The Life Insurance Corporation, or LIC, of India is one of the most popular ways to save money for Indians who want a secured future and yet do not want to take any risk in the fear of losing their hard earned money. Along with bank and post office savings schemes, investing in LIC policy is a go-to way to save money when it comes to getting guaranteed returns without having to take any risk. The LIC, for this reason, comes up with new policies for time to time that can be availed by almost all people across the country. Out of these policies, the LIC Bima Bachat Policy acts as both a savings and protection plan for the policyholder and their family.
What is the LIC Bima Bachat Plan?
LIC’s New Bima Bachat plan is a participating non-linked savings cum protection plan, where premium is paid in lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term. In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility. Under this plan, is alive at the end of every three years, 15 per cent of the Basic Sum Assured is paid as Survival Benefit, and the policy continues.
LIC Bima Bachat Policy: Minimum Sum Assured and Eligibility
LIC Bima Bachat can be taken for nine years, 12 years, or 15 years. Under this plan, the minimum sum assured for nine year policy is Rs 35,000, for a term of 12 years it is Rs 50,000 and for a policy term of 15 years the minimum sum assured is Rs 70,000. There is no limit on the minimum sum assured.
The minimum age at entry is 15 years, while the maximum age at entry is 50 years. The policyholder should be maximum 59,62 and 65 years old at the end of the policy term of nine, 12 and 15 years respectively, under the LIC Bima Bachat policy.
LIC Bima Bachat Plan: Maturity Benefits
On maturity of the LIC Bima Bachat plan, the policyholder is eligible to a payment of the single premium (excluding taxes and extra premium, if any) along with loyalty addition, if any, in case of he or she survives to the end of the policy term. The policyholder can choose to take this payment as lumpsum or in installments over the chosen period of 5 or 10 or 15 years.
The first payment will be made on the date of maturity and thereafter, based on the mode of instalment payment opted for by the policyholder, every month or three months or six months or annually from the date of maturity, as the case may be, the LIC said in its policy description.
LIC Bima Bachat Plan: Death Benefits
If the policyholder dies during the first five policy years, the LIC Bima Bachat plan ensures that his or her family gets paid Sum Assured under the policy. On death of the policyholder after completion of five policy years, his or her family gets Sum Assured along with Loyalty Addition, if any, under the LIC Bima Bachat plan.
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