Bima Ratna Plan 864
Bima Ratna Plan 864: LIC of India new plan launched on 27th May, 2022 which name is LIC Bima Ratna 864. LIC’s Bima Ratna 864 is a Non-Linked, Non-Participating, money back, Individual, Savings, Life Insurance Plan which offers an attractive combination of protection and savings. Insurance cover is 125% of the basic sum assured.
In India, financial security and family protection are always top priorities. For decades, LIC (Life Insurance Corporation of India) has been a household name, offering policies that balance savings, risk protection, and guaranteed benefits.
One such plan that has gained popularity is the LIC Bima Ratna Plan 864.
Unlike traditional savings or risky investments, Bima Ratna is a non-linked, non-participating, limited premium payment money-back plan designed for individuals who want:
- Guaranteed periodic survival benefits
- Financial protection through life insurance
- A lump sum at maturity
- Loan and liquidity options
In this blog post, we will deep-dive into LIC Bima Ratna Plan 864 with detailed features, benefits, investor examples, premium charts, expert analysis, and FAQs—making it your ultimate guide to understanding this plan in 2025.
What is LIC Bima Ratna Plan 864?
LIC Bima Ratna (Plan No. 864, UIN: 512N345V02) is a non-linked, non-participating, individual, limited premium payment, money-back life insurance savings plan.
👉 Simply put, it is a guaranteed money-back + life cover policy where:
- You pay premiums for a limited term.
- Receive regular payouts (survival benefits) during the policy.
- Get lump sum at maturity.
- Family receives death benefits in case of unfortunate demise.
This makes it a dual-purpose plan:
✅ Regular financial support for planned milestones.
✅ Strong family protection through life insurance.
Key Features of LIC Bima Ratna 864
| Feature | Details |
|---|---|
| Plan Name | LIC Bima Ratna |
| Plan Number | 864 |
| Type | Non-linked, Non-participating, Money-Back Savings Plan |
| Policy Terms Available | 15, 20, 25 years |
| Premium Payment Term (PPT) | Policy Term – 5 years (Limited Pay) |
| Entry Age | 90 days to 55 years |
| Maximum Maturity Age | 70 years |
| Minimum Basic Sum Assured | ₹5,00,000 |
| Maximum Basic Sum Assured | No Limit (based on income proof) |
| Survival Benefits | 25% of SA paid at intervals |
| Maturity Benefit | Balance SA + Guaranteed Additions |
| Death Benefit | SA on Death + Guaranteed Additions |
| Loan Facility | Available after 2 years |
| Riders Available | Accidental Death & Disability, Critical Illness, Term Rider, etc. |
Benefits of LIC Bima Ratna Plan 864
1. Survival Benefits (Money-Back Payouts)
LIC provides 25% of the Basic Sum Assured (BSA) at regular intervals:
| Policy Term | Survival Benefits Schedule |
|---|---|
| 15 Years | 25% of BSA at end of 13th & 14th year |
| 20 Years | 25% of BSA at end of 18th & 19th year |
| 25 Years | 25% of BSA at end of 23rd & 24th year |
2. Maturity Benefit
At maturity, the policyholder receives:
👉 Balance SA (after survival payouts) + Guaranteed Additions.
3. Death Benefit
If the life assured dies during policy:
👉 Sum Assured on Death + Guaranteed Additions is paid.
- Sum Assured on Death = Higher of (125% of BSA OR 7 × Annual Premium).
4. Guaranteed Additions
LIC Bima Ratna provides guaranteed additions of ₹50 per ₹1,000 SA annually for the first 5 years, and ₹55 per ₹1,000 SA annually thereafter.
This ensures steady wealth growth over the policy term.
5. Loan Facility
Loan available after paying 2 years’ premium – ensuring liquidity.
6. Tax Benefits
- Premiums eligible under Section 80C.
- Maturity/Death benefits exempt under Section 10(10D).
Example – Premium & Benefit Illustration
Case Study – Mr. Arora (Age 35, Salaried Professional)
- Policy Term: 20 years
- Basic Sum Assured: ₹10,00,000
- Premium Payment Term: 15 years
- Annual Premium: ~₹72,000 (approx.)
