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
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)
Sum Assured (in Rs.)
Policy Term (in years)
Premium Payment Term (in years)
Equal to Policy Term
Extended Term (in years)
Half of Policy Term
Entry Age of Policyholder
57 for Term 12 years
51 for Term 16 years
45 for Term 20 years
Age at Maturity
Yearly, Half-yearly, Quarterly, Monthly and SSS
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.
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.