LIC Bima Nivesh 2005 Plan 171 Calculator
Single Premium Plan with Guaranteed Additions
Plan Name: LIC's Bima Nivesh 2005 (Table No. 171)
UIN: 512N229V01
Launch Date: 21st March 2005
Withdrawal Date: 1st January 2014
Plan Type: Single Premium Endowment Assurance Plan
Life Insurance Corporation of India (LIC) is one of the most trusted names in life insurance, offering a variety of plans suitable for different financial needs. Among its many plans, the LIC Bima Nivesh 2005 (Plan No. 171) was popular for its guaranteed additions and loyalty benefits.
Introduction to LIC Bima Nivesh 2005 Plan 171
The LIC Bima Nivesh 2005 is a single-premium endowment insurance plan launched by LIC in 2005. It allowed policyholders to invest a lump sum amount for a fixed period (either 5 or 10 years) and receive guaranteed returns along with risk cover. This plan combined the benefits of insurance and investment, giving investors security and growth.
- Launch Date: March 21, 2005
- Withdrawal Date: January 1, 2014
Though withdrawn from the market in 2014, it was a widely chosen plan during its availability, especially for those looking for guaranteed additions on their invested premiums.
Key Features of LIC Bima Nivesh 2005 Plan 171
Single Premium Payment
Bima Nivesh 2005 was a single premium plan, meaning that the entire premium amount had to be paid as a lump sum at the inception of the policy. There were no periodic premium payments required.
Policy Term Options
You could choose either a 5-year or 10-year policy term depending on your financial goals and investment horizon.
Guaranteed Additions
One of the most attractive features of this plan was the guaranteed additions. Guaranteed amounts were added annually on the sum assured as a compound benefit:
- Rs. 50 per thousand per year for 5-year term
- Rs. 55 per thousand per year for 10-year term
Loyalty Additions
In addition to guaranteed additions, policyholders were eligible for loyalty additions at maturity, which were declared based on LIC’s experience with investment returns and expenses.
Benefits of LIC Bima Nivesh 2005 Plan 171
Maturity Benefit
On survival till the end of the policy term, the policyholder receives:
- Sum Assured under the plan
- Accrued Guaranteed Additions
- Loyalty Addition (if any)
The total of these components forms the maturity amount, which provides both the original capital and additional returns.
Death Benefit
If the insured dies during the policy term, the nominee receives:
- Sum Assured
- Accrued Guaranteed Additions up to the date of death
There is also an option to opt for a Term Assurance Rider, which increases the death benefit by providing an additional sum assured.
Surrender Value
The policy allowed special surrender value after the policy had been in force for at least one year. This gave flexibility to the policyholder in case of emergencies.
Eligibility Criteria and Policy Details
| Parameter | Details |
|---|---|
| Minimum Age at Entry | 18 years |
| Maximum Age at Entry | 70 years |
| Maximum Age at Maturity | 75 years |
| Policy Term | 5 years or 10 years |
| Minimum Sum Assured | Rs. 25,000 |
| Maximum Sum Assured | Rs. 50,00,000 |
| Premium Mode | Single premium |
The plan was ideal for those who wanted to invest a lump sum for a risk cover with guaranteed returns for a short-to-medium period.
How to Use the LIC Bima Nivesh 2005 Plan 171 Calculator
To understand the benefits of any insurance plan like Bima Nivesh 2005, using a dedicated calculator is very helpful. The LIC Bima Nivesh 2005 Plan 171 calculator estimates the maturity amount based on inputs like policy term, sum assured, and guaranteed additions.
Calculator Inputs
- Sum Assured: The lump sum amount chosen for the policy.
- Policy Term: Select either 5 or 10 years.
- Guaranteed Additions Rate: Rs. 50 per thousand per year for 5 years, Rs. 55 per thousand per year for 10 years.
Calculation Steps
The maturity amount is calculated as:Maturity Amount=Sum Assured+Accumulated Guaranteed Additions+Loyalty Additions (if any)
The Accumulated Guaranteed Additions is compounded yearly at the rates mentioned above.
