Life Insurance LIC of India LIC Bima Shree

LIC Bima Shree Plan

LIC Bima Shree

Bima Shree (Plan No. 948, UIN No. 512N316V02) is offered by LIC (Life Corporation of Life) that offers an ideal blend of both protection and savings to the policyholder looking after financial protection for their children. The company launched this plan for people with high earnings who are looking for guaranteed payments at regular intervals. In case of the death of the policyholder during the time of the policy, the plan shall provide maximum financial security to the nominee or the family members. This money-back plan is incredibly popular among individuals looking to safeguard the financial future of their families.

If the policyholder survives during the tenure of the plan, the user will likely receive periodic payments at specific durations while he/she will be getting a lump sum amount at the maturity period. With this loan facility, this plan may even cater to your liquidity requirements without any hassle.

Eligibility Criteria; Are You Eligible for LIC Bima Shree?

Here’s the eligibility criteria for LIC Bima Shree policy:

Minimum Age at entry	8 years (completed)
Maximum Age at entry	55 years (nearer birthday) for the policy term 14years 51 years (nearer birthday) for the policy term 16 years 48 years (nearer birthday) for the policy term 18 years 45 years (nearer birthday) for the policy term 20 years
Policy Term	14, 16, 18 and 20 years
Minimum Basic Sum Assured	Rs. 10,00,000
Maximum Basic Sum Assured	No limit (The Basic Sum Assured shall be in multiples of Rs. 1,00,000/-
Premium Paying Term	(Policy term – 4) years
Maximum Age at Maturity	69 years (nearer birthday) for policy term-14 years : 67 years (nearer birthday) for policy term-16 years : 66 years (nearer birthday) for policy term 18 Years : 65years (nearer birthday) for policy term 20 years

Salient Benefits & Features of LIC Bima Shree Plan

Here’s the list of the features and benefits of the LIC Bima Shree Plan that help the policyholder offer financial protection to the family. Let’s discuss them!

1. Death Benefit:

This is the biggest benefit that entices users to look for this policy. If the policyholder, unfortunately, dies during the first five years of the policy term, then “sum assured on death” and “guaranteed addition” shall be paid to the nominee/family members.

For those who don’t know, the sum assured on death is 125% of the minimum sum assured or you could say, “7X of the annualized premium”. Talking about the minimum amount, the death benefit won’t be less than 105% of all the premiums paid up to the death period of the user.

Note: The premium (mentioned above) doesn’t include rider premium, additional premium, or taxes if applicable.

2. Survival Benefit:

This is the second benefit and feature that a policyholder will get after availing of the insurance plan.

During the period of the policy, if the policyholder survives at the end, then he/she is entitled to receive the minimum sum assured. But here’s the catch!

All premiums should have been paid by the user then only he/she shall receive the amount. Let’s take a look at the different policy terms:

Policy Term	Minimum Sum Assured on different intervals of the Policy
14 Years	30% of Basic Sum Assured on each of 10 and 12 policy anniversaries
16 Years	35% of Basic Sum Assured on each of 12 and 14 policy anniversaries
18 Years	40% of Basic Sum Assured on each of 14 and 16 policy anniversaries
20 Years	45% of Basic Sum Assured on each of 16 and 18 policy anniversaries.

3. Maturity Benefit:

Just like the survival benefit aforementioned, this benefit states that if the policyholder survives till the end of the period of the policy, he/she is entitled to receive “Sum Assured on Maturity” along with loyalty and guaranteed addition. But there’s a condition that he/she should have paid all the amount of the premium during the period of the policy.

Policy Term	Sum Assured on Maturity
14 Years	40% of Basic Sum Assured
16 Years	30% of Basic Sum Assured
18 Years	20% of Basic Sum assured
20 Years	10% of Basic Sum assured

4. Grace Period:

This is one of the biggest features of LIC Bima Shree, making it a popular plan among its segment. If the policyholder (due to some reason) fails to pay the premium on the first date, then he/she will likely receive a grace period of 30 days for yearly, half-yearly, or quarterly premiums.

During the period of the policy, if the user fails to pay the premium even before the grace period expires, then the policy will lapse.

Note: Keep in mind that the grace period is also applied to the rider premiums that should be paid on time.

5. Paid-Up Policy:

As the name suggests, if the policyholder fails to pay the amount of the premium (for less than 2 years of the policy period), then he/she shall not get any benefits under the policy and later, the company will cease the policy.

Talking about another scenario, if the policyholder, fortunately, paid the premium amount of the full 2 years but failed to pay any subsequent premiums, then the policy may not be completely cancelled but shall subsist as a paid-up policy till the conclusion of the period of the policy.

6. Loan Against Policy:

This is one of the biggest benefits that a policyholder will get right after buying the policy. The user is likely to avail loan but he should have paid the premium payment for at least 2 full years as per the guidelines laid down by the company. Talking about the policy, the maximum loan as a percentage of the surrender value would be 90% for inforce policies and 80% for paid-up policies.

The corporation generally decides the rate of interest that needs to be charged for the policy loan and as applicable for the whole period of the loan. During the end of the policy, any loan outstanding along with interest shall be recovered from the survival benefits or claim.

7. Free Look Period:

There are situations wherein the policyholders are unhappy with the terms and conditions of the policy and it is completely natural. In that case, the policyholder may return the plan to the company within 15 days of receiving the policy bond. Also, the user needs to state their reasons for doing so.

