Review of LIC New Bima Gold

LIC New Bima Gold is a traditional money-back insurance policy that provides money-back benefits on a regular basis. The insurance offers liquidity through money-back benefits that assist you in meeting your future financial obligations. Additionally, the plan offers several other benefits to the policyholder that helps them to live without any financial worries.

However, the plan is no longer available for sale as it was withdrawn by the LIC of India in 2014. But those individuals who have already bought this plan can continue to avail the protection under the plan.

Benefits of LIC New Bima Gold

1. Death Benefit

   In case of the unfortunate death of the policyholder during the policy tenure, the nominee of the policy will receive 100 % of the sum assured. In case the policyholder dies after the tenure of the policy but during the extended term, then 50% of the sum assured is paid to the nominee.

2. Maturity Benefit

   Once the policy is matured, the policyholder will receive the maturity benefit. The maturity benefit paid will be equal to the total of all the premiums paid till date plus loyalty addition. However, the sum assured upon maturity will be reduced by the amount previously paid in the form of the survival benefits. In addition, 50% of the sum insured is provided as life cover until the policy's extended term is finished and no more premiums are due.

3. Survival Benefit

   In case the life insured survives during the whole tenure of the policy, then

   • At the end of the fourth and eighth years of the policy's 12-year term, 15% of the sum assured is paid.

   • For the 16-year policy term, 15% of the sum assured is paid at the end of the fourth, eighth, and twelfth years.

   • For a 20-year insurance, 15% of the sum assured is paid at the end of the fourth, eighth, twelfth, and sixteenth years. 

4. Tax Benefit

   The premium paid and maturity proceeds are exempt from tax deduction under section 80C and 10(10D).

5. Loan Benefit

   The plan offers the loan facility to the policyholders once the policy acquires paid up value. 

6. Auto Cover Facility

   If at least two full years' of premiums have been duly paid, full death coverage will continue for two years from the date of the First Unpaid Premium (FUP) or until the end of the policy term, whichever comes first. 

7. Optional Rider Benefit

   Under LIC New Bima Gold, the policyholder has the option to enhance their coverage by opting for additional coverage through available riders. The plan offers Accidental Death and Disability Benefit Rider wherein if the policyholder dies due to the accident, an additional amount equal to the Accident Benefit Rider Sum Assured is payable. Whereas, on the permanent and total disability arising due to an accident (within 180 days from the date of the accident an amount equal to the Accident Benefit Rider Sum Assured will be paid over 10 years in monthly installments.

What is the Eligibility Criteria of LIC New Bima Gold?

LIC Resources

In the End

LIC New Bima Gold is categorized under special LIC plans that was designed to offer life protection along with investments. The plan helps the policyholder to ensure his and his family’s financial security even after his demise. The plan was withdrawn by the company, and you can no longer buy this plan, however, those individuals who bought this plan before it was withdrawn will be covered under its umbrella of benefits.