LIC Bima Account Plan 1

In the tax saving season (Jan-Feb) of 2011, LIC introduced its Bima Account. Like other endowment plans, it is meant to give double benefit: death benefit to family in case of policy holder’s demise, and maturity benefit to policy-holder in case of survival.

Read more
LIC Plans-
Buy LIC policy online hassle free
Tax saving under Sec 80C & 10(10D)^
Guaranteed maturity with life cover for securing family's future
Sovereign guarantee as per Sec 37 of LIC Act
LIC life insurance
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold
Now Available on Policybazaar
Grow wealth through
100% Guaranteed Returns with LIC
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on ''View Plans'' you, agreed to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

Here is a brief look at the basic features of the LIC Bima Account Plan 1 (basic):

  • Entry age- 11 to 50 years
  • Maturity age- 18 to 57 years
  • Payment mode- Yearly, Half-yearly, Quarterly, Monthly (ECS)
  • 6% guaranteed interest payable on policy-holder’s account, calculated on a day-to-day basis and credited at the end of the month
  • When a lapsed policy is in revival period, interest earned will be 5%
  • Premium can be topped-up, which is accumulated in a separate account. Top-up amount cannot exceed sum of regular premiums.
  • Sum assured- Annual premium x10 to x20 according to age and other variable factors
  • Loan available after first policy anniversary, from Rs.1000 to 60% of account balance
  • Sum assured can be decreased, with effect from next policy anniversary
  • Non-linked plan (not influenced by market fluctuations)

With its 6% interest claim, LIC seeks to provide an alternative to regular savings accounts which usually provide 4%. However, the variable component of the sum is not immediately clear to the proposer. While the plan provides a versatile source of savings for conservative investors, return on initial investment is less than traditional options like fixed deposits (9% interest).

Let us take a closer look at the drawbacks of this plan:

1.    Policy term is only 5 to 7 years. This means that it cannot function as primary life insurance for a person with a number of dependents.
2.    A large number of deductions. While all charges are transparent as promised, these deductions will eat into your premium and significantly reduce the final amount. Here is a table of all applicable charges: 

Expense Charge on annual premium

1st year- 27.5%

2nd and 3rd year- 7.5%

Then on- 5%


Monthly deducted mortality charge by age on sum assured

20- 0.125%

30- 0.146%

40- 0.257%

50- 0.656%

Monthly deducted service tax on mortality charge





Alteration charge





Expense charge for top-up premium






3.     No guaranteed bonus. Minimum sum assured is 10 times the annual premium. Now if you are paying premiums for 7 years and some of it is deducted in charges, the difference between 10 times considered premium, and 7 times the premium you pay, is not much. The maximum sum assured is 20 times the annual premium for young customers, but this bonus is not guaranteed.

           ICICI PruSavings Suraksha, for example, includes 5% guaranteed benefits for the first 5 years.

4.     Electronic payment only. Although this is not an online plan, monthly payment of premium can be done only through the ECS (Electronic Clearing Service) mode.

Should I go for this?

LIC life insurance has created a wide network of agents and clients, making their products easily accessible. As LIC Bima Account 1 has an affordable minimum premium and a short policy term, it is not a long term commitment. Under favorable conditions, it may prove to be a reliable source of returns in the short run.

More Useful Resources

LIC Online Services

LIC Investment Plans

LIC Other Plans

LIC Policy Details Check Online

LIC Jeevan Umang Plan

LIC Term Plans

LIC Online Premium Payment

LIC Jeevan Lakshya Plan

LIC Pension Plans

LIC Online Registration

LIC Money Back Plan


LIC Online Login Portal

LIC New Jeevan Anand

LIC Child Plans

LIC Premium Calculator

LIC New Endowment Policy

LIC One Time Investment Plan

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-
++Returns are 10 years returns of Nifty 100 Index benchmark

LIC of India
LIC Plans
LIC Jeevan Utsav
LIC Jeevan Kiran
LIC Dhan Vriddhi
LIC Monthly Investment Plans
LIC Jeevan Azad
LIC 1 Crore Endowment Plans
LIC Jeevan Labh 1 Crore
LIC Crorepati Plan
LIC Dhan Varsha - Plan No. 866
LIC Pension Plus Plan
LIC New Jeevan Shanti
LIC Bima Ratna
LIC Group Plans
LIC Fixed Deposit Monthly Income Plan
LIC Savings Plans
LIC’s New Jeevan Anand
LIC New Jeevan Anand Plan 915
LIC's Saral Jeevan Bima
LIC's Dhan Rekha
LIC Jeevan Labh 836
LIC Jeevan Jyoti Bima Yojana
LIC Child Plans Single Premium
LIC Child Plan Fixed Deposit
LIC Jeevan Akshay VII
LIC Yearly Plan
LIC Bima Jyoti (Plan 860)
LIC’s New Bima Bachat Plan 916
LIC Bachat Plus Plan 861
LIC Policy for Girl Child in India
LIC Samriddhi Plus
LIC New Janaraksha Plan
LIC Nivesh Plus
LIC Policy for Women 2024
LIC Plans for 15 years
LIC Jeevan Shree
LIC Jeevan Chhaya
LIC Jeevan Vriddhi
LIC Jeevan Saathi
LIC Jeevan Rekha
LIC Jeevan Pramukh
LIC Jeevan Dhara
LIC Money Plus
LIC Micro Bachat Policy
LIC Endowment Plus Plan
LIC Endowment Assurance Policy
LIC Bhagya Lakshmi Plan
LIC Bima Diamond
LIC Anmol Jeevan
LIC Bima Shree (Plan No. 948)
LIC Jeevan Saathi Plus
LIC Jeevan Shiromani Plan
LIC Annuity Plans
LIC Jeevan Akshay VII Plan
LIC SIIP Plan (Plan no. 852) 2024
LIC Jeevan Umang Plan
LIC Jeevan Shanti Plan
LIC Online Premium Payment
LIC Jeevan Labh Policy-936
LIC Money Plus Plan
LIC Komal Jeevan Plan
LIC Jeevan Tarang Plan
LIC Bima Bachat Plan
LIC’s New Money Back Plan-25 years
LIC Money Back Plan 20 years
LIC Limited Premium Endowment Plan
LIC Jeevan Rakshak Plan
LIC New Jeevan Anand (Previously LIC Plan 149)
LIC New Endowment Plan
LIC Varishtha Pension Bima Yojana
LIC Investment Plans
LIC Pension Plans
Show More Plans
LIC Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans
Download the Policybazaar app
to manage all your insurance needs.