Overview

LIC Bima Shree (Plan 748) is a non-linked, participating, limited-premium money-back life insurance plan designed for High Net-Worth Individuals (HNIs). 

Key Features

  • Minimum Basic Sum Assured: ₹10 lakh with no upper limit (subject to underwriting).
  • Policy Term: 14, 16, 18, 20, 24, and 28 years.
  • Premium Paying Term: Policy term minus 4 years.
  • Guaranteed Additions: ₹50 per ₹1,000 of basic sum assured for the first 5 policy years and ₹55 per ₹1,000 from the 6th policy year until the end of the premium payment term.

Eligibility

  • Entry Age: 8 years to 55 years, depending on the selected policy term.
  • Maximum Maturity Age: 69 years.

Death Benefit

The nominee receives the higher of the applicable sum assured on death or 7 times the annualized premium, along with accrued guaranteed additions and loyalty additions, subject to policy terms.

Want guaranteed payouts before maturity without giving up life cover? LIC Bima Shree by Life Insurance Corporation of India (LIC) is designed for buyers who prefer predictable savings, periodic money-back benefits, and a sizable guaranteed corpus instead of market-linked uncertainty.

In the next few minutes, this guide breaks down the key LIC Bima Shree policy details, including benefits, returns, premiums, tax rules, and whether it fits your long-term financial goals.

Confused about whether a money-back life insurance plan by LIC will meet your future goals? Book a free call or chat on WhatsApp with a Ditto advisor, and let us help you out.   

What Is LIC Bima Shree Plan?

LIC Bima Shree is a money-back life insurance plan that provides financial protection for your family while offering periodic survival payouts during the policy term and a guaranteed lump sum at maturity. The plan is available through licensed LIC agents, corporate agents, insurance brokers, and Insurance Marketing Firms (IMFs).

Eligibility Criteria for LIC Bima Shree Plan

EligibilityCriteria
Premium Paying Term Policy term minus 4 years
Entry Age Band8 years to 55 years (depends on policy term)
Policy Term 14, 16, 18, 20, 24, and 28 years
Maximum Maturity Age69 years
Premium Payment ModeYearly, half-yearly, quarterly, or monthly

Key Features of LIC Bima Shree Plan

    • Death Benefit: If the life insured passes away within the first five policy years, LIC pays the higher of 125% of the basic sum assured or 7 times the annualized premium, along with all accrued guaranteed additions. If death occurs after completing five policy years but before maturity, the loyalty addition, if declared, is also included. In every case, the death benefit is guaranteed to be at least 105% of the total premiums paid up to the date of death.
    • Survival Benefits: LIC Bima Shree is a money-back plan, so you receive fixed survival payouts at specified milestones during the policy term, provided all due premiums have been paid. The payout percentage depends on the policy term selected. 
    • Maturity Benefit: If you survive the full policy term and all due premiums have been paid, LIC pays the sum assured at maturity, along with all accrued guaranteed additions and, if declared, loyalty additions.
    • Loyalty Addition: LIC Bima Shree becomes eligible for loyalty addition after the policy completes five policy years, provided at least five full years' premiums have been paid. The amount is not guaranteed and depends on LIC's overall performance. If declared, it is paid only upon death or maturity, and it adds to the final policy benefit.
    • Guaranteed Additions: These are credited every year during the premium paying term, provided the policy remains active and all due premiums are paid. LIC adds ₹50 for every ₹1,000 of basic sum assured during the first five policy years and ₹55 per ₹1,000 from the sixth policy year onward.
    • Option to Defer Survival Benefits: If you do not need your scheduled money-back payout immediately, LIC allows you to defer the survival benefit. The deferred amount continues to earn interest as specified by LIC and can be withdrawn later during the policy term. If it is not claimed before the policy ends, the accumulated amount is paid along with the death, maturity, or surrender benefit, whichever becomes payable first.
    • Premium Rebates: LIC offers mode rebates if you pay premiums yearly or half-yearly, helping reduce the overall premium outgo. Buyers choosing a higher basic sum assured may also receive an additional premium rebate. 
    • Policy Loan: A loan facility is available after the first policy year, provided at least one full year's premium has been paid. The loan amount depends on the policy's available surrender value and can offer access to funds without surrendering the policy, subject to LIC's loan terms and interest rates.
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LIC Bima Shree Premium Illustration

Sample Premiums by Policy Term

Age14 Years (PPT 10 Years)16 Years (PPT 12 Years)18 Years (PPT 14 Years)
20₹1,08,780₹91,483₹78,890
30₹1,09,270₹92,071₹79,576
40₹1,11,622₹94,717₹82,516
50₹1,18,580₹1,01,969₹90,111

Note: The annual premiums are for a basic sum assured of ₹10 lakh and are derived from the LIC Bima Shree Plan brochure.

