LIC Bima Ratna Life Insurance Policy: Key Features and Benefits (LIC)

 LIC Bima Ratna Life Insurance Policy: Key Features and Benefits (LIC) 

    LIC Bima Ratna is a life insurance policy offered by Life Insurance Corporation of India (LIC) that provides a lump sum payment at maturity, along with a death benefit in case of the unfortunate demise of the policyholder during the policy term.

According to the information available on the LIC website, the policy is a limited premium payment, non-linked, non-participating, individual life insurance savings plan. Here are some key features of the policy:

• Minimum entry age: 18 years

• Maximum entry age: 55 years

• Policy term: 10 years or 15 years

• Premium payment term: 5 years or 7 years

• Minimum premium: Rs 1,00,000

• Maximum premium: Rs 5,00,000

• Maturity benefit: Sum assured plus accrued guaranteed additions and terminal bonus, if any

• Death benefit: Sum assured plus accrued guaranteed additions and terminal bonus, if any

• Surrender value: Available after payment of at least two full years' premiums

The policy offers a high sum assured, which is 10 times the annualized premium. So, if you invest Rs 5,00,000 in the policy, you will get a sum assured of Rs 50,00,000. However, it is important to note that the returns from the policy depend on various factors, including the prevailing market conditions and the performance of the underlying investments.

Before investing in any life insurance policy, it is important to carefully read the policy terms and conditions, and understand the risks involved. You may also want to consider other investment options that may offer higher returns, depending on your financial goals and risk appetite.

Guaranteed Additions: The policy offers guaranteed additions, which are added to the sum assured at the end of each policy year. The guaranteed addition rate is Rs 50 per thousand sums assured for the first five policy years and Rs 55 per thousand sums assured for the remaining policy years.

Terminal Bonus: In addition to the sum assured and guaranteed additions, the policy also offers a terminal bonus, which is a one-time bonus paid at maturity or death, whichever is earlier. The terminal bonus is not guaranteed and depends on the LIC's performance and the prevailing market conditions.

Tax Benefits: The premiums paid towards the policy are eligible for tax benefits under Section 80C of the Income Tax Act. The maturity benefit and death benefit received under the policy are also tax-free under Section 10(10D) of the Income Tax Act.

Loan Facility: The policy also offers a loan facility, which can be availed after the policy acquires a surrender value. The maximum loan amount that can be availed is up to 90% of the surrender value.

Surrender Value: If the policyholder wants to surrender the policy before maturity, a surrender value is paid, which is a percentage of the premiums paid. The surrender value is based on the policy term, premium payment term, and the number of premiums paid.

Grace Period: The policy offers a grace period of 30 days for the payment of premiums. If the premium is not paid within the grace period, the policy lapses, and no benefits are payable.

In conclusion, LIC Bima Ratna is a life insurance savings plan that offers a high sum assured and guaranteed additions. However, it is important to understand the policy terms and conditions, and the risks involved before investing in the policy. It is also advisable to compare the policy with other investment options and choose the one that best suits your financial goals and risk appetite.

LIC Bima Ratna is a life insurance policy offered by Life Insurance Corporation of India (LIC) that provides a lump sum payment at maturity, along with a death benefit in case of the unfortunate demise of the policyholder during the policy term. It is a limited premium payment, non-linked, non-participating, individual life insurance savings plan with a policy term of 10 years or 15 years and a premium payment term of 5 years or 7 years. 

     The policy offers a high sum assured of 10 times the annualized premium, with guaranteed additions added to the sum assured at the end of each policy year. It also offers a terminal bonus, a one-time bonus paid at maturity or death.

 The policy provides tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, a loan facility, and a grace period of 30 days for the payment of premiums. However, it is important to read and understand the policy terms and conditions and compare them with other investment options before investing.