LIC Bima Ratna: Invest Rs 138 per day in this policy and get up to Rs 13.5 lakh

LIC Bima Ratna Plan is a savings life insurance plan offered by the Life Insurance Corporation of India. It is a non-linked, non-participating, individual plan that can be availed through corporate agents, brokers, Insurance Marketing Firms (IMF), and Common Service Centers (CSC). This plan helps in meeting various financial needs through periodical payments and provides financial support to the family of the policyholder on their death during the term of the policy.

The premium for LIC Bima Ratna Plan can be paid monthly (through NACH only), quarterly, half-yearly, or yearly. The grace period for the first unpaid premium is 30 days for yearly, half-yearly, or quarterly premiums, and 15 days for monthly premiums. Rebate is offered on the tabular premium for the yearly and half-yearly modes, while high sum assured rebate is offered on the Basic Sum Assured.

A lapsed policy can be revived before maturity within five consecutive years from the date of first premium payment. The policy will be considered wholly void if less than two full years' premium has been paid, while it will subsist as a paid-up policy till the end of the policy term if at least two years' premium has been paid. After the payment of two full years' premium, the policy can be surrendered, and the surrender value equal to the higher of Special Surrender Value or Guaranteed Surrender Value, shall be paid by LIC. A loan can be availed after a payment of at least two years' premium, which will be granted up to 90 per cent of the surrender value for in-force policies and up to 80 per cent of the surrender value for paid-up policies.

LIC Bima Ratna Plan offers several benefits to policyholders, such as the death benefit, survival benefit, maturity benefit, and guaranteed additions. The death benefit is payable on the death of the policyholder during the policy term and includes the sum assured on death along with guaranteed addition, which will be seven times the annualized premium or higher than 125 per cent of Basic Sum Assured.

The survival benefit includes a fixed Basic Sum Assured paid at the end of each 13th and 14th year for a policy term of 15 years, each 18th and 19th year for a policy term of 20 years, and each 23rd and 24th year for a policy term of 25 years. The maturity benefit includes Sum Assured on Maturity, which is equal to 50 per cent of Basic Sum Assured along with accrued Guaranteed Additions.

Policyholders are eligible for LIC Bima Ratna Plan if they fulfil certain criteria. The Basic Sum Assured should be a minimum of Rs.5 lakh, and there is no limit on the maximum amount. The policy term can be 15 years, 20 years, or 25 years, and the premium paying term varies with the policy term. The entry age for the policyholder should be a minimum of 5 years for a policy term of 15 years and a maximum of 55 years for a policy term of 25 years. The age limit for the maturity of the policy is 70 years.

Also read: National Savings Certificate: How investing in NSC can help you save taxes and earn better returns, check details

Example: Let's say that Mr. Sharma, a 30-year-old non-smoker, decides to take out an LIC Bima Ratna Plan with a Basic Sum Assured of Rs. 10 lakh for a policy term of 20 years. He opts to pay his premiums annually and chooses to pay a premium of Rs. 50,000 each year for the next 16 years (since the premium paying term for a policy term of 20 years is 16 years).

In this case, Mr. Sharma's nominees would receive the following benefits:

• In the event of Mr. Sharma's death during the policy term, his nominees would receive a death benefit of Rs. 10 lakh (the Basic Sum Assured) along with a guaranteed addition of Rs. 3.5 lakh (since the guaranteed addition is seven times the annualized premium).

• If Mr. Sharma survives the policy term, he would receive a maturity benefit of Rs. 5 lakh (50% of the Basic Sum Assured) along with any accrued Guaranteed Additions.

• Additionally, Mr. Sharma would also be eligible to receive fixed Basic Sum Assured survival benefits of Rs. 2.5 lakh each at the end of the 18th and 19th policy years.

Keep a note that the actual benefits and premium amounts may vary depending on the individual's age, premium payment frequency, chosen Basic Sum Assured, and other factors.

Read More: Post Office Saving Account: 7 convenient ways to check your Post Office account balance