What are Guaranteed Additions?

Guaranteed Additions accrue at the end of each policy year during the premium paying term at ₹50 per ₹1,000 of Basic Sum Assured for the first five years and ₹55 per ₹1,000 from the sixth year, as long as all due premiums are paid. They are paid with the death, maturity or surrender benefit, not as separate income. In the example with a 14-year premium term, they add up to ₹7.45 lakh.

How much is paid on death?

The nominee gets the Sum Assured on Death, which is the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus accrued Guaranteed Additions, and Loyalty Addition if death happens after five policy years. The total is never less than 105% of the premiums paid. For a ₹10 lakh Basic Sum Assured, the Sum Assured on Death is ₹12.5 lakh.

How much does Bima Shree cost?

LIC's sample yearly premiums for a ₹10 lakh Basic Sum Assured, before taxes, at age 30 are about ₹1,09,270 for a 14-year term, ₹79,576 for 18 years, ₹71,050 for 20 years and ₹46,501 for 28 years. At age 20 the 28-year premium is ₹44,982. Paying yearly gets a 2% rebate, and the exact premium depends on your age, term and sum assured.

Can I defer survival benefits or take payouts in instalments?

Yes. You can defer one or both survival benefits and take the increased amount, with interest, later, by telling LIC in writing at least six months before the due date. You can also take the death or maturity benefit in instalments over 5, 10 or 15 years, in full or in part, with a minimum instalment of ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly.

What happens if I stop paying premiums?

If you stop before one full year of premiums is paid, the policy lapses and nothing is payable. After one full year, it becomes a paid-up policy with reduced death and maturity amounts and a proportionate share of the survival benefits, and Guaranteed Additions accrued up to the first unpaid premium stay. A lapsed policy can be revived within five years and before the maturity date.

Can I surrender the policy or take a loan?

You can surrender after the first policy year, but a guaranteed surrender value applies only after two full years of premiums, at 30% of premiums paid in year 2, 35% in year 3 and 50% in years 4 to 7, rising to 90% in the last two policy years, less survival benefits already due. LIC can also pay a higher special surrender value. A loan is available after the first policy year, up to 75% of the surrender value on an in-force policy after two full years of premiums, at an interest rate that LIC resets every year.

Can I add riders to Bima Shree?

Yes. Four optional riders are available for an extra premium: the Accidental Death and Disability Benefit Rider, the Accident Benefit Rider, the New Term Assurance Rider and the Premium Waiver Benefit Rider. You can choose either the first or the second accident rider, and all rider premiums together cannot exceed 30% of the base premium.

LIC's Bima Shree: Features, Benefits & FAQs

Q: What do I get at maturity?

You get the Sum Assured on Maturity, which is 40% of the Basic Sum Assured for a 14-year term, 30% for 16, 20% for 18 and 10% for 20, 24 and 28 years, plus accrued Guaranteed Additions and any Loyalty Addition. In LIC's example (age 35, ₹10 lakh, 18-year term), ₹9.45 lakh is guaranteed at maturity, and ₹12.75 lakh is shown at the 8% illustration rate.

LIC's Bima Shree Overview

LIC's Bima Shree (Plan 748) is a participating, non-linked, individual savings plan from Life Insurance Corporation of India, designed for high net-worth individuals. It is a limited premium plan: you choose a policy term of 14, 16, 18, 20, 24 or 28 years and pay premiums for the policy term minus 4 years. Guaranteed Additions of ₹50 per ₹1,000 of Basic Sum Assured accrue for the first five years and ₹55 per ₹1,000 from the sixth year until the end of the premium paying term. The plan pays two survival benefits near the end of the term, each 30% to 45% of the Basic Sum Assured depending on the term, and a maturity benefit made up of 10% to 40% of the Basic Sum Assured plus the accrued Guaranteed Additions and any Loyalty Addition. On death, the nominee gets the Sum Assured on Death, the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus accrued Guaranteed Additions, plus any Loyalty Addition after five policy years, and never less than 105% of the premiums paid. The minimum Basic Sum Assured is ₹10 lakh with no upper limit, entry age is 8 to 55 years depending on the term, and the plan can be bought only offline.

Limited-pay money back plan for HNIs with Guaranteed Additions of ₹50 to ₹55 per ₹1,000, two survival payouts of 30% to 45% of the Basic Sum Assured, and loyalty additions.

