LIC Bima Shree Plan 948

LIC Bima Shree Plan 948 is a popular life insurance plan launched by the Life Insurance Corporation of India (LIC) especially designed for high-net-worth individuals. This plan offers a unique blend of protection and savings with guaranteed periodic payouts and a lump sum maturity benefit.

It is a limited premium payment money-back plan that helps policyholders secure financial futures while meeting liquidity needs through loan options. The plan was launched on 1st February 2020 and was withdrawn on 18th November 2024.

What is LIC Bima Shree Plan 948?

LIC Bima Shree Plan 948 is a non-linked, with-profits life insurance plan that provides financial security and savings. It is specially meant for people who want guaranteed periodic payments during the policy term and a lump sum amount on maturity. It also covers the risk of untimely death by paying the nominee the sum assured, ensuring the family’s financial protection.

As a money-back plan, it pays survival benefits at regular intervals throughout the policy term and returns the remaining sum at maturity. The plan also provides benefits such as loans against the policy and optional riders for additional coverage.

• Launch date: 1st February 2020
• Withdrawn date: 18th November 2024

While the plan is withdrawn, it remains important for those who hold the policy or want to understand the benefits and premium calculations offered by such types of limited premium payment plans.

Key Features of LIC Bima Shree Plan 948

Understanding the features helps in deciding whether this plan suits your financial goals.

Eligibility Criteria for LIC Bima Shree Plan 948

To apply for this plan, you must meet certain eligibility conditions:

• Minimum entry age: 8 years completed
• Maximum entry age varies based on the chosen policy term (ranges from 45 to 55 years)
• Policy term options: 14, 16, 18, or 20 years
• Minimum basic sum assured: Rs. 10 lakh
• No maximum limit on sum assured; multiples of Rs. 1 lakh
• Premium paying term is always policy term minus 4 years
• Maximum maturity age varies from 65 to 69 years according to policy term

Benefits of LIC Bima Shree Plan 948

This plan is designed to provide multiple benefits combining protection and savings.

Survival Benefits

If the policyholder survives the policy term, they receive periodic survival benefits. These money-back amounts are paid at regular intervals as per the policy term, ensuring liquidity during the term.

Maturity Benefit

At the end of the policy term, the policyholder gets a lumpsum amount which includes the basic sum assured plus any bonuses declared by LIC.

Death Benefit

If the policyholder dies during the policy term, the nominee receives the sum assured along with bonuses (if declared), providing financial security to the family.

Loyalty Additions

Apart from guaranteed bonuses during the initial years, the plan offers loyalty additions based on LIC’s performance, increasing the maturity benefits.

Loan Facility

After paying premiums for at least 2 years, policyholders may avail a loan against this policy up to 90% of the surrender value for in-force policies and 80% for paid-up policies.

Surrender Value

The policy can be surrendered after payment of 2 years’ premiums. Surrender value is the higher of guaranteed or special surrender values set by LIC.

Tax Benefits

Premiums paid under this plan are eligible for tax deductions under Section 80C of the Income Tax Act, and the maturity proceeds are exempt from tax under Section 10(10D), subject to prevailing tax laws.

Understanding the Premiums and Payment Options

In LIC Bima Shree Plan 948, the premium payment term is limited and is always four years less than the policy term. For example, if you choose a 16-year policy term, the premium is paid for 12 years only.

Premium payment modes:

• Yearly
• Half-yearly
• Quarterly
• Monthly

Yearly and half-yearly payment modes offer rebates of 2% and 1% respectively on the tabular premium, while quarterly and monthly modes do not provide any rebate.

How to Use LIC Bima Shree Plan 948 Calculator?

The LIC Bima Shree calculator is a helpful online tool that allows prospective policyholders to estimate the amount of premium payable and benefits receivable based on their input like sum assured, age, and policy term. It simplifies the process by providing quick and accurate calculations.

Steps to use the LIC Bima Shree calculator:

1. Enter your age: Input the exact age of the policyholder at the time of entry.
2. Select the policy term: Choose the number of years for which you want the policy (14, 16, 18, or 20 years).
3. Enter the sum assured: Minimum sum assured is Rs. 10 lakh, with no upper limit.
4. Choose premium payment mode: Yearly, half-yearly, quarterly, or monthly.
5. View results: The calculator will show the annual or periodic premium amount payable and estimated money-back amounts during the term. It may also show maturity value and death benefit estimates.

Using the calculator helps in making informed financial decisions and planning budgets.

Example Calculation

Suppose Mr. Anuj, aged 30, chooses LIC Bima Shree Plan 948 with a policy term of 16 years and sum assured Rs. 50 lakh. He pays premium yearly.

• Premium payment term = 12 years (16 – 4)
• Estimated annual premium = Rs. 4,50,000 (approximate, including taxes)
• Periodic survival benefits paid after every 4 years during the policy term
• Maturity benefit paid at the end of 16 years including bonuses
• On death, nominee receives sum assured plus accrued bonuses

This example illustrates how premium and benefits are structured using the calculator inputs.

Important Terms to Know

• Grace Period: LIC allows a grace period of 30 days for yearly, half-yearly, and quarterly payments and 15 days for monthly premiums. Premiums paid within this period maintain the policy in force.
• Lapse: If premiums are not paid within the grace period, the policy may lapse, ceasing benefits. However, revival is allowed within 5 years by paying arrears.
• Paid-Up Value: If premiums are paid for at least 2 years but not fully, the policy can continue with reduced benefits proportional to the premiums paid.
• Free Look Period: The policyholder has 15 days from receipt of the policy document to review and return the policy if unsatisfied, with a refund of premiums after deductions.

Advantages of LIC Bima Shree Plan 948

• Offers guaranteed periodic payments and lump sum maturity amount
• Combines protection and savings in one plan
• Suitable for high-net-worth individuals with a minimum Rs. 10 lakh sum assured
• Flexible policy terms and premium payment modes
• Loan facility ensures liquidity during emergencies
• Tax benefits under Indian laws
• Optional riders available for enhanced protection

Points to Consider Before Buying

• The plan was withdrawn on 18th November 2024, so it is only available to existing policyholders.
• It requires a high sum assured starting at Rs. 10 lakh, so it may not be suitable for everyone.
• Premium payment term is limited; ensure affordability of premiums during the payment term.
• Understand all policy terms, benefits, and exclusions before purchasing.
• Use the LIC Bima Shree Plan 948 calculator for premium and benefit estimates.

Frequently Asked Questions

Conclusion

LIC Bima Shree Plan 948 was a robust money-back life insurance plan catering to individuals seeking a combination of protection, savings, and regular income through survival benefits. Though withdrawn in November 2024, understanding this plan helps policyholders and prospective buyers comprehend LIC’s limited premium payment plans that offer guaranteed returns alongside life cover.