Endowment Plans
LIC's Bima Lakshmi (881)
Savings plan for women with regular survival payouts and Guaranteed Additions
- Entry age
- 18 years (last birthday) to 50 years (nearer birthday); female lives only
- Policy term
- 25 years (fixed)
- Premium paying term
- Limited: any term from 7 to 15 years
- Min. sum assured
- ₹2,00,000
Plan overview
LIC's Bima Lakshmi is a non-participating, limited premium savings plan designed only for women. It gives life cover for 25 years, periodic survival benefits based on the option you choose, and a maturity lump sum with Guaranteed Additions. It suits women aged 18 to 50 who want fixed, predictable benefits and some money back during the term.
New to endowment plans? Read our simple guide: What Is an Endowment Plan? A Simple Guide →Key benefits
- Exclusively for women, with a fixed policy term of 25 years
- Pay premiums for any term from 7 to 15 years
- Guaranteed Additions of 7% of Total Tabular Annual Premium paid, added every policy year
- Three survival benefit options: 50% at end of PPT, 7.5% every 2 years, or 15% every 4 years
- Option to defer a survival benefit by 5 years and let it accumulate
- Auto cover facility after three full years' premiums are paid
- Female Critical Illness Benefit Rider available at inception
Eligibility at a glance
- Plan number
- 881
- UIN
- 512N389V01
- Plan type
- Non-Par, Non-Linked, Life, Individual, Savings Plan
- Entry age
- 18 years (last birthday) to 50 years (nearer birthday); female lives only
- Policy term
- 25 years (fixed)
- Premium paying term
- Limited: any term from 7 to 15 years
- Minimum sum assured
- ₹2,00,000
- Maximum sum assured
- No limit (subject to Board approved underwriting policy)
- Premium payment modes
- Yearly, Half-yearly, Quarterly, Monthly (NACH only), Salary deduction
How the plan works
LIC's Bima Lakshmi (Plan 881) is a non-participating, non-linked, limited premium savings plan available only to women. The policy term is fixed at 25 years and you pay premiums for a chosen term between 7 and 15 years. Benefits are fixed at the outset; the plan does not receive bonuses but earns Guaranteed Additions every year.
| Eligibility | Details |
|---|---|
| Entry age | 18 years (last birthday) to 50 years (nearer birthday) |
| Policy term | 25 years |
| Premium paying term | 7 to 15 years |
| Minimum Basic Sum Assured | ₹2,00,000 (in multiples of ₹10,000) |
| Maximum Basic Sum Assured | No limit, subject to underwriting |
Risk cover starts immediately from the date the risk is accepted. The plan is sold offline through agents and intermediaries and online at licindia.in, but not through POSP-LI/CPSC-SPV.
Guaranteed Additions
For an in-force policy, Guaranteed Additions accrue at the end of each policy year at 7% of the Total Tabular Annual Premium paid. This rate goes up if you qualify for any incentive (high sum assured, online purchase, existing policyholder). Once all premiums are paid, Guaranteed Additions continue until maturity.
Death benefit
If the life assured dies during the policy term while the policy is in force, the nominee receives the Sum Assured on Death plus accrued Guaranteed Additions. Sum Assured on Death is the higher of the Basic Sum Assured or 10 times the annual premium (Tabular Annual Premium x modal adjustment factor). The death benefit will not be less than 105% of total premiums paid up to the date of death. The Guaranteed Addition for the year of death is counted for the full year.
Survival benefits
You choose one survival benefit option at the proposal stage; it cannot be changed later.
| End of policy year | Option B (% of Basic Sum Assured) | Option C (% of Basic Sum Assured) |
|---|---|---|
| 2, 6, 10, 14, 18, 22 | 7.5% | - |
| 4, 8, 12, 16, 20, 24 | 7.5% | 15% |
- Option A: 50% of Basic Sum Assured paid once, at the end of the premium paying term.
- Option B: 7.5% of Basic Sum Assured every 2 years (years 2 to 24).
- Option C: 15% of Basic Sum Assured every 4 years (years 4 to 24).
Survival Benefit Deferment Option: You may defer a survival benefit for 5 years (once under Option A, up to two instalments under Options B and C) if at least 5 years of term remain and no loan is outstanding. The deferred amount accumulates at the applicable rate (6.09% p.a. for benefits falling due from 1 May 2025 to 30 April 2026).
