LIC Bima Shree Plan 748: Features, Benefits, and Major Modifications

LIC Bima Shree Plan 748 – Following the IRDAI (Insurance Products) Regulations, 2024, along with the Master Circular on Life Insurance Products, 2024, and additional IRDAI directives, LIC has revised the Bima Shree plan. The updated version of LIC’s Bima Shree, previously Plan No. 948 (UIN: 512N316V02), is now assigned Plan No. 748 with a new Unique Identification Number (UIN) 512N316V03. The original Bima Shree Plan No. 948 was discontinued as of October 1, 2024, and the modified plan will be available for new policies starting November 18, 2024. This article dives deep into the plan’s features, benefits, eligibility, and Major Modifications.

Also see: What is LIC Bima Sakhi (Women Career Agent) Program?

Introduction of LIC Bima Shree Plan 748

LIC Bima Shree Plan 748 is a limited premium payment money-back plan designed with high net-worth individuals in mind. It combines the benefits of a guaranteed return, insurance coverage, and liquidity through survival benefits, making it a versatile choice for investors seeking long-term wealth creation and protection.

Also see: LIC 4 Upcoming Plans in November 18

Major Modifications to LIC Bima Shree Plan 748

1. Policy Terms and Age Limits

• Expanded Policy Terms: Two additional policy terms of 24 and 28 years are now available, providing more flexibility for policyholders.
• Age Modifications: The maximum entry age and maximum maturity age for the 16, 18, and 20-year policy terms have been adjusted, broadening the plan’s accessibility.

2. Revised Premium Rates

Premium rates have been revised, which may affect the overall affordability and returns of the plan. These updates allow the policy to stay competitive and reflect the latest actuarial adjustments.

3. Enhanced Surrender Value Conditions

• Surrender Value Acquisition: The policy now acquires a surrender value after one full policy year, as long as one full year’s premium is paid. This change offers early liquidity and financial flexibility, whereas previously, surrender value was acquired only after two full years’ premium payments.
• Paid-up Policy Benefit: For a paid-up policy, the death benefit is guaranteed to be no less than 105% of total premiums paid up to the date of death, reinforcing the security provided to policyholders’ beneficiaries.

Also see: LIC Jeevan Tarun Plan 734

4. Modified Loan Provisions

• Policy Loan Amount: The policy loan quantum, calculated as a percentage of the surrender value, has been modified to allow policyholders enhanced borrowing power when needed.

5. Rider Options and Changes

• Available Riders: Four modified optional riders are now available, including LIC’s Accidental Death & Disability Benefit Rider, Accident Benefit Rider, New Term Assurance Rider, and Premium Waiver Benefit Rider. Notably, the New Critical Illness Benefit Rider is no longer an option, reducing the rider count from five to four.
• Accident Benefit Rider Sum Assured Limit: The sum assured for the Accident Benefit Rider is capped at three times the Basic Sum Assured of the base plan, compared to the previous limit of matching the Basic Sum Assured.
• Life Insurance Rider Premiums: The premiums under all life insurance riders combined are capped at 30% of the base plan’s premiums. Previously, the Accident Benefit Rider and New Critical Illness Benefit Rider premiums could each reach up to 100% of the base plan’s premium.

Also see: LIC Jeevan Utsav Plan 771

6. Free-Look Period Extension

The free-look period has been extended from 15 days to 30 days from the date of receipt of the policy bond, allowing more time for policyholders to review the terms of the policy in physical or electronic form.

7. Customized Benefit Illustration

• Revised Illustrations: Updated illustrations now offer clearer projections to assist customers in understanding potential returns and benefits, helping policyholders make better-informed decisions.

8. Agent Commission and Customer Documentation

• Commission Adjustments: Commissions and remunerations for agents and intermediaries have been modified, impacting the overall structure of agent compensation.
• Enhanced Documentation: The policy document now includes a Customer Information Sheet and Need Analysis document to improve transparency and aid in assessing suitability, enhancing the policy’s alignment with customer needs.