Money-Back & Maturity Chart
| Year | Event | Benefit |
|---|---|---|
| 18th Year | Survival Benefit | ₹2,50,000 |
| 19th Year | Survival Benefit | ₹2,50,000 |
| 20th Year | Maturity | ₹5,00,000 + Guaranteed Additions (~₹6,00,000) |
👉 Total Benefits = ~₹16 lakh (against ₹10.8 lakh premiums)
Analyst Opinions on LIC Bima Ratna
- Insurance Experts: “Bima Ratna ensures guaranteed benefits with systematic money-backs, making it ideal for milestone planning.”
- Financial Planners: “The guaranteed additions significantly boost maturity value, giving it an edge over other LIC money-back plans.”
- Market Analysts: “Effective returns (IRR) are ~6% tax-free, which is equivalent to ~8–9% pre-tax in other instruments.”
Who Should Invest in LIC Bima Ratna 864?
1. Young Parents
To plan for children’s education and marriage milestones.
2. Salaried Professionals
Who want safe, disciplined savings with life cover.
3. Business Owners
For periodic liquidity through money-back payouts.
4. Conservative Investors
Those who prefer guaranteed returns + tax savings over risky equities.
Real-Life Investor Examples
Example 1 – Mrs. Mehta (Age 30, SA ₹20 lakh, 25-year term)
- Premium: ₹1.2 lakh/year (20 years)
- Survival Benefits: ₹5 lakh at 23rd & 24th year
- Maturity: ₹10 lakh + Guaranteed Additions (~₹12–14 lakh)
- Total Benefits: ~₹32–34 lakh
Example 2 – Mr. Singh (Age 40, SA ₹15 lakh, 15-year term)
- Premium: ₹1 lakh/year (10 years)
- Survival Benefits: ₹3.75 lakh at 13th & 14th year
- Maturity: ₹7.5 lakh + Guaranteed Additions (~₹7 lakh)
- Total Returns: ~₹22–23 lakh
Comparison with Other LIC Plans
| Plan | Type | Min SA | Best For | Returns |
|---|---|---|---|---|
| Bima Ratna 864 | Money-back, Guaranteed Additions | ₹5 lakh | Milestone planning | ~6% |
| Dhan Rekha 863 | Money-back, Loyalty Additions | ₹2 lakh | Long-term safety | 5.5–6% |
| Jeevan Lakshya 933 | Endowment + Protection | ₹1 lakh | Family protection | 5–6% |
| Amritbaal 774 | Child Plan | ₹2 lakh | Education/Marriage | 5–6% |
Expert Insights
Strengths ✅
- Guaranteed Additions (better than loyalty bonus-based plans)
- Limited premium payment term
- Flexible policy terms (15/20/25 years)
- High liquidity with money-back payouts
Limitations ❌
- Moderate returns compared to equities/ULIPs
- High premiums (min SA = ₹5 lakh)
- Long-term commitment required
FAQs on LIC Bima Ratna 864
Q1. What is the minimum premium for Bima Ratna?
👉 Based on ₹5 lakh SA, minimum premium ~₹35,000 annually.
Q2. Can NRIs buy Bima Ratna?
👉 Yes, NRIs are eligible with certain conditions.
Q3. Does this plan provide guaranteed additions?
👉 Yes, ₹50–55 per ₹1,000 SA every year till maturity.
Q4. Is this plan better than Bima Shree 948?
👉 Bima Shree is for HNIs (₹10 lakh min SA), while Bima Ratna is more accessible with ₹5 lakh minimum SA.
Q5. Can I surrender this plan early?
👉 Yes, after paying at least 2 years of premium.
Final Thoughts
The LIC Bima Ratna Plan 864 is a well-structured, guaranteed money-back plan that balances:
- Life insurance protection
- Regular survival benefits
- Attractive guaranteed additions
- Tax savings
It is especially suitable for families planning education, marriage, or retirement milestones, thanks to its scheduled payouts.
👉 If you want a safe, tax-efficient, and milestone-oriented savings plan in 2025, Bima Ratna 864 deserves serious consideration.