Maturity Returns

ParticularAmount
Annual Premium₹80,605
Total Premium Paid₹11,28,470
Survival Benefit at the 14th Year₹4,00,000
Survival Benefit at the 16th Year₹4,00,000
Guaranteed Maturity Benefit at the 18th Year (4% Scenario, No Loyalty Addition)₹9,45,000 
Total Maturity Benefit With Loyalty Additions at 8% Scenario₹12,75,000 at maturity, plus earlier survival payouts

The above illustrations are based on a 35-year-old choosing an 18-year policy term with a 14-year premium payment term. Actual premiums and benefits will vary based on age, sum assured, policy term, premium mode, and underwriting.

Based on LIC's illustration, the approximate effective Internal Rate of Return (IRR) is around 4.3% if you consider only the guaranteed benefits. Under LIC's 8% illustrative scenario, where the final maturity value increases to about ₹12.75 lakh, the return may rise to around 5.8% per year as calculated by Ditto. 

In simple terms, the guaranteed component offers a moderate return, while the higher illustration assumes additional non-guaranteed benefits such as loyalty addition, which may or may not be declared by LIC. 

Pros and Limitations of LIC Bima Shree Plan

Advantages of LIC Bima Shree

    • Regular money-back payouts help meet planned expenses before maturity.
    • Guaranteed additions provide predictable growth during the premium paying term.
    • Loyalty addition, if declared by LIC, can increase the final maturity or death benefit.
    • A policy loan facility offers access to funds without immediately surrendering the policy.

Limitations of LIC Bima Shree

    • Loyalty addition is not guaranteed, so the final payout can vary.
    • Life cover does not replace income adequately, making term insurance essential. A term plan can usually offer a life cover of 20x-30x of annual income at affordable prices. 
    • Multiple benefit components can make the plan difficult for first-time buyers to understand.
    • Requires a long premium commitment, especially for longer policy terms.
    • Early surrender can reduce value, making short-term exits financially unattractive.

Who Should Buy and Who Should Avoid LIC Bima Shree Plan

Works Well ForShould Be Avoided by
High-income buyers who want a traditional LIC savings plan with guaranteed benefits and periodic money-back payouts.People whose main priority is a large life insurance cover for family income protection rather than long-term savings.
Buyers who already have adequate term insurance and health insurance, and want a separate guaranteed savings product.Buyers with limited annual savings capacity who may struggle to continue paying premiums over many years.
Buyers who understand that loyalty addition is not guaranteed and treat it as a possible extra benefit rather than a certainty.Investors comfortable with mutual funds or other market-linked investments for long-term wealth creation.
People looking for disciplined long-term savings with a guaranteed base and predictable cash flows.Anyone who has not yet purchased adequate term insurance and needs affordable financial protection first.

Why Choose Ditto for Life Insurance? 

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Aaron below love us:

LIC Bima Shree
    • No-Spam & No Salesmen
    • Rated 4.9/5 on Google Reviews by 25,000+ happy customers
    • Backed by Zerodha
    • Dedicated Claim Support Team
    • 100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a call now or chat over WhatsApp with our advisors.

Conclusion

LIC Bima Shree suits buyers who value guaranteed savings, periodic money-back payouts, and the trust associated with LIC. It is best viewed as a conservative savings and insurance plan rather than a product designed to maximize long-term investment returns.

If your goal is wealth preservation and creation, compare its effective return with alternatives such as Public Provident Fund (7.1%), bank fixed deposits (6% or higher), and government bonds (around 6.8%). Many families may achieve better financial protection by combining a pure term insurance plan with separate investments instead of relying on a bundled insurance-savings product.

If your priority is financial protection, consider exploring LIC term insurance plans if you prefer LIC as your insurer. You can also compare them with our guide to the best term insurance plans in India to find a policy that matches your coverage needs and budget.

Frequently Asked Questions

What is LIC Bima Shree (Plan 748) and who is it designed for?

The LIC Bima Shree Plan is a non-linked, participating, limited-premium money-back life insurance plan primarily aimed at High Net-Worth Individuals (HNIs). It combines life insurance with guaranteed savings by offering periodic survival payouts during the policy term and a lump sum at maturity. The minimum basic sum assured is ₹10 lakh, with no upper limit, subject to LIC's underwriting norms. Policy terms range from 14 to 28 years, while the premium payment term is always 4 years shorter than the policy term.

What is the IRR or actual return on LIC Bima Shree?

LIC's official illustration shows that returns from LIC Bima Shree 748 are moderate rather than exceptional. For example, a 35-year-old choosing an 18-year policy term with a 14-year premium payment term pays a total of around ₹11.28 lakh in premiums. The policy pays ₹4 lakh each as survival benefits in years 14 and 16, followed by the maturity benefit at the end of year 18. Based only on guaranteed benefits, the effective annual return (IRR) is roughly 4.3%. Under LIC's higher illustration, where loyalty addition increases the final payout, the return may reach around 5.8%, but this additional benefit is not guaranteed.

