LIC Bima Bachat Plan
The New Bima Bachat plan of LIC Life Insurance is a non-linked protection cum savings plan. Here, a lump sum amount as the single premium is paid at the outset of the insurance plan. This is a money-back policy that offers financial protection against the death of the insured during the term of the policy and provides the survival benefits at the mentioned duration during the policy term. Additionally, the single premium is returned on maturity with the Loyalty Addition, if available. Through its loan facility, this plan also offers liquidity benefits to its policyholders.
LIC Bima Bachat Plan – Key Features
The key features of LIC Bima Bachat are:
- It is a LIC Single Premium Policy that comes under LIC Endowment and Savings Traditional policies category.
- This plan offers the money back and has bonus option.
- This plan can be opted for 9 years, 12 years, or 15 years.
- Under this plan, if the insured survives at the end of three years, 15% of the basic sum assured is given as a survival benefit and the plan continues.
- If the insured survives till the end of the policy tenure, then the whole Single Premium with Loyalty Additional provided to him/her by the LIC Bima Bachat as Maturity Benefit and the policy then terminates.
- On the other hand, if the policyholder dies within the tenure of the policy, then the Death Benefit equivalent to the Sum Assured with the Loyalty Addition are given to the nominee.
LIC Bima Bachat Plan – Benefits
The benefits of LIC Bima Bachat are:
- Survival Benefits: The survival benefits are paid as mentioned below:
- For the policy term of 9 years: In this case, 15% of the sum assured at the end of each third and sixth policy year is paid to the insured.
- For the policy of 12 years: In this case, 15% of the sum assured at the end of each third, sixth, and ninth year is paid to the policyholder.
- For the policy term of 15 years: In this case, 15% of the sum assured at the end of each third, sixth, ninth, and twelfth year is paid to the policyholder.
- Death Benefit: There are two conditions under the death benefit clause of the LIC Bima Bachat Plan:
- The death benefit equal to the Sum Assured is given to the nominee of the insured if the insured dies during the first five years of the policy.
- The Sum Assured with Loyalty Benefit (if any) is given to the nominee of the insured if the insured dies after completing five policy years.
- Loyalty Addition: The insured is eligible to get the Loyalty Addition after the insurance policy has completed the tenure of five years.
- Maturity Benefit: If the insured survives till the end of the policy tenure, then the maturity benefit equivalent to Single Premium paid + Loyalty Addition is paid by the LIC Bima Bachat.
- The LIC Bima Bachat plan offers a high sum assured discount.
- The insured can get the income tax benefit under section 80C of the Income Tax Act for paying the premiums for this policy. Forgetting the claims, a tax benefit under section 10 (10D) of the Income-tax Act is provided.
Eligibility for LIC Bima Bachat Plan
A policy seeker must fall under the below eligibility criteria for purchasing the LIC Bima Bachat:
|LIC Bima Bachat Plan|
|Minimum (years)||Maximum (years)|
|Sum Assured (in Rs.)||35, 000||No Upper Limit|
|Mode of Payments||Yearly, Half-Yearly, Quarterly, and Monthly (SSS or ECS)|
LIC Bima Bachat Plan Inclusions
The facility of loan is available against 60% of the surrender value in LIC Bima Bachat.
LIC Bima Bachat Plan Exclusions
The nominee gets only 90% of the sum assured in return if the policyholder dies due to suicide within one year of the policy tenure.
LIC Bima Bachat Plan Specification
|Minimum (Years)||Maximum (Years)|
|Entry Age (Last Birthday)||15||66 Years for PT = 9
63 Years for PT = 12
60 Years for PT = 15
Where PT = Policy Term
|Maturity Age (Last Birthday)||–||75|
|Premium Paying Term (PPT) in years||Single|
|Policy Term (PT) in years||9. 12, and 15 years|
|The frequency of Premium Payment||Single|
|Sum Assured||Rs. 35, 000 for PT = 9
Rs. 50, 000 for PT = 12
Rs. 70, 000 for PT = 15
LIC Bima Bachat Plan – Premium Details
In LIC Bima Bachat plan, the annual premium that is paid is specified in Rupees for a Sum Assured of Rs.1 Lack. The basic premium that an insured has to pay (excluding Tax) is mentioned below:
|Age||The policy of 9 Years||The policy of 12 Years||The policy of 15 Years|
Details of the Policy:
Some of the useful details of the policy are:
- Grace Period: There is no grace period in LIC Bima Bachat as it is a Single Premium policy and there is no requirement of further premium payment.
