LIC Bima Platinum (Plan 770) – Review, Benefits & Return Calculation

LIC announced Bima Platinum along with its new pure-risk plan, LIC Jeevan Raksha, on September 1, 2026, as part of its 70th anniversary celebrations. Both plans are expected to be available for purchase from September 7, 2026.

LIC Bima Platinum (Plan 770) is a new non-linked, non-participating individual life insurance savings plan launched by the Life Insurance Corporation of India (LIC). This endowment plan combines life insurance protection with guaranteed additions, regular income benefits, a booster benefit and a maturity benefit.

At first glance, the benefits may look attractive. The plan offers a 10% of Basic Sum Assured regular income, a 70% booster benefit at a specified point, and Guaranteed Additions during the premium-paying period.

But there is an important question that every investor should ask: What is the actual return on the money invested in LIC Bima Platinum?

Instead of looking only at the individual benefit percentages, let us examine the premium, cash flows and calculate the XIRR of LIC’s sample illustration.

Key Features of LIC Bima Platinum

LIC Bima Platinum | The Three Key Benefits

Let us understand how the plan works with a simple example.

Suppose a 35-year-old male opts for LIC Bima Platinum with a Basic Sum Assured of ₹10 lakh, a policy term of 25 years and a Premium Paying Term (PPT) of 12 years. He pays an annual premium of ₹1,46,650 for 12 years. Under this illustration, the policy provides three important benefits during and after the premium-paying period — Guaranteed Additions, Regular Income Benefit and a Booster Income Benefit, followed by a maturity benefit at the end of the policy term.

1. Guaranteed Additions

LIC offers a Guaranteed Addition of ₹70 per ₹1,000 of Total Annualized Premium in respect of premiums paid during the Premium Paying Term.

For example, in LIC’s sample illustration, the annual premium is ₹1,46,650. The sample qualifies for an additional incentive of ₹10 per ₹1,000, making the applicable Guaranteed Addition rate ₹80 per ₹1,000.

Therefore: ₹1,46,650 × ₹80 / ₹1,000 = ₹11,732

So, ₹11,732 gets added each year during the 12-year PPT in the sample illustration. The total Guaranteed Additions accumulated by maturity are ₹9,15,096. Importantly, these additions are not paid out every year. They accumulate and form part of the maturity benefit.

2. Regular Income Benefit – 10% of Basic Sum Assured

The policy provides a Regular Income Benefit equal to 10% of the Basic Sum Assured.

In the sample illustration: Basic Sum Assured = ₹10 lakh

Therefore: Regular Income = ₹1 lakh per year

For a 25-year policy with a 12-year PPT, the regular income is paid from the end of policy year 12 through policy year 24. That means there are 13 annual income payments of ₹1 lakh each, totalling: ₹1 lakh × 13 = ₹13 lakh

3. Booster Income Benefit – 70% of Basic Sum Assured

The plan also provides a Booster Income Benefit of 70% of the Basic Sum Assured at a specified policy anniversary. For the 12-year PPT option, the booster is payable at the end of policy year 17.

In the sample illustration: 70% × ₹10 lakh = ₹7 lakh

Therefore, in policy year 17, the policyholder receives:

• Regular Income = ₹1 lakh
• Booster Benefit = ₹7 lakh
• Total = ₹8 lakh

This is in addition to the final maturity benefit.

LIC Bima Platinum Premium Illustration & Return Calculation

Let’s take LIC’s own sample illustration and calculate XIRR;

What does the policyholder get?

Over the 12-year premium-paying period, the policyholder pays a total premium of ₹17,59,800. In return, the policy provides Regular Income Benefits of ₹13,00,000 over 13 years, a Booster Benefit of ₹7,00,000 in policy year 17, and a Maturity Benefit of ₹19,15,096 at the end of the 25-year policy term. Therefore, the total benefits received are ₹39,15,096.

The maturity benefit of ₹19,15,096 comprises the Basic Sum Assured of ₹10,00,000 plus accrued Guaranteed Additions of ₹9,15,096. The XIRR works out to approximately: 5.27% per annum.

Note: The XIRR can vary slightly depending on the actual premium-payment dates and policy commencement date. The 5.27% figure uses the above cash-flow timing assumption.

LIC Bima Platinum – Key Limitations

• Returns are relatively modest: The sample illustration gives an XIRR of around 5.27% p.a., which is not particularly high for a 25-year commitment.

• Long-term commitment: The policy has a 25-year term with premiums payable for 12 years, requiring a long-term commitment.
• Low liquidity: Though loan and surrender facilities are available, exiting the policy early may not be financially attractive.
• Complex cash flows: The combination of Guaranteed Additions, regular income, booster benefit and maturity benefit can make the plan look more attractive than its actual investment return.
• Insurance and investment are bundled: If your main objective is high life cover or long-term wealth creation, keeping insurance and investments separate may offer greater flexibility.

Who Can Consider LIC Bima Platinum?

This plan may be considered by investors who:

• Prefer guaranteed and predictable benefits over market-linked returns.
• Are comfortable with a long-term commitment.
• Want a combination of insurance and savings in one product.
• Value regular income during the later part of the policy.
• Understand that the expected return is relatively modest.
• Are comfortable holding the policy until maturity.

For such investors, the certainty of the cash flows may be more important than maximising returns.

Who Can Avoid LIC Bima Platinum?

I would be cautious about this plan if your primary objective is:

• Wealth creation: If your main goal is long-term wealth creation, an XIRR of around 5.27% p.a. may not be attractive.
• High life insurance cover: If you need a large life cover, a pure term insurance plan may be more suitable.
• Liquidity: If you may need access to your money during the policy term, a long-term savings plan may not be ideal.
• Market-linked growth: If you are comfortable with market risk and want higher long-term growth, market-linked investment options may be worth considering.

Final Thoughts

LIC Bima Platinum offers guaranteed additions, regular income, a booster benefit and maturity proceeds, but the headline benefits should not be mistaken for high returns.

In LIC’s sample illustration, ₹17.60 lakh is paid over 12 years for total benefits of about ₹39.15 lakh, with an XIRR of around 5.27% p.a.

I would view it mainly as a guaranteed insurance-cum-savings product. For long-term goals and wealth creation, it is worth comparing with options such as PPF and mutual funds, depending on your risk profile and time horizon. For life cover, a term insurance plan can be evaluated separately.

Look beyond the headline benefits. Calculate the XIRR and compare it with alternatives before investing.

Continue reading:

• LIC Policy Returns in 2026: How Much Do LIC Policies Really Return?
• What’s in a Name? The Hidden Truth About Children’s Insurance Plans

(Post first published on : 03-Sep-2026)

Disclaimer : This article is based on limited information available as of now. LIC Bima Platinum is expected to be available for purchase from 7 September 2026, and the details, illustrations or calculations may be updated or edited as required. This article is for educational purposes only. Please refer to the latest LIC documents before investing. Similar moderate returns may also be seen in traditional insurance products offered by other life insurers.