LIC Bima Ratna
Plan No. 864 (UIN: 512N331V03)
Non-Linked Participating Endowment Plan
A plan with guaranteed additions and loyalty additions along with risk cover
Launch Date: 28th September 2020
Withdrawal Date: 24th March 2022
Premium Calculator
Your Benefit Illustration
| Benefit Type | Amount |
|---|---|
| Death Benefit (During Policy Term) | ₹0 |
| Accidental Death Benefit (If opted) | Equal to Sum Assured |
- This is an indicative calculation based on LIC Bima Ratna Plan 864 terms
- Guaranteed Addition: ₹50 per thousand Sum Assured for each completed policy year
- Final Bonus and Loyalty Additions are declared by LIC and are not guaranteed
- GST and other applicable taxes are extra
- This plan has been withdrawn from market since 24th March 2022
- Death benefit is higher of Sum Assured + Guaranteed Additions + Vested Bonus OR 105% of premiums paid
- Premium rates vary based on age, term, and sum assured
LIC Bima Ratna Plan 864 is a life insurance policy that combined the benefits of protection and savings. It was launched by the Life Insurance Corporation of India (LIC) on 27th May 2022 to offer individuals a structured way to save money while ensuring financial security for their families. However, this plan was withdrawn on 1st January 2025. Despite its withdrawal, understanding this plan remains useful for those interested in LIC’s money-back plans.
What is LIC Bima Ratna Plan 864?
LIC Bima Ratna is a Non-Linked, Non-Participating, Individual Savings Life Insurance Plan. It offers a blend of insurance protection along with regular payouts during the policy term and a lump sum maturity benefit at the end.
Key Concept of This Plan:
- Protection: Provides life cover during the policy tenure.
- Savings: Pays periodic survival benefits (money back) in the last two years of the policy.
- Guaranteed Additions: Accumulates a guaranteed amount over the policy term, increasing your returns.
This plan is ideal for those who want to secure their family’s future and also want periodic cash flow during their lifetime.
Important Dates
- Launch Date: 27th May 2022
- Withdrawn Date: 1st January 2025
The plan was available for less than three years but was popular due to its unique money-back feature and a combination of guaranteed additions.
Features and Benefits of LIC Bima Ratna Plan 864
Policy Term Options
You can choose from a policy term of:
- 15 years
- 20 years
- 25 years
Premium Paying Term (PPT)
Premium payment duration is always 4 years less than the policy term. For example:
- For 15-year policy, PPT is 11 years
- For 20-year policy, PPT is 16 years
- For 25-year policy, PPT is 21 years
Minimum Sum Assured
The minimum basic sum assured is ₹5,00,000 (5 lakh rupees) with no fixed maximum limit, allowing flexibility in coverage based on your financial goals.
Survival Benefit (Money Back)
LIC Bima Ratna offers money back benefits in the form of 25% of the Basic Sum Assured at the end of each of the last two policy years (T-2 and T-1) provided the policy is in force. This means you receive periodic payments as you survive through the policy term.
Maturity Benefit
On survival till the end of the policy tenure, the balance 50% of the Basic Sum Assured plus Guaranteed Additions is payable.
Guaranteed Additions
The plan provides guaranteed additions accrued annually from the 1st year to the end of the policy term at rates increasing with the duration of the policy. This enhances your maturity amount.
Death Benefit
In case of the unfortunate demise of the life assured during the policy term, the nominee receives the death benefit, which is the higher of:
- 125% of the Basic Sum Assured, or
- 7 times the annualized premium
This ensures ample financial protection to your family.
Loan Facility
Policyholders can avail loans against the policy after it acquires a surrender value, typically after paying premiums for 2 years. This adds liquidity and flexibility.
Paid-up Value
In case of missed premium payments after the vested period, the policy continues with reduced benefits proportional to premiums paid.
Eligibility Criteria
| Parameter | Details |
|---|---|
| Minimum Age at Entry | 5 years for 15-year term; 90 days for 20 and 25 years terms |
| Maximum Age at Entry (nearer birthday) | 55 years for 15 years term; 50 years for 20 years term; 45 years for 25 years term |
| Minimum Basic Sum Assured | ₹5,00,000 |
| Policy Term | 15, 20, or 25 years |
| Premium Paying Term | Policy term minus 4 years |
| Maximum Age at Maturity | 70 years (standard), 65 years (through select channels) |
The age limits ensure the policyholder can benefit from the plan’s survival and maturity benefits while also providing risk coverage during active earning years.
