Plan : LIC’s Bima Shree (848)
Lic’s bima shree plan offers a
combination of protection and savings. This plan is specially designed for high
net-worth individuals. This plan provides financial support for the family in
case of unfortunate death of the policyholders during the policy term. Periodic
payments shall also be made on survival of the policyholder at specified
durations during the policy term and a lump sum payment to the surviving
policyholder at the time of maturity.
This plan also takes care of
liquidity needs through loan facility.
1. Benefits payable under an inforce
policy (where all due premiums have been paid):
A) death benefit:
On death during first five years:
death benefit defined as sum of “sum assured on death” and accrued guaranteed
addition shall be payable.
On death after completion of five
policy years but before the date of maturity: death benefit defined assum of “sum
assured on death” and accrued guaranteed addition and loyalty addition, if any,
shallbe payable.
Where “sum assured on death” is
defined as the highest of 10 times of
annualised premium or sum assured on maturity as defined in 1. C) below or absolute
amount assured to be paid on death, i.e. 125% of basic sum assured.
this death benefit shall not
be less than 105% of all the premiums paid as on date of death.
Premiums referred above shall not
include any taxes, extra amount chargeable under the policy due to underwriting
decision and rider premium(s), if any.
B) Survival Benefit:
On the life assured surviving to
each of the specified durations during the policy term, provided all due
premiums have been paid, a fixed percentage of basic sum assured shall be
payable. The fixed
Percentage for various policy terms
is as below:
For policy term 14 years:
30% of basic sum assured on each of
10th and 12th policy anniversary.
For policy term 16 years:
35% of basic sum assured on each of
12th and 14th policy anniversary.
For policy term 18 years:
40% of basic sum assured on each of
14th and 16th policy anniversary.
For policy term 20 years:
45% of basic sum assured on each of
16th and 18th policy anniversary.
C) maturity benefit:
On the life assured surviving to the
end of the policy term, provided all due premiums have been paid, “sum assured
on maturity” along with accrued guaranteed additions and loyalty addition, if
any, shall be payable.
Where “sum assured on maturity” is
as under:
40% of basic sum assured for
policy term 14 years
30% of basic sum assured for
policy term 16 years
lic’s bima shree 2
20% of basic sum assured for
policy term 18 years
10% of basic sum assured for
policy term 20 years
2. Guaranteed additions:
Guaranteed additions shall accrue at
the end of each policy year during the premium paying term (ppt), provided all
due premiums have been paid till date. The rate of guaranteed additions shall be
as follows:
rs. 50 per thousand basic sum
assured for first five years·
rs. 55 per thousand basic sum
assured from 6th policy year till end of ppt·
In case of a paid-up policy or on
surrender of a policy the guaranteed addition for the policy year in which the
last premium is received will be added on proportionate basis in proportion to
the premium received for that year.
3. Participation in profits:
Provided the policy has completed
five policy years and atleast 5 full years’ premium have been paid,then
depending upon the corporation’s experience the policies under this plan shall
be eligible for loyalty addition at the time of exit in the form of death
during the policy term or maturity, at such rate and on such terms as may be
declared by the corporation. Under a paid-up policy, loyalty addition shall be
payable for the completed policy years for which the policy was inforce. In
addition, loyalty addition, if any, shall also be considered in special
surrender value calculation on surrender of policy during the policy term,
provided the policy has completed five policy years and atleast 5 full years’
premium have been paid. In case of surrender of policy, loyalty addition shall
be payable for the completed policy year for which the policy was inforce.
4. Optional benefit:
I. Rider benefits:
the following five optional
riders are available under this plan by payment of additional premium.
However, the policyholder can opt
between either of the lic’s accidental death and disability benefit rider or
lic’s accident benefit rider. Therefore, a maximum of four riders can be
availed under a policy.
