Sure, here's an overview of LIC's Bima Ratna plan:
What is LIC Bima Ratna?
LIC Bima Ratna is a non-linked, non-participating individual savings life insurance plan offered by the Life Insurance Corporation of India (LIC). It provides a combination of protection and savings, offering financial support to the policyholder's family in case of death while also providing periodic payments and a maturity benefit if the policyholder survives the policy term.
Key features of LIC Bima Ratna:
- Death benefit: In case of the policyholder's death during the policy term, the nominee receives the sum assured on death, which is higher of 125% of the basic sum assured or 7 times the annual premium.
- Survival benefits: The policyholder receives 25% of the basic sum assured at the end of each 18th and 19th year for a 20-year policy term, or at the end of each 23rd and 24th year for a 25-year policy term.
- Maturity benefit: If the policyholder survives the policy term, they receive the sum assured along with any accrued bonuses.
- Guaranteed bonus: The plan offers guaranteed bonuses at the rate of Rs. 50 per Rs. 1,000 sum assured for the first 5 years, Rs. 55 per Rs. 1,000 sum assured for the next 5 years, and Rs. 60 per Rs. 1,000 sum assured for the remaining years of the policy term.
- Tax benefits: Premiums paid for LIC Bima Ratna are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. The maturity benefit and death benefit are also tax-free under certain conditions.
Eligibility for LIC Bima Ratna:
- Minimum age at entry: 8 years
- Maximum age at entry: 50 years
- Policy term: 20 years or 25 years
Things to consider:
- LIC Bima Ratna is a non-linked plan, which means that the returns are guaranteed but not market-linked.
- The plan does not offer any riders or add-on benefits.
- Premiums for LIC Bima Ratna are relatively higher compared to other similar plans.
Overall, LIC Bima Ratna is a good option for individuals looking for a traditional savings life insurance plan with guaranteed returns and death benefit protection. However, it is important to compare different plans before making a decision.
I hope this helps! Let me know if you have any other questions about LIC Bima Ratna.
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