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Bima Account 1

Features

As the name explains “LIC’s Bima Account – I ” is a simple non-linked plan under which you can be covered without undergoing any medical examination subject to certain conditions.
 
This plan offers you everything you think of an insurance plan should provide:

  1. Simplicity
  2. Liquidity
  3. Guaranteed minimum return
  4. No medical examination
  5. Transparent charges
  6. Risk cover

Under this plan, the premiums paid by you, after deduction of charges, will be credited to the Policyholder’s Account maintained separately for each policyholder. The risk cover will be provided by deduction of mortality charges from the Policyholder’s Account.

If all due premiums are paid, the amount held in your Policyholder’s Account will earn an annual interest rate of 6% p.a. which will be guaranteed for whole of the policy term. In addition to this guaranteed return, if all due premiums are paid, your account may earn an additional return depending upon the experience under this plan.

You will also have an option to pay additional (Top-up) premiums without any increase in risk cover.
Loan facility will also be available immediately after first policy anniversary.

PAYMENT OF PREMIUMS: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.
  Policyholder’s Account shall consist of 2 parts:

  1. Policyholder’s Regular Premium Account - to which regular premiums, net of charges, shall be credited.
  2. Policyholder’s Top-up Premium Account - to which Top-up premiums, net of charges, shall be credited.

    ELIGIBILITY CONDITIONS  AND  OTHER  RESTRICTIONS:

             (in years)

1. Minimum Entry Age :     11 (completed)
2. Maximum Entry Age  :     50 (nearest birthday)
3. Policy Term  :     5 to 7 
4. Minimum Maturity Age    :     18 (completed)
5. Maximum Maturity Age  :     57 (nearest birthday)
6. Minimum Premium:  

        

Minimum Premium:  
Regular premium:  
Mode    Instalment premium
Yearly   ` 7,000
Half-yearly   ` 4,000
Quarterly     ` 2,000
Monthly (ECS)  ` 600
Top-up premium ` 1000

        

Maximum Premium:  
Regular premium:  
Mode    Instalment premium
Yearly   ` 14,000
Half-yearly   ` 7,000
Quarterly     ` 3,500
Monthly (ECS)  ` 1100
Top-up premium Sum total of Regular Premiums paid upto the date of payment of top-up
                                      
 

      Annualized Premiums shall be payable in multiple of `1000 for all modes other than ECS monthly. For monthly (ECS), the premium shall be in multiples of `100/-.

  1. Minimum Sum Assured: 10 times the annualized premium.
  2. Maximum Sum Assured:

                  20 times of the annualized premium up to age 35 years
                  14 times of the annualized premium for age between 36 to 45years
                  10 times of the annualized premium for age between 46 to 50 years

The maximum Sum Assured shall be subject to maximum non-medical limit applicable for the life to be assured.

CHARGES UNDER THE PLAN:

A) Expense Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance part of the premium will be credited to the Policyholder’s Regular Premium Account or Policyholder’s Top-up Premium Account, as the case may be.
The expenses charges are as below:

Regular premium:            

Expenses charge (including commission)
First Year 2nd & 3rd Years Thereafter
27.5% 7.5% 5%

        Expense charge for top-up Premium:      2.5%
B) Other Charges:

  1. Mortality Charge – This is the cost of life insurance cover which is age specific and will be taken every month from the Policyholder’s Regular Premium Account appropriately. This charge shall depend upon the Sum Assured.

 
The charges per `1000/- life insurance cover for some of the ages in respect of a healthy life are as under:

Age 20 30 40 50
Rs. 1.25 1.46 2.57 6.56

   

  1. Service Tax Charge - A service tax charge, if any, shall be levied on Mortality charge deducted from the Policyholder’s Regular Premium Account on a monthly basis as and when the corresponding Mortality charges are deducted.

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