LIC Micro Bachat Plan

LIC Micro Bachat is available as a regular premium, non-linked, participating insurance plan where you will get double benefits of Savings and protection with it. This plan is developed to provide financial support to the family in the situation of the unfortunate demise of the insured person during the time of tenure. In the condition of survival of an insured person, there is policy for lump sum amount at the time of maturity of the plan. With this plan, you will also find liquidity because you can avail the loan facility with it.

LIC India launched this plan recently and it is available for the buyers at an affordable price. On the basis of the cost of the plan, you will be able to avail excellent benefits with this policy. You will get its advantages in the situation of that, maturity as well as the surrender after completing 5 years with this policy. You will have to pay full Premium for five years to avail these benefits with this plan. If you are looking for the perfect insurance policy to avail the financial support benefits for family in case of death of policyholder or you want to avail the benefits with lump sum amount on maturity of the plan, you can be the right choice for you.

If you are looking to get a loan facility with this insurance plan, you will have to pay 3 full years premium with this plan. During the activation period of this insurance policy, you can get 70% of the loan of the total paid premium. For this loan, the interest rate will be around 10.42% per annum. As the additional benefit with this plan, you will also get income tax deduction under section 80C on the premium payments. Because of all such great benefits with this plan, it may be the right choice for everyone who is looking for a regular premium non linked insurance policy by LIC.

Benefits Of LIC Micro Bachat Policy

LIC Micro Bachat comes with a bunch of advantages for every policyholder. Here are some of the benefits that you will avail by making choice for this insurance policy by LIC India.

Maturity Benefits

With this insurance policy, the policyholder will get maturity benefits in the case of Survival to the time of the end of policy term. If all the premiums are paid till the time of survival, there will be some assured amount on maturity. It is definitely a big benefit for the financial needs of the policyholder on the time of maturity with this plan.

Death Benefits

As you know, life can be very uncertain and people make choice for insurance policies to provide the financial support to family and all the dependents after any unfortunate that situation. If all the due premiumsare paid then the nominee will get the following death benefits with this insurance plan:

  • In the case of death of policyholder during the first five years, sum assured shall be payable to Nominee.
  • In the situation of the death of policyholder after completing 5 years of policy however before the maturity date, sum assured will be payable.

Death benefits will not be less than 105% of all paid premiums till the date of death of policyholder.

Surrender Benefits

Even if the policyholder wants to surrender the policy, he will be able to avail the benefits. As a policyholder, you will be able to surrender it any time after completing one year of the policy. You have to pay the premium for at least one full year to avail the surrender benefits. In the situation of the surrender of policy, LIC will pay the certain surrender value that will be higher of guaranteed surrender value or even special surrender value.

Loyalty Addition

According to LIC India, this plan is available with loyalty addition. In the case of the demise of policyholder or maturity of the policy, the company will need to declare the terms and rate of the benefits for the policyholder. Loyalty addition will be paid to the policyholder only after completing 5 successful years of the policy.

Loan Facilities

Lots of people want to go for the insurance plan to get loan facility with it. After completing 3 successful years of this policy, you will be able to get a loan as per the terms and conditions of the company. The details about the maximum loan as the percentage of surrender value are given below:

  • For inforce policies – upto 70%
  • For paid-up policies – upto 60%

Auto Cover Period:

Under this plan, the auto cover period will be started from the first unpaid premium and will include Grace period as well. The details of the applicable duration for auto cover are given below:

If the premium for at least three full years are paid but less than five full years then there will be an auto cover period of 6 months.

If minimum of five full years of premiumsare completed by the policyholder then there will be an auto cover period of 2 years.

Revival Benefits

A lapsed policy of insured person can be revived within 2 years from the date of first and paid premium point it is allowed under the terms and conditions before the date of maturity with the policy.

Grace Period

With this plan, you will also get Grace period of one month but it will not be less than 30 days for the payment of premium.

Free Look Period

It is obvious that someone may not be satisfied with the terms and conditions of the policy. In this kind of situation, the policyholder will be able to return the policy to LIC within 15 days from the starting day.

These are the benefits that you will be able to get with LIC micro bachat insurance policy so it is definitely a good option for everyone who is looking for this kind of insurance policy for the better financial future of the family.

Micro Bachat Eligibility Criteria 

If you are also interested in this insurance policy, you can check out the details about the eligibility below:

Minimum Age at entry18 years (completed)
Maximum Age at entry55 years (nearer birthday)
Minimum Basic Sum AssuredRs. 50,000
Maximum Basic Sum Assured per life*Rs. 200,000 The Basic Sum Assured shall be available in multiples of Rs.5,000/-
Premium Paying TermSame as Policy Term
Maximum Age at Maturity70 years (nearer birthday)
Date of commencement of risk:The risk will commence immediately from the date of acceptance of the risk
Premium payment modeYearly, half-yearly, quarterly or monthly intervals over the term of the policy.

