LIC Bima Kiran Plan 111 & 150: Maturity Value, Benefits and Status (2026)

LIC Bima Kiran is a traditional term assurance plan that provides life insurance protection during the policy term along with a return of eligible premiums if the policyholder survives until maturity. Unlike a pure term insurance policy, which generally does not offer a maturity payout, Bima Kiran combines financial protection with a premium-back benefit.

The Life Insurance Corporation of India (LIC) has offered different versions of this policy over the years. The original Bima Kiran (Plan 111) and its successor, New Bima Kiran, have different features and benefit structures. New Bima Kiran is a with-profits plan that also provides loyalty additions, subject to LIC’s declarations and policy conditions.

Both versions are discontinued and are no longer available for new purchases. This article explains their features, benefits, maturity payouts, death benefits, and other important policy conditions to help existing policyholders understand their coverage.

What is the LIC Bima Kiran Policy?

LIC Bima Kiran is a premium-back term assurance policy designed to provide financial protection to the policyholder’s family in the event of death during the policy term. If the policyholder survives until the end of the policy term, the plan provides a maturity benefit in the form of a return of eligible premiums paid, subject to the applicable policy conditions.

LIC introduced two distinct versions of this insurance plan:

• Bima Kiran (Plan 111): The original version of the policy, offering term insurance protection, return of premiums at maturity, and benefits according to its original policy conditions.
• New Bima Kiran: The revised version was introduced in February 2002. It is a with-profits term assurance plan that offers life cover, return of eligible premiums at maturity, and potential loyalty additions.

Under New Bima Kiran, loyalty additions represent the policyholder’s share in LIC’s participating life insurance business. These additions are not guaranteed and depend on LIC’s declared rates and applicable policy conditions.

Although both versions provide premium-back benefits, their policy terms, eligibility criteria, and additional benefits differ. Therefore, policyholders should refer to their original policy documents to identify the applicable plan and understand the benefits available under their specific contract.

What Does The Plan Offer?

Jeevan Kiran LIC policy offers a built-in benefit for accidents, free insurance coverage after the maturity of the policy, and also comes with a lower premium rate with high-risk coverage. You can get the Jeevan Kiran LIC policy calculator from the Life Insurance Corporation to estimate your premiums. 

As it’s a Term assurance policy, the sum assured gets paid as a death claim, in case the policy continues as of the date of demise.

The LIC Bima Kiran Plan also provides rebates in two categories.

• Mode rebate
• Sum assured rebate

Mode rebate
Mode	Percentage (%)
Yearly	3%
Half-yearly	1.5%
Quarterly	No Rebate
SSS except for Monthly	No Rebate

Sum assured rebate

Provides Sum Assured but not a sum assured rebate.

Key Features of LIC New Bima Kiran:

LIC New Bima Kiran offers life insurance protection with a return-of-premium benefit and participation in LIC’s profits through loyalty additions.

The key features of the plan are:

• Premium Payment Modes: Premiums can be paid yearly, half-yearly or quarterly throughout the policy term.
• Life Insurance Protection: The plan provides financial protection against the death of the life assured during the policy term.
• Built-in Accident Benefit: The policy includes accident benefit cover up to a maximum of ₹5 lakh for accidental death and total and permanent disability arising from an accident.
• Maturity Benefit: If the life assured survives the policy term, the maturity benefit equals the total premiums paid, including the accident benefit premium but excluding other extra premiums.
• Loyalty Additions: As a with-profits plan, New Bima Kiran participates in LIC’s profits and may receive loyalty additions, subject to LIC’s experience and applicable policy conditions.
• Guaranteed Surrender Value: The policy can be surrendered after remaining in force for at least three years. The guaranteed surrender value is 30% of basic premiums paid, excluding the first year’s premium.
• Special Surrender Value: LIC may pay a Special Surrender Value, which is usually higher than the Guaranteed Surrender Value. The actual amount depends on the policy’s duration and premiums paid.
• Extended Term Cover: After surviving the original policy term, the policy provides extended death cover for another 10 years, without an accident benefit. The percentage of the Sum Assured depends on the original policy term.

Terms & Conditions Of LIC Bima Kiran Plan:

Premium and policy benefits

Extended term cover

Extended death cover applies for 10 years after the original policy term and does not include an accident benefit.

