BIMA ACCOUNT ‐ II (Plan No. 806) Without profit Variable Insurance plan
Benefits
a) On maturity: An amount equal to balance in the Policyholder’s Account is payable.
b) On death: The Sum Assured and the balance in the Policyholder’s Account payable to nominee.
Features
It has two parts (1) Regular Premium Account & (2) Top‐up Premium Account
Regular premium paid will be subject to deduction of charges. The balance premium, net of charges,
credited to Regular Premium Account.
Guaranteed annual interest of 6% p.a. for in‐force policy and 5% p.a. if the policy is paid‐up (for the whole
of the policy term). An additional interest rate for in‐force policies may declared. The guaranteed interest
payable on net premium.
Eligibility conditions and features
a) Minimum Sum Assured – 10 times the annualized premium
b) Maximum Sum Assured – 30 times the annualized premium up to age 35 years
20 times the annualized premium for age between 36 to 45 years
10 times the annualized premium for age between 46 to 60 years.
The maximum Sum Assured shall be subject to maximum non‐medical limit applicable for
c) Minimum Premium – (Regular premium)
Mode Instalment Premium | Mode Instalment Premium |
Yearly | 15,000 |
Half-yearly | 8,000 |
Quarterly | 4,000 |
Monthly (ECS) | 1,250 |
Top‐up premium – 1,000
d) Maximum Premium – (Regular premium) NO limit ; Top up: total of Regular Premiums paid
e) Minimum Entry Age – 8 (completed)
f) Maximum Entry Age – 60 (nearest Birthday)
g) Policy Term – 10, 11,12,13,14 and 15 years.
h) Minimum Maturity Age – 18 (completed)
i) Maximum Maturity Age – 70 (nearest Birthday)
j) Underwriting – Only non‐medical scheme applicable.
k) Surrender Benefit – Allowed after 3 years.
l) Loan – Allowed.
m) Days of grace – 30 days for all modes.
n) Decrease in benefits – Allowed
o) Revival – within 12 months of FUP allowed. Period of revival will earn guaranteed interest rate of 5% p.a. without debiting any expenses and 6% p.a. from the date of revival.
Charges and frequency of charges
Expense Charge –
First Year | 27.5% |
2nd & 3rd Years | 7.5% |
Thereafter | 5% |
Top up – 2.5% of premium paid.
Mortality Charge, Service tax charge and Alteration Charge will be deducted every month from the
Policyholder’s Regular Premium Account appropriately(NOT from the top account).
Estimated Returns under LIC’s BIMA ACCOUNT-II POLICY (PLAN NO. 806)
Age – 30 Years
Times Sum Ass – 10 Times
Sum Ass. Proposed – 1,50,000
Annual Premium – 15,000
Return – 10%
Year | Annual Premium | Allocation Charges | Rate of Mortality Charges | Mortality Charges | Available for Investment | Total Fund Available at start | Interest Earned during year | Fund Available at End | Payable in case of Death | IRR at Maturity |
1 | 15000 | 4125 | 1.46 | 219 | 10656 | 10656 | 1117 | 11773 | 161773 | -15000 |
2 | 15000 | 1125 | 1.46 | 219 | 13656 | 25429 | 2666 | 28096 | 178096 | -15000 |
3 | 15000 | 1125 | 1.5 | 225 | 13650 | 41746 | 4377 | 46123 | 196123 | -15000 |
4 | 15000 | 750 | 1.56 | 234 | 14016 | 60139 | 6306 | 66445 | 216445 | -15000 |
5 | 15000 | 750 | 1.64 | 246 | 14004 | 80449 | 8435 | 88884 | 238884 | -15000 |
6 | 15000 | 750 | 1.73 | 259.5 | 13990.5 | 102874 | 10787 | 113661 | 263661 | -15000 |
7 | 15000 | 750 | 1.85 | 277.5 | 13972.5 | 127633 | 13383 | 141016 | 291016 | -15000 |
8 | 15000 | 750 | 1.99 | 298.5 | 13951.5 | 154968 | 16249 | 171217 | 321217 | -15000 |
9 | 15000 | 750 | 2.15 | 322.5 | 13927.5 | 185144 | 19413 | 204557 | 354557 | -15000 |
10 | 15000 | 750 | 2.33 | 349.5 | 13900.5 | 218457 | 22906 | 241363 | 391363 | -15000 |
11 | 15000 | 750 | 2.57 | 385.5 | 13864.5 | 255228 | 26761 | 281989 | 431989 | -15000 |
12 | 15000 | 750 | 2.81 | 421.5 | 13828.5 | 295818 | 31017 | 326835 | 476835 | -15000 |
13 | 15000 | 750 | 3.02 | 453 | 13797 | 340632 | 35716 | 376349 | 526349 | -15000 |
14 | 15000 | 750 | 3.25 | 487.5 | 13762.5 | 390111 | 40904 | 431015 | 581015 | -15000 |
15 | 15000 | 750 | 3.54 | 531 | 13719 | 444734 | 46632 | 491366 | 641366 | -15000 |
At the end of 15th year, you will get Rs. 491366/-*
IRR – 9.14%
* The Guaranteed Addition is not added in the above calculations.