LIC Bima Ratna Plan 864, Benefits, Features, Parameter, Example and Review
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. Insurance cover is 125% of the basic sum assured.
This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term. Money back payments will also be made on survival of the policyholder at specified duration during the policy term and this plan also takes care of liquidity needs through loan facility.
LIC Bima Ratna 864 – For the 25 years policy term policy holder have to pay the premium for 21 years and 20 years and 15 years of policy term policy holder have to pay the premium for 16 years and 11 years respectively.
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Key Features
- A money back plan with limited premium payment with 3 options.
- 100% Guaranteed Maturity amount on completion of the policy
- Premium paid in 4 years lesser than maturity years
- Riders Facility :
- accidental and disability benefit rider
- Term Assurance Rider
- Critical Illness Rider
- 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
| Minimum Age at Entry | 90 days – for 20 and 25 years policy term 05 Years – for 15 Years Policy Term |
| Maximum Age at Entry | Age 55 years – 15 years policy term Age 50 years – 20 and 25 years policy term |
| Maximum Age at Maturity | 70 Years |
| Premium Paying Mode | Yearly, Half Yearly, Quarterly, Monthly (NACH) |
| Policy Term | 15, 20, 25 years |
| Premium Payment Term | 11, 16, 21 years |
| Basic Sum Assured | 5,00,000 and above (in multiple of 25,000) |
| Loan | After 2 years |
| Surrender | After 2 years of premium payment |
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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.
| Premium Payment Mode | Percentage(%) |
|---|---|
| Yearly Mode | 2% of Tabular Premium |
| Half yearly Mode | 1% of Tabular Premium |
| Quarterly and Monthly | Nil |
High Basic Sum Assured Rebate
| Basic Sum Assured (BSA) | Rebate on tabular premium per Rs 1000 BSA (Rs.) |
|---|---|
| Rs. 500,000 से Rs. 9,75,000 | NIL |
| Rs. 10,00,000 से Rs. 14,75,000 | Rs. 0.50 |
| Rs. 15,00,000 से Rs. 19,75,000 | Rs. 1.00 |
| Rs. 20,00,000 और ज्यादा | Rs. 1.25 |
LIC Bima Ratna policy 864 Sample Premiums
Here are the sample premiums (yearly) for Rs 20 Lakhs Basic Sum Assured.
| – | Policy Term in Years (Premium Paying Term) | – | – |
|---|---|---|---|
| Age | 15 (11) | 20 (16) | 25 (21) |
| 20 | 2,16,040 | 1,51,066 | 1,14,218 |
| 30 | 2,16,824 | 1,52,340 | 1,16,178 |
| 40 | 2,20,744 | 1,57,534 | 1,57,534 |
| 50 | 2,32,602 | 1,57,534 | – |
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Benefits
Maturity Benefits
LIC Bima Ratna 864 Maturity Benefit = 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 accrue 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:
| Policy Term | Guaranteed Additions (per Rs 1000 Basic Sum Assured) |
|---|---|
| 1 to 5 years | Rs. 50 /- |
| 6 to 10 years | Rs. 55 /- |
| 11 to 25 years | Rs. 60/- |
Survival Benefit:
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:
| Policy Term (in years) | Payment of Survival Benefit (Money back) |
|---|---|
| 15 | On the policy of 15 years – 25% of the sum assured would be paid at the end of each 13th and 14th year |
| 20 | On the policy of 20 years – 25% of the sum assured would be paid at the end of each 18th and 19th year |
| 25 | On the policy of 25 years – 25% of the sum assured would be paid at the end of each 23rd and 24th year |
Death Benefits
LIC Bima Ratna policy 864 Death Benefit = 125% of Basic Sum Assured + Guaranteed Additions.
- 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
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LIC Bima Ratna 864 Surrender, Loan and Paid-up value.
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
| Paid-up value = Sum Assured * Total number of premiums paid/Total number of premiums to be paid |
LIC Bima Ratna Plan 864 with an Example
An example of Ratan who is purchasing this Plan with following details below:
| Sum Assured (Rs.) | 20,00,000 |
| Age (Years) | 30 |
| Policy Term(Years) | 25 |
| Premium Paying Term | 21 |
| Purchase Year | 2022 |
| Yearly Premium | 1,16,178 Yearly |
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.
| Maturity Year | Age at Maturity | Total Premium Paid | Maturity Amount (Approx.) |
|---|---|---|---|
| 2047 | 55 | 24,39,738 | 48,50,000 with Money Back |
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?
| Age | Premium | Normal Life Cover | Survival Benefit | Guaranteed Addition | Total Maturity |
|---|---|---|---|---|---|
| 30 | 116178 | 2500000 | 0 | 100000 | 0 |
| 31 | 116178 | 2500000 | 0 | 100000 | 0 |
| 32 | 116178 | 2500000 | 0 | 100000 | 0 |
| 33 | 116178 | 2500000 | 0 | 100000 | 0 |
| 34 | 116178 | 2500000 | 0 | 100000 | 0 |
| 35 | 116178 | 2500000 | 0 | 110000 | 0 |
| 36 | 116178 | 2500000 | 0 | 110000 | 0 |
| 37 | 116178 | 2500000 | 0 | 110000 | 0 |
| 38 | 116178 | 2500000 | 0 | 110000 | 0 |
| 39 | 116178 | 2500000 | 0 | 110000 | 0 |
| 40 | 116178 | 2500000 | 0 | 120000 | 0 |
| 41 | 116178 | 2500000 | 0 | 120000 | 0 |
| 42 | 116178 | 2500000 | 0 | 120000 | 0 |
| 43 | 116178 | 2500000 | 0 | 120000 | 0 |
| 44 | 116178 | 2500000 | 0 | 120000 | 0 |
| 45 | 116178 | 2500000 | 0 | 120000 | 0 |
| 46 | 116178 | 2500000 | 0 | 120000 | 0 |
| 47 | 116178 | 2500000 | 0 | 120000 | 0 |
| 48 | 116178 | 2500000 | 0 | 120000 | 0 |
| 49 | 116178 | 2500000 | 0 | 120000 | 0 |
| 50 | 116178 | 2500000 | 0 | 120000 | 0 |
| 51 | 116178 | 2500000 | 0 | 120000 | 0 |
| 52 | 0 | 2500000 | 0 | 120000 | 0 |
| 53 | 0 | 2500000 | 500000 (Money back) | 120000 | 0 |
| 54 | 0 | 2500000 | 500000 (Money back) | 120000 | 0 |
| 55 | 0 | 2500000 | – | 120000 | 38,50,000 (Maturity= 50% BSA + GA) |
| Total | 24,39,738 (Premium Paid) | (10,00,000) (BSA) | 10,00,000 (Money back) | 28,50,000 (GA) | 48,50,000 (Total Benefits) |
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.
- For in-force policies : upto 90% of Surrender Value
- 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.
LIC Bima Ratna 864 policy documents – Download pdf
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