LIC’s Bima Shree: A High Return Lucrative ‘Money Back’ Plan, In Long Term: Benefits

Sum assured amount for LIC’s Bima Shree, and policy term

The Minimum Basic Sum Assured under the LIC’s Bima Shree plan is Rs. 10,00,000, and there is no Maximum Basic Sum Assured limit. The Basic Sum Assured will be in multiples of Rs. 1,00,000.

There are 4 Policy Terms for the plan, for 14, 16, 18, and 20 years. The Premium Paying Term (PPT) will be 4 years less than the policyholder’s Policy term. Premium Paying Term (PPT) means for how long the policyholder will have to pay the yearly/quarterly/half-yearly/monthly premiums. Policy term means for how long the policy will be active with LIC, and after that, the policyholder will get the maturity benefits.

Maximum Age at entry	Policy term
55 years	14 years
51 years	16 years
48 years	18 years
45 years	20 years

Eligibility and entry age

LIC’s Bima Shree Investment has been specially designed for the High Net-worth Individuals, that will offer financial support for the family in case of unfortunate death of the policyholders during the policy term.

The minimum entry age for the LIC Bima Shree plan is 8 years completed. The maximum entry age for the policy depends on the policy term, that follows below:

Maximum Age at entry	Policy term
55 years	14 years
51 years	16 years
48 years	18 years
45 years	20 years

LIC’s Bima Shree policy benefits: calculation

The calculation (for example) has been done considering the policy term is 18 years, hence the premium paying term (PPT) is 14 years, and the policyholder’s entry age is 30 years.

Basic sum assured: Rs. 10,00,000

Death sum assured: Rs. 12,50,000

Yearly Premium 1st year (4.5% tax): Rs. 83643

Yearly Premium (after 1st year – with 2.5% tax): Rs. 81842

Money back at 14th year: Rs. 4,00,000

Money back at 16th year: Rs. 4,00,000

Guaranteed return at Maturity time: Rs. 9,45,000 + 330000(Loyalty addition)

Total return at maturity time: Rs. 12,75,000

Total approximate return: Rs. 20,75,000

The calculation is done through the official ‘All in one Calc’ by LIC.

Death Benefits

LIC’s Bima Shree offers a very profitable death benefit, that can cover the policyholder’s family even after his/her death. On death during the first 5 years, the Death Benefit defined as the sum of ‘Sum Assured on Death’ and accrued Guaranteed Addition will be paid. On death after completion of 5 policy years but before the date of maturity, the Death Benefit defined as the sum of ‘Sum Assured on Death’ and accrued Guaranteed Addition and Loyalty Addition (if any) will be paid. ‘Sum Assured on Death’ is defined as the higher of 125% of Basic Sum Assured or 7 times of the annualized premium.

However, according to LIC, the death benefit should not be less than 105% of all the premiums paid up to the date of death.

Survival Benefits

LIC mentioned in an official notification, “On the life assured surviving to each of the specified durations during the policy term, provided all due premiums have been paid, a fixed percentage of Basic Sum Assured shall be payable.”

The fixed percentage for various policy terms follow:

Policy term	Percentage of Basic Sum Assured
For policy term 14 years	30% of Basic Sum Assured on each of 10 and 12 policy anniversary.
For policy term 16 years	35% of Basic Sum Assured on each of 12 and 14 policy anniversary.
For policy term 18 years	40% of Basic Sum Assured on each of 14 and 16 policy anniversary.
For policy term 20 years	45% of Basic Sum Assured on each of 16 and 18 policy anniversary

Maturity Benefits

LIC said, “On the life assured surviving to the end of the policy term, provided all due premiums have been paid, Sum Assured on Maturity along with accrued Guaranteed Addition and Loyalty Addition, if any, shall be payable.”

Policy term	Sum Assured on Maturity
For policy term 14 years	40% of Basic Sum Assured on each of 10 and 12 policy anniversary.
For policy term 16 years	30% of Basic Sum Assured on each of 12 and 14 policy anniversary.
For policy term 18 years	20% of Basic Sum Assured on each of 14 and 16 policy anniversary.
For policy term 20 years	10% of Basic Sum Assured on each of 16 and 18 policy anniversary