LIC Bima Account II (Plan 806) Calculator
Plan No. 806 (UIN: 512N264V01)
Important Notes
- The policyholder’s account earns a guaranteed interest rate of 6% per annum while the policy remains in force. Paid-up policies earn a guaranteed 5% per annum.
- Premium allocation charges, mortality charges and other applicable charges are deducted before crediting the premium to the policyholder’s account.
- Top-up Premiums (minimum ₹1,000) are allowed and increase only the policyholder’s account value. They do not increase the Sum Assured.
- On death during the policy term, the nominee receives the Sum Assured plus the Policyholder’s Account Value, subject to the policy terms.
- Loan facility is available after completion of one policy year. The maximum loan amount is subject to LIC’s applicable rules.
- The policy can acquire surrender value after satisfying the minimum conditions specified in the policy document.
Disclaimer
This calculator provides estimated values based on the LIC Bima Account II (Plan 806) brochure. Actual policyholder account value, charges, interest credits, maturity benefit, death benefit, loan eligibility and surrender value will be determined by LIC according to the official policy terms and applicable rules.
Introduction to LIC Bima Account II Plan 806
LIC Bima Account II Plan 806 gained popularity as a straightforward insurance and savings plan that combined guaranteed returns with life insurance protection.
Designed with simplicity in mind, the plan offered policyholders a transparent structure, assured interest on premiums, and financial security for their families, making it an attractive choice for individuals seeking a low-risk insurance solution.
What is LIC Bima Account II Plan 806?
LIC Bima Account II Plan 806 was a non-linked, non-participating (without-profit) life insurance plan introduced by LIC. The policy was launched on 2 February 2011 and later withdrawn from sale on 24 November 2013.
Although the plan is no longer available for new purchases, it remains a notable example of LIC’s traditional insurance products because of its simple design and guaranteed benefits.
The plan primarily offered two major advantages:
- A guaranteed annual return of 6% on the policyholder’s account for active policies, with the possibility of additional returns depending on LIC’s overall experience.
- Life insurance protection, under which the nominee received the Sum Assured along with the balance available in the policyholder’s account in the event of the life assured’s death.
Key Features of LIC Bima Account II Plan 806
Simple and Easy-to-Understand Structure
LIC Bima Account II was designed with a transparent policy structure. After deducting applicable charges, the premiums paid by the policyholder were credited to an individual policy account, which accumulated interest throughout the policy term.
Guaranteed Interest with Potential Additional Returns
For policies that remained in force, the policyholder’s account earned a guaranteed interest rate of 6% per annum.
If the policy became paid-up due to discontinuation of premiums, the account continued to earn a guaranteed annual interest of 5%.
Depending on LIC’s experience under the plan, policyholders could also become eligible for additional returns, if declared.
Life Insurance Protection
To provide life cover, LIC deducted mortality charges from the policyholder’s account.
If the life assured died during the policy term, the nominee received:
- The applicable Sum Assured.
- The accumulated balance available in the policyholder’s account.
This combination ensured both insurance protection and accumulated savings.
Loan Facility
The policy included a loan facility that became available immediately after completion of the first policy anniversary, allowing policyholders to access funds without surrendering the policy.
Flexible Policy Term and Premium Payment
The policy offered flexibility by allowing customers to choose a policy term ranging from:
- 10 Years
- 15 Years
Premiums could be paid through the following payment modes:
- Yearly
- Half-Yearly
- Quarterly
- Monthly
Top-Up Premium Option
The plan also allowed policyholders to deposit Top-Up Premiums to increase the balance in their policyholder account.
These additional contributions increased the savings component without increasing the life insurance risk cover.