Maturity benefit
On surviving to the end of the 25-year term with the policy in force, LIC pays the Basic Sum Assured (Sum Assured on Maturity) plus all accrued Guaranteed Additions. This is paid in addition to the survival benefits already received.
Optional riders
Available for extra premium. You can choose either of the two accident riders, plus the other two subject to eligibility:
- LIC's Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC's Accident Benefit Rider (UIN: 512B203V03)
- LIC's New Term Assurance Rider (UIN: 512B210V02) - at inception only
- LIC's Female Critical Illness Benefit Rider (UIN: 512B226V01) - at inception only; covers cancer, common surgeries/illnesses in women, and pregnancy complications and congenital anomalies (choose any or all modules). Rider sum assured up to 50% of Sum Assured on Death or ₹5 lakh, whichever is lower.
Loan, surrender & revival
Loan: Available after the first policy year once one full year's premium is paid, within the surrender value.
| Policy status | Before 2 full years' premiums | After 2 full years' premiums |
|---|---|---|
| In-force | 50% of surrender value | 75% of surrender value |
| Paid-up | 40% of surrender value | 65% of surrender value |
Loan interest for loans sanctioned from 1 May 2025 to 30 April 2026 is 9.50% p.a., compounded half-yearly.
Surrender: Allowed after the first policy year if one full year's premium is paid (Special Surrender Value). Guaranteed Surrender Value is acquired after two full years' premiums. LIC pays the higher of the two, with survival benefits already paid deducted from the GSV.
Paid-up and auto cover: If premiums stop after at least one full year's premium, the policy continues as paid-up with reduced benefits. If at least 3 but less than 5 full years' premiums are paid, an auto cover period of 6 months applies; after 5 or more full years' premiums, auto cover lasts 2 years. During auto cover, the full in-force death benefit is paid after deducting unpaid premiums with interest.
Revival: A lapsed policy can be revived within 5 consecutive years from the first unpaid premium and before maturity, with arrears and interest, subject to continued insurability. The revival interest rate for 1 May 2025 to 30 April 2026 is 9.50% p.a., compounded half-yearly.
Other key terms
- Grace period: 30 days for yearly, half-yearly and quarterly premiums; 15 days for monthly.
- Free-look period: 30 days from receipt of the policy document.
- Settlement option: Maturity benefit can be taken in instalments over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
- Death benefit in instalments: The life assured can choose for the nominee to receive the death benefit over 5, 10 or 15 years.
- High sum assured incentive: Extra Guaranteed Additions of 0.25% to 0.50% of Total Tabular Annual Premium for Basic Sum Assured of ₹5,00,000 and above, depending on PPT.
- Online purchase incentive: Extra 0.75% (PPT 7-9), 1.25% (PPT 10-14) or 1.50% (PPT 15).
- Existing policyholder / nominee incentive: Extra 0.05% (PPT 7-11) or 0.10% (PPT 12-15). Incentives are additive.
- Suicide exclusion: Within 12 months of risk commencement, 80% of premiums paid is payable.
Who should buy LIC's Bima Lakshmi?
- Women aged 18 to 50 looking for a savings plan in their own name
- Women who want regular money back during the policy term (Options B and C)
- Those who prefer a short premium paying term of 7 to 15 years with 25 years of cover
- Buyers who want fixed benefits through Guaranteed Additions rather than bonuses
- Women wanting optional critical illness protection through the Female Critical Illness Benefit Rider
Frequently asked questions
Who can buy LIC Bima Lakshmi 881?
It is designed only for women. Entry age is 18 years (last birthday) to 50 years (nearer birthday).
What is the policy term and premium paying term?
The policy term is fixed at 25 years. You can pay premiums for any term from 7 to 15 years.
What survival benefit options are available?
Option A pays 50% of Basic Sum Assured at the end of the premium paying term. Option B pays 7.5% every 2 years and Option C pays 15% every 4 years, up to year 24. The option must be chosen at the proposal stage.
How much are the Guaranteed Additions?
Guaranteed Additions accrue at 7% of the Total Tabular Annual Premium paid at the end of each policy year for an in-force policy. Extra rates apply for high sum assured, online purchase and existing LIC policyholders.
What is the minimum sum assured?
The minimum Basic Sum Assured is ₹2,00,000, in multiples of ₹10,000. There is no maximum limit, subject to underwriting.
Can I take a loan under Bima Lakshmi?
Yes, after the first policy year once one full year's premium is paid. In-force policies can get up to 50% of surrender value, rising to 75% after two full years' premiums.