A) lic’s accidental death and
disability benefit rider
This rider can be opted for at any
time within the premium paying term of the base plan provided the outstanding
premium paying term is atleast 5 years. The benefit cover under this rider
shall be available during the policy term. If this rider is opted for, in case
of accidental death, the accident benefit rider sum assured will be payable as
lumpsum along with the death benefit under the base plan. In case of accidental
disability arising due to accident (within 180 days from the date of accident),
an amount equal to the accident benefit sum assured will be paid in monthly installments
spread over 10 years and future premiums for accident benefit sum assured as
well as premiums for the portion of basic sum assured which is equal to
accident benefit sum assured under the policy, shall be waived.
B) lic’s accident benefit rider this
rider can be opted for at any time within the premium paying term of the base
plan provided the outstanding premium paying term is atleast 5 years. The
benefit cover under this rider shall be available during the premium paying
term. If this rider is opted for, in case of accidental death, he accident
benefit rider sum assured will be payable as lumpsum along with the death
benefit under the base plan.
C) lic’s new term assurance rider
lic’s bima shree
This rider is available at inception
of the policy only. The benefit cover under this rider shall be available
during the policy term. If this rider is opted for, an additional amount equal
to term assurance rider sum assured shall be payable on death of the life
assured during the policy term.
D) lic’s new critical illness
benefit rider
This rider is available at the
inception of the policy only. The cover under this rider shall be available
during the policy term. If this rider is opted for, on first diagnosis of any
one of the specified 15 critical illnesses covered under this rider, the
critical illness sum assured shall be payable.
E) lic’s premium waiver benefit
rider
This rider shall be available on the
life of proposer of the plan where the life assured is a minor.
This rider can be opted for at any
time within the premium paying term of the base plan provided the outstanding
premium paying term is atleast 5 years. If this rider is opted for, the payment
of the premiums in respect of the base plan falling due after the date of death
of the proposer shall be Waived.
The premium for lic’s accident
benefit rider or lic’s accidental death and disability benefit rider and lic’s
new critical illness benefit rider shall not exceed 100% of premium under the
base plan and the premiums under all other life insurance riders put together
shall not exceed 30% of premiums under the base plan.
Each of above rider sum assured
cannot exceed the basic sum assured.
For more details on the above
riders, refer to the rider brochure or contact lic’s nearest branch office.
Ii. Option to defer the survival
benefit(s):
The policyholder shall have an
option to defer the survival benefit(s) and take the increased survival benefits
(i.e. Deferred original survival benefit(s) along with interest) at any time on
or after its due date but during the currency of the policy. If the increased
survival benefit(s) are not taken by the policyholder during the currency of
the policy the same shall be payable along with benefit payable at the time of
termination of the policy in the form of death or maturity or surrender. This
option can be availed under an inforce as well as paid-up policy.
The annual compound interest rate
payable on each deferred survival benefit shall be equal to the yield
corresponding to 5 years g-sec rate minus 150 basis points. Where, 5 year g-sec
rate shall be as at 31st march preceding the date of exercise of deferment
option. This rate shall be fixed for the entire duration of deferment of that
survival benefit.
This option can be exercised for
either or both of the survival benefits separately and is to be intimated in
writing to the servicing branch office of the corporation at least six months
before the due date of the survival benefit. Else the survival benefits would
be paid on their due dates as per the terms of the policy.
Iii. Settlement option (for maturity
benefit):
Settlement option is an option to
receive maturity benefit in installments over the chosen period of 5 or 10 or 15
years instead of lump sum amount. This option can be exercised only by the life
assured aged 18 years or above, for full or part of the maturity proceeds
payable under the policy. The amount opted for this option by the life assured
can be either in absolute value or as a percentage of the total claim proceeds
payable (including the payment of deferred survival benefit(s), if any).
Lic’s bima shree
The installments shall be paid in
advance at yearly or half-yearly or quarterly or monthly intervals, as Opted
for, subject to minimum installment amount as under:
Mode of installment payment minimum
installment amount
Monthly rs. 5000/-
Quarterly rs. 15000/-
Half-yearly rs. 25000/-
Yearly rs. 50000/-
If the net claim amount is less than
the required amount to provide the minimum installment amount as per the option
exercised by the life assured, the claim proceed shall be paid in lump sum
only.
