LIC Bima Account I (Plan 805) Calculator
LIC Bima Account I Plan 805 Calculator
LIC Bima Account I Plan 805 was a non-linked, non-participating insurance-cum-savings plan introduced by LIC to offer guaranteed returns along with life insurance protection. The plan combined the benefits of disciplined savings, insurance coverage, and liquidity through loan facilities.
The policy was launched on 2 February 2011 and later withdrawn from new sales on 24 November 2013. Although no longer available for purchase, existing policies continue according to their original terms and conditions.
Key Highlights of LIC Bima Account I Plan 805
- Guaranteed Interest Rate: 6% per annum
- Additional Interest: May be declared by LIC based on policy experience
- Loan Facility: Available after completion of one policy year
- Maximum Loan Eligibility: Up to 60% of the policy account value
- Tax Benefits: Eligible under applicable provisions of Section 80C
- Entry Age Limit: Generally available up to 50 years of age
- Policy Type: Non-Linked, Non-Participating Savings Plan
Introduction to LIC Bima Account I Plan 805
LIC Bima Account I was designed for individuals seeking a simple savings-oriented insurance product without exposure to market risks.
Since the plan is non-linked, policy returns are not affected by stock market fluctuations. Premiums paid under the policy are credited to a policyholder account after deducting applicable charges. The accumulated balance earns a guaranteed interest rate throughout the policy term.
In addition to the guaranteed return, LIC may declare extra interest depending on the overall performance and experience of the scheme.
Overview of LIC Bima Account I Plan 805
The plan offered a combination of:
- Insurance protection
- Guaranteed annual interest
- Flexible premium payment options
- Optional top-up contributions
- Loan facility
- Tax-saving opportunities
Its straightforward structure and minimal underwriting requirements made it a popular choice during its availability period.
Launch and Withdrawal Details
Launch Date
LIC Bima Account I Plan 805 was introduced on:
2 February 2011
Withdrawal Date
The plan was discontinued for new sales on:
24 November 2013
After withdrawal, no fresh policies were issued under the plan, although existing policies continued until maturity or claim settlement.
Eligibility Conditions
Entry Age
- Minimum Entry Age: 11 Years
- Maximum Entry Age: 50 Years
Policy Term
The policy term could be selected between:
- Minimum: 5 Years
- Maximum: 7 Years
Sum Assured Requirement
The Sum Assured was generally linked to the annual premium and varied according to age and policy conditions.
Typically, the Sum Assured ranged between:
- 10 Times Annual Premium
- 20 Times Annual Premium
Premium Payment Modes
Premiums could be paid through multiple convenient modes:
- Yearly
- Half-Yearly
- Quarterly
- Monthly (through ECS facility only)
Eligibility Criteria for LIC Bima Account I Plan 805
| Criteria | Details |
|---|---|
| Minimum Entry Age | 11 Years |
| Maximum Entry Age | 50 Years |
| Policy Term | 5 to 7 Years |
| Sum Assured Multiple | 10 to 20 Times Annual Premium |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (ECS) |
Top-Up Premium Facility
One of the notable features of LIC Bima Account I Plan 805 was the option to invest additional funds through Top-Up Premiums.
Purpose of Top-Up Premiums
Top-up contributions allowed policyholders to increase the value of their policy account without increasing the life insurance cover.
Benefits of Top-Up Investments
- Higher account balance accumulation
- Increased interest earnings
- Greater maturity value
- Additional flexibility in financial planning
How the Policy Account Worked
After receiving the premium, LIC credited the net amount to the policyholder’s account after deducting applicable charges.
The account then accumulated value through:
Guaranteed Interest
A fixed annual interest rate of 6% per annum was credited to the policy account.
Additional Interest
LIC could declare additional interest depending on the overall experience and performance of the scheme.
This feature helped improve the final maturity value beyond the guaranteed return component.
Why LIC Bima Account I Plan 805 Was Popular
The plan gained popularity due to several practical advantages:
Guaranteed Returns
Policyholders enjoyed a fixed minimum return regardless of market conditions.
Simple Product Structure
The policy was easy to understand and did not require extensive investment knowledge.
Insurance Protection
Life insurance coverage was available alongside the savings component.
Loan Availability
The loan facility provided liquidity without requiring policy surrender.
Flexible Premium Payments
Multiple premium payment modes made the policy accessible to different categories of investors.
Tax Efficiency
Premium payments qualified for tax benefits according to prevailing tax regulations.
