LIC Bima Ratna Plan: Features, benefits, eligibility, settlement options of the new LIC plan

Bima Ratna provides periodic payments to the life insured at specified durations to meet various financial needs. It provides financial support to the family in the event of their unfortunate death. So, it is a good combination of protection and savings.

What is the LIC Bima Ratna plan

Since the start of 2022, stock markets have been volatile with a downward bias due to the Russia-Ukraine war, high inflation, rising interest rates, FPI selling, etc. In such a scenario, most investors prefer a financial product that can give them regular returns without stock market volatility. The Bima Ratna plan from Life Insurance Corporation of India (LIC) offers a combination of steady returns (without volatility), life insurance, and income tax benefits.

In this article, we will discuss the LIC Bima Ratna benefits.

What is the LIC Bima Ratna plan?

LIC’s Bima Ratna is a plan that provides a combination of protection and saving money. In the event of the death of the life insured during the policy tenure, the LIC plan provides financial protection to their family. If the life insured survives the entire policy tenure, they will get periodic payments at specified durations to take care of their various financial needs, plus the maturity benefit. The returns of this policy are not linked to stock market movements.

Also Read: LIC Jeevan Umang Offers 8% Guaranteed Returns On Sum Assured For Lifetime. Should You Consider Buying This Plan?


Key Benefits of Bima Ratna

This LIC investment plan has the following benefits.

1) Death benefit
If the life insured dies during the policy tenure, the nominee will get the ‘sum assured on death’ and the accrued guaranteed additions made till the date of death. The ‘sum assured on death’ will be higher of 125% of the basic sum assured or seven times the annual premium.

2) Survival benefit
As the life insured survives specified milestones during the policy tenure, a fixed percentage of the basic sum assured will be payable to them as a survival benefit. Based on the policy term, the amount paid will be as follows:

LIC Bima Ratna offers Periodic payments settlement option guaranteed additions

(Source: Bima Ratna policy brochure)

3) Maturity benefit
When the life insured survives till policy maturity, they will be paid the ‘sum assured on maturity’ along with the accrued guaranteed additions. The ‘sum assured on maturity’ will be equal to 50% of the basic sum assured. Please note that the remaining 50% will be already paid out, as mentioned in the survival benefit section.

Also Read: 5 Women-Specific Financial Products You Must Take Advantage Of Today

4) Guaranteed additions
At the end of every policy year, the guaranteed additions will accrue as follows:

guaranteed additions will accrue every year

(Source: Bima Ratna policy brochure)

With all the above benefits, Bima Ratna is one of the best LIC schemes to buy along with term insurance.

Eligibility criteria and other features

Let us look at the LIC plan details.

lic details

(Source: Bima Ratna policy brochure)

Settlement option

The life insured has the option to take the maturity benefit in instalments instead of a lump sum amount. Similarly, the nominee has the option to take the death benefit in instalments instead of a lump sum amount.

1) Settlement option for maturity benefit
The life insured can take the maturity amount in instalments over a period of 5 years instead of a lump sum amount. The settlement option can be used for the entire or part of the maturity proceeds. The instalments will be paid as per the selected mode, subject to the minimum instalment amount as follows:

Settlement option for maturity benefit

2) Settlement option for death benefit
On the death of the life insured, the nominee can choose to receive the death benefit amount in instalments instead of a lump sum. The instalment option for death benefit is subject to the minimum instalment amount as explained above for the maturity benefit.

Rider benefit

The LIC new plan comes with the following rider options to choose from:

  1. Premium Waiver Benefit Rider
  2. New Term Assurance Rider
  3. Accident Benefit Rider
  4. Critical Illness Benefit Rider
  5. Accidental Death and Disability Benefit Rider

You can pay the premium for the policy on a yearly, half-yearly, quarterly, or monthly basis. The policy comes with a loan facility to provide liquidity. The life insured can avail of a loan, provided they have paid at least two full years' premiums.

Also Read: Term Insurance Vs Traditional Life Insurance: Know The Basic Differences


Bima Ratna from LIC comes with a range of benefits such as death benefit, survival benefit, maturity benefit, and guaranteed additions. The policy also provides the settlement option to take the maturity benefit or death benefit in instalments instead of a lump sum. The life insured can also opt for various riders. Bima Ratna provides periodic payments to the life insured at specified durations to meet various financial needs. It provides financial support to the family in the event of the untimely death of the life insured during the policy tenure. So, we can conclude that Bima Ratna provides a good combination of protection and savings, and is a good policy to buy for wealth creation.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

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