Expert Review of LIC's Bima Shree

Bima Shree suits a high net-worth buyer who wants a long, guaranteed, low-risk savings plan and can commit to a large premium. In LIC's own illustration (age 35, ₹10 lakh Basic Sum Assured, 18-year term, 14-year premium term), the yearly premium is ₹80,605, so you pay ₹11.28 lakh in total. The guaranteed benefits are ₹4 lakh on each of the 14th and 16th policy anniversaries and ₹9.45 lakh at maturity, which includes ₹7.45 lakh of Guaranteed Additions. That is ₹17.45 lakh against ₹11.28 lakh paid, even before any loyalty addition. Our estimate of the yearly return is about 4.3% on the guaranteed amounts alone, and about 5.8% if LIC pays the ₹3.3 lakh loyalty addition shown at its 8% illustration rate, before tax. That is steady, but modest for a lock-in of this length. The life cover is also modest, ₹12.5 lakh plus Guaranteed Additions, so this is not a substitute for a term plan. Cash comes only from the 10th to the 24th policy year depending on the term, and early exit is costly, since nothing is paid back in the first year and the guaranteed surrender value starts at 30% of premiums in the second year. Loyalty additions are not guaranteed, and the illustration shows none at the 4% rate. Choose it only if you can pay the full premium term comfortably and want guaranteed payouts late in the term.

Pros

Guaranteed Additions of ₹50 to ₹55 per ₹1,000 each year build a large guaranteed amount: ₹7.45 lakh on a ₹10 lakh Basic Sum Assured in LIC's example.
The guaranteed benefits alone exceed the premiums paid: ₹17.45 lakh against ₹11.28 lakh in LIC's illustration.
Two survival benefits of 30% to 45% of the Basic Sum Assured plus a maturity benefit, with an option to defer the survival benefits and earn interest.
Death cover of at least 125% of the Basic Sum Assured plus Guaranteed Additions, with Loyalty Addition after five years, and it is not reduced by survival payouts.
You pay for 4 years less than the policy term, and a loan facility, instalment options and four optional riders add flexibility.

About LIC (Insurer Profile)

LIC

Key Insights

Founded

1956

LIC was established 70 years ago and has built strong credibility over time, backed by its long-standing presence in the market.

Claims Experience

98.5% CSR, calculated as a 3-year average

LIC settles 98.5% of all claims it receives, demonstrating strong credibility.

Contact Details

022-68276827

Headquarters: Jeevan Bima Marg, Nariman Point, P.O. Box No. 19953, Mumbai, Maharashtra 400021, India

LIC's Bima Shree Features and Benefits

Two survival benefits near the end of the term

You get a fixed share of the Basic Sum Assured on two policy anniversaries: 30% each on the 10th and 12th for a 14-year term, 35% each on the 12th and 14th for 16 years, 40% each on the 14th and 16th for 18 years, and 45% each for 20, 24 and 28 years, on the 16th and 18th, 20th and 22nd, or 24th and 26th anniversary.

Paid only if all due premiums have been paid.

Guaranteed Additions

Guaranteed Additions accrue at ₹50 per ₹1,000 of Basic Sum Assured for the first five years and ₹55 per ₹1,000 from the sixth year to the end of the premium paying term. On a ₹10 lakh Basic Sum Assured with a 14-year premium term, that builds up to ₹7.45 lakh.

They accrue only while premiums are paid and are paid on death, maturity or surrender.

Maturity benefit

On surviving the policy term, you get the Sum Assured on Maturity (40% of the Basic Sum Assured for a 14-year term, 30% for 16, 20% for 18 and 10% for 20, 24 and 28 years), plus accrued Guaranteed Additions and any Loyalty Addition.

Survival benefits paid earlier come on top of this.

Death benefit with Guaranteed Additions

The nominee gets the Sum Assured on Death, the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus accrued Guaranteed Additions, and Loyalty Addition after five policy years. The total is never less than 105% of the premiums paid.

In LIC's illustration the death benefit is not reduced by survival payouts.

Loyalty Addition

After five completed policy years and at least five full years of premiums, the plan can add a Loyalty Addition on death, maturity or surrender, at a rate LIC declares based on its experience.

Not guaranteed; LIC's illustration shows none at 4% and ₹3.3 lakh at 8% for the sample policy.

Option to defer survival benefits

You can defer one or both survival benefits and take them later with interest, at any time before the policy ends. Interest is based on the 5-year G-Sec yield minus 1.5% and stays fixed for that deferment.

Tell LIC in writing at least six months before the due date; the rate is reset every year.

Death and maturity benefit in instalments

You can take the death benefit or the maturity benefit in instalments over 5, 10 or 15 years instead of a lump sum, in full or in part.

Minimum instalment is ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly; maturity option must be chosen at least 3 months before maturity.

Policy loan

You can take a loan after the first policy year once one full year of premium is paid, up to 75% of the surrender value on an in-force policy after two full years of premiums, and 50% before that.

Loan interest was 9.5% a year, compounded half-yearly, for loans sanctioned in 2024-25 and is reset every year; paid-up policies get 65% or 40%.

