Two new plans namely Bima Account I & Bima Account II has been introduced by the Life Insurance Corporation of India (LIC). The plans are non participating variable insurance type of policies with premium being paid on a regular basis. There is also an option of top-up facility.
Under these plans, each policy holder will have an account which will be maintained separately. The net premiums will be credited to the policy holder's account which will earn an annual interest of 6% p.a. which is guaranteed for the whole of policy term. LIC may also declare additional interest based on its experience under the plan.
When the policy is in force and in case of unfortunate death of Life Assured, the insured amount along with the balance in the account will be paid to the nominee. On maturity, the life assured will be entitled to the amount in his account.
If a policy holder surrenders his policy, he will be entitled to the full amount in his account after 3 years of premium payment. Loan can also be availed after completion of 1 year from commencement provided at least 1 full year's premiums have been paid. As per IT rules, benefits under Sec 80C and Sec 10 (D) are also available.