LIC Bima Shree (Table 848) – Review, Features and Benefits

LIC’s Bima Shree is a combination of 2 features – Protection and Savings specially designed for high net worth individuals. It provides financial support to the family of the policyholder in case of the sudden demise of the policyholder during the term of the policy.

Features of this Policy – (Table 848)

1. Policy tenure is 14, 16, 18 & 20 years
2. This policy is especially for high net-worth individuals
3. Various Rider benefit such as –
   *** Accidental Death and Disability Benefit Rider
   *** Accident Benefit Rider
   *** New Term Assurance Rider
   *** New Critical Illness Benefit Rider
   *** Premium Waiver Benefit Rider
4. The premium can be paid monthly, quarterly, half-yearly and yearly
5. Loan facility is available against this policy
6. There is an option to receive Death Benefit in installments over the chosen period of 5 or 10 or 15 years
   instead of lump sum amount provided the policyholder is 18 years and above.

Benefits of this Policy –

A) Death Benefit –

1. On death, during the first five years, Death Benefit is defined as the sum of “Sum Assured on Death” and accrued Guaranteed Addition shall be payable.
2. On death after completion of five policy years but before the date of maturity, Death Benefit is defined as
   the sum of “Sum Assured on Death” and accrued Guaranteed Addition and Loyalty Addition, if any, shall
   be payable. Where “Sum Assured on Death” is defined as the highest of –
   a) 10 times of annualized premium, or
   b) Sum Assured on Maturity as defined in 1. c) below; or
   c) Absolute amount assured to be paid on death, i.e. 125% of Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
   Premiums referred above will not include any taxes, extra amount chargeable under the policy due to
   underwriting decision and rider premium(s), if any.

B) Survival Benefit –

If the policyholder survives till the end of the specified duration during the policy term provided all due premiums have been paid then, a fixed percentage of Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:

C) Maturity Benefit –

If the policyholder survives till the end of the policy term provided all due premiums have been paid then, “Sum Assured on Maturity” along with accrued Guaranteed Additions and Loyalty Addition shall be payable.

Where “Sum Assured on Maturity” is as under:

Eligibility Conditions –

Like every policy, this policy also has some eligibility conditions. Let us have a look at the eligibility conditions –

Is it possible to revive the policy if it has lapsed?

Yes, it is possible to revive the lapsed policy within a period of 2 consecutive years from the date of first unpaid premium provided all the arrears of premium are paid together with interest (compounding half-yearly).

Will I get any surrender value if I surrender my 1-year-old policy?

One cannot get any surrender value if the policy is just 1 year old. To get the surrender value, one has to pay 2 years premium at least.

Is there any loan facility against this policy?

Loan facility can be availed during the policy term provided the policy has acquired a surrender value. The maximum loan as a percentage of surrender value shall be as under:

1. For in force policies- up to 90%
2. For paid-up policies- up to 80%

Can I return the policy, If I am not satisfied with the terms and condition of the policy?

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be
returned within 15 days from the date of receipt of the policy bond stating the reasons of objections. This 15-day period is known as Free-Look Period.

Video review of the policy –

Conclusion –

So, by now everyone of you have come to know each and every details of this policy. Now it’s up to you all to decide whether this policy will satisfy your requirements or not. If you have any doubt regarding this policy, they please let us know in the comment section.