The interest rates applicable for arriving
at the installment payments under settlement option shall be as fixed by the
corporation from time to time.
For exercising the settlement option
against maturity benefit, the life assured shall be required to exercise option
for payment of net claim amount in installments at least 3 months before the
due date of maturity claim.
After the commencement of
installment payments under settlement option against maturity.
Benefit:
If a life assured, who has
exercised settlement option against maturity benefit, desires to withdraw this
option and commute the outstanding instalments the same shall be allowed on receipt
of written request from the life assured. In such case, the lumpsum amount,
which is higher of the following shall be paid and the policy shall terminate.
- discounted value of all the future
installments due; or
- (the original amount for which
settlement option was exercised) less (sum of total installments already paid);
the interest rates applicable for discounting the future installment
payments shall be as fixed by the corporation from time to time.·
after the date of maturity, in
case of death of the life assured, who has exercised settlement·
Option, the outstanding installments
will continue to be paid to the nominee as per the option exercised by the life
assured and no alteration whatsoever shall be allowed to be made by the Nominee.
Iv. Option to take death benefit in
installments:
This is an option to receive death
benefit in installments over the chosen period of 5 or 10 or 15 years instead
of lump sum amount. This option can be exercised only by the life assured aged
18 years or above, for full or part of the death proceeds payable under the
policy. The amount opted for this option by the life assured can be either in
absolute value or as a percentage of the total claim proceeds payable
(including the payment of deferred survival benefit(s), if any).
The installments shall be paid in
advance at yearly or half-yearly or quarterly or monthly intervals, as Opted
for, subject to minimum installment amount as under:
Mode of installment payment minimum
installment amount
Monthly rs. 5000/-
Quarterly rs. 15000/-
Half-yearly rs. 25000/-
Yearly rs. 50000/-
Lic’s Bima Shree
If the net claim amount is less than
the required amount to provide the minimum installment amount as per the option
exercised by the life assured, the claim proceed shall be paid in lump sum
only.
The interest rates applicable for
arriving at the installment payments under this option shall be as fixed by the
corporation from time to time.
For exercising option to take death
benefit in installments, the life assured can exercise this option during
his/her lifetime while in currency of the policy, specifying the period of
instalment payment and net claim amount for which the option is to be
exercised. The death claim amount shall then be paid to the nominee as per the
option exercised by the life assured and no alteration whatsoever shall be
allowed to be made by the nominee.
5. Eligibility conditions and other
restriction :
A) minimum basic sum assured : Rs.
10,00,000
B) maximum basic sum assured : no
limit
(the basic sum assured shall
be in multiples of rs. 100,000/-)
C) policy term : 14, 16 , 18 and 20
years
D) premium paying term : (policy
term – 4) years
E) minimum age at entry : 8 years
(completed)
F) maximum age at entry : 55 years
(nearer birthday) for policy term 14 years
51 years (nearer birthday) for
policy term 16 years
48 years (nearer birthday) for
policy term 18 years
45 years (nearer birthday) for
policy term 20 years
G) 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
65 years (nearer birthday) for
policy term 20 years
Date of commencement of risk: under
this plan the risk will commence immediately from the date of acceptance of the
risk including minor lives.
Date of vesting under this plan: the
policy shall automatically vest on the life assured on the policy anniversary
coinciding with or immediately following the completion of 18 years of age and
shall on such vesting be deemed to be a contract between the corporation and
life assured.
6. Payment of premiums:
Premiums can be paid regularly at
yearly, half-yearly, quarterly or monthly intervals (monthly Premiums through NACH
only) or through salary deductions during the premium paying term of the Policy.
However, a grace period of one month but not less than 30 days will be allowed
for payment of yearly or half-yearly or quarterly mode and 15 days for monthly
mode of premium payment.