9. Additional Plan Highlights

• Guaranteed Additions and Loyalty Additions: Guaranteed additions accrue at ₹50 per ₹1,000 Basic Sum Assured for the first five years, increasing to ₹55 per ₹1,000 from the sixth year until the end of the premium-paying term. The plan also offers loyalty additions, which vary depending on the corporation’s performance.

Also see: LIC New Money Back Plan 720

Eligibility Conditions and Restrictions for LIC Bima Shree Plan 748

a) Minimum Basic Sum Assured:

The minimum sum assured under the Bima Shree Plan is set at ₹10,00,000. This makes it suitable for individuals looking to secure a high level of financial protection.

b) Maximum Basic Sum Assured:

There is no upper limit for the basic sum assured in this plan. However, the amount must be chosen in multiples of ₹50,000, providing flexibility for high net-worth individuals to customize their coverage.

c) Policy Term Options:

Policyholders have the option to select from various terms, including 14, 16, 18, 20, 24, and 28 years, allowing them to align the policy with their long-term financial goals.

d) Premium Paying Term (PPT):

The Premium Paying Term is set as (Policy Term – 4) years, meaning that for each selected policy term, premiums are paid for four fewer years. For example, if the policy term is 20 years, the premium paying term will be 16 years.

e) Minimum Age at Entry:

The minimum age for entry into this plan is 8 years (completed), making it accessible for young individuals with early financial planning in mind.

Also see: LIC Revised Jeevan Amar Plan 955

f) Maximum Age at Entry:

The maximum entry age depends on the policy term chosen:

• 14 years policy term: Maximum entry age is 55 years
• 16 years policy term: Maximum entry age is 53 years
• 18 years policy term: Maximum entry age is 51 years
• 20 years policy term: Maximum entry age is 49 years
• 24 years policy term: Maximum entry age is 45 years
• 28 years policy term: Maximum entry age is 41 years

This age flexibility allows people at different life stages to take advantage of the plan.

g) Maximum Age at Maturity:

The policy term selection allows for a maximum age at maturity of 69 years for all terms. This ensures that the plan can serve as a long-term investment and protection option even for individuals closer to retirement.

Age Consideration:

The age at entry is generally taken as the age nearest to the birthday (nbd), except for the minimum age of 8 years, where age in completed years applies.

Date of Commencement of Risk:

Risk coverage under the plan begins immediately from the policy issuance date, which is when the proposal is accepted, and the contract is finalized.

Date of Vesting (Applicable if Life Assured is under 18 at Policy Commencement):

For policyholders under 18 years old at the start of the policy, a vesting date applies. If the life assured reaches the vesting date (the policy anniversary on or after turning 18) and no request for surrender has been made, the policy automatically vests in the life assured. This transfer of ownership grants the life assured full rights, with any rights of the proposer or their estate ceasing.

This section covers the core eligibility criteria and restrictions for LIC’s Bima Shree Plan 748, making it clear and accessible for potential policyholders. Let me know if you would like further details or have other sections to add!

Also see: LIC Bima Jyoti Plan 760

Benefits under the LIC Bima Shree Plan 748

The LIC Bima Shree Plan 748 offers a range of benefits, ensuring financial security and regular returns through its policy tenure. The benefits under this plan include:

1. Death Benefit

In the unfortunate event of the policyholder’s death, the death benefit payout depends on the timing within the policy term:

• Death within the first five years: The nominee receives the “Sum Assured on Death” along with all accrued Guaranteed Additions.

• Death after five years but before maturity: The nominee receives the “Sum Assured on Death” along with accrued Guaranteed Additions and Loyalty Additions, if any.

Definition of “Sum Assured on Death”:

The higher of:

• 7 times the annualized premium, or
• 125% of the Basic Sum Assured.

Additionally, the death benefit will never be less than 105% of the total premiums paid up to the date of death, ensuring a minimum level of protection for the policyholder’s beneficiaries.

Also see: LIC Index Plus and LIC Nivesh Plus Plan 749

Clarifications:

• Annualized Premium: Refers to the yearly premium excluding taxes, rider premiums, underwriting extras, and modal loading.
• Total Premiums Paid: Sum of all base policy premiums, excluding taxes and any additional premiums.

