LIC Bima Platinum 770

LIC Bima Platinum - An Overview

LIC Bima Platinum is a non-linked and non-participating individual life savings plan offered by the LIC of India. This life insurance policy has been designed to help policyholders accumulate and save wealth along with insurance cover.

LIC Bima Platinum is an endowment plan meaning it will offer death benefit if the policyholder dies during the policy term but it will also offer a savings payout as maturity benefit if the policyholder survives the entire policy term. The life insurance payout received on death or at maturity will include the basic sum assured and the accrued additions as per the policy terms and conditions.

Key Features of LIC Bima Platinum Plan 770

Here are some of the key features of the upcoming LIC Bima Platinum plan number 770.

• The plan is a combination of life insurance protection and wealth creation.

• Guaranteed additions of Rs. 70 for every thousand of the total annualized premiums with respect to all the premiums paid during the premium paying period.

• Regular Income Benefit of 10% of the Basic Sum Assured if the policyholder survives the pay-out period. The pay-out period shall be calculated as total policy term minus the Premium Payment Term (PPT).

• Booster Income Benefit of 70% of the Basic Sum Assured is the policyholder survives till the end of (PPT+5)th year.

• Choice to delay Regular Income Benefit and Booster Income Benefit.

• Flexibility of choosing

• The Premium Paying Term from - 7, 10,12,15 or 18 years

• To receive the Maturity or Death Payout in installments.

• Rider benefits available by paying additional premium for adding the rider.

• Loan facility available to help in times of liquidity needs.

Eligibility Criteria for LIC Bima Platinum Plan 770

What are the Benefits of LIC Bima Platinum Plan?

LIC Bima Platinum 770 policy of LIC is aimed at helping policyholders receive insurance coverage and also maintain and grow their savings at the same time. Following are some of the core benefits of the plan.

Death Benefit

Similar to a term insurance policy, if a policyholder dies before the policy matures, their nominee will receive the death benefit. The death payout will include the sum assured on death and the accrued guaranteed additions till the date of the death for in-force policies.

• The Sum Assured on Death is higher of either 11 times of annualized premium or Basic Sum Assured.

• The death payout shall not be less than 105% of the total premium paid until the date of death.

• The death benefit in any case should not be less than the surrender value calculated as on the date of death.

Income Benefit

The income benefits in the LIC Bima Platinum 770 Plan are of two types - Regular Income Benefit and Booster Income Benefit. The income benefit is payable if the life assured survives the specified durations within the pay-out period.

Regular Income Benefit

The regular income benefit is 10% of the basic sum assured. It is payable when the life assured survives the end of the premium paying term (PPT) and the policy is still in force. The first benefit amount is paid at the end of the PPT and thereafter it is paid on completion of each subsequent year till the life assured survives or till the policy anniversary before maturity date (whichever comes first).

Booster Income Benefit

The booster income benefit is 70% of the basic sum assured. It is payable when the life assured survives the specified policy anniversary and the policy is still in force. Following is the list of policy anniversaries specified for the various premium paying terms.

Maturity Benefit

LIC Bima Platinum is a savings life insurance policy that will offer a maturity benefit to the policyholders who will survive the policy term for in-force policies. This maturity benefit payout will consist of the basic sum assured and the accrued guaranteed additions throughout the policy term.

LIC Bima Platinum 770 Policy Details

LIC Bima Platinum policy details provide comprehensive information about the plan. It is advisable to read and understand them all before buying the plan.

Guaranteed Additions

• Premiums waived under the Premium Waiver Benefit Rider are also considered for calculating guaranteed additions.

• If the life assured dies during the PPT, guaranteed additions for the full year of death are payable.

• No guaranteed additions accrue after the PPT ends.

• The standard rate is ₹70 per ₹1,000 of Total Annualized Premium paid with applicable incentives increasing the rate.

• Guaranteed additions accrue at the end of each policy year during the Premium Paying Term (PPT) for an in-force policy.

Payment of Premiums

The mode of premium payment can be monthly, quarterly, half-yearly or yearly. Based on the mode, the premiums have to be paid regularly. Monthly premiums can be paid through either e-NACH/NACH or salary deductions (SSS) only.

Grace Period

When a policyholder fails to pay the premium before the due date they get an extended period to complete the payment which is known as the grace period. The grace period is 15 days for monthly premium payment mode and 30 days for other modes. The grace period starts from the date of the first unpaid premium. The policy lapses if the policyholder fails to pay the premium within the grace period.

Free Look Period

If a policyholder is not satisfied with the terms and conditions of the LIC Bima Platinum policy, they may return it to the Corporation within 30 days from the date of issuance of the policy. They must state the reason for the return.

Settlement Option

Settlement option refers to the choice of receiving the death or maturity payout as installments instead of lump sum amount. A policyholder can choose to receive the installments for a period of 5, 10 or 15 years for both in-force and paid-up policy.

Paid-Up Value

If you have paid premiums for at least one full policy year but later stop paying, the policy does not immediately become invalid. Instead, it continues as a paid-up policy with a reduced death benefit.

The reduced death paid-up sum assured is calculated based on the proportion of premiums you have already paid compared with the total premiums that were originally payable. Any accrued guaranteed additions also remain attached to the policy. Therefore, if the life assured dies during the remaining policy term, the nominee receives the reduced death paid-up sum assured along with the applicable guaranteed additions.

