LIC's Bima Shree (748)

How the plan works

LIC's Bima Shree is a participating, non-linked money back plan meant for high net-worth individuals. You pick a policy term of 14, 16, 18, 20, 24 or 28 years and pay premiums for 4 years less than the term. Guaranteed Additions accrue every year while premiums are paid. Two survival benefits are paid near the end of the term, and the balance with Guaranteed Additions and any Loyalty Addition is paid at maturity. Life cover runs for the whole term.

• Minimum entry age: 8 years (completed)
• Maximum maturity age: 69 years (nearer birthday)
• Basic Sum Assured: minimum ₹10,00,000, no maximum, in multiples of ₹50,000

Risk cover starts immediately on acceptance. For a minor, the policy vests in the life assured on the policy anniversary on or after age 18.

Death benefit

If the policy is in force:

• Death in the first five years: Sum Assured on Death plus accrued Guaranteed Additions.
• Death after five policy years (before maturity): Sum Assured on Death plus accrued Guaranteed Additions and Loyalty Addition, if any.

Sum Assured on Death is the higher of 125% of the Basic Sum Assured or 7 times the annualised premium. The death benefit is never less than 105% of total premiums paid up to the date of death.

Survival benefits

Paid on the specified policy anniversaries if the life assured is alive and all premiums are paid:

Deferment option: You can choose to defer either or both survival benefits (by informing LIC in writing at least six months before the due date) and take them later with interest, at any time during the policy. The interest rate is linked to the 5-year G-Sec yield minus 150 basis points and is fixed for the deferment period.

Maturity benefit

On surviving to the end of the term with all premiums paid, the Sum Assured on Maturity plus accrued Guaranteed Additions and Loyalty Addition, if any, is paid.

Guaranteed Additions: accrue at the end of each policy year during the premium paying term if all premiums are paid: ₹50 per ₹1,000 Basic Sum Assured for the first five years, and ₹55 per ₹1,000 from the 6th year till the end of the premium paying term.

Loyalty Addition: If the policy has completed five years with at least five full years' premiums paid, a Loyalty Addition may be paid on death or maturity, at rates declared by LIC based on its experience. The rate is not fixed.

The maturity amount can be taken in instalments over 5, 10 or 15 years (Settlement Option), opted at least 3 months before maturity.

Optional riders

Available on payment of extra premium (either of the two accident riders, plus the others):

• 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 Premium Waiver Benefit Rider (UIN: 512B204V04), on the proposer's life for policies on minors

Total premiums for all life insurance riders cannot exceed 30% of the base plan premium.

Loan, surrender & revival

Loan: Available after the first policy year if one full year's premium is paid, within the surrender value.

The brochure states 9.5% p.a. (compounding half-yearly) for loans sanctioned from 1 May 2024 to 30 April 2025; this is reviewed yearly.

Surrender: Possible after the first policy year if one full year's premium is paid. Guaranteed Surrender Value needs at least two full years' premiums; Special Surrender Value is available after one year. You get the higher of the two, plus the surrender value of accrued Guaranteed Additions. Survival benefits already due are deducted from the Guaranteed Surrender Value.

Paid-up: After at least one full year's premium, the policy continues with proportionately reduced death, survival and maturity benefits, keeping Guaranteed Additions accrued up to the first unpaid premium.

Revival: A lapsed policy can be revived within 5 consecutive complete years from the first unpaid premium and before maturity, by paying arrears with interest and meeting underwriting requirements.

Other key terms

• Grace period: 30 days for yearly, half-yearly and quarterly; 15 days for monthly premiums.
• Free-look period: 30 days from receipt of the policy document (electronic or physical, whichever is earlier).
• Death benefit in instalments: All or part can be paid over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
• Mode rebate: Yearly 2% and half-yearly 1% of tabular premium; nil for quarterly, monthly and salary deduction.
• High Basic Sum Assured rebate: Nil for ₹10,00,000 to below ₹20,00,000; ₹0.40 per ₹1,000 BSA for ₹20,00,000 to below ₹50,00,000; ₹0.70 per ₹1,000 BSA for ₹50,00,000 and above.
• Sample premium: For ₹10 lakh Basic Sum Assured, a 30-year-old pays about ₹71,050 a year for a 20-year term (16-year PPT), excluding taxes, as per the brochure's table.
• Suicide exclusion: Within 12 months of risk start, 80% of total premiums paid is payable.