Importance of the LIC Bima Account I Plan 805 Calculator
For existing policyholders, the LIC Bima Account I Plan 805 Calculator can help estimate:
- Premium payments
- Policy account value
- Interest accumulation
- Maturity benefits
- Loan eligibility
- Top-up contribution impact
- Overall policy performance
The calculator serves as a useful planning tool for understanding the growth potential and expected benefits under this discontinued LIC savings plan.
Benefits of LIC Bima Account I Plan 805
Maturity Benefit
If the life assured survives until the end of the policy term, LIC pays the accumulated balance available in the Policyholder’s Account.
The maturity amount generally consists of:
- Premiums credited to the account after applicable deductions
- Guaranteed interest accumulated over the policy term
- Any additional interest declared by LIC
- Top-up account value, if applicable
This amount is paid as a lump-sum maturity benefit at the end of the selected policy term.
Death Benefit
In the unfortunate event of the policyholder’s death during the policy term, the nominee becomes eligible to receive:
- Applicable Sum Assured, and
- Balance available in the Policyholder’s Account
This feature provides both insurance protection and accumulated savings to the family.
Guaranteed Interest Benefit
One of the most attractive features of LIC Bima Account I Plan 805 was its guaranteed interest mechanism.
Interest on Active Policies
The Policyholder’s Account earns a guaranteed interest rate of 6% per annum throughout the policy term.
The interest is:
- Calculated annually
- Credited monthly
- Compounded over the policy duration
This helps ensure stable and predictable growth of the accumulated account balance.
Interest on Paid-Up Policies
If the policy becomes paid-up after satisfying the minimum premium payment requirements, the account continues to earn guaranteed interest at 5% per annum for the remaining policy term.
Additional Interest
Apart from the guaranteed return, LIC may declare additional interest depending upon the overall performance and experience of the scheme.
This additional interest can further enhance the final maturity value and policy account balance.
Loan Facility
The plan offers liquidity through a loan facility.
Loan Eligibility
Policyholders become eligible for a loan after completion of the first policy anniversary.
Maximum Loan Amount
The maximum loan generally available is up to:
60% of the Policyholder’s Account Balance
This allows policyholders to access funds during emergencies without surrendering the policy.
Top-Up Premium Benefit
LIC Bima Account I Plan 805 allows policyholders to invest additional amounts through Top-Up Premiums.
Purpose of Top-Up Contributions
Top-up premiums help increase the policy account value and improve long-term returns.
Features of Top-Up Premiums
- Credited to a separate Top-Up Account
- Earn guaranteed interest
- Subject to minimal charges
- Do not increase life insurance coverage
This feature provides additional flexibility for policyholders who wish to invest surplus funds.
Other Important Features
No Medical Examination Requirement
The policy was designed for easy enrollment and generally did not require extensive medical examinations, making it accessible to a wider range of individuals.
Transparent Charge Structure
Various policy charges were deducted directly from the account according to LIC’s terms and conditions.
These could include:
- Policy administration charges
- Mortality charges
- Applicable taxes
- Alteration charges
- Other policy-related deductions
The remaining balance continued to earn interest in the Policyholder’s Account.
Policy Termination Conditions
The policy could be compulsorily terminated under certain circumstances if the required premium payment conditions were not met and the policy was not revived within the prescribed period.
Paid-Up Facility
If premium payments were discontinued after meeting the minimum qualifying requirements, the policy could continue in a paid-up form with reduced benefits while still earning applicable guaranteed interest.
Understanding the LIC Bima Account I Plan 805 Calculator
The LIC Bima Account I Plan 805 Calculator helps policyholders estimate future benefits and understand how their policy account may grow over time.
The calculator provides estimates relating to:
- Premium contributions
- Account balance growth
- Guaranteed interest earnings
- Additional interest projections
- Maturity value
- Loan eligibility
- Top-up premium impact
How the LIC Bima Account I Calculator Works
Step 1: Premium Entry
The user enters the premium amount based on the chosen payment frequency.
Step 2: Charge Adjustment
Applicable policy charges are deducted from the premium before the net amount is credited to the Policyholder’s Account.
Step 3: Interest Calculation
The calculator applies the guaranteed interest rate of 6% per annum to the account balance and projects future growth throughout the policy term.
Step 4: Additional Interest Projection
Where applicable, the calculator may include estimated additional interest based on historical declarations and plan performance assumptions.
Step 5: Loan Eligibility Estimate
The calculator determines the maximum loan amount that may be available, generally up to 60% of the accumulated account value after the first policy year.