Eligibility Criteria
Eligibility Details of LIC Bima Account II Plan 806
| Criteria | Details |
|---|---|
| Minimum Entry Age | 8 Years |
| Maximum Entry Age | 60 Years |
| Policy Term | 10 to 15 Years |
| Minimum Sum Assured | 10 Times the Annual Premium |
| Maximum Sum Assured | Based on Entry Age (up to 30 Times the Annual Premium for younger lives) |
| Minimum Regular Premium | ₹15,000 per year (or equivalent under other payment modes) |
| Minimum Top-Up Premium | ₹1,000 |
How Does the LIC Bima Account II Calculator Work?
The LIC Bima Account II Calculator helps policyholders estimate the premium, maturity value, and insurance benefits available under the policy.
To generate an estimate, the calculator generally requires the following information:
- Age of the life assured.
- Selected policy term (10 to 15 years).
- Desired Sum Assured.
- Preferred premium payment mode (Yearly, Half-Yearly, Quarterly, or Monthly).
Using these inputs, the calculator:
- Applies the applicable policy charges, including mortality and administrative charges.
- Calculates the guaranteed annual interest credited to the policyholder’s account.
- Estimates the accumulated account balance at maturity.
- Projects the applicable insurance benefits based on the selected policy details.
What Does the Calculator Show?
The calculator provides estimates for several important policy values, including:
- Premium payable according to the selected payment mode.
- Total premiums payable throughout the policy term.
- Guaranteed interest accumulated in the policyholder’s account.
- Possible additional returns, if declared by LIC.
- Estimated death benefit payable to the nominee.
- Loan eligibility after completion of one policy year.
- Estimated surrender value if the policy is discontinued after the required period.
The calculator enables policyholders to understand how premium allocations, policy charges, and guaranteed interest affect the overall value of the policy, making financial planning easier and more transparent.
Benefits of LIC Bima Account II Plan 806
LIC Bima Account II Plan 806 was designed to provide a balanced combination of guaranteed savings and life insurance protection. The plan offered several advantages for individuals seeking stable returns without exposure to market-related risks.
Guaranteed Returns
One of the key highlights of the policy was its guaranteed annual interest of 6% on the policyholder’s account for policies that remained in force.
Unlike market-linked insurance plans, the returns under this policy were not dependent on stock market performance, making it a suitable option for conservative investors.
Transparent Policy Charges
The plan followed a clear and transparent charging structure.
Applicable charges, such as administrative expenses and mortality charges, were deducted directly from the policyholder’s account, allowing customers to clearly understand how their premiums were utilized.
Life Insurance Protection
Along with savings, the policy also provided life insurance coverage.
In the event of the life assured’s death during the policy term, the nominee became entitled to receive:
- The applicable Sum Assured.
- The balance accumulated in the policyholder’s account.
This ensured financial support for the family while preserving the accumulated savings.
Flexible Premium Payment Options
Policyholders could choose the premium payment frequency according to their convenience.
The available payment modes included:
- Yearly
- Half-Yearly
- Quarterly
- Monthly
Loan Facility
The plan provided financial flexibility by allowing policyholders to avail a loan after completion of the first policy anniversary, subject to LIC’s applicable conditions.
Tax Benefits
Premiums paid under LIC Bima Account II Plan 806 qualified for tax deductions under Section 80C of the Income Tax Act.
The maturity and death benefits were generally eligible for tax exemption under Section 10(10D), subject to the prevailing provisions of tax laws.
Important Dates
The important milestones related to LIC Bima Account II Plan 806 are as follows:
- Launch Date: 2 February 2011
- Withdrawal Date: 24 November 2013
Although the policy has been withdrawn from sale, existing policyholders continue to receive benefits according to the original policy conditions.
How to Use the LIC Bima Account II Calculator
The LIC Bima Account II Calculator helps policyholders estimate premiums, maturity proceeds, death benefits, and surrender values by following a few simple steps.
Step 1: Open the Calculator
Visit LIC’s official premium calculator or another trusted insurance calculator that supports LIC Bima Account II Plan 806.
Step 2: Enter Your Age
Provide the age of the life assured at the time of purchasing the policy.
