder's family in the scenario of policyholder's untimely demise during the policy term along with periodic payments for policyholder's survival at scheduled intervals to meet several financial needs. It comes with a borrowing feature to fulfill liquidity needs.
Check the crucial features of the product below:
1. Death benefit
On the death of the life assured during policy term after the commencement date, LIC will be paying a death benefit along with accrued guaranteed additions. According to official website of LIC, the Sum Assured on Death will be more than 125% of basic sum assured or 7 times of annualized premium. The death benefit shall not be less than 105% of total premium paid. However, in case of minor below 8 years, in the case of death before the risk starts, the benefit offered is a refund of premium paid excluding tax, any additional premium, or rider premium.
2. Survival Benefit
LIC shall be making a payment of 25% of the basic sum assured at the end of the 13th and 14th policy years in case the policy tenure is 15 years. In case there is 20 year term plan, LIC shall be paying 25% of the basic sum assured towards the end of each of the 18th and 19th policy years. Meanwhile, if the policy plan is for 25 years period, LIC will have to pay the similar 25% towards the end of the every 23rd and 24th policy year.
3. Maturity benefit
According to the official website of LIC, it shall pay the Sum Assured on Maturity in combination with accrued Guaranteed Additions. It is worth mentioning that "Sum Assured on Maturity" will remain equal to 50% of the "Basic Sum Assured".
4. Guaranteed Additions
LIC shall be paying the guaranteed additions of Rs 50 per Rs 1000 basic payment assured from 1st to 5th year. Meanwhile, from the 6th to the 10th policy year, the payment shall be Rs 55 for every Rs 1000 basic sum assured. And, from 11 to 25th policy year, the guaranteed addition shall rise to Rs 60 for Rs 1000 basic sum assured. It is important to note that if premiums are paid in a timely manner, the Guaranteed additions under the insurance shall stop accruing.
5. Payment of Premium
The policyholder can make payment of premiums at a regular annual, half-yearly, quarterly, and monthly interval.