Lic Bima Gold Policy Review

Plan No – 174

Introduction about Lic Bima gold Policy plan no – 174

Lic Bima gold policy was INTRODUCED ON – 01/09/2005 and WITHDRAWN ON- 01/04/2006.

Lic presented ‘Golden Jubilee policy- Bima Gold’ on its 50th Golden Jubilee year. This plan is money back type plan.

The main feature of Bima gold policy is free death cover for 2 years is available even though premiums have not been paid after at least 2 full year premiums have been paid. Also this is having high sum assured rebate and low premium rates compared to money back plan.

There will be high risk coverage for same range of premium compared to money back plan.

Lic Bima gold policy Conditions

AGE AT ENTRY:                                  Minimum:   14 years completed

                                                          Maximum:  63 years

POLICY TERM and

PREMIUM PAYING TERM(PPT) :       12,16,20 years.                         

MODE OF PAYMENTS:                       Yearly, Half yearly, Quarterly,SSS and Monthly

MAXIMUM MATURITY AGE:               75 years   

SUM ASSURED:                                 Minimum:    40,000

                                                         Maximum:   No limit

SUM ASSURED IN MULTIPLE:          5,000

Lic Bima gold Policy Rebates

There are 3 types of Rebates,

1. Sum assured rebate
2. Mode rebate
3. CEIS rebate

Sum assured rebate:   

Sum assured	Rebate
Up to 45,000	Nil
50,000 to 95,000	Rs.2.50 per 1000 sum assured.
1,00,000 to 1,95,000	Rs.7.50 per 1000 sum assured.
2,00,000 and above	Rs 10.00 per 1000 sum assured.

Mode rebate:

Mode	Percentage
Yearly mode	2% of tabular premium
Half-yearly mode	1% of tabular premium
Monthly	5% Extra
Quarterly and SSS	No Rebate

CEIS rebate:

Under Lic Bima gold plan CEIS rebate is 10% of tabular premium.

Lic Bima gold Policy Survival Benefits

If all premiums have been paid and life insured survives, then certain percentage of basic sum assured will be refunded to life insured as survival benefit.

Policy Term		I	II	III	IV
12	AB	15%4 years	15%8 years
16	AB	15%4 years	15%8 years	15%12 years
20	AB	10%4 years	10%8 years	10%12 years	10%16 years

Where          A =    % of Basic sum assured payable as Survival Benefit amount.

                  B =    Survival benefit amount payable at the end of the no. of years from date of commencement of policy.

Lic Bima gold Policy Maturity Benefits

If premiums for the policy term have been paid fully and life insured survives up to the maturity date, then

Maturity claim = total amount of premiums paid (excluding optional rider premium, if any) + loyalty addition (if any) – survival benefit amounts paid earlier.

If at least 3 full year premiums have been paid and further premiums were discontinued, then

Maturity claim = total amount of premiums paid(excluding optional rider premium, if any) –  survival benefit amounts paid earlier.

Lic Bima gold Policy Death Claims

On death of life assured during policy term or death during auto cover period, the nominee will get an amount equal to sum assured as death claim. But premiums due from FUP to policy anniversary following date of death need not be recovered.

If death occurs before FUP, no need to recover the premiums to complete the policy anniversary while settling the claim.

If death occurs within the days of grace during the policy term, then recovery of all the unpaid premiums during the policy year of death is required while settling the claim.

If death occurs after FUP and provided premiums have also been paid for at least 3 years, then

Death claim = refund of total premiums paid (excluding any extra/optional premium) – survival benefits paid earlier.

Lic Bima gold  Policy Additional Benefits

Loyalty addition:

Lic Bima gold policy is having loyalty addition which is payable only on maturity. Loyalty is not payable during death claim or surrender value.

Riders Available in Lic Bima gold  Policy

Accident benefit rider:

Accident benefit rider is available as an optional benefit for a premium at the rate of

Rs.1/- per 1000 Accident benefit rider sum assured.

Accident benefit rider includes DAB & EPDB, but this policy do not include PDB for first

20000 sum assured.

GUARANTEED SURRENDER VALUE:

In Lic Bima gold policy, Guaranteed surrender value will be available after completion of 3 policy years and at least 3 full year premiums have been paid.

GSV = 30% of the total amount of premiums paid – the premiums for the 1st policy year, all extra premium paid, premium paid for accident benefit rider and the amount of survival benefits paid earlier.

Loyalty addition is not payable.

PAID UP VALUE:

After paying premiums for at least 3 full years, if any future premium is not duly paid, the policy will acquire paid up value.

Paid up value = total premiums paid ( excluding any optional premium) – survival benefits paid earlier(if any).

Paid up value is payable on maturity date or at life insured death.

SPECIAL SURRENDER VALUE:

After paying at least 3 full years premiums and also after completion of 3 years from date of

commencement of policy, it will acquire SSV.

SSV = paid up amount X SSV factor.

Additional Information about  Lic Bima gold  Policy

LOAN:

• Under Lic Bima gold policy Loan facility is available, after policy acquires paid up value.
• The rate of interest on loan will be as determined from time to time.
• Loan will be granted 90% or 85% of SV.

AUTO COVER:

If any future premium is not duly paid after paying at least 2 full year premiums, full death cover will continue for a period of 2 years from due date of 1st unpaid premium. Then that period of 2 years from FUP is the auto cover.