LIC Bima Shree

Death Benefit

In case of the unfortunate demise of the life assured during the policy term, the family receives the assured benefits as determined at the time of the policy inception. The death benefits are payable in the following manner.

On the death of the life assured during the first five policy years: The beneficiaries receive the Sum Assured on Death and Guaranteed Benefits.

On the death of the life assured after completing the first five policy years but before the maturity date: The beneficiaries receive the Sum Assured on Death with Guaranteed Additions and Loyalty Addition. Where the Sum Assured on Death received is the higher of

• 125% of the Basic Sum Assured
• 7 times the annualised premium

Survival Benefit

The life assured receives a fixed percentage of the Basic Sum Assured on surviving the specified years during the policy term. These survival benefits are paid as following

Maturity Benefit

The policyholder receives the maturity benefit on surviving the whole policy term. This Sum Assured on Maturity is paid with the applicable Guaranteed Additions and Loyalty Addition. The Sum Assured on Maturity is provided as follows

Participation in Profits

Once the LIC Bima Shree Policy completes five policy years and at least five policy year premiums have been paid, the policy is eligible to participate in the profits of the corporation. The policy receives Loyalty Additions during the exit due to death or maturity.

The loyalty additions are also added during the Surrender Value calculation in case the policy is surrendered after the completion of five policy years.

Guaranteed Additions

The policy is eligible for the Guaranteed Additions at the end of each policy year during the policy premium paying term. The rate of guaranteed additions is as follows

For the first five policy years: Rs. 50 per thousand Basic Sum Assured

From the sixth policy year and till the end of the premium paying term:Rs. 55 per thousand Basic Sum Assured

Flexible Premium Payments

At the time of policy inception, the policyholder can choose to make the policy payment yearly, half-yearly, quarterly, or monthly during the policy paying term.

Grace Period

LIC Bima Shree allows a grace period to make the due premium payments. A grace period of 30 days is provided for yearly, half-yearly, and quarterly modes of payment and 15 days for monthly mode. During the grace period, all the benefits are considered in force. If the premium payments are not made within the grace period, the policy lapses and all the benefits cease.

Policy Revival

The lapsed policy can be revived within 5 consecutive years from the date of the first unpaid premium but before the date of maturity. The policyholder needs to pay all the outstanding premiums with interest. The revival of the discontinued policy is only possible if the corporation accepts the revival and issues the receipt.

Paid Up Policy

If the policyholder has paid the premiums for less than two years and the subsequent payments are not made, no benefits are payable after the expiry of the grace period.

If the policyholder has paid the premiums for at least two full years and any subsequent premiums are not paid, the policy continues as the paid-up policy until the end of the term. Once the policy acquires paid-up value, the sum assured on death is reduced to the Death Paid-Up Sum Assured, and the sum assured on maturity is reduced to the Maturity Paid-Up Sum Assured.

In addition to the paid up value, the policyholder receives the guaranteed additions and applicable loyalty additions (if any).

Policy Rebate

The policy offers rebates/ discounts under the following conditions.

On Premium Payment Mode:

On High Basic Sum Assured:

Surrender Value

The policyholder can surrender the LIC Bima Shree Policy anytime during the policy term if at least one full-year premium has been duly paid. Upon surrender, LIC India pays the Surrender Value, equal to higher of the Guaranteed Surrender Value and Special Surrender Value.

Policy Loan

The loan can be availed under the LIC Bima Shree Policy if the policyholder has duly paid the premiums for at least two full years. The maximum loan amount can be

• For in-force policies: Upto 90% of the surrender value
• For paid-up policies: Upto 80% of the surrender value

The LIC of India determines the applicable interest rates upon the prior approval of IRDAI.

Tax Benefits

As per Section 80C of the Income Tax Act, 1961, the premiums paid towards the LIC Bima Shree Plan are tax-exempt. Additionally, the benefits received are tax-free under Section 10 (10D) of the Income Tax Act.

Free Look Period

15 days free look period is offered to the policyholder under LIC Bima Shree Plan, during which they can review the policy. If they are not satisfied with the terms and conditions, they can return the policy to the corporation stating the reasons for objections. The LIC of India will cancel the policy and return all the premiums paid, deducting applicable charges.