LIC Bima Account I (Plan 805, UIN 512N263V01) was a short-term, non-linked savings plan sold from 2 February 2011 to 24 November 2013. Premiums, after charges, went into a policyholder account earning a guaranteed 6% a year. Terms ran 5 to 7 years. For ₹5 lakh cover at age 30 over 7 years, the premium is about ₹52,500 a year and the estimated maturity is ₹4,43,761.
Bima Account I 805 Premium & Maturity Calculator
Your estimate
account balance at maturity
- Premium per instalment
- ₹52,500
- Total premium paid
- ₹3,67,500
- Total interest
- ₹94,636
- Death benefitsum assured + account balance (final year)
- ₹9,43,761
- Loan you may getafter year 1 (60% of balance)
- ₹31,721
- Age at maturity
- 37 years
- Total premium paid₹3,67,50083%
- Net gain₹76,26117%
Projected policyholder account by year
| Year | Premium paid | Account balance | Death benefit |
|---|---|---|---|
| 1 | ₹52,500 | ₹52,868 | ₹5,52,868 |
| 2 | ₹52,500 | ₹1,08,907 | ₹6,08,907 |
| 3 | ₹52,500 | ₹1,68,309 | ₹6,68,309 |
| 4 | ₹52,500 | ₹2,31,275 | ₹7,31,275 |
| 5 | ₹52,500 | ₹2,98,019 | ₹7,98,019 |
| 6 | ₹52,500 | ₹3,68,768 | ₹8,68,768 |
| 7 | ₹52,500 | ₹4,43,761 | ₹9,43,761 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC Bima Account I Plan 805?
LIC Bima Account I (Plan 805) was one of LIC’s more unusual traditional plans. Instead of bonuses, it worked like a savings account inside an insurance policy. Every premium, after charges, was credited to a policyholder account that earned a guaranteed 6% a year. At the end of the short 5 to 7-year term, you received the account balance.
It was launched on 2 February 2011 (UIN 512N263V01) and withdrawn on 24 November 2013. Its sister plan, Bima Account II (Plan 806), worked the same way but with longer 10 to 15-year terms.
Bima Account I at a glance
| Feature | Details |
|---|---|
| Plan number / UIN | 805 / 512N263V01 |
| Plan type | Non-linked, without-profit savings plan |
| Sold | 2 Feb 2011 to 24 Nov 2013 |
| Entry age | 11 to 50 years |
| Policy term | 5 to 7 years |
| Sum assured | About 10 to 20 times the yearly premium, depending on age |
| Premium modes | Yearly, half-yearly, quarterly, monthly (ECS only) |
| Guaranteed interest | 6% a year (5% if paid-up) |
| Loan | Up to 60% of account balance after 1 year |
| Top-up premiums | Allowed; they add to the account, not the cover |
| Medical exam | Not required |
How the calculator works
Plan 805 prices the premium as a share of the sum assured that rises with age, from about 10% for young entrants to 12.5% near the upper age limit. The calculator then projects the account year by year:
- The yearly premium is worked out from the sum assured and age.
- A charge (default 5% of each premium) is deducted for expenses and mortality. You can change this if your policy statement shows a different figure.
- The remaining amount is credited to the account, which grows at the interest rate you set (6% guaranteed).
- The death benefit each year is the sum assured plus the account balance.
No GST is added: individual life insurance premiums are GST-exempt from 22 September 2025. When this plan was sold, service tax applied instead.
Worked example. A 30-year-old chooses ₹5 lakh cover for 7 years on yearly mode. The premium is ₹52,500 a year, so ₹3,67,500 goes in over the term. At the guaranteed 6%, the account is estimated at ₹4,43,761 at maturity, of which about ₹94,636 is interest. If LIC had credited 7%, the maturity would be about ₹4,61,833.
A shorter case: a 45-year-old with ₹2 lakh cover for 5 years pays ₹2,041 a month. Total premiums come to ₹1,22,460, and the maturity estimate is ₹1,39,030.
Tip: the year-wise table under the calculator shows the account balance each year. That is also roughly what a surrender would have paid, less any surrender charge.
Maturity benefit
On survival to the end of the term, LIC pays the full policyholder account balance: net premiums plus guaranteed interest and any additional interest declared. There is no separate bonus.
Death benefit
If the life assured dies during the term, the nominee receives the sum assured plus the account balance. In our example, the death benefit in the final year would be about ₹9,43,761.
Loan, paid-up and surrender
- Loan: up to 60% of the account balance after the first anniversary. In the 30-year-old example, that is about ₹31,721 after year one.
- Paid-up: if premiums stop after two full years, the policy continues with interest at 5%.
- Termination: if less than two years’ premiums were paid and the policy was not revived in time, it was terminated.
- Surrender: the account balance, less applicable deductions. Check the value with our surrender value calculator.
Tax benefits
Premiums counted under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (old regime). Maturity proceeds were generally tax-free under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)), subject to the premium-to-sum-assured limits that applied when the policy was issued.
Who was it suited to?
Bima Account I suited savers who wanted a short, predictable product with some life cover, no medical test and easy access to cash through a loan. It was not meant for high life cover. For a similar goal today, a traditional plan such as New Endowment Plan 914 or a term plan plus a separate deposit is more common.
How to use this calculator
- Enter age and pick the term.
- Enter the sum assured.
- Choose the premium mode.
- Leave interest at 6% for the guaranteed case.
- Read the maturity value, death benefit, loan and the year-by-year account. All figures are estimates.
Frequently asked questions
What kind of plan is LIC Bima Account I?
It is a non-linked, without-profit savings plan with life cover. Each premium, after expense and mortality charges, is credited to a policyholder account that earns at least 6% a year. The account balance is paid at maturity, and on death the nominee gets the sum assured plus the balance.
Is Bima Account I Plan 805 still sold?
No. LIC launched it on 2 February 2011 and withdrew it on 24 November 2013. With terms of only 5 to 7 years, almost every policy has already matured. The calculator is mainly useful for checking an old payout or understanding how the plan worked.
What interest did Bima Account I guarantee?
The account earned a guaranteed 6% a year while premiums were paid, credited monthly and compounded yearly. LIC could also declare extra interest based on the plan's experience. A paid-up policy earned a guaranteed 5% for the rest of the term.
How much would Bima Account I pay at maturity?
It depends on premiums, charges and interest. As an estimate, a 30-year-old paying ₹52,500 a year for 7 years, with 5% of each premium going to charges, ends with about ₹4,43,761 at 6%. At 7% the figure rises to about ₹4,61,833.
Could I take a loan on Bima Account I?
Yes. After the first policy anniversary, a loan of up to 60% of the policyholder account balance was allowed. It gave liquidity without surrendering the policy.
Was a medical test needed for Plan 805?
No medical examination was required in normal cases, which made the plan quick to buy. The life cover was modest because the sum assured was linked to the premium.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.