7. Sample premium rates:
Following are some of the sample
tabular annual premium rates (in rs.) (exclusive of applicable tax) Per rs.
1000/- basic sum assured:
Lic’s Bima Shree
Age (nearer
Birthday)
Policy term (premium paying term)
14(10) 16(12) 18(14) 20(16)
8. Mode and high basic sum assured
rebates:
Mode rebate:
Yearly mode - 2% of tabular premium
Half-yearly mode - 1% of tabular
premium
Quarterly, monthly (nach) & - nil
Salary deduction
High basic sum assured rebate:
basic sum assured (bsa) rebate
on tabular premium (rs.)
10, 00,000 to 19, 00,000 nil
20, 00,000 to 49, 00,000 0.30 ‰ bsa
50, 00,000 and above 0.50 ‰ bsa
9. Paid-up:
If less than two years’ premiums
have been paid and any subsequent premium be not duly paid, all the benefits
under the policy shall cease after the expiry of grace period and nothing shall
be payable.
However, after atleast two full
years’ premiums have been paid and any subsequent premiums be not duly paid,
the policy shall not be void but shall continue as a paid-up policy till the
end of policy term.
The sum assured on death under a
paid-up policy shall be reduced to such a sum, called ‘death paidup sum assured’
and shall be equal to [sum assured on death * (number of premiums paid / total
number of premiums payable)]. In addition to the death paid-up sum assured the
guaranteed additions accrued upto the date of first unpaid premium along with
loyalty addition, if any, shall also be payable on death.
The sum assured on maturity under a
paid-up policy shall be reduced to such a sum called ‘maturity Paid-up sum
assured’ and shall be equal to [sum assured on maturity * (number of premiums
paid / total number of premiums payable)]. In addition to the maturity paid-up
sum assured, the guaranteed additions accrued upto the date of first unpaid
premium along with loyalty addition, if Any, shall also be payable on maturity.
The survival benefits payable under
a paid-up policy shall be equal to [(survival benefit payable under inforce
policy) * (number of premiums paid / total number of premiums payable)] and
shall be payable on life assured surviving to each of the specified durations
during the policy term.
However, if option to defer the
survival benefit(s) has been exercised and payment of such survival Benefit(s)
have not yet been made, these increased survival benefit(s) as specified in
para 4.ii above shall be payable on termination of policy in the form of death
or maturity or surrender.
Under a paid-up policy, loyalty
addition , if any, shall be payable for the completed policy years for which
the policy was inforce, provided the premiums have been paid for atleast 5 full
years and after completion of 5 policy years.
Rider(s) shall not acquire any
paid-up value and the rider benefit(s) cease to apply, if policy is in lapsed
condition.
10. Revival:
If premiums are not paid by the end
of the grace period then the policy will lapse. A lapsed policy can be revived
within a period of 2 consecutive years from the date of first unpaid premium by
paying all the arrears of premium together with interest (compounding
half-yearly) at such rate as fixed by the corporation at the time of the
payment, subject to submission of satisfactory evidence of continued Insurability.
The corporation reserves the right
to accept at original terms, accept at modified terms or decline the revival of
a discontinued policy. The revival of discontinued policy shall take effect
only after the same is approved by the corporation and is specifically
communicated in writing to the life assured.
If the revival period falls beyond
the premium paying term and the policy is revived after the due date of survival benefit, then the difference
between full survival benefit payable under inforce policy and Survival benefit
already paid considering paid-up policy shall be paid.
Revival of rider(s), if opted for,
will be considered along with revival of the base policy, and not in Isolation.
11.Surrender Value:
The policy can be surrendered at any
time provided two full years’ premiums have been paid. On Surrender of the
policy, the corporation shall pay the surrender value equal to higher of
guaranteed Surrender value and special surrender value.
The special surrender value is
reviewable and shall be determined by the corporation from time to Time subject
to prior approval of irdai.
