LIC NEW BIMA SHREE PLAN 848

LIC Bima Shree Plan 848 Eligibility, Features, Benefits, Full Details and Review

 

LIC of India is going to launch LIC New Bima Shree Plan 848 from 16 March 2018, ‘LIC New Bima Shree Plan 848’ plan is a non-linked, with-profits, limited premium payment money back life insurance plan. Even before LIC started the same scheme on 19th December 2017, in the name of LIC’s Jeevan Shiromani plan 847, but the minimum amount of insurance in the scheme is One Crore (1,00,00,000), similarly LIC New Bima Shree Plan 848. There is also a small form of similar plan, this plan is specially designed for targeted segment of High Net-worth Individuals (HNI).

LIC New Bima Shree Plan 848 provides financial support for the family on the death of the insured person during the policy term , together with additional protection for the insured in the case of having 15 major diseases. This scheme can be taken for, 14, 16, 18 and 20 years. The period of payment of premium will be less than 4 years, compared to the period of plan. The minimum insurance amount has been kept in Ten Lacs (10,00,000) in this plan.

The Unique Identification Number (UIN) for ‘LIC New Bima Shree Plan 848‘ is 512N316V01. Under this plan Guaranteed Additions shall accrue at the rate of Rs.50 per thousand Basic Sum Assured for the first five years and Rs.55– per thousand Basic Sum Assured from 6th policy year till the end of premium paying term. In addition, the policy shall participate in the profits in form of Loyalty Additions also.

Key Features of LIC Bima Shree Plan 848

• Guaranteed Additions during premium payment term.
• Availability of Accidental Death & Disability Benefit (AD & DB), Term Assurance riders.
• Premium Waiver Benefit (PWB) Rider in case of Minor Policy Holder.
• Paid premiums are exempted from income tax under 80C.
• Tax free Money Backs and Maturity u/s 10(10D).

Eligibility condition of LIC Bima Shree Plan 848

Age at Entry	8 years (Completed)
Policy Term (Premium Paying Term)	14(10), 16(12), 18(14), 20(16)
Maximum Age at Entry in Years) (As per Nearest Birthday)	55 Years for 14 Year Term 51 Years for 16 Year Term 48 Years for 18 Year Term 45 Years for 20 Year Term
Basic Sum Assured	10,00,000 and above in multiples of (1,00,000)
Premium Paying Mode	Yearly, Half Yearly, Quarterly, Monthly (SSS and NACH Only)
Premium Payment Mode rebate	2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly

Benefits of LIC Bima Shree Plan 848

The benefits payable under an in force policy are as under:

• Death Benefit:

On death during first five years: “Sum Assured on Death” along with accrued Guaranteed Additions shall be payable. On death after completion of five policy years but before the date of maturity: “Sum Assured on Death” along with accrued Guaranteed Additions and Loyalty Addition, if any, shall be payable.

Where “Sum Assured on Death is defined as the higher of

• 10 times of annualised premium or
• Absolute amount assured to be paid on death , i.e. 125 % 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 premiums, if any.

• Survival Benefit:

Policy Term (Years)	1st Money Back	2nd Money Back	Maturity Details  (on completion of policy term)
14	30% of SA at end of 10th policy year	30% of SA at end of 12th policy year	40% of SA + GAs + LA
16	35% of SA at end of 12th policy year	35% of SA at end of 14th policy year	30% of SA + GAs + LA
18	40% of SA at end of 14th policy year	40% of SA at end of 16th policy year	20% of SA + GAs + LA
20	45% of SA at end of 16th policy year	45% of SA at end of 18th policy year	10% of SA + GAs + LA

On the life assured surviving to each of the specified duration, during the policy term, 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

• Maturity Benefit.

