LIC of India launched a new savings-oriented life insurance plan called Bima Ratna Plan 864 (Plan No. 864) on 27th May 2022. It is a Non-linked, Non-Participating, Limited Premium Payment, Money Back Life Insurance Plan that not only ensures life cover but also supports your savings goals.
This plan offers a unique combination of:
- Protection for your family
- Guaranteed returns
- Regular money back payouts
- Maturity benefits
- Loan facility for liquidity needs
✅ Key Features of LIC Bima Ratna Plan 864
- Money back policy with guaranteed additions
- 125% life cover of Basic Sum Assured (BSA)
- Limited premium payment term (only pay for fewer years than policy term)
- Tax benefits under Sections 80C and 10(10D)
- Rider options for enhanced protection
- Available for 15, 20, and 25 years policy terms
🔐 Eligibility & Policy Parameters
| Criteria | Details |
|---|---|
| Plan Type | Non-Linked, Non-Participating, Individual, Savings Plan |
| Policy Term | 15, 20, 25 years |
| Premium Payment Term | 11, 16, 21 years |
| Minimum Sum Assured | ₹5,00,000 (in multiples of ₹25,000) |
| Maximum Maturity Age | 70 years |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH) |
| Loan Facility | Available after 2 years |
| Surrender | Possible after 2 years of full premium payment |
| Entry Age | 90 days (for 20 & 25-year term), 5 years (for 15-year term) |
| Maximum Entry Age | 55 years (15 yr), 50 years (20 & 25 yr) |
🧾 Premium Rebates
🔁 Mode Rebate
| Mode | Rebate (%) |
|---|---|
| Yearly | 2% of Tabular Premium |
| Half-Yearly | 1% of Tabular Premium |
| Quarterly/Monthly | No rebate |
📉 High Sum Assured Rebate
| Sum Assured Range | Rebate per ₹1000 BSA |
|---|---|
| ₹5,00,000 – ₹9,75,000 | NIL |
| ₹10,00,000 – ₹14,75,000 | ₹0.50 |
| ₹15,00,000 – ₹19,75,000 | ₹1.00 |
| ₹20,00,000 and above | ₹1.25 |
🎁 Benefits of LIC Bima Ratna Plan 864
1. 💸 Survival Benefit (Money Back)
| Policy Term | Money Back Timing | Payout |
|---|---|---|
| 15 Years | End of 13th & 14th yr | 25% of Basic SA each |
| 20 Years | End of 18th & 19th yr | 25% of Basic SA each |
| 25 Years | End of 23rd & 24th yr | 25% of Basic SA each |
2. 🎯 Maturity Benefit
On survival till end of the policy term:
Maturity = 50% of Basic Sum Assured + Accrued Guaranteed Additions
3. 💀 Death Benefit
If the policyholder dies during the policy term:
Death Benefit = 125% of BSA + Accrued Guaranteed Additions
✅ Minimum Death Benefit is 125% of Basic Sum Assured
✅ In case of accidental death, additional amount = Sum Assured
🧒 For children below 8 years at entry, risk starts 2 years after policy or upon reaching 8 years (whichever is earlier)
4. 📈 Guaranteed Additions (GA)
These are added every year based on policy duration:
| Policy Year | GA per ₹1000 BSA |
|---|---|
| 1 to 5 years | ₹50 |
| 6 to 10 years | ₹55 |
| 11 to 25 years | ₹60 |
💼 Loan, Paid-up, and Surrender Details
🔁 Surrender
Allowed after 2 full years of premium payment.
💳 Loan
Loan available:
- Up to 90% of Surrender Value (in-force policies)
- Up to 80% of Surrender Value (paid-up policies)
🔒 Paid-Up Value Formula
Paid-Up Value = BSA × (Premiums Paid ÷ Total Premiums Payable)
🧠 LIC Bima Ratna Plan 864 – Example Illustration
Let’s take an example of Sohan (Age 30) who buys this plan in 2022.
| Parameter | Value |
|---|---|
| Sum Assured | ₹20,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 21 years |
| Annual Premium (1st Yr) | ₹1,16,178 |
| Total Premium Paid | ₹24,39,738 |
| Maturity Year | 2047 |
| Age at Maturity | 55 years |
| Guaranteed Additions | ₹28,50,000 |
| Total Benefits | ₹48,50,000 |
| Money Backs | ₹10,00,000 |
📊 Year-wise Summary Table
| Age | Premium | Life Cover | Money Back | Guaranteed Addition | Total Return |
|---|---|---|---|---|---|
| 30 | ₹1,16,178 | ₹25,00,000 | 0 | ₹1,00,000 | 0 |
| 35 | ₹1,16,178 | ₹25,00,000 | 0 | ₹1,10,000 | 0 |
| 40 | ₹1,16,178 | ₹25,00,000 | 0 | ₹1,20,000 | 0 |
| 50 | ₹1,16,178 | ₹25,00,000 | 0 | ₹1,20,000 | 0 |
| 53 | 0 | ₹25,00,000 | ₹5,00,000 | ₹1,20,000 | 0 |
| 54 | 0 | ₹25,00,000 | ₹5,00,000 | ₹1,20,000 | 0 |
| 55 | 0 | ₹25,00,000 | – | ₹1,20,000 | ₹38,50,000 |
📉 Death Benefit Scenario
If Sohan passes away in 2035 (at age 43):
- Premium Paid: ₹15,10,313
- Normal Death Claim: ₹40,30,000
- Accidental Death Claim: ₹50,30,000
- Policy Ends
🔧 Additional Information
| Clause | Details |
|---|---|
| Loan | After 2 years |
| Riders Available | ADB, Term Rider, Critical Illness, Premium Waiver |
| Suicide Clause | < 12 months: 80% premiums refunded > 12 months: full benefits |
| Cooling Off Period | 15 days |
| Proposal Form | Form No. 300, 340 |
📌 Is LIC Bima Ratna 864 a Good Investment?
Yes, this plan is ideal for those looking for:
- Fixed money-back payouts
- Guaranteed returns
- Life insurance coverage
- Tax savings
- No market risk
- Liquidity via loans
🏁 Final Verdict
LIC Bima Ratna Plan 864 is a complete savings and protection plan. With limited premium payments, regular money-backs, maturity returns, and family protection, it is well-suited for salaried professionals, parents, and long-term savers who want guaranteed income without market risks.
If you are looking for a trusted policy with fixed returns and life cover, LIC Bima Ratna can be an excellent choice.
