Lic Bima Kiran Policy Review

Plan No – 111

Introduction about Lic Bima Kiran Policy plan no -111 

Lic Bima Kiran plan was INTRODUCED ON – 15/07/1994 and WITHDRAWN ON- 18/02/2002.

Bima Kiran policy is a Term assurance plan which is especially designed to fulfill the need of young men and women.

Bima Kiran policy introduces, built in accident benefit, free insurance cover after maturity and loyalty addition along with low premium with high risk cover. As it is a Term assurance plan, only sum assured is paid as death claim, if policy kept in force as on death date.

Lic Bima Kiran policy Conditions

AGE AT ENTRY:                          Minimum:   18 years completed

                                                   Maximum:   35 years

POLICY TERM:                            Minimum:   15 years

                                                   Maximum:  30 years

MODE OF PAYMENTS:                 Yearly, Half-yearly,Quarterly, SSS except Monthly.

MAXIMUM MATURITY AGE:        60 Years

SUM ASSURED:                           Minimum:    50,000 & in multiple of 10000

                                                   Maximum:   3,00,000

Lic Bima Kiran Policy Rebates

There are 2 types of Rebates,

1. Sum assured rebate
2. Mode rebate

Sum assured rebate:  

Sum assured rebate is not available in Lic Bima kiran policy.

Mode rebate:

Mode	Percentage
Yearly mode	3%
Half-yearly mode	1.5%
Quarterly and SSS	No Rebate

Lic Bima Kiran Policy Maturity Benefits

If life insured survives up to the end of policy term and came up with all premiums then,

Maturity claim = total amount of premiums paid during the term – extra premium + loyalty addition

Death cover is not repaid as maturity claim, because maturity claim differs from death cover.

If premiums have not been paid during the last policy year, but the policy was in force for sum assured then on the maturity date,

Maturity claim = Full sum assured + guaranteed additions + reversionary + bonus(if any) – Unpaid instalments of premiums with interest

Lic Bima Kiran Policy Death Claims

If death occurs within the grace and if policy is in full force then,

Death claim = Sum assured + Loyalty addition

If death occurs after days of grace and if 5 full year premiums have been paid and also if 5 years have been completed as on the date of death then,

Death claim = Total premiums paid – Total extra premiums paid

If policy is lapsed and if death occurs with in 5 years then, nothing is payable.

If death of life insured occurs after giving free insurance cover, but within 10 years of maturity date then, only free insurance cover is paid as death claim.

Lic Bima Kiran Policy Additional Benefits

Loyalty Addition:

Loyalty addition is paid along with maturity claim based on completed policy term or premiums paid fully for ppt.

Policy Term	Loyalty Additions [ % of (total premiums paid – extra premium) ]
15 to 19 years	25%
20 to 24 years	35%
25 to 29 years	45%
30 years	55%

Free insurance cover shall be available for a period of 10 years from maturity date as given below,

Free Insurance Cover:

Policy Term	% of Free Insurance Cover of basic death cover
15 to 19 years	30%
20 to 24 years	40%
25 to 29 years	50%
30 years	60%

Accident benefit:Riders Available in   Lic Bima Kiran Policy

In Bima Kiran plan Double Accident Benefit/EPDB is available . It is inbuilt in instalment premium and exclusive of the maximum limit of DAB. PDB is not included in Accident benefit.

GUARANTEED SURRENDER VALUE:

Lic Bima Kiran plan do not acquire Guaranteed Surrender Value ( GSV ).

PAID UP VALUE:

As per policy conditions and being term assurance plan Paid up value is not available.

Still, in Lic Bima Kiran plan, if further premiums are discontinued after paying premiums at least for 5 years and life insured is surviving as on maturity date then,

Maturity claim = notional paid up value i.e., ( total premiums paid – extra premiums )

SPECIAL SURRENDER VALUE:

Lic Bima Kiran plan will not acquire any SSV during first 5 years of policy.

After paying 5 years premiums and after completing 5 years of policy, if future premiums are discontinued then SSV is calculated as,

SSV = (notional paid up value) x Sv factor

Additional Information about Lic Bima Kiran Policy

REVIVAL:

In Lic Bima Kiran plan if policies are lapsed due to discontinuity of premiums with in days of grace,  policies can be revived with in 6 months from the due date of FUP by paying dues of premiums with interest. Health evidence is not required.

Lic Bima Kiran Policy Benefit illustration

If policy is kept in force with regular payments of premiums throughout the policy term of 20 years , with basic sum assured of Rs. 1000, the benefits are

On survival, sum equivalent to premiums paid including accident premiums except other extras are payable on surviving the term.

On unfortunate death during the policy term, payment of Rs. 1000 along with loyalty addition(35% of premiums paid for 20 years policy term) and if any is done.