NEW BIMA KIRAN –UIN(512N207V01)
Product summary
This is a premium back term assurance plan that provides financial protection against death
throughout the term of plan together with a return of premiums paid at maturity.
Premiums :
Premiums are payable quarterly, half-yearly or yearly throughout the term of the policy.
Loyalty additions : This is a with-profits plan and participates in the profits of the
Corporation’s life insurance business. It gets a share of the profits in the form of loyalty additions.
The Loyalty additions will be paid along with death benefit or maturity benefits, provided the
policy is in full force and depend on the future experience of the Corporation with regard to
mortality, interest and future expenses as well as the term and duration of the policy. No loyalty
addition will be payable in case of death in the first 4 policy years.
Death Benefit : The Sum Assured plus loyalty additions, if any, is payable in a lump sum upon
the death of the life assured.
Extended Term Cover : On survival of the term, an extended term cover (without accident
benefit) shall be available thereafter for a period of 10 years on the following scale :
Policy Term Extended Death cover
10 – 14 years 20% of Sum Assured
15 – 19 years 30% of Sum Assured
20 – 24 years 40% of Sum Assured
25 – 29 years 50% of Sum Assured
30 years 60% of Sum Assured
Maturity Benefit : A sum equal to the total amount of premiums paid (Including accident benefit
premium but excluding other extras) shall become payable on the Life Assured surviving the term.
Supplementary/Extra Benefits : The plan has an in-built Accident benefit cover up to a
maximum of Rs.5,00,000 cover both accidental death and Total and Permanent disability arising
due to accident.
Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available
on the plan on earlier termination of the contract.
Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed
surrender value is 30% of the basic premiums paid excluding the first year’s premium.
Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is usually higher than
the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted
value of the reduced claim amount that would be payable on death or at maturity. This value
will depend on the duration for which premiums have been paid and the policy duration at the
date of surrender. In some circumstances, in case of early termination of the policy, the
surrender value payable may be less than the total premium paid.