Insurance is purchased in order to provide financial protection at critical times. If you are looking out for this financial security along with tax savings benefits it just about the right time to take direct your steps to an agent. 'Bima Gold', a money back policy, which was launched, to coincide with LIC's 50th anniversary will come to an end by March 2006. So get going and grab your policy now!

You can avail the benefits of a regular flow of returns through this policy at specified duration. On the maturity of the policy, the policyholder will receive the total amount of premiums (excluding extra/optional rider premiums, if any) paid plus Loyalty Additions, if any, less the amount of survival benefits paid earlier the entire premium paid by the policyholder, which excludes rider premiums. An amount equal to Sum Assured is payable provided the life cover is in force, less the amount already paid out in the intervening years. The minimum sum assured is Rs 40,000. It offers loyalty additions and the auto cover facility is also available in this policy.

In case the life assured survives till the duration of the policy, he enjoys the following benefits- for a policy term of 12 years; he will receive 15% of the Sum Assured under Basic Plan at the end of each 4th & 8th policy year. For policy term 16 years, he will receive 15% of the Sum Assured under Basic Plan at the end of each 4th, 8th &12th policy year and for the policy term of 20 years, he will receive 10% of the Sum Assured under Basic Plan at the end of each 4th, 8th, 12th & 16th policy year.

Auto cover is another extremely useful feature of this policy. According to this feature, the policy continues to remain to be in force upto two years when no premium payments are done. In case the life assured survives till the end of the specified durations, the following benefits shall be payable provided the policy is in full force.

The Accident Benefit Rider will be available as an optional benefit for a premium at the rate of Rs.1 per thousand Accident Benefit Rider Sum Assured. Accident Benefit Rider will be available for an amount not exceeding the Sum Assured under the Basic Plan subject to an overall limit of Rs.50 lakh subject to the conditions specified. On death of the Life Assured during the term of the policy, an amount equal to Sum Assured under the Basic Plan shall be payable provided the life cover is in force.

This policy offers Guaranteed Surrender Value. The amount is paid to the insured when there has been a regular payment of premiums done for atleast three years. The Guaranteed Surrender Value is equal to 30% of the total amount of premiums paid. It excludes the premium for the 1st policy year, all extra premiums paid, the premium paid for Accident Benefit Rider and the amount of survival benefits paid earlier. Loan facility is also available under this plan, which is possible after the policy acquires paid-up value. The rate of interest to be charged for loan amount would be determined from time to time by the Corporation. Presently the rate of interest is 9% p.a. A grace period of one month but not less than 30 days is allowed for the payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums. If you are not satisfied with the "Terms and Conditions" of the policy you can return the policy to within 15 days. This facility is called the 'cooling off' period. Paying arrears of premium together with interest within a period of five years from the due date of first unpaid premium can revive a lapsed policy. But this is subject to the production of satisfactory evidence of continued insurability. The rate of interest applicable will be as fixed by the Corporation from time to time. To make it simpler to understand let us consider an example. Mrs. Subramanium has purchased the policy for a period of 16 years for a Sum Assured of Rs 2, 00,000. She will receive the first installment on the 4th year. This amount will be 15% of the total sum assured i.e. Rs 30, 000. The next installment will be due on the 8th year of the policy where again she will receive a sum of Rs 30, 000. The same procedure will continue for the 12th year. Mrs. Subramanium can avail the accidental benefit rider by just paying an extra of Rs 1 per thousand Accident Benefit Rider Sum Assured. On the maturity of the policy she will receive the balance of the sum assured i.e. the amount remaining after deducting the sum received by her every four years. Apart from this she will receive 'Loyalty Additions' as announced by the corporation i.e. she is eligible to a share of profits that the corporation makes.

For any reason if she is not satisfied with the policy she can return it within 15 days, which is called as the cooling off period. If she is unable to pay the premiums, the policy will continue to be in force for a period of 2 years. This benefit is covered under auto cover benefit. She will get 30% of the total premium paid excluding the first year premium. But this will exclude the premiums paid in the 1st year. On the maturity of the policy, Mrs. Subramanium will get the total premiums paid along with the loyalty additions, which can be treated as bonus. This policy is one of the best polices of LIC. The response has been quite impressive since its launch. You still have time in your hands to get the best of this policy before it gets withdrawn. So rush now!