If the policyholder has opted for the LIC Premium Waiver Benefit Rider, any waived premiums due to the death of the proposer are included in the total premiums paid.

2. Survival Benefit

For policyholders who survive specific anniversaries within the policy term, the plan offers periodic payouts at set intervals, providing liquidity and cash flow during the policy duration. The payout percentages vary based on the policy term selected:

• 14-Year Policy Term: 30% of the Basic Sum Assured is payable on each of the 10th and 12th policy anniversaries.
• 16-Year Policy Term: 35% of the Basic Sum Assured on each of the 12th and 14th policy anniversaries.
• 18-Year Policy Term: 40% of the Basic Sum Assured on each of the 14th and 16th policy anniversaries.
• 20-Year Policy Term: 45% of the Basic Sum Assured on each of the 16th and 18th policy anniversaries.
• 24-Year Policy Term: 45% of the Basic Sum Assured on each of the 20th and 22nd policy anniversaries.
• 28-Year Policy Term: 45% of the Basic Sum Assured on each of the 24th and 26th policy anniversaries.

These survival benefits provide regular income streams at key intervals, ensuring liquidity for policyholders.

3. Maturity Benefit

Upon surviving the full policy term, the policyholder is entitled to receive a maturity benefit, which includes the “Sum Assured on Maturity” along with accrued Guaranteed Additions and Loyalty Additions, if any.

The “Sum Assured on Maturity” is structured differently based on the policy term:

• 14-Year Term: 40% of the Basic Sum Assured.
• 16-Year Term: 30% of the Basic Sum Assured.
• 18-Year Term: 20% of the Basic Sum Assured.
• 20-Year Term: 10% of the Basic Sum Assured.
• 24-Year Term: 10% of the Basic Sum Assured.
• 28-Year Term: 10% of the Basic Sum Assured.

This structured payout on maturity ensures a substantial lump-sum benefit, aligning with the policyholder’s long-term financial goals.

Also see: LIC Micro Bachat Plan 751

Optional Rider Benefits in LIC Bima Shree Plan 748

LIC Bima Shree Plan 748 offers optional riders that policyholders can add to enhance the plan’s protection. These riders provide additional security against specific risks at a nominal cost, making the policy more comprehensive. The available optional riders include:

• Accidental Death and Disability Benefit Rider: This rider provides additional coverage in case of accidental death or disability of the policyholder. If an accident leads to the policyholder’s death, an extra sum assured under this rider is paid to the nominee. In case of permanent disability due to an accident, the benefit is paid out in equal installments over 10 years, offering financial security during recovery.

• New Term Assurance Rider: The New Term Assurance Rider offers an additional death benefit on top of the basic sum assured, providing enhanced protection. This benefit ensures that the nominee receives an extra sum in the event of the policyholder’s death within the policy term, offering a higher level of security for the family.

• Accident Benefit Rider: This rider offers an additional payout in case of accidental death. The nominated beneficiary receives the sum assured under this rider along with the primary death benefit. This rider specifically enhances the total payout if the policyholder’s death occurs due to an accident, strengthening the overall death benefit.

• Premium Waiver Benefit Rider: With this rider, all future premiums are waived off if the policyholder becomes disabled due to an accident. This feature ensures that the policy remains active without requiring further premium payments, providing continuous coverage despite any financial strain caused by the disability.

Also see: LIC Saral Pension Plan: Annuity Option Explained

Conclusion

The LIC Bima Shree Plan 748 is a balanced plan with multiple benefits, making it an ideal choice for individuals looking for life insurance with guaranteed returns. This money-back policy not only ensures financial security but also allows liquidity and significant payouts, suited especially for high net-worth individuals.

Frequently Asked Questions (FAQs)

Disclaimer: This article provides an overview of LIC’s Bima Shree Plan 748 and is intended for informational purposes only. It does not constitute financial or insurance advice. Policy details, benefits, and tax implications may vary based on individual circumstances and regulatory changes. Please consult with a licensed insurance advisor or LIC representative before making any financial or investment decisions.