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LIC Bima Shree Policy (Plan No. 948)

LIC Bima Shree Policy is a traditional, non-linked and with-profits money back life insurance policy that comes with the feature of guaranteed additions to provide security along with savings to you and your family. It is a limited premium paying plan which is known for offering financial protection in dual cases where the policyholder survives the policy term or in the event of the death of the policyholder before the term ends. The plan pays out maturity benefits in the form of multiple guaranteed ‘survival benefits' throughout the policy tenure. Under this plan, the policyholder is also liable to get the regular liquidity facility.

LIC Bima Shree Policy: Eligibility Criteria

Entry ageEligibility Values
Entry AgeMin: 8 years (completed)
Max: 55 years (14 years policy term)
48 years (18 years policy term)
45 years [20 years policy term (nearest age)]
Maturity Age69 years (14 years policy term)
67 years (16 years policy term)
66 years (18 years policy term)
65 years [20 years policy term (nearest age)]
Sum AssuredMin: Rs. 10 lakhs
Max: No limit, subject to policy terms & conditions
Policy Tenure14, 16, 18 & 20 years
Premium Paying ModeYearly, half-yearly, quarterly, monthly
Premium Paying Term (PPT)14(10 ), 16(12), 18(14), 20(16)
Premium Mode Rebate2% for yearly, 1% for half-yearly, Nil for Quarterly & Monthly

LIC Bima Shree Policy: Features

  • An ideal plan for high net worth individuals.
  • In case of minor policyholder, Premium Waiver benefit is applicable.
  • Availability of term insurance riders, viz. LIC's Accidental Death and Disability Benefit Rider and LIC's New Critical Illness Benefit Rider.
  • Tax benefits can be availed under Section 80C of the Income Tax Act, 1961.
  • Guaranteed benefits are a privilege throughout the policy term.
  • A regular liquidity facility is provided to meet the financial requirements.
  • The plan is also eligible for loyalty additions as it participates in profits.

LIC Bima Shree Policy: Benefits

Death Benefit: This benefit of the plan is payable when the policyholder dies before the maturity date and the policy is in force.

  • On death within the first 5 policy years, the Sum Assured on Death in addition to guaranteed benefits will be paid.
  • On death after completing 5 policy years but before the maturity date, the sum assured on death along with accrued guaranteed bonuses will be paid.

Where, the sum assured is 7 times of annual premium and 125% of the basic sum assured, the benefit is paid as a lump sum and is not less than 105% of total paid premiums.

Survival Benefit: The insured shall be payable with the effective Sum Assured on surviving the following specific durations of the policy term:

Policy TermBasic Sum Assured (%)Paid on Policy Anniversary
143010th & 12th
163512th & 14th
184014th & 16th
204516th & 18th

Maturity Benefit: On surviving till the date of maturity, the policyholder is liable to get Sum Assured on Maturity for the following fixed percentage of Basic Sum Assured:

Policy TermBasic Sum Assured (%)

Waiver of Premium (WOP) Benefit: On the death of the life insured, all the payment of future premiums shall be waived off with respect to the base policy till the expiry of the rider term.

Add-on Benefits

Choice To Defer Survival Benefits:This additional benefit allows the policyholder to receive an increased survival benefit which is a combination of actual deferred benefits together with interest.

Settlement Option: With this option, the policyholder can choose to receive the maturity and death benefits for a period of 5, 10 and 15 years in instalments.

Vesting of Policy: If the Life Assured is minor and survives till the date of vesting and if a request in writing has not been received to surrender the policy before the vesting date, the plan will vest automatically on that date.

Rider Options: There are 5 riders available under the policy, let us take a look at the following:

  • LIC's Accidental Death and Disability Benefit Rider
  • LIC's New Term Assurance Rider
  • LIC's Accident Benefit Rider
  • LIC's New Critical Illness Benefit Rider
  • LIC's Premium Waiver Benefit Rider

On opting rider(s), there exist specified conditions that are confined as endorsement(s) to this plan.

LIC Bima Shree Policy: Illustration

Details of the policyholder:

Sum AssuredRs. 10 lacs
Premium ModeAnnual (single)
Policy Tenure20

Annualized premium=Rs. 70,266 + Taxes

On death of the policyholder,

Case 1: After 4 years, his beneficiary will get,

Basic Sum assured + Guaranteed Additions [Rs. 10 lacs + Rs. 2 lacs=Rs. 12 lacs].

Case 2: After 10 years, his beneficiary will get,

Sum assured + Guaranteed Additions [Rs. 10 lacs + Rs. 2 lacs (GA for first 5 years) + Rs. 2.75 lacs (GA after 5 years)=Rs. 14.75 lacs].

Documents Required

The policyholder will be required to carry the following documents to claim for LIC Bima Shree Policy-

  • Documents of address/identity proof.
  • Certificate of income.
  • Proof of age.
  • Death certificate (in case of demise of the policyholder).


  1. If the life insured attempts or commits suicide within 1 year after the date of commencement of risk of the policy, the beneficiary will be paid 80% of the paid premiums (provided the policy is active or in-force).
  2. If the policyholder attempts or commits suicide within 1 year after the initiation date of revival of the policy, the beneficiary will be eligible for an amount higher than 80% of the paid premiums exclusive of any taxes (subject to the policy is active or in-force).

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