LIC Bima Shree is explicitly positioned for High Net-Worth Individuals, with a ₹10 lakh minimum sum assured that immediately sets it apart from most of LIC’s other savings plans. It also works differently from a standard endowment: rather than paying everything at maturity, it pays a portion of your sum assured back to you at two fixed points during the policy term. Here’s how it actually works.
What Are the Eligibility Terms?
- Policy term options: 14, 16, 18, 20, 24, or 28 years, a fixed set rather than a continuous range
- Premium paying term: Always 4 years less than your chosen policy term
- Entry age: 8 years minimum, with the maximum entry age depending on your chosen term, ranging from 55 years (14-year term) down to 41 years (28-year term)
- Maximum maturity age: 69 years
- Minimum Basic Sum Assured: ₹10,00,000, with no upper limit, in multiples of ₹50,000
This high entry point is deliberate. Bima Shree isn’t built as an entry-level savings plan, it’s aimed at buyers who want a large sum assured and can commit to a correspondingly larger premium.
How Do the Periodic Survival Benefits Work?
This is the plan’s most distinctive feature. Rather than waiting until maturity for everything, you receive a fixed percentage of your Basic Sum Assured at two specified points during the policy term, provided all premiums are paid on time:
| Policy Term | Survival Benefit | Paid At |
|---|---|---|
| 14 years | 30% of Basic Sum Assured, twice | 10th and 12th policy anniversary |
| 16 years | 35% of Basic Sum Assured, twice | 12th and 14th policy anniversary |
| 18 years | 40% of Basic Sum Assured, twice | 14th and 16th policy anniversary |
| 20 years | 45% of Basic Sum Assured, twice | 16th and 18th policy anniversary |
| 24 years | 45% of Basic Sum Assured, twice | 20th and 22nd policy anniversary |
| 28 years | 45% of Basic Sum Assured, twice | 24th and 26th policy anniversary |
You can also choose to defer either survival benefit payment, letting it accumulate with interest instead of taking it on the due date, useful if you don’t need the money at that specific point and would rather let it grow within the policy.
What’s Left for Maturity?
Since a meaningful chunk of your Basic Sum Assured has already been paid out as survival benefits, the maturity payout itself is smaller than the original sum assured:
- 40% of Basic Sum Assured for a 14-year term
- 30% for a 16-year term
- 20% for an 18-year term
- 10% for a 20, 24, or 28-year term
This is paid alongside any accrued Guaranteed Additions and Loyalty Addition, so the total maturity payout is higher than this base percentage alone suggests.
How Do Guaranteed Additions Work?
Guaranteed Additions accrue at the end of every policy year during your premium paying term, at a fixed rate: ₹50 per ₹1,000 of Basic Sum Assured for the first five years, rising to ₹55 per ₹1,000 from the sixth policy year through the end of your premium paying term.
What Is the Loyalty Addition?
On top of Guaranteed Additions, Bima Shree can also pay a Loyalty Addition, provided the policy has completed at least 5 years and at least 5 full years of premiums have been paid. This is paid out at exit, whether that’s death, maturity, or surrender, at a rate LIC declares based on its actual performance, similar in spirit to the bonus structure on LIC’s participating plans, though structured as a distinct addition rather than a standard reversionary bonus.
How Is the Death Benefit Calculated?
The formula changes slightly depending on when death occurs:
- Within the first 5 policy years: Sum Assured on Death plus accrued Guaranteed Additions
- After 5 policy years, before maturity: Sum Assured on Death plus accrued Guaranteed Additions plus Loyalty Addition, if any
Where Sum Assured on Death is the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, with a floor ensuring the total is never less than 105% of premiums paid to date.
What Does This Plan Actually Cost?
LIC’s own official illustration shows a 35-year-old choosing a ₹10,00,000 Basic Sum Assured with an 18-year policy term (14-year premium paying term). The annual premium works out to ₹80,605, before GST. Under this specific example, survival benefits of ₹4,00,000 each are paid at the 14th and 16th policy anniversaries, consistent with the 40%-of-BSA schedule for an 18-year term, with the remaining maturity benefit plus accrued additions paid out at the end of the full term.
What Riders Are Available?
Four optional riders, the same set found across several other LIC savings plans:
- Accidental Death and Disability Benefit Rider
- Accident Benefit Rider (choose either this or the Accidental Death and Disability Rider, not both)
- LIC’s New Term Assurance Rider
- Premium Waiver Benefit Rider, available where the life assured is a minor, waiving future premiums if the paying proposer dies
Is GST Charged on This Plan?
No, not currently. Like other individual life insurance products, Bima Shree premiums are covered by the GST exemption on individual life insurance that took effect from September 22, 2025, following the 56th GST Council meeting. If you come across an older illustration showing GST charges, that reflects pricing from before this exemption took effect.
Loan and Surrender Terms
You can take a loan after paying at least one full year’s premium, up to 50% of surrender value before completing two years of premiums, rising to 75% after that. The policy can be surrendered after one full year of premiums, though Guaranteed Surrender Value specifically applies only once two full years are completed.
Is LIC Bima Shree Plan Right for You?
LIC Bima Shree policy makes the most sense if you specifically want a large sum assured, have the income to support a correspondingly large premium, and like the idea of receiving meaningful payouts at two points during the policy term rather than waiting entirely until maturity. If you’re looking for an entry-level savings plan or a lower minimum commitment, LIC’s other endowment plans, like Jeevan Labh or Jeevan Lakshya, start at a considerably lower ₹2,00,000 minimum sum assured.
For the full picture across LIC’s savings and endowment lineup, see our complete guide: LIC Plans 2026: A Complete Guide to Every Policy Type
Frequently Asked Questions
What is the minimum sum assured for LIC Bima Shree?
₹10,00,000, considerably higher than most other LIC savings plans, reflecting its positioning for High Net-Worth Individuals.
How do the survival benefits under LIC Bima Shree plan work?
You receive a fixed percentage of your Basic Sum Assured at two specified policy anniversaries during the term, ranging from 30% twice (for a 14-year term) to 45% twice (for 20, 24, or 28-year terms). You can also choose to defer either payment and let it accumulate with interest instead.
What is the Guaranteed Additions rate under Bima Shree policy?
₹50 per ₹1,000 of Basic Sum Assured for the first five policy years, rising to ₹55 per ₹1,000 from the sixth year through the end of your premium paying term.
Is LIC Bima Shree a good fit for a smaller budget?
Not particularly. With a ₹10 lakh minimum sum assured and premiums to match, this plan is built for buyers who want substantial cover and can commit to a larger premium. LIC’s other endowment plans start at a much lower ₹2,00,000 minimum.
Is GST charged on LIC Bima Shree premiums?
No, not currently. GST on individual life insurance premiums, including Bima Shree, was reduced to 0% effective September 22, 2025.
How is the death benefit calculated under LIC Bima Shree?
The higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus accrued Guaranteed Additions, and Loyalty Addition if death occurs after 5 policy years. The total is guaranteed to be at least 105% of premiums paid to date.
Last Updated on 58 minutes ago by Team Paisaseekho
