There are many such features in the policy which have been prepared according to the needs of the policyholders. These include flexible premium payment, which can be done monthly, quarterly, half-yearly or annually.
LIC Bima Ratna Yojana is a life insurance policy by Life Insurance Corporation of India to provide savings and financial security to the people. This non-participating and non-linked personal life insurance scheme can be purchased from LIC’s Corporate Agents, Brokers, Insurance Marketing Firms (IMFs) and Common Service Centers.
There are many such features in the policy which have been prepared according to the needs of the policyholders. These include flexible premium payment, which can be done monthly, quarterly, half-yearly or annually. A grace period of 30 days has been given for quarterly, half-yearly and annual premiums. While a grace period of 15 days has been given for the premium every month.
Discount on premium
Policyholders can also avail rebate on their premium, 2% rebate is given for annual payment and 1% rebate is given for high annual payment. If the policy lapses, it can be revived within five years from the date of first premium payment. If less than two full years’ premiums have been paid, the policy will lapse after the end of the grace period.
If at least two years’ premiums have been paid, the policy will be deemed to be completely void but the policy will continue to be a paid-up policy till the end of the term. After paying premiums for two full years, the policyholder can surrender the policy, and the surrender value will be equal to the higher of the Special Surrender Value or the Guaranteed Surrender Value. Additionally, the loan can be availed after paying premiums for at least two years.
Death benefit is also available
LIC Bima Ratna plan also offers several benefits, such as death benefit which provides financial assistance to the family of the policyholder after the death of the policyholder. Guaranteed additional amount under death benefit which will be higher of seven times the annualized premium or 125% of the Basic Sum Assured.
In this policy, the investors are also given survival benefit, in which a fixed sum assured amount is paid to the surviving policyholder in the respective policy tenure. The maturity benefit is the Sum Assured on maturity, which is equal to 50% of the Sum Assured. Apart from this, the guaranteed benefit will be paid to the surviving life insurance holder on the date of maturity.
Understand the complete calculation here
The minimum sum assured amount for LIC Bima Ratna plan is Rs 5 lakh, there is no limit on the maximum amount. Whether the policy term is 15 years, 20 years or 25 years, premium paying term of 11 years for policy terms of 15 years, 16 years for policy terms of 20 years and premiums to be paid throughout the tenure for policy terms of 25 years .
In the policy, you will get a guaranteed return of Rs 55 on the sum assured of Rs 1000 from 6th to 10th year. Therefore, on the sum assured of Rs 10 lakh, the guaranteed return after 10 years will be Rs 55 thousand. The maturity benefit for this policy will be Rs 5 lakh, which is 50% of the total sum assured, and add Rs 55,000 to this as an additional benefit.
In case of death of the policyholder during the term of the policy, his family will get a death benefit of Rs 12.5 lakh and Rs 10 lakh as sum assured and Rs 55 thousand as guaranteed return. This means that the family will get a total of Rs 23.05 lakh.
