Bima Ratna Life Insurance Plan Launched by LIC

BANKING AND ECONOMY

A new life insurance product called ‘Bima Ratna’,  a savings life insurance plan was launched by the Life Insurance Corporation (LIC) - the country’s largest insurer. It is a combination of protection and savings plan.

The new product is a non-linked, non-participating, individual savings life insurance product that combines protection and savings. This product can be currently purchased through corporate agents, Insurance, marketing firms (IMF), brokers, CPSC-SPV and POSP-LI engaged by these intermediaries viz. corporate agents, insurance marketing firms (IMF) and brokers.

This new insurance plan provides financial assistance to the policyholder's family due to the untimely death of the policyholder during the policy term, as well as periodic payments.

Through a loan facility, this approach addresses liquidity concerns.

The "Sum Assured on Death" plus Accrued Guaranteed Additions will be paid on the death of a Life Assured within the policy period following the date of the beginning of risk.

A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of the first unpaid premium. The policy will lapse if the premium is not paid before the expiry of the grace period. 

Premiums can be paid on a yearly, half-yearly, quarterly, or monthly basis (monthly premiums can only be paid through the National Automated Clearing House (NACH)) or by deductions from salary.

 

   Important points for the exam:

  • The country’s largest insurer Life Insurance Corporation (LIC) has launched a savings life insurance plan called ‘Bima Ratna’.
  • It is a combination of protection and savings plan.
  • The new product is a non-linked, non-participating, individual savings life insurance product that combines protection and savings.
  • This new insurance plan provides financial assistance to the policyholder's family due to the untimely death of the policyholder during the policy term, as well as periodic payments.
  • A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of the first unpaid premium. 

   Facts to know:

  • Life Insurance Corporation (LIC) was established in 1956.
  • Headquarters of LIC: Mumbai, Maharashtra.
  • Chairman of LIC: M R Kumar.
  • The first company in India offering life insurance coverage: Oriental Life Insurance Company
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