LIC Bima Shree (Plan No. 948)

LIC Bima Shree Plan- An Overview

LIC Bima Shree plan-948 is a specially designed plan for high-net-worth individuals that offers protection and savings. Offered by the LIC of India, the plan provides survival benefits. The beneficiary will receive periodic payments on surviving a specified duration during the policy term. In addition to this, a lump sum payment is paid at the time of maturity. This plan also offers financial support to the policyholder's family in case of his untimely death during the policy period. 

Eligibility Criteria Of LIC Bima Shree

The table will help you understand the LIC India Bima Shree Plan, from eligibility conditions to other restrictions.

Benefits Offered Under LIC India Bima Shree Plan

The benefits payable under an in-force policy (where all due premiums have been paid) are as follows:

1. Death Benefit

   • If death in first five years: “Sum Assured on Death” plus accrued Guaranteed Additions shall be payable.

   • If death after five years of buying the Bima Shree plan online but before the date of maturity: “Sum Assured on Death” plus accrued Guaranteed Addition and Loyalty addition, if any, shall be payable.

   **Sum Assured on Death is higher than 7 times the annualized premium or 125% of Basic Sum Assured. LIC Bima Shree plan’s (948) death benefit shall not be less than 105% of all the premiums paid until the policyholder's death date.

2. Survival Benefit

   On the survival of the policyholder for each specified duration during the Bima Shree plan online, a fixed percentage of the sum assured shall be payable. The fixed percentage of various policy terms is as below:

   Policy Term	Basic Sum Assured	Duration
   14 years	30%	10th and 12th policy anniversary
   16 years	35%	12th and 14th policy anniversary
   18 years	40%	14th and 16th policy anniversary
   20 years	45%	16th and 18th policy anniversary

3. Maturity Benefit

   When the LIC India Bima Shree plan holder survives until maturity, provided that all the premiums have been paid, he is liable to receive “Sum Assured on Maturity” along with accrued guaranteed additions and loyal additions, if any.

   “Sum Assured on Maturity” is as under:

   Policy Term	Basic Sum Assured
   14 years	40%
   16 years	30%
   18 years	20%
   20 years	10%

Riders Option Available Under LIC Bima Shree

Five optional riders are available under the online Bima Shree plan by payment of additional premiums. They are as follows:

• LIC Accidental Death and Disability Benefit Rider (UIN: 512B209V02)

• LIC Accident Benefit Rider (UIN:512B203V03)

• LIC New Term Assurance Rider (UIN: 512B210V01)

• LIC New Critical Illness Benefit Rider (UIN: 512A212V01)

• LIC PremiumWaiver Benefit Rider (UIN: 512B204V03)

However, in the Bima Shree plan, you can opt for a LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Also, each of the rider's sums assured cannot exceed the basic sum assured under the base plan.

Sample Illustration Of LIC Bima Shree Premiums

Here are some sample illustrations of the premium to be paid on a basic sum assured of Rs 10 lakh.

*The above-mentioned amount is exclusive of taxes.

For example, if Anuj buys the Bima Shree plan online at the age of 20 for let’s say a term period of 16 years, then he has to pay the premium for 12 years and the annual premium amount would be 90,748+taxes.

Rebates Offered Under LIC Bima Shree

There are 2 kinds of rebates available under the LIC Bima Shree plan 948. They are as follows:

Policy Details Of LIC Bima Shree Plan 948

LIC India Bima Shree plan is ideal for high-net-worth individuals. Buying the Bima Shree plan online is the most viable option as this limited premium money-back life insurance plan comes with a minimum Basic sum of 10 lakh rupees only. Here are some policy details of the plan that will help you better understand it.

1. Grace Period

   A grace period of 30 days is given for the payment of yearly, half-yearly, or quarterly premiums. Also, 15 days of grace are allowed for monthly premiums from the day of the first unpaid premium. During this period, the policy is considered enforced, but if the premium is not duly paid before the expiry of grace, then the policy lapses.

2. Paid-up Policy

   • If less than 2 years premium paid: all benefits under the policy shall be ceased after the expiry of the grace period and nothing shall be payable.

   • If at least 2 years premium have been paid and any subsequent premium is not paid, the policy is not wholly void but shall subsist as a paid-up policy till the end.

3. Surrender

   LIC Bima Shree plan 948 can be surrendered any time after 2 years’ premiums have been paid. On surrender of the policy, the company shall pay the surrender value equal to the higher of guaranteed surrender and special surrender value.

4. Policy Loan

   The loan can be availed on the LIC India Bima Shree plan only after 2 years’ premium payments have been duly made. The loan also depends upon the terms and conditions as the company may specify from time to time.

   The maximum loan as per surrender value percentage is:

   • For in-force policy: up-to 90%

   • For paid-up policy: up-to 80%

5. Taxes

   As per the Tax Laws, Statutory taxes are imposed on such insurance plans, if any, by the Government of India or any other constitutional Tax Authority of India. The tax rate may vary from time to time as per tax laws.

6. Free Look Period

   LIC Bima Shree plan 948 has a 15-day free-look period. During this time, if the policyholder is not satisfied with the terms and conditions of the policy, he may return it to the company stating the reason for objection. After receiving it, the company will cancel the policy and return the premium amount deposited.

7. Revival

   The LIC Bima Shree policy lapses if the premium is not paid before the grace period expires. The policy can be revived but only within 5 consecutive years of the first unpaid premium. The revival will affect the payment of all premium arrears.

What Is Not Covered Under the LIC Bima Shree Plan?

Suicide is an exclusion under the Bima Shree plan, and the policy shall be considered void under the following circumstances:

• If the life assured commits suicide within 12 months from the date of the start of the policy, only 80% of the premiums paid can be claimed, provided the policy is still in force. The company shall entertain no other claims.

• If the life assured commits suicide within 12 months from the date of revival of the plan, 80% of the total premiums paid to date or surrender value as available, whichever is higher, can only be claimed. The company shall entertain no other claims.