Bima Account 1 (Plan No. 805)

Summary of Bima Account:
LIC’s Bima Account 1 (Plan No. 805) is a without profit Variable Insurance Product. Under this life insurance policy there will be a Policyholder’s Account maintained separately for individual policyholder, which shall consist of two parts;

1. Regular Premium Account
2. Top-up Premium Account.

The Policyholder’s Account will earn an annual interest of 6% p.a. provided the policy is inforce and 5% p.a. if the policy is paid-up. The interest rate will be guaranteed for the whole of the policy term. Life Insurance Corporation may also declare an additional interest rate on Policyholder’s Regular Premium Account for inforce policies based on the experience under the LIC Bima Account 1 plan.
LIC Bima Account 1 at glance

• An Endowment Plan with guaranteed return
• Premium Top up facility
• A plan with Guaranteed Interest  of 6% for Whole Term
• A very high Risk cover
• Short Term policy (5-7 years)
• Loan Available after 1 Year : 60% of amount in Policyholder’s account
• Surrender Available after 1 year but money will be given after 3 years
• No Surrender Charges

Benefits of Bima Account 1:
a) Benefits payable on death: Bima Account 1:
In case of death of the Life Assured during the policy term, when the policy is inforce, the nominee shall get the Sum Assured along with the balance in the Policyholder’s Account.
b) Benefits payable on maturity – Bima Account 1:
On life assured surviving the date of maturity an amount equal to balance in the Policyholder’s Account is payable.
c) Guaranteed Interest – Bima Account 1:
Guaranteed interest rate shall be applicable on Policyholder’s Account and not on the gross premium paid by the Policyholder.
The Policyholder’s Account i.e both Policyholder’s Regular Premium Account and
Policyholder’s Top-up Premium Account will earn an annual interest of 6% p.a. provided the policy is inforce and 5% p.a. if the policy is paid-up. The interest rates will be guaranteed for the whole of the policy term.
During the revival period Policyholder’s Account will earn guaranteed interest rate of 5% p.a. On revival of policy, the guaranteed rate of interest on Policyholder’s Account will again be 6% p.a. from the date of revival.
The interest amount will be calculated on day to day basis on balance in the Policyholder’s Account after deduction of all due charges and shall be credited to the Policyholder’s Account at the end of each calendar month.
d) Additional Interest – Bima Account 1:
The LIC of India may also declare an additional interest rate on Policyholder’s Regular Premium Account for inforce policies based on the experience under this plan.
Premium:

Premium LIC Bima Account 1

Mode	Yearly	Half Yearly	Quarterly	Monthly (ECS)
Min. Premium	Rs.7000	Rs.4000	Rs.2000	Rs.600
Max. Premium	Rs.14000	Rs.7000	Rs.3500	Rs.1100

Annual Premiums shall be payable in multiple of Rs.1,000 for all modes other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 100/-.
Charges under LIC Bima Account 1:
First Year 27.5%
2nd year 7.5% &
3rd Years Thereafter: 5%
Top-up Premium: 2.5%

BLEND Money Back Policy

LIC Long Term Infrastructure Bonds

Investment in Bonds of  LIC  upto Rs 20,000 in addition to Rs. 1Lakh in 80C are Eligible for Tax Exemption under Section 80CCF.
Finance Minister in Union Budget had introduced a new section 80CCF under the Income Tax Act, 1961 that provide income tax deduction of Rs. 20,000 in addition to Rs 1 Lakh available under other provisions for claiming tax deductions for investments made in the Long Term Infrastructure Bonds that are notified by the central government.

 

LIC Infrastructure Bond at Glance:



Term: 10 years
Minimum lock in period: 5 years
Loan on Bond: After 5 years
Interest Rate: 7.85%-7.95% after tax.
Exit options: Buy back or through Demat account
Open for Individual or HUF.

Any individual or HUF can invest in LIC’s Infrastructure Bonds Between Rs.5000 – Rs.20,000/- This will be over the Rs.1 lakh deduction allowed under Section 80C.

Tax Benefit example:
If you are in highest tax payers bracket of 30% can save an additional Rs 6,000 and if you happen to fall in the lower tax bracket then you can still save Rs.2,000/- by investing in LIC infrastructure bonds this financial year.

This announcement will boost the infrastructure projects in India. The deduction can be claimed by individuals or HUFs for the investments made in subscribing the long term infrastructure bonds during the FY 2010-11

Note:
The above is the product summary giving the key features of the Bond. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.