- Surrender Benefits or Policy Termination: The LIC Bima Bachat plan has surrender benefits. Under this benefit:
- If the insured surrenders his/her policy or ask for its termination within the first year, then 70% of the Single premium that is paid excluding the taxes and the extra premium, if any, will be given to the policyholder.
- From the second year onwards of the LIC Bima Bachat plan, 90% of the Single Premium that is paid excluding the taxes, extra premium, if applicable plus the survival benefits are paid earlier.
- A feature of Free-Look Period: A free-look period is a period during which the insured can cancel the policy if he/she is not satisfied with the coverage provided. The LIC Bima Bachat also provides this facility wherein the insured can cancel the policy within 15 days of receipt of policy documents, provided no claim has been made during this time.
- Required Documents: To get LIC Bima Bachat Plan, an insured has to provide the following set of documents
- An application or proposal form with correct medical history.
- Address proof
- Other KYC documents
Note: In some cases, the medical examination can be required as per the sum assured and the age of the policy seeker.
Key Benefits of LIC Bima Bachat Plan
The key benefits that LIC Bima Bachat offers to its customers are:
- Insurance Cover with Investment Returns: This is the money back policy wherein insurance cover is provided with investment returns. Apart from this, survival and maturity benefits are provided with insurance cover and bonus. Even though there are many investment plans available in the market, but all of them fail in front of this money back insurance policy. This is because; LIC Bima Bachat is one of those plans that provide regular income, insurance cover, bonus, and tax benefits.
- Provides Regular Payouts: With the money back plans like LIC Bima Bachat an insured can expect income at regular intervals that he/she can use to fulfill his/her future aspirations. It can be the down payment for a dream car or paying the fees of higher education of children.
- One Can Expect Returns After A Few Years Only: Unlike other insurance products that provide benefits only at the time of maturity, this money back policy starts giving returns only after a few years of investment. In case of long-term plans, an amount is paid after every few years and the remaining amount is given on maturity. Most of the times, this amount includes a significant portion of the investment and can easily be utilized for short and long-term requirements. In addition to this, the final amount that is given at the time of maturity is greater than these previous payouts. Apart from this, the survival benefit is also given to the insured, if he/she survives. However, if the insured passes away during the policy tenure, then there will not be any survival benefit instead the beneficiary or nominee will get the sum assured and the loyalty bonus amount.
- Tax Savings: The premium that an insured pays for LIC Bima Bachat Plan is eligible to get tax deduction under Section 80C of the Income Tax Act, up to the specific limit as long as the insurance premium is lesser than the 10% of the sum assured.
Some Obligations of LIC Bima Bachat Plan
Some of the rules that every policyholder of LIC Bima Bachat should follow are:
- The LIC Bima Bachat Plan gets the maturity benefits as soon as the investor becomes 75 years.
- This policy provides three choices to its investors depending upon his/her age and requirements – 9, 12, and 15 years. The policy seeker can choose one among these options.
- The minimum sum assured differs with the policy term. For the term of 9 years, a premium of at least Rs. 35, 000 is required. In addition to this, for a term of 12 and 15 years Rs.50, 000 and 70, 000 as premium respectively are needed.
- For ease of use, the LIC Bima Bachat Plan needs a single premium payment only.
- The assured amount should be the multiple of Rs.5000.
LIC Bima Bachat Plan FAQs
What additional benefits does a policyholder get on maturity of this plan?
Answer: If the insured outlives the policy term, then at the time of maturity, a single premium is paid along with the loyalty additions, if available.
When can a policyholder get the benefit of guaranteed surrender value?
Answer: The guaranteed surrender value is available only when a policyholder completes one policy year. This value is equal to the 90% of the single premium paid, excluding the extra premium.
How much insurance cover does an insured get?
Answer: An insured gets the insurance amount that is equal to the sum assured.
What other benefits does an insured get in LIC Bima Bachat Plan?
Answer: It is a money back policy wherein the loan facility is provided. The interest rate is determined by the corporation from time to time. Currently, the interest rate is 9% per annum and is payable half-yearly. This plan also offers other benefits such as the cooling period of 15 days and revival.
How much insurance does an insured get if he/she has already received an installment?
Answer: The insurance cover does not get affected with the installments received by the insured.