LIC Micro Bachat Insurance Plan | Features & Benefits

Life Insurance Corporation (LIC) has launched a new plan, LIC Micro Bachat Insurance Plan. LIC Micro Bachat is a regular premium, non-linked, participating, endowment insurance plan. It is a micro-insurance plan which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount on maturity for the surviving policyholder. In this post, let’s see the features & benefits of LIC Micro Bachat Insurance Plan.

Features of LIC Micro Bachat Insurance Plan

Following are the features of the LIC Micro Bachat Insurance Plan.

1. This is a regular premium, non-linked and participating insurance plan.

2. This plan offers a combination of protection and savings.

3. Any individual can purchase this plan who is in the age group of 18 to 55 years.

4. Standard healthy lives can purchase this plan without undergoing a medical examination.

5. The policy term is between 10 to 15 years.

6. The loan can be availed on this plan during the policy term after 3 policy years.

7. Rebate on premiums for a high sum assured.

8. There are two optional riders available with this plan.

9. Premiums can be paid at yearly, half-yearly, quarterly or monthly intervals.

10. Income tax benefits available for the premium paid under section 80C of income tax act.

Eligibility for LIC Micro Bachat Insurance Plan

Eligibility conditions and other restrictions for this plan are given below.

1. Minimum Basic Sum Assured is Rs. 50,000

2. Maximum Basic Sum Assured is Rs. 2 lakhs

3. Minimum Age at entry is 18 years (completed)

4. Maximum Age at entry is 55 years (nearer birthday)

5. Policy Term is between 10 to 15 years

6. Premium Paying Term is same as policy term

7. Maximum Age at Maturity is 70 years (nearer birthday)

8. Date of commencement of risk is immediately from the date of acceptance of the risk.

Benefits under LIC Micro Bachat Insurance Plan

Following benefits are available under LIC Micro Bachat Insurance Plan

1. Maturity Benefit

If the Life Assured survived till the end of the policy term and all due premiums are paid then Sum Assured on Maturity along with Loyalty Addition (if any) shall be paid.

2. Death benefit

On the death of the policyholder during the policy term provided all due premiums are paid:

a) If death occurs during the first 5 years then Sum Assured on Death shall be paid.

b) If death occurs after completion of 5 policy years but before the maturity then Sum Assured on Death along with Loyalty Addition (if any) shall be paid. Sum Assured on Death is defined as the highest of the following:

1) 10 times of annualised premium

2) Sum Assured on Maturity

3) Absolute amount assured to be paid on death

Note that the death benefit shall not be less than 105% of all the premiums paid as on date of death.

Premium Table LIC Micro Bachat Insurance Plan

Following are some of the sample tabular annual premium rates for every Rs. 1000 sum assured. The premium rates are exclusive of applicable taxes.

Sample premium chart for Rs 1,000/- sum assured

The premium amount may vary from Rs 2,524 p.a. to Rs 17,612 p.a. depending on the age of life assured, policy term and sum assured chosen.

Loan policy under LIC Micro Bachat Insurance Plan

Loan facility is available during the policy term after 3 policy years and subject to terms & conditions. The maximum loan as a % of surrender value would be as under:

1. For inforce policies – up to 70%

2. For paid-up policies – up to 60%

The interest rate to be charged for this loan and as applicable for the entire term of the loan shall be determined at periodic intervals.

Also read: LIC Jeevan Shanti Policy | Guaranteed Pension Plan

Also read: LIC E-Term Plan | Features & Benefits

Also read: LIC Jeevan Utkrash Policy | Features & Benefits

Also read: Pay LIC premium through Net banking | Phone banking

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LIC Micro Bachat Insurance Plan