LIC's Bima Shree Plan (No. 748)

Complete Guide to LIC Bima Shree Plan (UIN: 512N316V03)

For families and business owners residing in Bhadra (335501), securing substantial financial protection while managing large-scale, structured savings is a common priority. High net-worth individuals often face the challenge of finding an insurance plan that provides a substantial life cover while also releasing liquidity at strategic intervals to meet milestone goals.

The clear solution to this requirement is the LIC Bima Shree Plan. This policy is officially categorized as a Par, Non-Linked, Life, Individual, Savings Plan. It is specially designed to offer a robust combination of protection and savings. By providing periodic payments on survival and a guaranteed base death benefit, it ensures long-term financial stability. If you are exploring LIC services in Bhadra to enhance your high-value coverage, understanding the exact rules, eligibility, and structured benefits of the Bima Shree plan is essential.

Key Features of LIC Bima Shree

Before diving into the detailed benefits, it helps to understand the core features that make this plan unique:

• Target Audience: Specially designed for High Net-worth Individuals.
• Dual Purpose: Provides a structured combination of both protection and savings.
• Premium Flexibility: Offers a limited premium payment structure.
• Term Flexibility: Choose the period for which protection is required (14, 16, 18, 20, 24, and 28 years).
• Liquidity: Provides survival benefits at specified durations during the policy term.
• Customization: Option to opt for payment of benefits in instalments and enhance coverage with optional rider benefits.

Eligibility Conditions and Core Rules

To opt for this high-value plan, the following specific eligibility criteria must be met:

• Minimum Basic Sum Assured: Rs. 10,00,000.
• Maximum Basic Sum Assured: There is no upper limit, but the Basic Sum Assured must be chosen in multiples of Rs. 50,000.
• Minimum Age at Entry: 8 years (completed).
• Maximum Age at Maturity: 69 years (nearer birthday).
• Policy Terms Available: 14, 16, 18, 20, 24, and 28 years.
• Premium Paying Term (PPT): The premium paying term is strictly calculated as (Policy term - 4) years.

For example, if you choose a 14-year policy term, your premium paying term will be 10 years. The maximum age at entry varies by policy term, ranging from 55 years (for a 14-year term) down to 41 years (for a 28-year term).

Detailed Breakdown of Benefits

The LIC Bima Shree plan provides structured financial support through three primary benefits:

A. Death Benefit

In the unfortunate event of the life assured's death during the policy term, the Death Benefit provides critical financial support to the family.

• Death during the first five years: The Death Benefit is the sum of "Sum Assured on Death" and accrued Guaranteed Addition.
• Death after five years but before maturity: The Death Benefit is the sum of "Sum Assured on Death", accrued Guaranteed Addition, and Loyalty Addition, if any.

The "Sum Assured on Death" is strictly defined as the higher of 125% of the Basic Sum Assured, or 7 times the annualized premium. Furthermore, the absolute death benefit shall not be less than 105% of the total premiums paid up to the date of death.

B. Survival Benefit

On the life assured surviving to specified durations during the policy term (provided all due premiums are paid), a fixed percentage of the Basic Sum Assured is payable. Policyholders in Bhadra and nearby areas like Gadhra and Sherda often need clarity about these structured payouts:

• 14-year term: 30% of Basic Sum Assured on each of the 10th and 12th policy anniversary.
• 16-year term: 35% of Basic Sum Assured on each of the 12th and 14th policy anniversary.
• 18-year term: 40% of Basic Sum Assured on each of the 14th and 16th policy anniversary.
• 20-year term: 45% of Basic Sum Assured on each of the 16th and 18th policy anniversary.
• 24-year term: 45% of Basic Sum Assured on each of the 20th and 22nd policy anniversary.
• 28-year term: 45% of Basic Sum Assured on each of the 24th and 26th policy anniversary.

Option to Defer Survival Benefits: Policyholders have the option to defer these survival benefits and receive the increased Survival Benefits (the original amount along with interest) at any time later during the policy. If not taken, it will be paid along with the final death, maturity, or surrender benefit.