On the life assured surviving to the end of the policy term, “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

For policy term 14 years : 40 % of Basic Sum Assured

For policy term 16 years : 30 % of Basic Sum Assured

For policy term 18 years 20 % of Basic Sum Assured

For policy term 20 years : 10 % of Basic Sum Assured

• GUARANTEED ADDITIONS:

Provided the policy is inforce, a Guaranteed Addition at the rate of Rs.50 per thousand Basic Sum Assured for the first five years and Rs.55/- per thousand Basic Sum Assured from 6th

Policy year till the end of premium paying term will accrue at the end of each policy year for which full years premiums have been paid. In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy

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 (i.e. wherein full year’s premiums have not been received) will be added on proportionate basis in proportion to the premium received for that year

• 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

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 at least 5 full years’ premium have been paid. In case of surrender of policy Loyalty Addition shall be corresponding to the completed policy year for which the policy was inforce

• OPTIONAL RIDER BENEFITs: The following five optional riders are available under this plan. However, the policyholder can opt between either of LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a policy holder can opt for a maximum of four riders under this plan.
• i) LIC’s Accidental Death and Disability Benefit Rider UIN (512B209VO2): LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium. 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 benefit is opted for, an additional amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the rider is inforce at the time of accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal 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.

The premium for the portion of Basic Sum Assured which exceeds the Accident Benefit Sum Assured and premium(s) in respect of other Rider(s), if opted for, shall continue to be paid. If the policy becomes a claim by way of death before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid along with the claim amount.

The premium for this rider will not be required to be paid after the premium paying term of the base plan.

Lic’s Accidental Death and Disability Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.

Beyond the specific details as mentioned in this circular in respect of this rider, any additional details like refund to be made in respect of this rider on surrender of base plan, requirements of claim, definition of disability etc., may be referred from the rider circular Ref: CO/PD/44 dated 2nd January, 2014.

Eligibility conditions and restrictions:

1. a) Minimum Entry Age 18 years (completed)
2. b) Maximum Entry Age :   The cover can be opted for at inception or at any policy      anniversary thereafter, provided the outstanding premium paying term under the base plan is at least 5 years. Same as the base plan
3. c) Cover ceasing Age
4. d) Minimum Accident Benefit Sum Assured: Rs. 10,000-
5. e) Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured under the Base Plan subject to the maximum of Rs.100 lakhs overall limit taking all existing policies (excluding additional limit of Rs 100 lakhs under policies taken under LIC’s Jeevan Shiromani-847 ) of the Life Assured under individual as well as group policies including policies with inbuilt accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration

Even considering the additional Accident Benefit Sum Assured limit of Rs. 100 lakhs above

this, allowed under LIC’s Jeevan Shiromani-847 only, the maximum Accident Benefit cover offered to an individual in any case including the policies taken under LIC’s Jeevan Shiromani-847 will not exceed Rs. 200 lakh

The Accident Benefit Sum Assured shall be in multiples of Rs. 10,000/-only.

1. LIC’s Accident Benefit Rider UIN (512B203V03

LIC’s Accident Benefit Rider is available as an optional rider by payment of additional premium 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 only during the premium paying term of the base plan. Thereafter the cover shall cease.

If this benefit is opted for and if the Life Assured is involved in an accident leading to death within 180 days from the date of accident then an additional amount equal to the Accident benefit Sum Assured is payable. However, the policy shall have to be inforce at the time of accident irrespective of whether or not it is inforce at the time of death.

LIC’s Accident Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.

Beyond the specific details as mentioned in this circular in respect of this rider, any additional details like requirements of claim etc., may be referred from the rider circular Ref CO/PD/36 dated 9h November, 2013

Eligibility conditions and restrictions:

1. a) Minimum Entry Age 18 years (completed)
2. b) Maximum Entry Age :   The cover can be opted for at inception or at any policy anniversary thereafter, provided the outstanding premium paying term under the base plan is at least 5 years
3. c) Cover ceasing Age 4 Age at the end of PPT of the base plan
4. d) Minimum Accident Benefit Sum Assured: Rs. 20,000/-
5. e) Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured

under the base plan subject to the maximum of Rs.100 lakhs overall limit taking all existing policies (excluding additional limit of Rs 100 lakhs under policies taken under LIC’s Jeevan Shiromani – 847) of the Life Assured under individual as well as group policies including policies with inbuilt accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration

Even considering the additional Accident Benefit Sum Assured limit of Rs. 100 lakhs above this, allowed under LIC’s Jeevan Shiromani only, the maximum Accident Benefit cover offered to an individual in any case including the policies taken under LIC’s Jeevan Shiromani – 847 will not exceed Rs. 200 lakh.

The Accident Benefit Sum Assured shall be in multiples of Rs. 5,000/-only.

 Note : The overall limit of Accident Benefit Sum Assured shall be inclusive of Sum Assured under all the Accident Benefit riders i.e. the LIC’s Accidental Death and Disability Benefit Rider, LIC’s Accident Benefit Rider and LIC’s Linked Accidental Death Benefit Rider.