Step 6: Maturity Value Projection
Finally, the calculator estimates the expected maturity amount by combining:
- Net premiums credited
- Guaranteed interest accumulation
- Additional interest projections
- Top-up account value, if applicable
Why Use the LIC Bima Account I Plan 805 Calculator?
The calculator helps policyholders understand the long-term value of their policy and evaluate how different premium levels may impact future benefits.
It can assist in:
- Estimating maturity proceeds
- Planning savings goals
- Understanding interest accumulation
- Evaluating loan eligibility
- Assessing the impact of top-up contributions
- Comparing different premium payment scenarios
For existing policyholders, the LIC Bima Account I Plan 805 Calculator remains a useful financial planning tool for tracking policy growth and estimating future benefits under this discontinued LIC savings plan.
Importance of the LIC Bima Account I Plan 805 Calculator
The LIC Bima Account I Plan 805 Calculator is a valuable financial planning tool for both existing policyholders and individuals studying discontinued LIC products. It helps users understand policy performance, estimate future benefits, and make informed financial decisions.
Benefits of Using the Calculator
Estimate Future Returns
The calculator provides an estimate of the policy account value at maturity based on premiums paid, guaranteed interest, and projected additional interest.
Plan Premium Commitments
Users can evaluate premium affordability and choose a payment structure that aligns with their financial goals.
Assess the Impact of Top-Up Contributions
The calculator demonstrates how additional top-up premiums can enhance the account balance and potentially increase maturity proceeds.
Understand Loan Eligibility
Policyholders can estimate the amount available through the loan facility and assess liquidity options before policy maturity.
Evaluate Policy Decisions
The calculator helps users compare outcomes related to:
- Continuing the policy
- Making additional contributions
- Reviving a lapsed policy
- Opting for surrender
- Retaining the policy until maturity
Many online LIC Bima Account calculators are based on LIC’s official policy structure, making them useful tools for financial projections.
Charges Applicable Under LIC Bima Account I Plan 805
Various charges were deducted periodically from the Policyholder’s Account before calculating the net account value.
Policy Administration Charge
This charge was deducted to cover policy servicing and administrative expenses incurred by LIC.
Mortality Charge
Mortality charges were applied for providing life insurance protection under the policy.
Tax-Related Charges
Applicable taxes and statutory levies were deducted according to prevailing government regulations.
Policy Alteration Charges
Charges could apply whenever policyholders requested certain changes or modifications to policy terms.
Impact of Charges
Since these deductions reduced the amount credited to the Policyholder’s Account, they directly influenced:
- Account value growth
- Interest accumulation
- Maturity proceeds
- Surrender value
Understanding these charges is important when evaluating overall policy returns.
Revival, Paid-Up, and Surrender Provisions
Policy Revival
A lapsed policy could generally be revived within the revival period prescribed by LIC.
Revival Conditions
- Revival was generally permitted within 12 months from the First Unpaid Premium (FUP).
- Outstanding premiums and applicable requirements had to be completed.
- During revival, the account generally earned guaranteed interest at applicable rates.
Paid-Up Status
If premiums were discontinued after the minimum qualifying period, the policy could continue as a paid-up policy.
Features of Paid-Up Policies
- Reduced policy benefits
- Continued interest accumulation
- No requirement for future premium payments
- Applicable guaranteed interest generally credited at 5% per annum
Surrender Facility
Policyholders could surrender the policy before maturity and receive the applicable account balance after deductions.
Surrender Value
The amount payable on surrender depended upon:
- Account balance
- Policy duration
- Applicable charges
- LIC’s prevailing surrender conditions
In many cases, surrender proceeds may be lower than the maturity value that would have been received upon completion of the full policy term.
The calculator can assist in estimating surrender benefits under different policy durations.
Comparison of LIC Bima Account I Plan 805 with Traditional Endowment Plans
Key Comparison
| Feature | LIC Bima Account I Plan 805 | Traditional Endowment Plans |
|---|---|---|
| Medical Examination | Generally Not Required | Often Required |
| Guaranteed Interest | Fixed 6% Per Annum | Bonus-Based Returns |
| Policy Duration | 5 to 7 Years | Typically 10 to 25 Years |
| Loan Availability | After One Year, Up to 60% of Account Value | Available Subject to Policy Conditions |
| Top-Up Premium Facility | Available | Usually Limited or Not Available |
| Charge Transparency | Explicitly Deducted and Visible | Often Embedded in Premium Structure |
| Life Insurance Cover | Basic Protection Cover | Protection with Savings and Bonus Participation |
Why Investors Preferred LIC Bima Account I Plan 805
The plan appealed primarily to conservative investors looking for:
- Stable and guaranteed returns
- Limited market risk exposure
- Short-term savings horizon
- Life insurance protection
- Loan availability
- Transparent policy structure
Its combination of guaranteed interest and liquidity features made it attractive for individuals seeking predictable financial growth.
