LIC of India new plan launched on 27th May, 2022 which name is LIC Bima Ratna 864 (LIC Table No. 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.

This plan is provide 125% Insurance cover of the basic sum assured and also provides financial support to the family in case of unfortunate death of the policyholder during the policy term. The plan also provides money back amount if the policyholder survives the specified period during the policy term. The plan also provides liquidity needs through a loan facility.

Key Features - LIC Bima Ratna 864

• A money back plan with limited premium payment .
• 100% Guaranteed Maturity amount on completion of the policy
• Premium paid in 4 years less with 3 options than maturity years

Riders Facility :

• 1. accidental and disability benefit rider
• 2. Term Assurance Rider
• 3. Critical Illness Rider
• 4. Premium Waiver Benefit Rider on payment of additional premium.

• Option to pay premium for 11, 16, 21 years for 15, 20 and 25 years policy term
• Premiums paid are exempted from income tax under sec 80C
• Maturity amount under sec 10(10D) is tax free

LIC Bima Ratna 864 Parameter / Eligibility

Also Read this : LIC's Best Lifetime Money Back plan

Rebates

Rebate means discount on premium. Two rebates in this policy one is Mode Rebate and another is Sum Assured Rebate.

Mode Rebate: Rebate given based on premium payment mode chosen.

High Basic Sum Assured Rebate

Benefits

Maturity Benefits

LIC Bima Ratna 864 Maturity Benefits = 50% of Basic Sum Assured + Guaranteed Additions.

Sum Assured on Maturity: On Survival to the end of the policy term, 50% of Basic Sum Assured + Guaranteed Additions will be paid.

The guaranteed additional benefit is defined below:

Guaranteed Additions shall be payable, provided the policy is in-force by payment of due premiums.The Guaranteed Additions shall accrued at the end of the Policy Year from the 1st Policy Year to the end of the Policy Term. The rate of Guaranteed Additions shall increase in steps with the duration of the policy as specified below:

Survival Benefit  (Money Back):

On the life assured surviving to each of the specified duration during the policy term, provided policy is in-force, a fixed percentage of Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:

Death Benefits

• Death Benefit payable on death during the policy term after the date of commencement of risk shall be “Sum Assured on Death” along with Accrued Guaranteed Additions.
• “Sum Assured on Death” is defined as 125% of Basic Sum Assured.
• However, in case of minor Life Assured, whose age at entry is below 8 years, on death before the commencement of Risk, return of all premium paid excluding taxes, any extra amount and rider premium if any, shall be payable.
• 8 years of age – Date of commencement of risk would be 2 years after taking the policy or after attaining 8 years of age whichever is earlier

Read also : LIC new Jeevan Anand plan 915 lifetime plan

LIC Bima Ratna 864 Surrender, Loan and Paid-up value details is given below.

Surrender period : Policy can be surrender after 2 years at least 2 full years payment of premiums.

Loan Facility : Loan facility is available under LIC Bima Ratna 864, after at least 2 full years of premium paid.

Paid-up value : Once a LIC Bima Ratna 864 policy has completed minimum 2 full years and more premiums paid, and policyholder chooses to stop paying further premiums, it automatically becomes eligible for paid-up value.

Paid-up value formula

LIC Bima Ratna Plan 864 with an Example

An example of Sohan who is purchasing this Plan with following details below:

As per above example, policy holder needs to pay the premium of Rs 1,16,178 1st. years onward every year for 21 years (Premium Paying Term) and after completion of 25 years (Policy Term). The benefits (maturity & Year-wise death claims) related to this plan is given below.

Maturity Details

If Policy holder survives till maturity, then Maturity will be as under.

Death Claim Details

In case of death during policy term ( Before 25 years ), 125% of Sum Assured + guaranteed Addition (Normal Life Cover) will be paid to nominee. In case of accidental death, additional amount equal to Sum Assured along with Sum Assured + guaranteed Addition (Accidental Life Cover) will be paid to nominee. Year-wise and Age-wise Normal Life Cover and Accidental Life Covers will be as follows.

How to Understand given below Table?

Suppose if, unfortunate death of policyholder happens in year 2035 (at age 43), then by that time total premium paid will be Rs. 15,10,313 and nominee will get death claim as Rs. 40,30,000 in case of normal death or Rs. 50,30,000 as accidental death claim in case of death due to accident and policy will be stop.

Additional information

Loan Facility : Loan facility is available under LIC Jeevan Labh plan, after at least 2 full years payment of premiums.

1. For in-force policies : upto 90% of Surrender Value
2. For paid-up policies : upto 80% of Surrender Value

Riders Facility :

• accidental and disability benefit rider

• Term Assurance Rider

• Critical Illness Rider

• Premium Waiver Benefit Rider on payment of additional premium.

Suicide Clause : If Policy Holder Committed Suicide within 12 month from date of taking the policy 80% of paid premium will be returned back. If committed suicide after 1 year. 125% of basic sum assured + Bonus will be paid by LIC to their nominee.

Cooling off Period : Policy holder can return back policy within 15 days from date of receiving the policy.

Date Backing Facility : Available.

Proposal Form : Form No. 300, 340.