Under the plans, the premiums paid by the customer, after deduction of charges, will be credited to the policy holder’s Account maintained separately for each policyholder.
LIC has launched two new Non linked plans Bima Account I and Bima Account II. These are the first Variable Insurance Plans under the new IRDA regime. The basic structure of the two plans are same and hence the similar names. The plans are very simple, ensure liquidity to the customer, have Guaranteed minimum returns, transparent charges and provides ample risk cover. Moreover, in Bima Account I there is no medical examination!
Under the plans, the premiums paid by the customer, after deduction of charges, will be credited to the policy holder’s Account maintained separately for each policyholder. If all due premiums are paid, the amount held in the Policyholder’s Account will earn an annual interest rate of 6% per annum which will be guaranteed for the whole of the policy term. In addition to this guaranteed return, if all due premiums are paid, the individual Policyholder’s account may earn an additional return depending upon the experience under the plan.
If premiums are not paid within days of grace, the policy will become a paid up policy. The life assured has the option to revive the paid –up policy within 12 months from date of first unpaid premium. During the revival period the life cover will cease and no mortality charges shall be deducted. The balance in the policyholder’s Account during the period of revival will earn guaranteed interest rate of 5% per annum without debiting any expenses. On revival of policy, the guaranteed rate of interest on Policyholder’s Account will again be 6% per annum from the date of revival.
There is an option to pay additional (top up) premiums without any increase in risk cover to the extent of total basic premiums paid under the policy. Loan facility is available immediately after the first policy anniversary.
The premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.
The age entry for the Bima Account I is from 11 years(completed) to 50 years(nearest birthday) while it is from 8 years(completed) to 60 years(nearest birthday) for Bima Account II.
The policy term for Bima Account I ranges from 5 to 7 years, while it ranges from 10 to 15 years for Bima Account II.
The minimum premium is Rs 600/- per month under ECS mode for Bima Account I. while it is Rs 1250/- under Bima Account II. The minimum premium under yearly mode of payment for Bima Account I is Rs 7000/- while it is Rs 15000/- under Bima Account II.
On the Life Assured surviving the maturity date of the contract, balance in the Policholder’s Account is payable. In case of unfortunate death of the life Assured during the policy term, where the cover is in full force, the Sum Assured along with the balance in Policyholder’s Account shall be payable.
The Sum Assured under Bima Account I ranges from minimum of 10 times the annualized premium to maximum of 20 times of the annualized premium upto age 35 years, 14 times of the annualized premium for age between 36 to 45 years and 10 times of the annualized premium for age between 46 to 50 years.
The Sum Assured under Bima Account II ranges from minimum of 10 times the annualized premium to maximum of 30 times of the annualized premium upto age 35 years, 20 times of the annualized premium for age between 36 to 45 years and 10 times of the annualized premium for age between 46 to 50 years.
Read more:
Jun 28, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
Jun 27, 2022
The laws of the financial world are different from the physical world. You can have prolonged periods of time, when sanity takes a back seat and excesses happen.
R. Venkataraman Aug 20, 2021
Retail trading or day trading has exploded because of falling brokerage rates, democratization of information, higher transparency and mobile platforms.
R. Venkataraman Jun 15, 2021
My simple message for dear readers is, if you don’t have any desperate need for funds, then don’t do anything.
R. Venkataraman May 12, 2021
The blow up of a US hedge fund has resulted in WhatsApp university offering many courses on what went wrong with Bill Hwang and Archegos.
R. Venkataraman Apr 09, 2021
The expensive valuations have been sustained by strong rebound in corporate earnings which led to ~8% upgrade in FY22 Nifty EPS since October 2020.
R. Venkataraman Mar 26, 2021
We believe the interest rates are likely to have bottomed due to inflationary pressure, large government borrowings and normalizing credit growth. Hence rate sensitive sectors should be avoided in our view.
R. Venkataraman Feb 17, 2021
As markets make new highs, one gets more emails and messages, which highlight the accomplishments of traders who have found a formula for making money.
R. Venkataraman Jan 27, 2021
Data does not seem to convincingly prove that short periods of high returns are always followed by meagre returns. Only in 4 instances, we had negative returns in the subsequent year.
R. Venkataraman Jan 01, 2021
Since September end, Bankex is up 16% with large banks like ICICI Bank, Bandhan up 20-27%, Housing Finance Companies like Repco, LICHF, PNB Housing are up 50%-100% from their six-month lows.
R. Venkataraman Oct 13, 2020
Morgan Housel’s 'The Psychology of Money' explains in detail the role of human biases in investment decisions.
R. Venkataraman Sep 26, 2020
Per Order for ETF & Mutual Funds Brokerage
Per Order for Delivery, Intraday, F&O, Currency & Commodity