LIC’s Micro Bachat Plan (951)

LIC’s Micro Bachat Plan 951 is basically a regular premium, non linked, participating micro insurance plan which offers 2 benefits of protection and savings in one single policy. This policy also offers loan facility provided the premium of 3 years have been paid.

In case of an active insurance plan, 70 percent of loan can be availed on the total premium paid. Whereas, in case of a paid-up policy, a loan of 60 per cent can be availed.

Features of this policy – (Table 951)

1. This is a non-linked and participating insurance plan.
2. People aged between 18 to 55 yrs can take this policy.
3. This policy is a combination of protection + savings.
4. The tenure of the policy is between 10 to 15 years.
5. Loyalty additions after 5 years onwards (provided all insurance premiums are paid).
6. 2 optional rider available in this policy.
7. Loan facility available only after paying 3 years full premium.
8. Income Tax benefit u/s 80C of Income Tax Act,1961.
9. Premium can be paid monthly, quarterly, half yearly and yearly.

Benefits of the policy

A) Death Benefit –

The death benefit payable in case of death of the policyholder before the stipulated maturity date provided the policy is in force shall be as under.

• On death during the first five years: “Sum Assured on Death” will be payable
• On death after completion of five policy years but before Maturity: “Sum Assured on Death” + Loyalty Addition if any.
• Where “Sum Assured on Death” is defined as the highest of –
  • 10 times of annualized premium; or
  • Sum Assured on Maturity as defined in Condition 1B below; or
  • Absolute amount assured to be paid on death, i.e. Basic Sum Assured.

This death benefit shall not be less than 105% of the total premiums paid excluding extra amount if charged under the policy due to underwriting decision and Rider(s) premium, if any, as on date of death.

B) Maturity Benefit –

If the policyholder survives till the end of the maturity period, “Sum Assured on Maturity” + Loyalty Addition, if any, shall be payable provided the policy is in force.. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

C) Rider Benefit –

There are 2 rider benefits under this policy which any policyholder can opt for by paying an additional premium. The policyholder can opt between either of the LIC’s Accidental Death & Disability Benefit Rider) or LIC’s Accident Benefit Rider under this policy.

Eligibility conditions of this policy –

Minimum and Maximum Age at entry 18 yrs (completed) and (55 yrs nearer birthday)	Minimum and Maximum Basic Sum Assured Rs 50,000 and Rs 2 lacs
Maximum Age at Maturity   70 yrs nearer birthday	Tenure of the policy   Between 10 to 15 yrs