asymmetrica

Calculators LIC plans Bima Shree Review

LIC Bima Shree review

LIC Bima Shree (Plan 848) is a non-linked participating money-back plan for high-net-worth buyers, with a minimum BSA of ₹10 lakh. Unlike standard LIC money-back plans, it uses Guaranteed Additions (₹50–55 per ₹1,000 BSA/year, published in the brochure) instead of a simple reversionary bonus — GAs are accrued every year and paid at exit. Two large survival benefit tranches and a Loyalty Addition (non-guaranteed, estimated) complete the picture. Six term options from 14 to 28 years give buyers flexibility. On a 20-year term the XIRR lands approximately 5.5–6.5% — modestly better than Plans 720/721 for large BSAs, but still well below a diversified equity portfolio.

Last updated ← Back to Bima Shree calculator

GA versus SRB — what actually changes

The GA mechanism guarantees the accumulation rate per year during the PPT, unlike SRB which is reviewed annually by LIC's actuaries and can be cut. In practice, LIC's SRB has been compressed multiple times over the last two decades. Bima Shree's GAs are locked at policy inception — the ₹50/₹55 per ₹1,000 BSA rates will not change. This makes the guaranteed payout floor predictable in a way that SRB-based plans are not. The Loyalty Addition remains non-guaranteed and should be discounted to zero in a conservative analysis.

Who it works for

High-earning professionals aged 30–50 who want a low-volatility, guaranteed-addition savings product with a specific 14–28-year horizon and a ₹10L+ BSA. Bima Shree is most valuable as a capital-protection anchor — not a wealth-creation vehicle. The two large SBs make it appealing for buyers who have a known large expenditure (retirement home purchase, wedding corpus, etc.) timed to the SB years.

Who it doesn't work for

Anyone with a long time horizon and appetite for equity risk — a 20-year SIP at 12% CAGR will produce approximately 2.5× the corpus of Bima Shree at the same premium outgo. Also unsuitable for buyers below ₹10L BSA (Plans 720/721 are more appropriate) or those who may need early liquidity — the GSV in years 1–5 is painful.

What we'd compute differently

Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term), excludes optional rider premiums from the cash-flow base, and assumes the latest declared simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions on the Bima Shree calculator.

Last updated · site changelog