LIC Bima Ratna Plan
LIC Bima Ratna is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan which offers a combination of protection and savings. This plan provides financial support for the family in case of the unfortunate death of the policyholder during the policy term. It also provides periodical payments at specified durations to meet the various financial needs of the policyholder.
| Launch Date | 27th May 2022 |
| Table Number | 864 |
| Product Type | Endowment |
| Bonus | Yes |
| UIN | 512N345V01 |
Key Features
The plan participates in bonus declarations which enhance the benefits payable.
The plan provides an additional Accidental Death and Disability Benefit Rider which provides an additional benefit in case of accidental death or disability.
Loans can be taken under the plan if the plan acquires a Surrender Value.
Rebates in premiums are allowed for choosing a high level of Sum Assured and also for paying premiums annually or semi-annually.
Benefits
On Life Assured surviving the stipulated Date of Maturity provided the policy is in force, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable. Where “Sum Assured on Maturity” is equal to 50% of Basic Sum Assured.
Death Benefit payable on the death of Life Assured during the policy term after the date of commencement of risk shall be “Sum Assured on Death” along with Accrued Guaranteed Additions. Where “Sum Assured on Death” is defined as the higher of 125% of Basic Sum Assured or 7 times of annualized premium. This Death Benefit payment shall not be less than 105% of total premiums paid (excluding any extra premium, any rider premium (s), and taxes) up to the date of death. However, in the case of minor Life Assured, whose age at entry is below 8 years, on death before the commencement of Risk, the Death Benefit payable shall be a refund of premium(s) paid (excluding taxes, any extra premium, and rider premium(s), if any), without interest.
On the life assured surviving till each of the specified duration during the policy term, a fixed percentage of Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:
| Policy Term | Payment of Survival Benefit |
| 15 | 25% of the Basic Sum Assured at the end of each 13th and 14th policy year |
| 20 | 25% of the Basic Sum Assured at the end of each of the 18th and 19th policy year |
| 25 | 25% of the Basic Sum Assured at the end of each 23rd and 24th policy year |
Guaranteed Additions (GA) shall accrue at the end of the each Policy Year at the rate as specified below:
| Policy Year | Guaranteed Additions |
| From 1st to 5th | Rs. 50 |
| From 6th to 10th | Rs. 55 |
| From 11th to 25th | Rs. 60 |
Guaranteed Additions are per Rs. 1000 Basic Sum Assured.
So if you have a cover of Rs. 20,00,000 the GA would be as follows:
- 1st to 5th year: 50 x 20 lakhs / 1,000 = Rs. 1 lakh each year = Rs. 5 lakhs
- 6th to 10th year: 55 x 20 lakhs / 1,000 = Rs. 1.1 lakh each year = Rs. 5.5 lakhs
- 11th to 25th year: 60 x 20 lakhs / 1,000 = Rs. 1.2 lakh each year = 18 lakhs
- So you get Guaranteed Addition of Rs. 5 + 5.5 + 18 lakhs = 28.5 lakhs
How it works
The policyholder chooses the Sum Assured and the Term of the plan when buying the policy. Based on the Age of the insured, the Sum Assured and the Policy Term selected, the Premium is determined.
If the insured survives till the end of the policy term and all premiums have been paid, a Maturity Benefit would be paid to the policyholder. Maturity benefit would be equal to the Sum Assured + Bonus Amounts which have been received throughout the policy term + any Final Addition Bonus if declared. Now if the death of the insured occurs during the policy tenure, the nominee will get ‘Sum assured on death’ with Accrued Guaranteed Additions. Where “Sum Assured on Death” is defined as the higher of 125% of Basic Sum Assured or 7 times of annualized premium.
We will explain the plan with the help of an example.
Example – Yash, aged 30 years, buys LIC Bima Ratna Plan.
Sum Assured = Rs. 20 lakhs
Policy term = 25 years
Premium Paying Term = 21 years
Year of Purchase = 2022
Annual Premium = Rs. 1,16,178 + 4.5% GST
The premium would be payable for a duration of 21 years.
Scenario 1 – Yash survives till the end of the policy tenure.
Total Premium Paid in 21 years = Rs. 1,16,178 x 21 = Rs. 24,39,738
The Guaranteed Additions which he will receive:
| Policy Year | Guaranteed Addition |
| 1 - 5 | 5 lakhs |
| 6 - 10 | 5.5 lakhs |
| 11 - 25 | 18 lakhs |
| Total | 28.5 lakhs |
The Survival Benefits he will receive:
| Policy Year | Money-Back |
| 23 | 5 lakhs |
| 24 | 5 lakhs |
| Total | 10 lakhs |
So Total Benefits in the policy = Rs. 28.5 + 10 lakhs = 38.5 lakhs
Scenario 2 – Yash dies during the policy term.
If Yash dies in the year 2035 (at age 43), then by that time,
Total premium paid = 13 x Annual Premium = Rs. 15,10,314
The nominee will get 125% of Sum Assured + Guaranteed Addition Bonus which is added every year.
Death Benefit = 125% of 20 Lakhs + (1 Lakh for 5 years) + (1.1 Lakh for 5 years) + (1.2 Lakhs for 3 years) = Rs. 39,10,000
Surrender Value
If the policyholder has paid the first two years’ premiums and future premiums have not been paid, the policy becomes a paid-up policy. The Basic Sum Assured under the plan is reduced in proportion to the number of premiums paid against the total number of premiums payable. Future bonuses are not added and on death or maturity, the reduced Sum Assured along with the vested bonuses is paid.
If the policyholder wants, he can surrender his policy and avail the Surrender Value. The policy acquires a Surrender Value only if the first two years’ premiums have been paid. Higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) is paid on surrendering the plan. GSV and SSV are calculated as follows:
GSV = (Total Premiums Paid * GSV Factor) + (Accrued Guaranteed Additions * GSV factor of Bonus)
SSV is declared by the company based on its performance.
FAQs
What type of bonus is declared under the policy?The plan pays Guaranteed Additions i.e. a fixed amount of bonus is added to the sum assured every year.
Are riders available under the plan?You have the choice of taking the following rider by paying an extra premium amount:
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC’s Accident Benefit Rider (UIN:512B203V03)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
- LIC’s New Critical Illness Benefit Rider (UIN: 512A212V02)
- LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
Are there any rebates on the premium?| Mode | Rebate |
| Yearly mode | 2% of Tabular Premium |
| Half-yearly mode | 1% of Tabular premium |
| Quarterly, Monthly (NACH) & Salary deduction | NIL |
| Basic Sum Assured (BSA) | Rebate on tabular premium |
| 5,00,000 to 9,75,000 | NIL |
| 10,00,000 to 14,75,000 | 0.50 |
| 15,00,000 to 19,75,000 | 1.00 |
| 20,00,000 and above | 1.25 |
Does the plan provide a loan facility?Yes, policyholders can avail of a loan under the plan if they have paid at least the first 2 years’ premiums and the plan has acquired a Surrender Value.
How much is the revival period?You can revive your lapsed policy within 5 years of the last paid premium
