LIC Bima Account 2

This plan has been withdrawn by the insurance company and is no longer available for sale.

LIC Bima Account 2 Policy

Bima Account 2 is a traditional life insurance policy from LIC which offers a guaranteed return of 6% every year for all the money held in the policy holder’s account. All premiums paid less the charges are held in this account. Also the plan is very simple to understand and is very transparent. It is the first traditional plan to declare the list of all charges which are applicable. This is a higher version LIC Bima Account 1.

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6% guaranteed returns
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Charges are transparent
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Term of 15 years
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Key Features

6% guaranteed returns
Based on the performance additional bonuses may be declared
Charges are transparent
Term of 15 years


Death Benefit

In case of death of the policy holder, the nominee would receive the Sum Assured + the amount in the policy holders account (net of premiums paid + assured returns + any additions).

Maturity Benefit

On maturity the policy holder would get the amount in the policy holder’s account (net of premiums paid + assured returns + any additions).

Income Tax Benefit

Premiums paid towards Life Insurance policies up to Rs.1,50,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amount too is tax free.

Guaranteed Returns

In Bima Account 2, there is a guaranteed return of 6% of the money held in the policy holder’s account. The policy holder’s account consists of all premiums paid net of charges along with the guaranteed interest earned every year + any additional interest earned.

Additional Interest

Based on the performance of the policy an additional interest may be declared every year.

Top Up

You can top up your policy to an amount equal to the sum of all regular premiums paid. This can be done only after the 1st policy year. There is no increase in the Sum Assured based on the top-up paid and it does not form part of the policy holder’s account. So the guaranteed 6% returns would not apply to the Top-Up amount paid.

Loan facility

Loan can be availed in the Bima Account 2. The maximum loan amount would be 60% of the amount held in the policy holder’s account. If at any moment the loan amount outstanding along with the interest exceeds the policy holders account, the policy would be terminated and nothing would be payable to the customer.

Surrender Benefits

The policy would acquire surrender benefits as soon as the 1st year’s premiums have been paid. The benefits are payable only after 3 years though. If you surrender the policy before paying 3 years of premium, no additional charge would be levied on the account and no credit also would be credited to the account. If you surrender after paying premiums of 3 years, the amount held in the policy holder’s account would be payable.

Non-payment of Premiums

You policy would acquire a paid-up value if the premiums are no paid within the grace period. The policy can be revived within 12 months from the date of the 1st unpaid premium. No life cover is provided during the revival period. The amount in the policy would continue to earn a 5% interest till it is revived.

How it works


Expense Charges (which includes the commission charge paid to agents)

  1st Year 2nd & 3rd year 4th to 7th Year
For regular Premiums 27.5% 7.5% 5%
Top Up Premiums 2.5% of the top-up amount


Mortality Charges (for every Rs.1000 of Sum Assured)


Entry Age Upto 20 years 20 to 30 years 30 to 40 years 40 to 50 years
Per Rs. 1000 of  SA 1.25 1.46 2.57 6.56


Sample illustration of premium amount in Bima Account 2

Age = 35 years

Policy Term = 15 years

Annual Premium = Rs.15,000

Total Premiums paid in 7 years = Rs.2,250,000

Returns on LIC Bima Account 2


  Minimum Maximum
Sum Assured (in Rs.) 10 x Annualised Premium For age <= 35

30 x Annualised Premium

For age 36 to 45

20 x Annualised Premium

For age 46 to 50

10 x Annualised Premium

Policy Term (in years) 10 15
Premium Payment Term (in years) Same as policy term
Annual Premium Rs.15,000 No limit
Top Up Premium - Sum of all regular premiums paid
Entry Age of Policyholder 8 60
Age at Maturity 18 70
Single premium NA NA
Payment modes Yearly, Half-Yearly, Quarterly and Monthly (ECS)