Magazine Investment PlanningInvestment Planning

NEW BIMA KIRAN

Why do you buy insurance? Is it for life cover or is it for returns and tax benefit? The chances are that the majority of the readerswill opt for the latter. In this backdrop it is important to understand why life insurance should be bought. New Bima Kiran, is a unique term assurance plan from LIC, with added attractions, which addresses basic insurance needs.

The essence of life insurance is how much life cover the insurance provides on the life of the policyholder. Unfortunately life insurance is taken either for tax benefits associated with it or for the returns provided by it. There are many other investment plans, which provide much higher returns than life insurance. So if you are looking at insurance plans

look at the maximum life risk cover provided by them at least cost.
Keeping this aspect in view Life Insurance Corporation has come out with low premium plans providing higher coverage. One of them is New Bima Kiran Plan, which is now available with extra benefits. Besides enjoying risk cover during the term of the policy, it has other attractive add-ons like:

• Low affordable premium with maximized risk cover
• In-built Accident benefit
• Extended Term cover after maturity.

The eligibility for the plan has now been extended. It is now available to individuals between age groups 18 to 45 years. The maximum sum assured under the plan has also been extended form Rs. 3,00,000 to Rs. 10,00,000.

BENEFITS
Following benefits would be available on the plan if the policy is kept in force by payment of regular premiums-

1. Death Benefit:
   On the unfortunate death of the policy holder, the sum assured together with loyalty additions, if any, are payable to the nominee.
2. Accident Benefit:
   • In the case of death due to an accident: A sum equal to the sum assured along with the basic sum assured is payable. In other words, double the sum assured is payable to the nominee.
   • In the case of disability due to an accident: The sum assured in monthly installments spread over a period of 10 years is payable. The premiums for future are waved off.
   Note: The maximum benefit available on this plan, in the case of an accident will be Rs. 5,00,000/-. This will be exclusive of the maximum limit of Rs.10,00,000/- placed on other Life Insurance contracts.
3. Maturity Benefit:
   On completion of the term of the policy, a sum equal to the total amount of premiums paid (including accident premium but excluding other extras) shall be repaid.
4. Loyalty Addition:
   Loyalty addition is the extra
   benefit paid for sticking to the plan till its completion. It, if any, will be paid along with death/maturity benefits, provided all the premiums under the plan have been paid, as scheduled. Loyalty addition under the plan has not been specified but will be declared from time to time.
   Note: No Loyalty Addition will be payable in case of death in the first four policy years.
5. Extended Term Cover:
   On survival of the policyholder till maturity, an Extended Term Cover (without Accident Benefit) shall be available thereafter for a period of 10 years on a given scale (table-below).