The guaranteed surrender value
payable during the policy term shall be equal to the total premiums Paid
multiplied by the guaranteed surrender value factor applicable to total premiums
paid less any Survival benefits already due and payable under the policy. These
guaranteed surrender value factors expressed as percentages will depend on the
policy term and policy year in which the policy is Surrendered and are as
specified below:
Premiums referred above shall not
include any taxes, extra amount if charged under the policy due to underwriting
decision and rider premiums, if any.
In addition, surrender value of
accrued guaranteed additions, shall also be payable, which is equal to the accrued
guaranteed additions multiplied by guaranteed surrender value factor applicable
to accrued guaranteed additions.
The guaranteed surrender value
factors applicable to accrued guaranteed additions expressed as percentages
will depend on the policy term and policy year in which the policy is
surrendered and are as specified below:
Lic’s Bima Shree
In addition to the payable surrender
value, if the option to defer the survival benefit(s) has been exercised and
payment of such survival benefit(s) which were due but have not yet been made,
these Increased survival benefit(s) as specified in para 4.ii above, shall also
be paid.
12. Policy loan:
Loan can be availed during the
policy term provided the policy has acquired a surrender value and subject to
the terms and conditions as the corporation may specify from time to time.
The interest rate to be applied for
policy loan and as applicable for full term of the loan shall be determined at
periodic intervals. For loan sanctioned in financial year 2017-18, the
applicable interest rate is 9.5% p.a. Payable half-yearly for entire loan term.
The maximum loan as a percentage of
surrender value shall be as under:
for inforce policies- upto 90%·
for paid-up policies- upto 80%·
Any loan outstanding along with
interest shall be recovered from the survival benefits or claim proceeds at the
time of exit.
13. Taxes:
Statutory taxes, if any, imposed on
such insurance plans by the govt. Of india or any other constitutional tax
authority of india shall be as per the tax laws and the rate of tax as applicable
from time to time.
The amount of applicable taxes, as
per the prevailing rates shall be payable by the policyholder on premiums
payable under the policy, which shall be collected separately over and above in
addition to the premiums payable by the policyholder. The amount of tax paid
shall not be considered for the calculation of benefits payable under the plan.
14. Free look period:
If the policyholder is not satisfied
with the “terms and conditions” of the policy, the policy may be returned to
the corporation within 15 days from the date of receipt of the policy bond
stating the reasons of objections. On receipt of the same the corporation shall
cancel the policy and return the amount of premium deposited after deducting
the proportionate risk premium (for base plan and Rider(s), if any) for the
period on cover, expenses incurred on medical examination, special reports, if
Any and stamp duty charges.
15. Exclusion:
Suicide: this policy shall be void
I. If the life assured (whether sane
or insane) commits suicide at any time within 12 months from the date of
commencement of risk , the corporation will not entertain any claim except for
80% Of the premiums paid, provided the policy is inforce.
Ii. If the life assured (whether
sane or insane) commits suicide within 12 months from date of lic’s bima
shree revival, an amount which is higher of 80% of the premiums paid till the
date of death or the surrender value as available on the date of death shall be
payable. The corporation will not entertain any other claim under this policy.
This clause shall not be applicable
for a policy lapsed without acquiring paid-up value and nothing shall be
payable under such policies.
Note: premiums referred above shall
not include any taxes, extra amount if charged under the policy due to underwriting
decision and any rider premium(s) other than term assurance rider, if any.
Benefit illustration:
Statutory warning:
“some benefits are guaranteed and
some benefits are variable with returns based on the future performance of your
insurer carrying on life insurance business. If your policy offers guaranteed
returns then these will be clearly marked
“guaranteed” in the illustration
table on this page. If your policy offers variable returns then the
illustrations on this page will show two different rates of assumed future
investment returns. These assumed rates of return are not guaranteed and they
are not the upper or lower limits of what you might get back, as the value of
your policy is dependent on a number of factors including future investment performance.”