How do the survival benefits and maturity payouts vary across different LIC Bima Shree policy terms?

LIC Bima Shree follows a structured money-back design where the survival benefit and maturity payout depend on the policy term you choose. Shorter policy terms provide higher maturity benefits but lower periodic payouts, while longer terms offer larger money-back benefits during the policy term with a smaller maturity sum assured. For example, a 14-year policy pays 30% of the basic sum assured twice and 40% at maturity, whereas a 20-year or longer policy pays 45% twice before maturity but only 10% of the basic sum assured at maturity. Guaranteed additions and any eligible loyalty additions are payable separately in all cases.

What are guaranteed additions in LIC Bima Shree, and how do they work?

Guaranteed additions are fixed annual benefits that LIC credits during the premium payment term, provided the policy remains active and all due premiums are paid. Unlike bonuses in other participating plans, these additions are fully guaranteed and do not depend on LIC's future financial performance. LIC credits ₹50 for every ₹1,000 of basic sum assured during the first five policy years and ₹55 per ₹1,000 from the sixth year onward. These additions accumulate over time and become part of the maturity or eligible death benefit, making them one of the plan's most predictable features.

What is loyalty addition in LIC Bima Shree, and is it guaranteed?

Loyalty addition is a non-guaranteed benefit that LIC may declare based on its overall financial performance. A policy becomes eligible only after completing five policy years, provided at least five full years' premiums have been paid. If LIC declares a loyalty addition, it is paid along with the death benefit after the fifth policy year or the maturity benefit at the end of the policy term. Since its value depends entirely on LIC's future surplus, it should be viewed as a possible bonus rather than a promised return. Buyers should base their decision mainly on the guaranteed benefits.

Does LIC Bima Shree offer tax benefits on premiums?

Yes, LIC Bima Shree may provide tax benefits, but they depend on the Income-tax Act provisions and the policy's structure. Premiums can qualify for a deduction under Section 123 (previously Section 80C), subject to the overall ₹1.5 lakh annual limit under the old tax regime. For life insurance policies issued on or after April 1, 2012, the deduction is generally available only if the annual premium does not exceed 10% of the sum assured. If your premium is higher than this limit, you may not be able to claim the entire premium as a tax deduction.

Is the maturity amount from LIC Bima Shree tax-free?

The maturity proceeds from LIC Bima Shree are generally exempt under Section 11 read with Schedule II (previously Section 10(10D)), provided the policy satisfies the prescribed tax conditions. One key requirement is that the annual premium should not exceed 10% of the sum assured. In addition, for non-ULIP life insurance policies issued on or after April 1, 2023, the exemption is lost if your aggregate annual premium exceeds ₹5 lakh across such policies. In these cases, the maturity amount may become taxable, although death benefits continue to remain tax-free.

How does LIC perform compared to other life insurers in India?

LIC continues to be one of India's strongest life insurers across several important industry benchmarks, although these figures reflect LIC's overall performance, not that of any individual policy. For FY 2024–26, LIC reported a 98.16% average claim settlement ratio, a 95.48% amount settlement ratio (average FY 2023–25), and settled 96.89% of claims within 30 days. It also maintained a 2.15x solvency ratio, comfortably above the regulatory requirement, while recording one of the industry's lowest complaint ratios. These insights are based on IRDAI Annual Reports, LIC's official public disclosures, and Ditto's term insurance data lab.

What happens if I surrender or stop paying premiums in LIC Bima Shree?

LIC Bima Shree allows you to surrender the policy after completing one policy year, provided at least one full year's premium has been paid. However, the policy accrues a guaranteed surrender value only after two full years of premiums have been paid. LIC pays the higher of the guaranteed surrender value or the special surrender value. If you stop paying premiums before completing one full year, the policy will lapse after the grace period, and no benefits will be payable. Early surrender or discontinuing premiums can significantly reduce the policy's overall value, so long-term commitment is important.

What rider options are available with LIC Bima Shree, and which ones are worth considering?

LIC Bima Shree offers four optional riders: the Accidental Death & Disability Benefit Rider, Accident Benefit Rider, New Term Assurance Rider, and Premium Waiver Benefit Rider. You can choose either of the two accident riders, along with the remaining eligible riders, subject to LIC's conditions. Most riders can be added while the policy is in force, whereas the New Term Assurance Rider is available only at inception. If the policy is purchased for a minor, the Premium Waiver Benefit Rider can be particularly valuable, as it waives future premiums if the proposer passes away. Rider premiums and coverage are subject to LIC's prescribed limits.

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