Loyalty Bonus Of Bima Kiran Plan

This is a profit-making plan. The policy gets a portion of the profit in the form of a bonus. Such bonuses will be paid in addition to the Death Benefit or Maturity Benefit, provided the policy is in force and all premiums have been paid. It also provides surrender value.

Death Benefit Of Bima Kiran Plan

LIC New Bima Kiran provides a lump-sum death benefit to the nominee or beneficiary if the life assured dies during the policy term.

According to LIC’s official product summary, the death benefit consists of the Basic Sum Assured plus Loyalty Additions, if any.

How Is the Death Benefit Calculated?

The death benefit is calculated as:

Death Benefit = Basic Sum Assured + Loyalty Additions (if applicable)

The Basic Sum Assured is payable as a lump sum upon the death of the life assured. Any eligible Loyalty Additions are added to this amount, subject to LIC’s applicable policy conditions.

Are Loyalty Additions Payable in the First Four Years?

No. LIC’s official product summary specifically states that no Loyalty Addition is payable if the life assured dies during the first four policy years.

For deaths occurring after the first four policy years, Loyalty Additions may be payable, provided the policy is in force and the applicable conditions are satisfied. The amount depends on LIC’s declared additions and the policy’s term and duration.

Important Points About the Death Benefit

The actual claim amount is subject to the original policy contract and applicable conditions.

The Basic Sum Assured is payable as a lump sum upon the death of the life assured.

Loyalty Additions, if applicable, are added to the death benefit.

No Loyalty Addition is payable for death during the first four policy years.

Loyalty Additions depend on LIC’s experience and declarations; they are not guaranteed.

Extended Period Cover

Extended-term cover (benefit without an accident) will be available for 10 years after the expiry of the term of the LIC policy. This cover can range from 20% to 60% of the sum insured as per the term of life insurance and the guaranteed surrender value.

Maturity Benefit

LIC New Bima Kiran provides a maturity benefit if the life assured survives until the end of the policy term and the policy remains eligible for the benefit.

According to LIC’s official product summary, the maturity benefit is equal to the total premiums paid under the policy, including the Accident Benefit Premium but excluding other extra premiums.

How Is the Maturity Benefit Calculated?

The maturity benefit is calculated as:

Maturity Benefit = Total Premiums Paid (including Accident Benefit Premium, excluding other extra premiums)

The guaranteed maturity benefit does not include any additional loyalty additions. However, eligible loyalty additions, if declared by LIC, may be payable along with the maturity benefit.

Are Loyalty Additions Guaranteed?

No. New Bima Kiran is a with-profits plan, meaning that policyholders may receive loyalty additions depending on LIC’s future experience and declarations.

These additions are not guaranteed. The actual amount, if any, depends on LIC’s applicable declarations and policy conditions.

Accident Benefit

In the Bima Kiran plan from LIC, Double Accident Benefit is obtainable. It’s built into the premium paid and is also exclusive of the extreme limit of the Double Accident Benefit.

The LIC scheme has an underlying accident benefits cover, which can be a maximum of Rs.5,00,000 and is payable in case of accidental death or permanent disability due to an accident.

Revival:

If policies in the LIC Bima Kiran insurance lapse because premium payments stop within the grace period, they may be reinstated within six months of the FUP’s due date by making interest-bearing premium payments. No supporting medical data is needed.

What Should Existing LIC Bima Kiran Policyholders Do?

Although LIC Bima Kiran (Plan 111) and New Bima Kiran are discontinued and unavailable for new purchases, existing policyholders can continue to receive benefits according to their original policy conditions.

Here are a few important steps existing policyholders should follow:

1. Continue Paying Premiums: If your policy is active and premiums are still due, pay them on time. Maintaining the policy in force helps preserve eligibility for the contractual maturity benefit and applicable extended term cover, subject to policy conditions.
2. Check Your Policy Status Online: Visit the official LIC Customer Portal to register or log in and check your policy details, premium dues, and payment status.
3. Check Lapsed Policy Revival Rules: If your policy has lapsed because of missed premiums, contact the LIC branch servicing your policy. Ask about the applicable revival period, outstanding premiums, interest, and medical or other requirements. Revival is subject to LIC’s approval.
4. Keep Your Policy Documents Safe: Preserve your original policy bond, premium receipts, nomination details, and other relevant documents. These will be useful when making maturity or death benefit claims.

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