Step 3: Select the Policy Term
Choose the desired policy duration between:
- 10 Years
- 15 Years
Step 4: Enter the Sum Assured
Input the preferred Sum Assured based on your financial protection requirements.
Step 5: Choose the Premium Payment Mode
Select one of the available premium payment options:
- Yearly
- Half-Yearly
- Quarterly
- Monthly
Step 6: Calculate the Premium
After entering all the required information, the calculator estimates the premium payable according to the selected policy details.
Step 7: View Policy Benefits
The calculator provides estimates for:
- Maturity Value.
- Death Benefit.
- Surrender Value.
- Loan Eligibility.
These projections help policyholders understand the expected financial benefits before making long-term commitments.
Example Calculation
Consider the following illustration:
Suppose a 30-year-old individual purchases LIC Bima Account II Plan 806 with:
- Policy Term: 15 Years
- Sum Assured: ₹1,50,000
The estimated annual premium may be approximately ₹15,000.
After deducting the applicable policy charges, the remaining premium is credited to the policyholder’s account.
The account earns a guaranteed annual interest of 6%, which is compounded according to the policy provisions.
If LIC declares any additional returns, they are credited separately in accordance with the policy terms.
At maturity, the policyholder receives the accumulated balance available in the policyholder’s account.
If the life assured dies during the policy term, the nominee receives:
- The Sum Assured.
- The accumulated balance in the policyholder’s account.
This example demonstrates how the policy combines long-term savings with insurance protection.
Who Should Consider LIC Bima Account II Plan 806?
The plan was suitable for individuals who:
- Prefer a simple and easy-to-understand life insurance policy.
- Want guaranteed returns instead of market-linked investments.
- Require life insurance protection along with long-term savings.
- Prefer flexibility in choosing premium payment frequency.
- Want access to policy loans during financial emergencies.
- Wish to enjoy tax-saving benefits under the Income Tax Act.
- Are comfortable investing for a period of 10 to 15 years.
Limitations of LIC Bima Account II Plan 806
Before choosing this policy, it was important to understand its limitations.
- The plan has been discontinued and is not available for new customers.
- The guaranteed returns may be lower than the returns offered by certain market-linked investment products over the long term.
- The available life cover may be lower than that offered by standalone term insurance plans with similar premium levels.
- Surrender benefits become available only after completion of the required policy period, limiting early liquidity.
- Since it is a non-participating plan, policyholders are not entitled to regular bonuses or loyalty additions available under some traditional LIC policies.
Frequently Asked Questions
What is LIC Bima Account II Plan 806?
LIC Bima Account II Plan 806 is a non-linked, non-participating life insurance policy that combines guaranteed returns with life insurance protection. It was introduced by LIC in 2011 and later withdrawn in 2013.
Who was eligible to purchase this plan?
The policy was available to individuals between 8 years and 60 years of age, with policy terms ranging from 10 to 15 years.
Is LIC Bima Account II Plan 806 still available?
No. LIC discontinued the plan on 24 November 2013, and it is no longer available for new purchases. Existing policyholders continue to receive benefits according to the original policy conditions.
What was the minimum premium under the policy?
The minimum regular annual premium was ₹15,000, with equivalent premium amounts available under other payment modes.
How were the premiums managed?
After deducting the applicable policy charges, the remaining premium amount was credited to the policyholder’s account, where it earned a guaranteed minimum annual interest of 6% for policies that remained in force.
Conclusion
LIC Bima Account II Plan 806 was a simple and transparent insurance-cum-savings plan that combined guaranteed returns with life insurance protection. Its straightforward structure, guaranteed interest, flexible premium payment options, loan facility, and tax benefits made it a suitable choice for individuals seeking financial security without market-related risks.
Although the policy is no longer available for new customers, existing policyholders continue to benefit from its provisions. The LIC Bima Account II Calculator remains a useful resource for estimating premiums, maturity value, death benefits, loan eligibility, and surrender value, helping policyholders understand the financial value of their insurance plan.
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