Rebates on premium

Paying yearly gives a 2% rebate on the tabular premium and paying half-yearly gives 1%. A Basic Sum Assured of ₹20 lakh to under ₹50 lakh gets a rebate of ₹0.40 per ₹1,000, and ₹50 lakh or more gets ₹0.70 per ₹1,000.

There is no rebate for quarterly, monthly or salary-deduction payment.

Costly early exit

You can surrender after the first policy year, but the guaranteed surrender value starts only after two full years of premiums, at 30% of premiums paid in year 2 and 35% in year 3, and 50% from year 4 to year 7, before rising to 90% in the last two policy years.

Survival benefits already due are deducted; part of the accrued Guaranteed Additions is also paid, and a special surrender value may be higher.

Limited premium payment

You pay premiums for the policy term minus 4 years, yearly, half-yearly, quarterly or monthly, or through salary deduction, and the policy stays covered for the remaining four years without premiums.

Monthly payment needs NACH; the grace period is 30 days, or 15 days for monthly premiums.

Minimum cover of ₹10 lakh, no upper limit

The Basic Sum Assured starts at ₹10 lakh, in multiples of ₹50,000, with no upper limit, subject to LIC underwriting.

Entry age depends on the policy term

Minimum entry age is 8 years (completed). Maximum entry age is 55 for a 14-year term, 53 for 16, 51 for 18, 49 for 20, 45 for 24 and 41 for 28 years, and maturity age cannot go above 69.

For a minor, the policy vests in the life assured on the policy anniversary after turning 18.

Paid-up value

After one full year of premiums, a policy that stops getting premiums becomes paid-up, with reduced death and maturity amounts and survival benefits in proportion to the premiums paid.

Guaranteed Additions accrued up to the first unpaid premium stay; Loyalty Addition is paid only if at least 5 full years of premiums were paid.

Tax treatment

GST on premiums is currently nil for this plan, and income tax benefits depend on your tax regime and the law at the time.

Consult a tax advisor for your case.

Add-ons of LIC's Bima Shree

Accidental Death and Disability Benefit Rider

If an accident causes death, the Accident Benefit Sum Assured is paid as a lump sum. In case of accidental disability within 180 days, it is paid in equal monthly instalments over 10 years and future premiums for that amount are waived.

Choose this or the Accident Benefit Rider, not both; it can be added within the premium paying term if at least 5 years of it remain.

Accident Benefit Rider

Pays the Accident Benefit Sum Assured as a lump sum if death is caused by an accident.

What LIC's Bima Shree Does Not Cover (Exclusions)

Conditions or treatments that the policy clearly says it will not cover.

If the life assured dies by suicide within 12 months of the start of risk, the nominee gets only 80% of the premiums paid, excluding taxes, extra premium and rider premiums other than the term rider, provided the policy is in force.
If death by suicide happens within 12 months of revival, the nominee gets the higher of 80% of the premiums paid or the surrender value on the date of death; this does not apply to a policy that lapsed without acquiring paid-up value.
A claim can be rejected if material facts such as health history or age were hidden or misstated, subject to Section 45 of the Insurance Act, 1938.
If premiums stop before one full year is paid, all benefits cease after the grace period and nothing is payable.
Survival benefits and Guaranteed Additions depend on premiums being paid: Guaranteed Additions stop accruing once a premium is missed, and a paid-up policy gets only a proportionate share of the survival benefits.
Riders do not acquire any paid-up or surrender value and stop if the policy lapses; each rider also has its own exclusions listed in the rider document.

Disclaimer: For illustration purposes only - exact terms are in the policy wording.

LIC's Bima Shree FAQs

What is LIC's Bima Shree?

It is a participating, non-linked, limited premium savings plan from LIC (Plan 748, UIN 512N316V03), designed for high net-worth individuals. You choose a policy term of 14 to 28 years, pay premiums for the term minus 4 years, build Guaranteed Additions every year, get two survival benefits near the end of the term and a maturity benefit, with life cover throughout.

What are the entry age, policy term and minimum sum assured?

Policy term can be 14, 16, 18, 20, 24 or 28 years, with premiums payable for the term minus 4 years. Minimum entry age is 8 years (completed), and the maximum is 55 for a 14-year term, falling to 41 for 28 years. Maturity age cannot exceed 69. The minimum Basic Sum Assured is ₹10 lakh, in multiples of ₹50,000, with no upper limit.

What survival benefits does Bima Shree pay?

Two survival benefits are paid if all due premiums have been paid: 30% of the Basic Sum Assured on the 10th and 12th anniversaries for a 14-year term, 35% on the 12th and 14th for 16 years, 40% on the 14th and 16th for 18 years, and 45% each for 20, 24 and 28 years, on the 16th and 18th, 20th and 22nd, or 24th and 26th anniversary.