The Corporation shall cancel the policy and reimburse the amount of premium deposited after deducting the proportionate risk premium for the duration of cover, fees for medical examination, special reports, if any, and stamp duty charges.

8. Payment of Premium:

Last but not the least, this is a major benefit that most middle-class people will look after. The policyholder has the leverage to pay the premiums yearly, half-yearly, quarterly, or monthly, depending on the payment of the premium.

What Add-on Benefits are Covered Under the Policy?

Here are the add-on benefits that are covered under the policy:

1. Option to take Death benefit in instalments: This is an add-on benefit that is offered to the policyholder by the company. Under the plan, the user will likely get death benefit in installments over different periods (5, 10 or 15 years) not total.

Under an in-force and paid-up policy, this is an opportunity to receive Death Benefit in instalments over a 5-, 10-, or 15-year term instead of a lump sum amount. This provision can be used by the Insured person while the Life Assured is still a minor, or by the Life Assured who is 18 years or older, during his or her lifetime, for all or part of the death benefits due under the policy.

2. Option to defer the Survival Benefit(s): Another add-on benefit that is offered to the policyholder is that it may defer the survival benefit and take the increased Survival Benefits at any period throughout the policy term or after the due date. If the customer does not take advantage of the increased survival benefit(s) during the policy’s currency, the benefit will be provided along with the benefit due when the policy is cancelled. There could be many reasons, including surrender, maturity, or even death.

3. Settlement option for Maturity Benefit: This is another major add-on benefit that policyholder always looks for while choosing the policy. For those who don’t know, the Settlement Option allows you to receive Maturity Benefit in instalments over a 5-, 10-, or 15-year period instead of a lump sum amount. This option can be employed for all or part of the policy’s maturity proceeds by the Policyholder while the Life Assured is still a minor, or by the Life Assured who is 18 years or older.

Maturity Calculation of Bima Shree Plan

Let’s take an example to consider:

Vijay, a marketing professional working at IBM, who is 30 years of age bought LIC Bima Shree Policy with a sum assured Rs. 10 Lakhs. He paid the premium annually (single) for the 20 years of the policy period.

If Vijay, unfortunately, dies during the period of the policy, then the beneficiaries/family members will get:

Sum Assured On Death + Guaranteed Additions (if any)= Rs. 12.5 Lakhs + Additional benefit (if any).

Know the Right Premium for Your LIC Bima Shree Policy

If you want to get a LIC Bima Shree policy, you should have a general notion of the premium you’ll have to spend. Let’s use an example to determine the appropriate premium for a policy with a Basic Sum Assured of Rs 1 crore for different age groups.

Age (in Years)	Policy Term (premium payment term)	Policy Term (Premium payment term)	Policy Term (Premium payment term)	Policy Term (Premium payment term)
	14 (10)	16 (12)	18 (14)	20 (16)
20 years	1,08,045	90,748	78,106	69,384
30 Years	1,08,584	91,336	78,841	70,266
40 Years	1,10,887	93,933	81,683	73,402
50 Years	1,17,306	1,00,597	———-	———–

Is Anything Excluded in the LIC Bima Shree Policy?

Though the policy’s provisions have already been addressed in the benefits section, there is one exception to be aware of with the LIC Bima Shree.

If the Life Assured (irrespective of the reason or its mental condition) commits suicide within 12 months of the start of the policy, the Corporation will not accept any claim under the policy save for 80 percent of the entire premiums paid, assuming the policy is still in place.
If the policyholder, unfortunately, commits suicide (no matter whatever the reason behind such act) within 12 months of being revived, the sum payable is the greater of 80 percent of the total premiums paid up to the day of death or the surrender value as of the date of death. Any other claim under the policy will be denied by the Corporation.

Please note that the condition does not apply to the lapsed plans without any paid-up value. In that case, the user won’t be getting any benefits. In addition to the condition, there’s another one that one must remember is that foregoing rates do not include any taxes, extra premiums, or rider premium.

How To Buy LIC Bima Shree Policy?

Go to your nearest LIC branch to purchase the “LIC Bima Shree” policy in person. To buy the LIC Bima Shree without any problem, make sure you bring all of your relevant paperwork with you. For further information, you can call them at +91-022 6827 6827.

If you, however, still face the issues of buying the policy, you can seek help from Probus Insurance.

Frequently Asked Questions

Here are the frequently asked questions related to the LIC Bima Shree policy.

1. If I surrender the policy, will I be eligible for the surrender value?

If two full years’ premiums have been paid, the policy can be surrendered at any time. The Corporation will pay the Surrender Value, which is higher than the Guaranteed Surrender Value and the Special Surrender Value when the policy is surrendered.

2. How Can Your Policy Be Revived?

The policy will lapse if the premium is not paid before the grace period expires. The lapsed policy may be renewed at any time throughout the Life Assured’s lifetime, but only within 5 years from the date of the first unpaid premium and before the date of maturity, whichever comes first.

3. What are the documents required to buy the policy?

Here’s the list of the documents that you are required to submit to purchase the LIC Bima Shree:

Date of Birth Proof
ID Proof
Latest Photographs
Your Bank Account Details

4. What are the riders available under the policy?

By paying an additional charge, you can add the following five optional riders to your plan:

LIC’s Accidental Death and Disability Benefit Rider
LIC’s Accident Benefit Rider
LIC’s New Term Assurance Rider
LIC’s New Critical Illness Benefit Rider

5. What happens if the premiums aren't paid on time and the guaranteed bonus isn't received?

If the premiums are not paid on time, the policy’s promised bonus will be forfeited.