LIC Bima Platinum Plan – Evaluation, Advantages & Returns Calculation

LIC introduced Bima Platinum together with its new pure-risk plan, LIC Jeevan Raksha, on September 1, 2026, as a part of its seventieth anniversary celebrations. Each plans are anticipated to be out there for buy from September 7, 2026.

LIC Bima Platinum (Plan 770) is a brand new non-linked, non-participating particular person life insurance coverage financial savings plan launched by the Life Insurance coverage Company of India (LIC). This endowment plan combines life insurance coverage safety with assured additions, common revenue advantages, a booster profit and a maturity profit.

At first look, the advantages might look enticing. The plan gives a 10% of Fundamental Sum Assured common revenue, a 70% booster profit at a specified level, and Assured Additions through the premium-paying interval.

However there is a vital query that each investor ought to ask: What’s the precise return on the cash invested in LIC Bima Platinum?

As a substitute of trying solely on the particular person profit percentages, allow us to look at the premium, money flows and calculate the XIRR of LIC’s pattern illustration.

Key Options of LIC Bima Platinum

LIC Bima Platinum | The Three Key Advantages

Allow us to perceive how the plan works with a easy instance.

Suppose a 35-year-old male opts for LIC Bima Platinum with a Fundamental Sum Assured of ₹10 lakh, a coverage time period of 25 years and a Premium Paying Time period (PPT) of 12 years. He pays an annual premium of ₹1,46,650 for 12 years. Underneath this illustration, the coverage gives three essential advantages throughout and after the premium-paying interval — Assured Additions, Common Revenue Profit and a Booster Revenue Profit, adopted by a maturity profit on the finish of the coverage time period.

1. Assured Additions

LIC gives a Assured Addition of ₹70 per ₹1,000 of Complete Annualized Premium in respect of premiums paid through the Premium Paying Time period.

For instance, in LIC’s pattern illustration, the annual premium is ₹1,46,650. The pattern qualifies for an extra incentive of ₹10 per ₹1,000, making the relevant Assured Addition price ₹80 per ₹1,000.

Subsequently: ₹1,46,650 × ₹80 / ₹1,000 = ₹11,732

So, ₹11,732 will get added every year through the 12-year PPT within the pattern illustration. The entire Assured Additions accrued by maturity are ₹9,15,096. Importantly, these additions are not paid out yearly. They accumulate and type a part of the maturity profit.

2. Common Revenue Profit – 10% of Fundamental Sum Assured

The coverage gives a Common Revenue Profit equal to 10% of the Fundamental Sum Assured.

Within the pattern illustration: Fundamental Sum Assured = ₹10 lakh

Subsequently: Common Revenue = ₹1 lakh per 12 months

For a 25-year coverage with a 12-year PPT, the common revenue is paid from the top of coverage 12 months 12 by way of coverage 12 months 24. Meaning there are 13 annual revenue funds of ₹1 lakh every, totalling: ₹1 lakh × 13 = ₹13 lakh

3. Booster Revenue Profit – 70% of Fundamental Sum Assured

The plan additionally gives a Booster Revenue Good thing about 70% of the Fundamental Sum Assured at a specified coverage anniversary. For the 12-year PPT possibility, the booster is payable on the finish of coverage 12 months 17.

Within the pattern illustration: 70% × ₹10 lakh = ₹7 lakh

Subsequently, in coverage 12 months 17, the policyholder receives:

• Common Revenue = ₹1 lakh
• Booster Profit = ₹7 lakh
• Complete = ₹8 lakh

That is along with the ultimate maturity profit.

LIC Bima Platinum Premium Illustration & Return Calculation

Let’s take LIC’s personal pattern illustration and calculate XIRR;

What does the policyholder get?

Over the 12-year premium-paying interval, the policyholder pays a complete premium of ₹17,59,800. In return, the coverage gives Common Revenue Advantages of ₹13,00,000 over 13 years, a Booster Good thing about ₹7,00,000 in coverage 12 months 17, and a Maturity Good thing about ₹19,15,096 on the finish of the 25-year coverage time period. Subsequently, the entire advantages acquired are ₹39,15,096.

The maturity good thing about ₹19,15,096 includes the Fundamental Sum Assured of ₹10,00,000 plus accrued Assured Additions of ₹9,15,096. The XIRR works out to roughly: 5.27% each year.

Observe: The XIRR can differ barely relying on the precise premium-payment dates and coverage graduation date. The 5.27% determine makes use of the above cash-flow timing assumption.

LIC Bima Platinum – Key Limitations

• Returns are comparatively modest: The pattern illustration provides an XIRR of round 5.27% p.a., which isn’t notably excessive for a 25-year dedication.

• Lengthy-term dedication: The coverage has a 25-year time period with premiums payable for 12 years, requiring a long-term dedication.
• Low liquidity: Although mortgage and give up services can be found, exiting the coverage early might not be financially enticing.
• Complicated money flows: The mixture of Assured Additions, common revenue, booster profit and maturity profit could make the plan look extra enticing than its precise funding return.
• Insurance coverage and funding are bundled: In case your major goal is excessive life cowl or long-term wealth creation, holding insurance coverage and investments separate might provide higher flexibility.

Who Can Think about LIC Bima Platinum?

This plan could also be thought of by traders who:

• Favor assured and predictable advantages over market-linked returns.
• Are snug with a long-term dedication.
• Desire a mixture of insurance coverage and financial savings in a single product.
• Worth common revenue through the later a part of the coverage.
• Perceive that the anticipated return is comparatively modest.
• Are snug holding the coverage till maturity.

For such traders, the understanding of the money flows could also be extra essential than maximising returns.

Who Can Keep away from LIC Bima Platinum?

I might be cautious about this plan in case your main goal is:

• Wealth creation: In case your major objective is long-term wealth creation, an XIRR of round 5.27% p.a. might not be enticing.
• Excessive life insurance coverage cowl: If you happen to want a big life cowl, a pure time period insurance coverage plan could also be extra appropriate.
• Liquidity: If you happen to may have entry to your cash through the coverage time period, a long-term financial savings plan might not be supreme.
• Market-linked development: In case you are snug with market danger and need increased long-term development, market-linked funding choices could also be value contemplating.

Closing Ideas

LIC Bima Platinum gives assured additions, common revenue, a booster profit and maturity proceeds, however the headline advantages shouldn’t be mistaken for prime returns.

In LIC’s pattern illustration, ₹17.60 lakh is paid over 12 years for complete advantages of about ₹39.15 lakh, with an XIRR of round 5.27% p.a.

I might view it primarily as a assured insurance-cum-savings product. For long-term targets and wealth creation, it’s value evaluating with choices resembling PPF and mutual funds, relying in your danger profile and time horizon. For all times cowl, a time period insurance coverage plan may be evaluated individually.

Look past the headline advantages. Calculate the XIRR and evaluate it with options earlier than investing.

Proceed studying:

(Submit first printed on : 03-Sep-2026)

Disclaimer : This text is predicated on restricted info out there as of now. LIC Bima Platinum is predicted to be out there for buy from 7 September 2026, and the small print, illustrations or calculations could also be up to date or edited as required. This text is for instructional functions solely. Please check with the most recent LIC paperwork earlier than investing. Comparable average returns may additionally be seen in conventional insurance coverage merchandise supplied by different life insurers.