Policy Surrender

The policyholder is allowed to exit the policy early and receive a lump-sum amount. The policy can be surrendered after completing the first policy year, provided at least one full year’s premium has been paid. The surrender payout is the higher of the guaranteed surrender value (including accrued guaranteed additions) or the Special Surrender Value. A Guaranteed Surrender Value becomes available after two consecutive years of premium payments.

Incentives

Incentives are given to policyholders for high basic sum assured in the form of increase in the rate of guaranteed additions. Given below is description of the rate of incentive per thousand total annualized premium in respect to premiums paid.

Revival

If the premium is not paid within the grace period, the policy will lapse and its benefits will stop. However, the policyholder can revive the lapsed policy within 5 years from the date of the first unpaid premium, provided the revival is done before the policy maturity date. To revive the policy, all unpaid premiums must be paid along with the applicable interest.

Loan Facility

The LIC Bima Platinum policy provides the facility to avail of a loan against the policy, subject to the available surrender value. The loan can be taken after completing the first policy year, provided at least one full year’s premium has been paid.

Tax Benefits

Any applicable statutory taxes on the insurance policy will be charged as per the tax laws and rates in force from time to time. It is advisable to consult a tax advisor for details regarding income tax benefits for this plan.

Policy Exclusion

If the Life Assured dies by suicide within 12 months of the policy’s risk commencement or revival, the nominee will receive 80% of the total premiums paid, provided the policy is in force.

Optional Riders Available With LIC Bima Platinum 770 Plan

LIC Bima Platinum Plan 770 offers the following 5 riders. These are optional and can be added to enhance the insurance coverage. However, additional premium is applicable for each rider added.

LIC’s Accidental Death and Disability Benefit Rider

If you opt for LIC’s Accidental Death and Disability Benefit Rider, accidental death within 180 days of the accident provides a lump-sum Accident Benefit Sum Assured along with the base plan’s death benefit. In case of accidental permanent disability, the same amount is paid in monthly installments over 10 years and eligible future premiums are waived.

LIC’s Accident Benefit Rider

If you opt for LIC’s Accident Benefit Rider and the life assured dies accidentally within 180 days of the accident, the Accident Benefit Sum Assured is paid as a lump sum in addition to the death benefit under the base policy.

LIC’s New Term Assurance Rider

If you opt for LIC’s New Term Assurance Rider and the life assured dies during the rider term, an amount equal to the Term Rider Sum Assured on Death will be paid to the nominee.

LIC’s Premium Waiver Benefit Rider

If you opt for LIC’s Premium Waiver Benefit Rider and the proposer dies during the rider term, all future premiums for the base policy due from the date of death until the end of the rider term will be waived.

LIC’s Critical Illness Health Rider

If you opt for LIC’s Critical Illness Health Rider you get two options - coverage for 15 or 40 major critical illnesses, with the 40-illness option also including an Assisted Living Benefit. If a covered critical illness is diagnosed, the Critical Illness Sum Assured is paid. Under Option 2, diagnosis of any of the specified 7 illnesses also provides 1% of the sum assured monthly for 36 months as an Assisted Living Benefit.

LIC Bima Platinum Calculator

The LIC Bima Platinum Premium Calculator is a digital tool that helps policyholders estimate the value of their premiums payable as per their mode of premium payment. There is also a maturity calculator that projects the value of maturity payout for your policy. This LIC Calculator is available on the LIC website. You can use it free of cost any number of times.

This tool supports policyholders in their financial planning by giving them an idea of what they have to pay and what they will get in return. To use the calculator enter your personal details, choose the LIC Bima Platinum plan and then enter all the relevant LIC Bima Platinum policy details. The calculator will then come up with a detailed illustration of the results.

LIC Bima Platinum Premium Sample Illustration

The table below is a sample illustration of the annual premiums for a basic sum assured of ₹3 lakh for a policy term of 30 years for standard lives. The following illustration is for policies that are to be sold through offline sales.

All the above premiums are exclusive of applicable taxes if there are any.

Additional Details of LIC Bima Platinum Plan 770

Date of Risk Commencement

If the age at entry of the life assured is less than 8 years then the risk will commence either 2 years from the date of policy commencement or from when the policy anniversary coincides with or immediately follows the attainment of 8 years of age (whichever comes first). If the age at entry is more than 8 years then the risk will commence immediately from the date of issuance of the policy

Date of Vesting Under the Plan

If the life assured is a minor then the policy automatically vests in the life assured when they complete 18 years of age, following which the policy contract is between LIC and the life assured. `

How to Buy LIC Plans from Policybazaar?

When you buy an LIC plan from Policybazaar, you get dedicated assistance in buying the plan and also at the time of claim settlement. Follow the steps below to buy an LIC plan from Policybazaar.

Step 1: Visit the Policybazaar LIC section.

Step 2: Enter your name and contact number in the online form and click on View Plans.

Step 3: Enter your city of residence, age and the annual income bracket.

Step 4: You will now see all the available LIC plans on Policybazaar. You will have the option to adjust the investment amount and time period.

Step 5: Select the preferred plan and pay the premium online through Policybazaar to complete the policy purchase.

Summing Up

LIC Bima Platinum is a non-participating individual savings plan. Life Insurance Corporation of India (LIC) aims to provide their policyholders with the dual benefit of financial protection and wealth building. As a savings plan, the Bima Platinum LIC policy will offer death as well as maturity benefit. The primary purpose of the plan is to encourage people to take life insurance by providing them with savings benefits with the plan.

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