1. ii) LIC’s New Term Assurance Rider (UIN 512B210V01)

LIC’s New Term Assurance Rider is available as an optional rider at the inception of the policy by payment of additional premium. The additional premium for this rider will need to be paid along with the premium of the Base Plan and any other rider(s), if opted for, during the premium paying term of the policy. The benefits cover during the policy term

If this benefit 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, provided the rider cover is inforce.

Beyond the specific details as mentioned in this circular in respect of this rider, any additional details like refund to be made in respect of this rider on surrender of base plan etc., may be referred from the rider circular Ref: CO/PD/59 dated 3d November, 2014.

Eligibility conditions and restrictions:

1. a) Minimum Entry Age
2. b) Maximum Entry Age
3. c) Policy term/PPT
4. d) Minimum Term Assurance Rider Sum Assured: Rs. 1,00,000/-
5. e) Maximum Term Assurance Rider Sum Assured: Rs.25 lakhs taking all Term Assurance :18 years (completed) : Same as the Base plan : Same as Base plan 9 Rider Sum Assured under all existing policies of the Life Assured including the new proposal into consideration

The Term Assurance Rider Sum Assured shall be in multiples of Rs. 5,000/-only.

1. iv) LIC’s New Critical Illness Benefit Rider (UIN 512A212V011:

LIC’s New Critical Iliness Benefit Rider is available at the inception of the policy on payment of additional premium. The additional premium for this Rider will need to be paid along with the premium of the Base Plan and any other rider(s), if opted for, during the premium paying term of the policy. 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 15 Critical IInesses covered urn this rider, the Critical Illness Sum Assured shall be payable subject to the conditions specified in the rider circular Ref: CO/PD/90 dated 19th December, 2016

LIC’s New Critical llness Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition

Beyond the specific details as mentioned in this circular in respect of this rider, additional details like refund to be made in respect of this rider on surrender of base plan etc., may be referred from the rider circular Ref: CO/PD/90 dated 19th December, 2016

Eligibility conditions and restrictions

1. a) Minimum Entry Age
2. b) Maximum Entry Age : 18 years (last birthday) : 55 years (last birthday) for policy term 14 years 51 years (last birthday) for policy term 16 years 48 years (last birthday) for policy term 18 years
3. c) Policy term/PPT
4. d) Minimum Critical IlIness Sum Assured Rs. 1,00,000/- 45 years (last birthday) for policy term 20 years : Same as Base plan
5. e) Maximum Critical Illness Sum Assured : Rs.25 lakh taking all existing policies of the Life Assured under this rider and the Critical Illness Sum Assured under the new proposal into consideration

The Critical llness Sum Assured shall be in multiples of Rs 25,000/- only.

1. v) LIC’s Premium Waiver Benefit Rider (UIN: 5128204V01) LIC’s Premium Waiver Benefit Rider is available under a proposal / policy wherein the life assured is minor at the time of opting this rider. This rider is allowed on the life of eligjible Proposer on payment of additional premium. This rider can be opted at any time during the premium paying term of the base plan provided the outstanding premium paying of the ba plan is at least 5 years

If this rider is opted for, in case of death of the proposer, the payment of all the premiums under the base plan falling due after the date of death of the proposer shall be waived;

The Premium Walver Benefit shall be granted on the basis of the proposer’s age, personal declaration and other related documents

The additional premium shall not be taken into account in arriving at the amount to be refunded in calculating the surrender value of the policy

The medical report and special reports, if required, at proposal stage or on revival, shall be at the proposer’s own expense from the Corporation’s appointed Medical Examiner

Beyond the specific details as mentioned in this circular in respect of this rider, additional details like refund during free look period, policy stamping etc., may be referred from the rider circular Ref: CO/PD/77 dated 1st January, 2016.

Eligibility conditions and restrictions

1. a) Minimum Entry Age
2. b) Maximum Entry Age
3. c) Premium paying term : [18] years (completed) [55] years (Nearer Birthday) [Outstanding Premium Paying Term under the Base plan as on date of opting this Rider subject to minimum premium paying term of 5 years]
4. d) Maximum cover ceasing age :[70] years (Nearest Birthday) Age at entry for the proposer is to be taken as age nearer birthday except for the minimum age at entry I.e 18 yearsyea

 Note: The premium under 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 premlum under the base product, the premiums under all other life insurance riders put together shall not exceed 30 % of premiums under the base product . Any benefit arising under each of the riders shall not exceed the Sum Assured under Base product.