Exclusions to Note
- Suicide Clause: If the life insured commits suicide within 12 months of policy commencement, the nominee receives 80% of the total premiums paid, excluding any additional rider premiums and taxes.
- Similar rules apply if suicide occurs within 12 months from policy revival.
These exclusions protect the insurer from misuse while ensuring genuine claims are honored.
LIC Bima Ratna Plan 864 Calculator: How It Works
The LIC Bima Ratna calculator is a powerful online or offline tool that helps estimate the premiums you need to pay and the maturity/survival benefits you will receive. The calculator considers parameters like:
- Your age at entry
- Basic sum assured
- Policy term (15, 20, 25 years)
- Premium paying term
- Expected survival benefits and maturity value
How to Use the Calculator
- Enter Your Age: This helps determine eligibility and premium rates.
- Choose Policy Term: Select the term suitable to your financial goals.
- Fill in Sum Assured: Minimum ₹5 lakh and upwards in multiples of ₹25,000.
- Calculate Premium: The calculator shows the annual or monthly premium payable.
- View Maturity & Survival Benefits: It projects money back payments during the last two years and maturity benefit including guaranteed additions.
- Death Benefit Projection: It also shows the amount your nominee will receive in case of unfortunate death during the policy term.
Using the calculator gives clarity on your financial commitment and rewards, enabling informed decision-making.
Premium Calculation and Rebates
Premium can be paid monthly, quarterly, half-yearly, or yearly with rebate options available:
- Mode Rebate: 2% rebate for annual payments, 1% for half-yearly, none for monthly/quarterly.
- Sum Assured Rebate: Discount if your basic sum assured is ₹10 lakh or above.
Example: A 30-year-old opting for ₹20 lakh sum assured for 25 years pays ₹1,16,178 yearly premium for 21 years.
Benefits of LIC Bima Ratna Plan 864
- Safety of Investment: Being an LIC policy, it carries government-backed security.
- Regular Income: Money back survival benefits during the last two years help meet liquidity needs.
- Guaranteed Returns: Additions enhance your maturity value over the years.
- Financial Protection: High death benefit ensures family’s financial security.
- Loan Facility: Helps in emergency liquidity needs.
- Flexible Terms: Policy terms and sum assured can be customized.
Who Should Consider LIC Bima Ratna?
- Individuals seeking a life insurance plan with periodic money back benefits.
- Those wanting a combination of protection and savings.
- People who prefer guaranteed additions on top of the sum assured.
- Families looking for financial security against untimely death.
- Savers needing liquidity through policy loans.
Limitations
- The plan was withdrawn in early 2025, so new policies can no longer be purchased.
- Premium payments are mandatory during the premium paying term to continue benefits.
- Suicide exclusions limit claim in the first 12 months.
- It may not suit those seeking high returns linked to market performance.
Frequently Asked Questions
What is LIC Bima Ratna Plan 864?
It is a non-linked, non-participating life insurance plan by LIC combining protection and savings, offering money-back survival benefits and guaranteed additions.
When was LIC Bima Ratna Plan 864 launched?
It was launched on 27th May 2022.
Is LIC Bima Ratna Plan 864 still available for purchase?
No, the plan was withdrawn on 1st January 2025.
What is the minimum sum assured for this plan?
The minimum basic sum assured is ₹5,00,000.
What are the policy terms available?
Policy terms of 15, 20, and 25 years are offered.
When and how is the money back benefit paid?
Survival benefits of 25% of the basic sum assured are paid at the end of the last two policy years (T-2 and T-1).
Final Thoughts
LIC Bima Ratna Plan 864 was a thoughtfully designed insurance and savings plan balancing protection with liquidity and guaranteed additions. Though withdrawn, many existing policyholders continue to benefit from its features.
For those interested in money-back plans by LIC, alternatives like LIC New Endowment Plan, LIC Jeevan Labh, and others may be explored.