LIC Unveils New Insurance Plan Bima Ratna; Provides Death Benefit, Survival Benefit & More

The country's largest insurance company, Life Insurance Corporation of India (LIC) has launched a new savings life insurance plan titled Bima Ratna which is non-linked, non-participating, and is an individual scheme that provides a long series of protection and savings to the policyholder. 

Unveiled on May 27, Friday, the new LIC policy, Bima Ratna is aimed to cater to the domestic market and can be purchased through multiple means including Corporate Agents, Insurance Marketing Firms (IMF), Brokers, CPSC-SPV, and POSP-LI engaged by these intermediaries viz. Corporate Agents, Insurance Marketing Firms (IMF), and Brokers. 

In addition to that, the plan will not only help in providing necessary financial support to the family after the unfortunate death of the policyholder but, will also offer payouts on a periodic basis to the holder for survival to help meet his various financial needs. It also looks after the liquidity requirements through a loan option. 

Features of LIC Bima Ratna

In the meantime, while the option of availing of the scheme is already available on the website of the insurance company, check some of its key features which help it to stand out. 

• Death Benefit: The plan offers various death benefit payments on the demise of the policyholder during the term. While the money assured on death is more than 125% of the basic sum assured, it will not be less than 105% of the total premiums that were paid till the date of the death. 
• Survival Benefit: In case, the duration of the scheme is 15 years, the insurer will pay 25% of the basic sum assured by the end of each 13 and 14th policy year followed by which in the case of 20 years plan, it will then pay 25% of the basic sum assured at the end of the 18th and 19th years respectively. 
• Maturity Benefit: As stated in the Bima Ratna brochure, it has been underlined that the surviving policyholders will be paid the total sum assured on maturity along with accrued Guaranteed Additions. 
• Guaranteed Additions: Speaking about one of its special features, the plan includes a payout of Rs 50 on every Rs 1000 basic sum assured between the 1st and 5th year. Following this, the payout increases by Rs 5 every 5 years. 

In addition to the features, the plan also comes with certain restrictions and settlement options. While there is no limit on the maximum basic sum assured, the term for the policy can vary from 15 years, 20 years, and 25 years.

Image: PTI