7. OPTION AVAILABLE UNDER THE BASE PLAN:
8. i) 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 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 at the rate as applicable on the due date of survival benefit as specified by the Corporation. 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.

Any further instructions including applicable interest rates would be issued by Actuarial Department, Central Office.

1. 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, for full or part of the Maturity proceeds payable under the policy. The amount opted by the Life Assured (i.e. net claim amount) can be either in absolute value or as a percentage of the total claim proceeds payable (including the payment for 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 for different modes of payments being as under:

Mode of Installment payment   Minimum installment amount  Monthly Quarterly Half-Yearly Yearly Rs. 5000/- Rs. 15000/- Rs. 25000/- 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 Opt 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 lumpsunm 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.

Any further instructions including applicable interest rates would be issued by Actuarial Department, Central Office

1. ii) Option to take Death Benefit in Instalments: 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 during his/her lifetime; for full or part of the Death proceeds payable under the policy.

The 143 % amount opted by the Life Assured (i.e. net claim amount) can be either in absolute value or as a percentage of the total claim proceeds payable (including the payment for 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 for different modes of payments being as under

Mode of Installment payment     Minimum installment amount   Monthly Quarterly Rs. 5000/- Rs. 15000/ Rs. 25000/ Rs. 50000/- Half-Yearly Yearly

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 instalments, the Life Assured can exercise this ile in currencv of the nolicv sn ecifvina the neriod.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

Any further instructions including applicable interest rates would be issued by Actuarial Department, Central Office

8. MODE OF PREMIUM PAYMENT:

The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly (NACH only) or through salary deductions

9. PREMIUM RATES:
10. Base Plan: The tabular annual premium rates per thousand Basic Sum Assured are enclosed as Annexure 1

The Class -I extra premium rates per thousand Basic Sum Assured applicable at NB and Revival stage are enciosed as Annexure 2

3. LIC’s Accidental Death and Disability Benefit Rider: The tabular annual premium rates per thousand Accident Benefit Sum Assured are enclosed as Annexure 3. There are two categories for Accident benefit premium rates. Category-I rates are applicable to all the life assureds except those falling under Category -I1. Category-ll rates are applicable to Life Assureds engaged in police duty in any police organisation other than paramilitary forces and opt for this cover while engaged in police duty
4. LIC’s Accident Benefit Rider: The annual premium rate for this rider is as under: .

• 0.50 per thousand Accident Benefit Sum Assured irrespective of age. .
• 1.00 per thousand Accident Benefit Sum Assured, if the Life Assured is engaged in 0 9 police duty either in any military, naval or police organisation and opts for this cover while engaged in the police duty

5. LIC’s New Term Assurance Rider: The tabular annual premium rates per thousand Term Assurance Rider Sum Assured are enclosed as Annexure 4 The Class I extra premium rates per thousand Term Assurance Rider Sum Assured applicable at NB and Revival stage is enclosed as Annexure 5.

iv)LIC’s New Critical Iliness Benefit Rider The tabular annual premium rates per thousand Critical Ililness Sum Assured for are enclosed as Annexure 6. The Class -1 extra premium rates per thousand Critical Ilness Sum Assured applicable at NB and Revival stage are enclosed as Annexure 7 vi. LIC’s Premium Waiver Benefit Rider: The tabular annual premium rates per Rs. 1001- Premium under Base Plan are enclosed as Annexure 8 The Class I extra premium rates per Rs.100/- Premium under Base Plan are enclosed as Annexure 9

The above premium rates are exclusive of taxes.

10. 10. REBATES:

The rebates for base plan are as under

Mode Rebate Percentaqe Mode Yearly mode 2 % of tabular premium 10 Halfsyarly mode Quarterly, Monthly & : 1 % of tabular premium : NIL Salary deduction High Basic Sum Assured Rebate Basic Sum Assured BSA) Rebate on tabular premium (Rs) 10,00,000 to 19,00,000 20,00,000 to 49,00,000 50,00,000 and above Nil 0.30 % o BSA 0.50 %e BSA

LIC New Bima Shree Plan 848 Example