Life Insurance Corporation on September 1 launched two new non-participating, non-linked plans for sale from September 7, 2026: Bima Platinum (Plan 770, UIN 512N397V01) combining savings, guaranteed additions and staged income, and Jeevan Raksha (Plan 894, UIN 512N368V01) as a pure-risk term cover. Chairman R. Doraiswamy launched both on LIC's 70th anniversary, with purchase via agents, corporate agents, brokers, insurance marketing firms or directly on licindia.in. Bima Platinum offers Guaranteed Addition of Rs 70 per Rs 1,000 annual premium during the premium-paying term, a Booster Income Benefit of 70% of Basic Sum Assured if the life survives to five years after the premium term, plus Regular Income of 10% of Basic Sum Assured each year during the payout phase. Minimum Basic Sum Assured is Rs 3 lakh (multiples of Rs 10,000), maximum governed by board-approved underwriting. Jeevan Raksha is pure protection with no bonus or surplus share, fixed death benefit if death occurs in-term, minimum Rs 5 lakh to maximum Rs 24 lakh (Rs 50,000 multiples to Rs 7 lakh, thereafter Rs 1 lakh), entry 18-45 years, maturity 33-60 years, with special rates for women.
Context: LIC's Non-Par Push and the Crowd It Joins
The timing is not isolated. On August 10 LIC launched New Bima Jyoti, also non-par non-linked savings, joining a year where LIC has steadily shifted new business toward non-participating products - 32.49% of individual Annualised Premium Equivalent in Q1 FY27, up from about 15% two years ago, driving VNB margin to 22.9% (up 750bps YoY) and PAT Rs 13,492 crore (+22.8%) while surrender payouts industry-wide hit Rs 2.80 lakh crore (39% of benefits paid, surpassing maturity payouts of 37% per Lok Sabha data August 3). The regulatory backdrop helps: from September 22, 2025 individual life premiums are at 0% GST (down from 18%) under GST 2.0, and IRDAI has simultaneously tightened surrender transparency (Special Surrender Value after one year, discount cap at 10-year G-Sec +50bps). Bima Platinum's structure - limited premium (7,10,12,15,18 years), entry as low as 30 days to age 55 (PPT-dependent), maturity up to 75, plus high-sum-assured rebate and riders - mirrors private peers' guaranteed-income designs, but as a non-par the additions are fixed, not bonus-dependent. Jeevan Raksha's flexibility (single, regular, limited premium) contrasts with the restricted 5-24 lakh ceiling, which for a 30-year-old earning Rs 10 lakh (10-15x income rule = Rs 1-1.5 crore need) would cover only 24% of the benchmark before external term top-up.
Implication: Who Each Plan Suits - and Where It Gaps
For a buyer seeking protection plus forced savings with predictable, market-free returns, Bima Platinum frames clearly: life cover + Rs 70 per Rs 1,000 per year accrued during PPT + 70% BSA booster five years after PPT ends + 10% BSA yearly thereafter until maturity. That headline stack must be converted to internal rate of return on actual premium outgo, net of 0% GST, and compared to a direct term cover plus mutual fund SIP. Because headline percentages reference BSA, not premium, effective yield is materially lower than 7% or 10% suggests - the industry pattern since 2024's non-par shift. Existing LIC policyholders and nominees/beneficiaries of deceased holders get a rebate, reinforcing persistency incentives as IRDAI pushes FCR reporting and KMP pay linkage. For pure protection seekers, Jeevan Raksha is LIC's most straightforward term since Jeevan Utsav single-premium, but the Rs 24 lakh cap and narrow 18-45 entry window limit its role as sole cover; larger families will need to stack it with a marketplace term (Bima Sugam's term module is listed among September-end priorities) or private insurer term up to Rs 1-2 crore. Special rates for women acknowledge mortality differentials, yet waiting to see exact premium tables matters more than the principle. Neither plan shares surplus, so policyholders avoid bonus volatility but also forgo upside if interest rates fall.
Action or Watch-Item: Check From September 7, Don't Pre-Commit
Do not buy on the September 7 opening without a one-page comparison: (1) download both policy wordings from licindia.in and confirm UINs 512N397V01 and 512N368V01; (2) for Bima Platinum, ask the agent to show year-by-year guaranteed additions, booster timing, regular income schedule and total premium paid for your chosen PPT (7-18 years), then compute IRR; (3) for Jeevan Raksha, stress-test the Rs 5-24 lakh band against your human-life-value need and compare premium per lakh with at least two private pure-risk term quotes; (4) verify rider options and exclusion list, and confirm that the proposal form will carry the salesperson's name, mobile and email as mandated from January 1, 2027. If you already bought New Bima Jyoti (August 10), avoid duplication. Group-cover holders should note individual life remains 0% GST while group term still attracts 18%. Comments on the concurrent PIR consultation are due September 30, which will later determine how easily these new LIC policies can be viewed alongside existing covers via a single ID.
Sources: LIC Official Press Release "LIC of India introduces two New Plans: LIC's Bima Platinum (Plan 770 - UIN:512N397V01) & LIC's Jeevan Raksha (Plan 894 - UIN:512N368V01)" dated 01.09.2026 (licindia.in/press-release PDF 737KB, https://licindia.in/documents/d/guest/press-release-new-plans-bima-platinum-and-jeevan-raksha_02092026); Business Standard Sep 2 2026 8:30 AM "LIC's new Bima Platinum, Jeevan Raksha plans: What policyholders must know" with PPT options, entry/maturity ages, BSA multiples and benefit schedule.