Example Calculation
For a policyholder choosing Rs. 1,00,000 sum assured for 10 years:
- Guaranteed Additions: 551000×1,00,000=Rs.5,500\frac{55}{1000} \times 1,00,000 = Rs. 5,500100055×1,00,000=Rs.5,500 annually.
- Using compound interest formula, the accumulated additions over 10 years would be compounded at this rate yearly.
- Sum Assured + Accumulated Additions + Loyalty Additions (if declared) is the total maturity value.
Advantages of Using the Calculator
- Quick Estimation: Get a clear idea of returns before purchasing the policy.
- Financial Planning: Helps compare with other plans and decide the best option.
- Transparency: Clarifies what you will receive on maturity or death.
Important Considerations
Tax Implications
Premiums paid for this plan were eligible for tax benefits under Section 80C of the Income Tax Act. The maturity proceeds were also tax-free under Section 10(10D), subject to certain conditions.
GST and Rider Charges
GST was applicable on the single premium amount as per government rules. If opting for the Term Assurance Rider, an additional single premium was charged for that cover.
Why Was the Plan Withdrawn?
Although the LIC Bima Nivesh 2005 Plan 171 was popular during its availability, it was withdrawn on January 1, 2014. The primary reasons were changes in the interest rate environment and regulatory framework. The guaranteed high returns promised in such single-premium plans became difficult to sustain as market rates fell and regulatory bodies like IRDA issued guidelines to insurers to maintain adequate solvency and reserves.
LIC decided to withdraw this plan to introduce newer products better aligned with current market conditions and policyholder needs.
Alternatives to LIC Bima Nivesh 2005 Plan 171
Since the withdrawal of this plan, LIC has launched several other plans with competitive returns and flexible premium payment options. Some plans similar in nature include:
- LIC New Bima Nivesh (New version after withdrawal)
- LIC Nivesh Plus (Plan 749)
- Endowment plans with market-linked options
These newer plans also have calculators provided on LIC’s official site and financial portals for estimating returns.
Where to Find LIC Bima Nivesh 2005 Plan 171 Calculator
Even though the plan is withdrawn, online calculator tools are available on LIC-related websites or third-party financial portals. These calculators allow you to estimate maturity benefits if you have an existing policy.
Recommended places include:
- Official LIC website (licindia.in)
- BankBazaar LIC calculators
- Financial advisory websites supporting LIC calculators
Using these tools can help you plan better for your existing investments or understand historical benefits of this plan.
Frequently Asked Questions
What is LIC Bima Nivesh 2005 Plan 171?
LIC Bima Nivesh 2005 is a single-premium endowment insurance plan launched by LIC in 2005 that offers guaranteed additions, loyalty benefits, and risk cover in a simple investment and insurance package.
What are the main features of LIC Bima Nivesh 2005?
It is a single premium plan with options for 5-year or 10-year policy terms. It provides guaranteed additions annually and loyalty benefits at maturity.
How is the maturity amount calculated?
The maturity amount comprises the sum assured, accumulated guaranteed additions at the specified rate (Rs. 50 per thousand for 5-year and Rs. 55 per thousand for 10 years), and any declared loyalty additions.
What are the benefits of the plan in case of the policyholder’s death?
If the policyholder dies during the policy term, the nominee receives the sum assured plus any accrued guaranteed additions up to the date of death.
Are there tax benefits associated with this plan?
Yes, premiums paid are eligible for tax deductions under Section 80C, and the maturity proceeds are generally tax-free under Section 10(10D), subject to conditions.
Conclusion
The LIC Bima Nivesh 2005 Plan 171 was a trusted single premium endowment plan offering guaranteed additions and loyalty benefits. Though it is no longer available, this plan served many investors well during its tenure. Understanding the plan’s workings and using the associated calculator helps policyholders and investors comprehend the benefits of such investment-cum-insurance products.