LIC New Bima Gold Plan is a combination of a money back plan and endowment plan with extended cover beyond premium paying term. Hence it is categorized under Special Plans. This is a non unit-linked insurance plan.
In this plan, the premium is paid for the entire Policy Term but the plan continues even beyond that till the end of the Extended Term, which is half of the Policy Term after the Policy Term ends. During the Policy Term, Survival Benefit is paid at regular and pre-decided intervals.
After the Policy Term ends, the total of the (Premiums Paid + Loyalty Additions – Survival Benefit already paid) is paid as Maturity Benefit and 50% of the Sum Assured as Life Coverage continues till the end of the Extended Term. No premium is paid during the Extended Term.
This plan is a Special Plan because
· It is a Money Back Plan with a difference
· Premium is paid till the end of the Policy Term and Survival Benefits are also received till then
· The Life Cover continues for an Extended Term, after the Policy Term ends with no further Premium or Survival Benefit payable.
Key Features of LIC New Bima Gold Plan
§ Policy Term is chosen by the policyholder and premium is paid till the end of the Policy Term.
§ The policy continues even beyond the Policy Term till the end of the Extended Term
§ The Extended Term is half of the Policy Term
§ Death Benefit during the Policy Term is 100% of the Sum Assured and during the Extended term is 50% of the Sum Assured
§ Maturity Benefit is paid at the end of the Policy Term
§ Maturity Benefit is equal to (Total of Premiums paid + Loyalty Additions, if any – Survival Benefits already paid)
§ There is an optional Accidental Death and Disability Benefit rider
§ There is large Sum Assured Rebate available in this plan
Benefits you get from LIC New Bima Gold Plan
Death Benefit – In case of death of the Life Insured
· During the Policy Term, then 100% of the Sum Assured is paid
· After the Policy Term but during the Extended Term, then 50% of the Sum Assured is paid
Survival Benefit— In case the Life Insured survives, he would get:
· 15% of the Sum Assured is paid at the end of the 4th and 8th year for Policy Term of 12 years
· 15% of the Sum Assured is paid at the end of the 4th, 8th and 12th year for Policy Term of 16 years
· 10% of the Sum Assured is paid at the end of the 4th, 8th, 12th and 16th year for Policy Term of 20 years
Maturity Benefit – At the maturity of the Policy Term, the insured will get
· Total of all Basic Premiums paid till date +
· Loyalty Additions, if any –
· Survival Benefits already paid
And 50% of the Sum Assured continues as Life Coverage till the end of the Extended Term where no further premiums are payable.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)
Eligibility conditions and other restrictions in LIC New Bima Gold Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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50,000
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No Limit
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Policy Term (in years)
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12, 16
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20
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Premium Payment Term (in years)
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Equal to Policy Term
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Extended Term (in years)
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Half of Policy Term
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Entry Age of Policyholder
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14
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57 for Term 12 years
51 for Term 16 years
45 for Term 20 years
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Age at Maturity
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-
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75
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Payment modes
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Yearly, Half-yearly, Quarterly, Monthly and SSS
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Sample illustration of premium of LIC New Bima Gold Plan
The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured of Rs 1,00,000 for a Policy Term of 20 years.
Hence Extended Term is ½ of Policy Term, i.e. 10 years.
Thus, Guaranteed Return of 10% of Sum Assured is provided after 4th, 8th, 12th and 16th Policy Year.
Maturity Benefit is paid at the end of 20 years= Total Premium paid + Loyalty Bonus – Survival Benefits already paid.
Additional Features and Benefits of LIC New Bima Gold Plan
Riders- There is 1 additional rider available:
· Accidental Death and Disability Benefit
You stop paying the premium – If you stop paying the premiums after 2 policy years, the policy cover continues for another 2 years from date of First Unpaid Premium under Auto Cover option.
You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium
You want a loan against your policy – Loan facility is available under this policy. The present rate of interest is 9% p.a.
Alternate Money Back Plans from different insurance companies
1. Met Sukh Plan from MetLife
2. ICICI Prudential Cashbak
3. BSLI Money Back Plus Plan
Other Money Back Plans from Life Insurance Corporation of India
1. The Money Back Policy-15 Years
2. The Money Back Policy-20 Years
3. The Money Back Policy-25 Years
4. Jeevan Surabhi-20 Years
5. Jeevan Surabhi-25 Years
6. Bima Bachat
