LIC Bima Platinum: Savings plus protection
LIC’s Bima Platinum is a non-par, non-linked individual plan that combines savings and financial protection. It is a limited-premium plan and provides guaranteed additions of Rs 70 for every Rs 1,000 of annual premium paid during the premium-paying term.
One of its key features is the booster income benefit, equivalent to 70% of the basic sum assured. This is payable if the life assured survives until the end of the premium-paying term plus five years.
The plan also provides a regular income benefit equal to 10% of the basic sum assured at the end of each year during the payout period. The payout period is defined as the policy term minus the premium-paying term.
The minimum basic sum assured is Rs 3 lakh, with no stated upper limit, subject to LIC’s Board Approved Underwriting Policy. The sum assured is available in multiples of Rs 10,000.
Policyholders can choose premium-paying terms of 7, 10, 12, 15 or 18 years. The minimum entry age is 30 days, while the maximum entry age is 55 years, depending on the premium-paying term selected.
LIC Jeevan Raksha: Pure life protection
LIC’s Jeevan Raksha takes a different approach. It is a non-par, non-linked pure-risk plan, under which the death benefit is guaranteed and fixed during the policy term.
Unlike a savings-oriented policy, it does not provide bonuses, discretionary benefits or any share in the surplus. Its primary objective is financial protection for the family if the insured dies during the policy term.
The minimum basic sum assured is Rs 5 lakh, while the maximum is Rs 24 lakh, subject to LIC’s underwriting policy. The sum assured is available in multiples of Rs 50,000 between Rs 5 lakh and Rs 7 lakh and in multiples of Rs 1 lakh above Rs 7 lakh.
The plan is available to individuals aged 18 to 45 years at entry, with maturity ages ranging from 33 to 60 years. Policyholders can choose single-premium, regular-premium or limited-premium payment options.
The plan also offers special rates for women, a high sum assured rebate and optional riders.
LIC Bima Platinum vs LIC Jeevan Raksha
| Feature | LIC Bima Platinum (Plan 770) | LIC Jeevan Raksha (Plan 894) |
|---|---|---|
| Plan type | Non-par, non-linked savings and protection plan | Non-par, non-linked pure-risk plan |
| Primary objective | Savings, financial protection and income | Pure life insurance protection |
| Guaranteed additions | ₹70 for every ₹1,000 of annual premium paid during the premium-paying term | Not applicable |
| Booster benefit | 70% of Basic Sum Assured, payable on survival until PPT + 5th year | Not applicable |
| Regular income benefit | 10% of Basic Sum Assured each year during the payout period | Not applicable |
| Minimum Basic Sum Assured | ₹3 lakh | ₹5 lakh |
| Maximum Basic Sum Assured | No upper limit, subject to LIC’s underwriting policy | ₹24 lakh, subject to LIC’s underwriting policy |
| Premium payment options | Limited premium | Single, regular and limited premium |
| Premium-paying term | 7, 10, 12, 15 or 18 years | Depends on the selected premium-payment option |
| Minimum entry age | 30 completed days | 18 years |
| Maximum entry age | 55 years, depending on PPT | 45 years |
| Maturity age | 28 to 75 years | 33 to 60 years |
| Bonuses/surplus | Non-par; no bonus participation | No bonuses or share in surplus |
| Special features | Rebates for existing LIC policyholders and nominees/beneficiaries of deceased policyholders | Special rates for women and high sum assured rebate |
| Riders | Available | Available |
| Best suited for | Those seeking savings plus protection and future income | Those primarily seeking life cover for family protection |
Which plan should investors consider?
The choice depends on the objective. Bima Platinum is structured for those seeking a combination of insurance protection, guaranteed additions and future income benefits. Jeevan Raksha, on the other hand, is focused specifically on life protection, with a fixed guaranteed death benefit and no savings component.
Prospective buyers should compare premiums, coverage needs, policy duration and the actual benefits before choosing either plan. Insurance should primarily be evaluated based on the protection requirement and affordability rather than returns alone.