How to Use the LIC Bima Account I Plan 805 Calculator
Step 1: Enter Age at Entry
Provide the age of the life assured at the time of policy commencement.
Step 2: Select Policy Duration
Choose the desired policy term from the available options, generally ranging from 5 to 7 years.
Step 3: Choose Premium Payment Frequency
Select the preferred premium payment mode:
- Yearly
- Half-Yearly
- Quarterly
- Monthly (ECS)
Step 4: Enter Sum Assured
Input the chosen Sum Assured according to LIC’s eligibility guidelines and premium multiples.
Step 5: Provide Premium Details
Enter the premium amount corresponding to the selected payment mode.
Step 6: Generate Results
The calculator estimates:
- Policy Account Value
- Expected Maturity Amount
- Death Benefit
- Loan Eligibility
- Interest Accumulation
- Impact of Top-Up Contributions
Understanding the Results
The calculator provides projected values based on:
- Premium contributions
- Guaranteed interest rates
- Estimated additional interest
- Policy charges
- Policy duration
Although actual benefits may vary depending on LIC’s declarations and policy conditions, these estimates help policyholders understand the likely performance of their policy and plan their finances more effectively.
Frequently Asked Questions About LIC Bima Account I Plan 805
What is LIC Bima Account I Plan 805?
LIC Bima Account I Plan 805 was a non-linked, non-participating insurance savings plan that combined life insurance protection with guaranteed interest-based savings. The plan offered insurance coverage along with a policy account that earned assured returns without requiring extensive medical underwriting.
When was LIC Bima Account I Plan 805 introduced?
LIC launched Bima Account I Plan 805 on 2 February 2011 as a savings-oriented insurance product designed for individuals seeking stable and predictable returns.
Is LIC Bima Account I Plan 805 still available?
No. LIC discontinued the sale of Bima Account I Plan 805 on 24 November 2013. New policies are no longer issued under this plan, although existing policies continue according to their original terms and conditions.
What was the available policy term under this plan?
The plan offered relatively short policy durations, with policy terms ranging from:
- Minimum: 5 Years
- Maximum: 7 Years
What guaranteed return did the plan provide?
The Policyholder’s Account earned a guaranteed interest rate of 6% per annum throughout the active policy term. The interest accumulated on the account value and contributed to the overall maturity benefit.
Can policyholders obtain a loan under this plan?
Yes. After completion of the first policy year, policyholders could avail a loan facility subject to policy conditions.
The maximum loan amount was generally:
Up to 60% of the Policyholder’s Account Balance
Were medical examinations required?
One of the attractive features of the plan was its simplified issuance process. In many cases, extensive medical examinations were not required, making the plan accessible to a wider group of individuals.
Were top-up premiums allowed?
Yes. Policyholders could invest additional funds through Top-Up Premiums.
These top-up contributions:
- Increased the account value
- Earned applicable interest
- Did not increase the insurance cover
What happens on maturity?
If the policyholder survived until the end of the policy term, LIC paid the accumulated Policyholder’s Account Value, including:
- Net premiums credited
- Guaranteed interest earned
- Additional interest declared, if any
- Top-up account value, where applicable
What benefit was payable on death?
In case of the policyholder’s death during the policy term, the nominee generally received:
- Applicable Sum Assured
- Balance available in the Policyholder’s Account
This ensured both insurance protection and accumulated savings for the family.
Conclusion
LIC Bima Account I Plan 805 was a simple yet innovative insurance savings product that combined guaranteed returns with life insurance protection. Features such as a fixed 6% annual interest rate, flexible premium payment options, top-up facilities, and loan availability made it an attractive choice for conservative investors seeking stability and liquidity.
Although the plan was withdrawn from new sales in 2013, it remains an important example of LIC’s efforts to provide transparent, low-risk savings solutions backed by insurance coverage. For existing policyholders, the LIC Bima Account I Plan 805 Calculator continues to be a useful tool for estimating account growth, maturity proceeds, loan eligibility, and overall policy performance.
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