LIC Bima Account II (Plan 806) was a non-linked savings plan sold from 2 February 2011 to 24 November 2013. Premiums, after charges, earned a guaranteed 6% a year in a policyholder account over a 10 to 15-year term. For ₹5 lakh cover at age 30 over 15 years, our estimate is ₹24,000 a year in premium and about ₹5,62,534 at maturity.
Bima Account II 806 Maturity & Account Value Calculator
Your estimate
account balance at maturity
- Premium per instalment
- ₹24,000
- Total premium paid
- ₹3,60,000
- Total interest
- ₹2,20,534
- Death benefitsum assured + account balance (final year)
- ₹10,62,534
- Loan you may getafter year 1 (about 60% of balance)
- ₹14,501
- Age at maturity
- 45 years
- Total premium paid₹3,60,00064%
- Net gain₹2,02,53436%
Projected policyholder account by year
| Year | Premium paid | Account balance | Death benefit |
|---|---|---|---|
| 1 | ₹24,000 | ₹24,168 | ₹5,24,168 |
| 2 | ₹24,000 | ₹49,786 | ₹5,49,786 |
| 3 | ₹24,000 | ₹76,941 | ₹5,76,941 |
| 4 | ₹24,000 | ₹1,05,726 | ₹6,05,726 |
| 5 | ₹24,000 | ₹1,36,237 | ₹6,36,237 |
| 6 | ₹24,000 | ₹1,68,579 | ₹6,68,579 |
| 7 | ₹24,000 | ₹2,02,862 | ₹7,02,862 |
| 8 | ₹24,000 | ₹2,39,202 | ₹7,39,202 |
| 9 | ₹24,000 | ₹2,77,722 | ₹7,77,722 |
| 10 | ₹24,000 | ₹3,18,553 | ₹8,18,553 |
| 11 | ₹24,000 | ₹3,61,835 | ₹8,61,835 |
| 12 | ₹24,000 | ₹4,07,713 | ₹9,07,713 |
| 13 | ₹24,000 | ₹4,56,344 | ₹9,56,344 |
| 14 | ₹24,000 | ₹5,07,892 | ₹10,07,892 |
| 15 | ₹24,000 | ₹5,62,534 | ₹10,62,534 |
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 II Plan 806?
LIC Bima Account II (Plan 806) is a non-linked, without-profit savings plan with a simple idea at its core: your premiums, after charges, sit in a policyholder account that earns a guaranteed 6% a year. It was launched on 2 February 2011 together with Bima Account I (Plan 805) and withdrawn on 24 November 2013.
Where Plan 805 was a short 5 to 7-year product, Plan 806 ran for 10 to 15 years. That means some Bima Account II policies are still in force today. If you hold one, the calculator above projects what your account may be worth.
Bima Account II at a glance
| Feature | Details |
|---|---|
| Plan number | 806 |
| Plan type | Non-linked, without-profit savings plan |
| Sold | 2 Feb 2011 to 24 Nov 2013 |
| Entry age | 8 to 60 years |
| Policy term | 10 to 15 years |
| Minimum premium | ₹15,000 a year |
| Sum assured | From 10 times the yearly premium, up to about 30 times at young ages |
| Premium modes | Yearly, half-yearly, quarterly, monthly |
| Guaranteed interest | 6% a year (5% once paid-up) |
| Top-up premium | Minimum ₹1,000 |
| Loan | After the first policy anniversary |
| Surrender | After 3 years’ premiums |
How the premium and account are estimated
The yearly premium comes from a rate per ₹10,000 of sum assured that depends on age and term. Longer terms have a lower rate, and the rate rises after age 35. The calculator then builds the account year by year:
- Premium in, less a charge for expenses and mortality (default 5%, editable).
- Interest at the rate you set, 6% guaranteed.
- Death benefit in any year = sum assured + account balance.
There is no GST to add. Individual life insurance premiums have been GST-exempt since 22 September 2025.
Worked example. A 30-year-old takes ₹5 lakh cover for 15 years on yearly mode. The premium is ₹24,000 a year, so ₹3,60,000 goes in over the term. At 6%, the account is estimated at ₹5,62,534 at maturity, including about ₹2,20,534 of interest. If LIC credits 7% instead, the estimate rises to ₹6,13,048.
A second case: a 40-year-old with ₹3 lakh cover for 10 years, paying monthly, pays ₹1,786 a month. Premiums total ₹2,14,320 and the maturity estimate is ₹2,84,468.
Tip: if your policy is still running, compare the table with your latest LIC statement. If the balance is close, you can trust the maturity estimate; if not, adjust the charge field until it matches.
Maturity benefit
At the end of the term, LIC pays the policyholder account balance: net premiums, guaranteed interest and any additional interest declared, plus the top-up account if you made top-ups. There are no bonuses.
Death benefit
The nominee receives the sum assured plus the account balance at the time of death. In the example above, the death benefit in the final year is about ₹10,62,534.
Loan, paid-up and surrender
- Loan is available after the first anniversary, as a share of the account balance.
- Paid-up: if premiums stop after two full years, the account keeps earning a guaranteed 5%.
- Surrender is allowed after three years’ premiums and pays the account balance less applicable deductions. Our surrender value calculator explains how LIC surrender values work in general.
Tax benefits
Premiums qualified under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) in the old regime. Maturity and death proceeds are generally tax-free under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)), subject to the conditions that applied when the policy was issued.
Should existing policyholders continue?
In most cases, yes. With only a few years left, the guaranteed 6% account is working in your favour, and surrendering early means deductions. If you need cash, a policy loan is usually cheaper than surrender. To see how your total return compares with other options, try our LIC return calculator.
How to use this calculator
- Enter age and the policy term.
- Enter the sum assured (the premium must be ₹15,000 a year or more).
- Pick the premium mode.
- Keep interest at 6% for the guaranteed case.
- Read the maturity value, death benefit and year-wise balance. All figures are estimates.
Frequently asked questions
How does LIC Bima Account II work?
Each premium, after expense and mortality charges, is credited to a policyholder account. The account earns a guaranteed 6% a year while premiums are paid. At maturity you receive the account balance; on death the nominee receives the sum assured plus the balance.
Is Bima Account II Plan 806 still running?
New sales stopped on 24 November 2013. Because terms ran up to 15 years, some policies bought in 2012 and 2013 are still in force and mature between 2025 and 2028. Those policies continue on their original terms.
What was the minimum premium in Bima Account II?
The minimum regular premium was ₹15,000 a year, or the equivalent in half-yearly, quarterly or monthly instalments. Top-up premiums of at least ₹1,000 could be added; they grew the account but did not raise the cover.
What maturity can I expect from Plan 806?
As an estimate, a 30-year-old paying ₹24,000 a year for 15 years, with 5% of each premium going to charges, ends with about ₹5,62,534 at 6%. At 7% it would be about ₹6,13,048. Your actual value depends on LIC's charges and any extra interest declared.
What is the difference between Bima Account I and II?
Both used a guaranteed-interest account. Plan 805 had short 5 to 7-year terms and entry ages of 11 to 50. Plan 806 had 10 to 15-year terms, entry ages of 8 to 60, a ₹15,000 minimum premium and a higher sum-assured multiple for younger ages.
When can I surrender or take a loan on Plan 806?
A loan is available after the first policy anniversary, based on the account balance. Surrender value is available once three years' premiums have been paid. If premiums stop, the policy can continue as paid-up with 5% guaranteed interest.
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.