1. Eligibility:

The plan targets the HNI class with a minimum sum assured value of Rs. 10 lakhs.

2. Features:

1. Policy acquires Paid-up status after 2 years: LIC Bima Shree plan qualifies for paid-up value immediately after the completion of 2 years. As else in the other LIC policies, premiums have to be serviced for three continuous years to yield paid-up value.
2. Loan available after 1 policy year
3. Policy can be surrendered immediately after completion of 2 policy years.
4. Mode of premium payment include yearly, half-yearly, quarterly or monthly.
5. Inbuilt critical illness benefit in which 15 illnesses are included
6. Available rider options- Accident Benefit, Accidental Death and Disability Benefit, Critical Illness rider, New Term Assurance Rider and premium waiver rider.

3. Guaranteed Addition benefit

For the first 5 policy years- Rs. 50 per Rs.1,000 Sum Assured
From the 6th year to premium paying term, the guaranteed addition of Rs.55 per Rs.1,000 Sum Assured is provided.
Loyalty addition is also paid either at policy maturity or death of the policyholder

4.Death benefit:

i) If death of policyholder occurs in first 5 policy years then

Sum Assured on death plus Guaranteed Addition at Rs.50 per Rs.1,000 Sum Assured.

ii) If death happens anytime between 6th policy year and policy maturity then the sum payable is

Sum Assured on death + Guaranteed Addition (for first 5 years Guaranteed Addition will be at Rs.50 per Rs.1,000 Sum Assured and from 6th year onward it will be Rs.55 per Rs.1,000 Sum Assured)+Loyalty Addition.

5. Survival benefit:

If the policyholder survives through the policy term then survival benefit is provided as in the table below:

6. Maturity benefit:

On policy maturity, the remaining basic sum assured value + Guaranteed benefit and loyalty additions are paid.

7. Conclusion:

As the minimum sum assured value for the new money back plan is kept at Rs. 10 lakh, it turns out to be a high cost plan. For a 30 year male, the annual premium is computed to be Rs 70,266. So it's primarily targeted at HNIs

It is to be also factored in that the guaranteed addition feature which LIC's sale force would use for enticing customers is not paid out immediately and instead is paid on policy maturity or death claim.

Loyalty additions accrue only after first 5 policy years and are not paid in an instance when the assured dies during the first 5 policy years.

Considering all this and the return of 5%-6% from the plan over a policy term of 14-20 years, HNIs who hold the view that their life cover is inadequate can surely bet on the product. But do note, you need to chalk out your investment goals at first as in case if you just need to enhance your sum assured value, you will be better off buying a plain term insurance plan.