LIC's Bima Lakshmi (Plan 881, UIN: 512N389V01) is a non-linked, non-participating, limited premium life insurance savings plan designed exclusively for females. It offers a combination of life cover, guaranteed additions, and periodic survival benefits, with a fixed policy term of 25 years. 

Key Features & Benefits

• Guaranteed Additions: The policy accrues Guaranteed Additions at the end of each policy year at a rate of 7% of the total tabular annual premium paid. These additions are payable upon maturity or earlier death.
• Survival Benefits (Money-Back): Policyholders choose one of three options at inception to receive periodic lump sums during the policy term. The options involve different percentages of the Basic Sum Assured paid at specified intervals:
• Option A: 50% of the Basic Sum Assured is paid at the end of the Premium Paying Term.
• Options B & C: A fixed percentage (e.g., 7.5% every 2 years or 15% every 4 years) of the Basic Sum Assured is paid at specified policy years.
• Policyholders also have the option to defer the receipt of these survival benefits for a period of 5 years.
• Maturity Benefit: On surviving the entire 25-year policy term, the policyholder receives the Basic Sum Assured plus all accrued Guaranteed Additions (minus any survival benefits already paid).
• Death Benefit: In case of the insured's death during the policy term while the policy is in force, the nominee receives the "Sum Assured on Death" plus accrued Guaranteed Additions. The "Sum Assured on Death" is the higher of the Basic Sum Assured or 10 times the annual premium, subject to a minimum of 105% of all premiums paid up to the date of death.
• Optional Riders: The plan offers optional riders for enhanced protection, including:
• LIC's Female Critical Illness Benefit Rider: Covers women-specific critical illnesses and surgeries (e.g., early/major cancer, hysterectomy, pregnancy complications) with a lump sum payout.
• Other riders like Accidental Death & Disability Benefit Rider and New Term Assurance Rider are also available.
• Liquidity & Flexibility:
• A loan facility is available after paying premiums for at least three full years.
• The policy acquires a paid-up value after payment of one full year's premium, meaning reduced benefits continue even if premiums are stopped.
• An auto-cover facility keeps the life cover active for 2 years after paying three full years' premiums, even if subsequent premiums are not paid.
• Maturity and death benefits can be received in installments over 5, 10, or 15 years instead of a lump sum.
• Tax Benefits: Premiums paid may be eligible for deduction under Section 80C, and benefits received may be tax-free under Section 10(10D) of the Income Tax Act, 1961, as per prevailing laws.