Settlement Options (Benefit in Instalments)

A key flexibility feature of the Bima Shree plan is the ability to receive the final payouts in instalments rather than a lump sum.

• Settlement Option for Maturity Benefit: You can choose to receive the Maturity Benefit in instalments over a period of 5, 10, or 15 years. This option must be exercised at least 3 months before the due date of maturity.
• Option to Take Death Benefit in Instalments: The policyholder (or the life assured during their lifetime) can choose to have the Death Benefit paid to the nominee in instalments over 5, 10, or 15 years, providing a steady stream of financial support rather than a single large sum.

Premium Payment, Grace Period, and Revival

Premiums can be paid at yearly, half-yearly, quarterly, or monthly intervals. A grace period of 30 days is allowed for yearly, half-yearly, or quarterly premiums, and 15 days for monthly premiums.

If a premium is missed beyond the grace period, the policy lapses. However, a lapsed policy can be revived within a period of 5 consecutive complete years from the date of the first unpaid premium, subject to Corporation rules. For residents in neighboring areas like Dabri and Bhirani who need policy help in Bhadra regarding structuring premium payments or managing a lapsed policy, understanding this 5-year revival window is crucial.

Paid-up Value, Surrender, and Loan Facility

• Paid-up Policy: If at least one full year's premium has been paid and subsequent premiums are not paid, the policy shall not be wholly void but shall continue as a paid-up policy till the end of the policy term. The sum assured on death and maturity will be reduced proportionately based on the total period for which premiums have been paid.
• Surrender Value: The policy can be surrendered after the completion of the first policy year, provided one full year's premium has been paid. It acquires a Guaranteed Surrender Value after two full years of premiums are paid, and a Special Surrender Value after one full year.
• Policy Loan: A loan facility is available during the policy term after the completion of the first policy year, provided one full year's premium has been paid. The maximum loan amount for in-force policies is up to 50% of the surrender value (before payment of two full years' premiums) and up to 75% (after payment of two full years' premiums).

Optional Rider Benefits

To enhance your base protection, you can opt for additional riders by paying an extra premium:

• LIC's Accidental Death and Disability Benefit Rider: Provides a lump sum on accidental death, or monthly instalments for 10 years alongside premium waivers in case of accidental disability.
• LIC's Accident Benefit Rider: Provides a lump sum upon accidental death.
• LIC's New Term Assurance Rider: Provides additional life cover on death.
• LIC's Premium Waiver Benefit Rider: Specifically for policies taken on the life of a minor, waiving future base policy premiums upon the death of the proposer.

Taxes

Statutory Taxes imposed by the Government of India are applicable and will be collected separately over and above the premium. These taxes are not considered for the calculation of any benefits payable under the plan.

Who Should Consider Buying LIC Bima Shree?

This plan is specifically engineered for certain profiles:

• High-Income Individuals: With a minimum entry requirement of a 10 Lakh Basic Sum Assured, it is built for those looking to manage larger financial portfolios.
• Long-Term Planners: Individuals who want to secure a high-value death benefit for their family's absolute security.
• Those Needing Periodic Payouts: Business owners or professionals who prefer receiving substantial liquidity (Survival Benefits) at regular intervals to fund specific life milestones, rather than locking all funds until maturity.

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Conclusion and Next Steps

The LIC Bima Shree Plan is a comprehensive, high-value tool designed for those seeking robust life protection coupled with scheduled survival payouts. With its guaranteed additions during the premium paying term and flexible instalment options for final benefits, it provides structured, rule-based support tailored to significant financial milestones.

If you are reviewing your LIC policy in areas such as Sagra or Dabri, maintaining a well-structured insurance portfolio is essential for securing your family's long-term legacy. For detailed planning, personalized illustrations based on your exact age and term preference, or professional claim assistance, always get personalized LIC guidance who can guide you through the official guidelines. This plan combines long-term savings with structured benefit payouts, but benefits depend strictly on policy terms.

Frequently Asked Questions (FAQ)