 Optional Benefits

With this insurance policy, you will also find two additional benefits in the form of Rider plans. You will need to pay the additional premium to avail these additional/optional benefits with this policy. You can check out the details of these optional Riders below with this plan:

Accidental death and disability benefit rider:

As the policyholder, you will be able to add this Rider anytime within premium paying tenure. In the situation of accidental death or disability of the policyholder, this optional Rider will be beneficial. The policyholder will be able to get accident benefit sum assured as a lump sum with this policy.

Accident Benefit Rider

You can also add this Rider any time within the tenure Period of the plan according to the terms and conditions of this policy. The minimum time of premiums will be five years to avail its benefits with the policy. In case of the accidental death, the nominee will be able to get the advantages of accident benefit rider sum assured with this additional plan.

Sample Premium Rates:

If you want to get the idea of premium rates or basic sum assured with this policy, you can understand it in a better way with the table given below:

AgePolicy term 10 yearsPolicy term 12 yearsPolicy term 15 years
1885.4568.2551.50
2585.5568.3551.60
3585.9068.8052.20
4587.6070.7554.50
5591.9075.4059.80

 

Mode Rebate

Yearly mode2% of Tabular Premium
Half-yearly mode1% of Tabular premium
Quarterly ModeNIL
Monthly ModeIn case of Monthly modean additional 3% of tabular premium shall be charged.

 

High Basic Sum Assured Rebate

 

Basic Sum Assured (BSA)Rebate (Rs.)
Rs 50,000 to Rs 1,45,000Nil
Rs 1,50,000 to Rs 1,95,000Rs 1.50‰ Basic Sum Assured
Rs 2,00,000Rs 2.00‰ Basic Sum Assured

Exclusions With Micro Bachat Policy

When you are going to buy any insurance plan to avail its benefits for your future or family, you should definitely understand all the exclusions as per the terms and conditions of the company. Here are the exclusions with LIC micro bachat policy:

Suicide: The company will not provide the benefits of this policy in the case of suicide of the policyholder.

If the insured person commits suicide within 12 months of this plan, the company will not offer any claim amount to the nominee. However, 80% of all paid premiums will be provided by the company.

In the case of suicide of insured person in 12 months from Revival death, the amount higher than 80% of paid premiums till the date of suicide or surrender value will be provided. The company will not provide any kind of other claims in this situation.

Termination of Policy

If you don’t want to face any kind of situation of termination of your policy, you should definitely understand the following terms of the company. The policy can be automatically and immediately terminated in the situation of the following events:

  • Date of paying of the death benefits
  • Date of the settlement of surrender benefits with the plan
  • On the time of maturity
  • In the situation of default in loan interest payment
  • Expiring two years from the lapse date where the insured person has not revived this policy
  • On the payment of free look cancellation amount

In all these situations, the policy will be terminated according to the terms and conditions of the company.

Required Documents for the Claim

When you are going to claim the benefits of this policy, you will need the following documents to submit for filing the claim:

  • Claim Forms
  • Original Policy Documents
  • Proof of death
  • Neft mandate
  • Proof of title
  • School/college/employer’s certificate
  • Medical treatment before death
  • The proof of age of the insured person

You will need to provide intimation of death with death certificate within 90 days from the death date of the policyholder for filing the claim.

Surrender / Maturity Claim

In the situation of maturity claim, the insured person needs to provide the following documents:

  • Original policy documents
  • A discharge form
  • NEFT mandate from the claimant
  • Proof of age (if age is not admitted earlier)

You may need to provide some of the additional documents as per the terms and conditions of the company so you should discuss the details for the successful claim of your policy.

FAQ’s

What are the different benefits with this insurance policy?

With this insurance plan, you will be able to avail maturity benefit, death benefit, Surrender benefit, loyalty addition, loan facility, survival benefit and optional Rider benefits with additional premium as per the terms and conditions of the company.

Which are authorized organizations by LIC to collect the premiums for policy through net banking or phone banking facility?

Authorized Banks:

HDFC Bank, ICICI Bank, Corporation Bank, Bank of Punjab, Federal Bank, UTI Bank, and Citibank. Authorized Service Providers: Timesofmoney.com, BillJunction.com, and BillDesk.com.

When can I make payments for the insurance premium?

After completing and confirming the registration, LIC will send invoices with the details of due date, premium amount, validity date, late fees and more. As per the terms and conditions of the company, you can make the payments for the premium. You can make choice from several online banking options and services to make the payments of your premium for this policy.

Where can I get a claim form for this plan?

It will be easy for the policyholders to get the claim form and you can definitely use the online services for it. You just need to visit the official website of LIC where you can get claim form easily. You can directly download the claim form from the official website of LIC.

Can I avail the loan benefits with this policy? What will be the interest rate for the loan?

Yes, the policyholder will be able to avail the loan facility with this plan. If you are getting a loan with this policy, you will need to pay the interest rate of about 10.42% per annum. In the situation of in-force policy, you may avail 70% of a loan of total paid premium. In the case of paid-up policy, you will be able to avail 60% of the amount for the loan of total paid premiums.

Can I get any additional benefits with Riders with this plan?

Yes, you will get the options of Rider plans with this insurance plan for additional benefits. You can get the benefits of accidental death and disability Rider with this policy. You will need to pay an additional premium to avail the benefits of Rider with this insurance policy.