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LIC's Micro Bachat Plan is basically a regular premium, non linked, participating micro insurance plan that offers the dual benefits of protection and savings. This plan is designed in a way that can simply offer the needful financial support to the family in case of an unfortunate death of the insured during the tenure and a lump sum amount at the time of maturity for the surviving policyholder. It also takes care of liquidity needs through its loan facility.
It is a newly launched product by the LIC India, that is available at an affordable price. And by seeing the cost of the same, the benefits are great. It will be available in case of maturity, death or surrender if the policy has completed five years and five full years' premium has been paid under the policy.
The plan is great at offering the needful financial support to the family of the insured in case of death of the policyholder and a lump sum amount at the time of maturity for the surviving policyholders.
Under this effective insurance policy, the insured can also availed loan during the policy tenure, provided at least 3 full years' premiums 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, loan for a 60 per cent amount can be availed.
The interest rate for the loan will be around 10.42 per cent p.a. However, a rebate of a month for the payment of premium will be there. As it is a life insurance policy, the policyholder will also get an income tax deduction under Section 80C on his premium payment.
In case where the insured surviving to the end of the policy term and if all due premiums have been paid then the sum assured on maturity along with loyalty additions will be payable.Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
In case of death during the policy term and if all due premiums have been paid:
The death benefit will not be less than 105% of all the premiums paid as on date of death.
The policy can be surrender at any time after 1 successful year of policy. To avail the surrender benefit, the insured must have paid for at least one full policy year. On surrender of the inforce/paid-up policy, LIC will pay the surrender Value which is higher of Guaranteed Surrender Value or Special Surrender Value.
According to the insurance company, the pln is eligible for Loyalty Addition, if any, at such rate and on such terms as may be declared by the company itself. IN case of death of the insured or Maturity claim in respect of inforce policies, Loyalty Addition will be payable but only after completing 5 years of policy.
The insured can avail loan during the policy term after completing 3 years of plan and subject to the terms and conditions as the corporation may specify from time to time. The maximum loan as a percentage of surrender value shall be as under:
Auto cover period under a paid up policy will be there as specified below. The auto cover period will start from the first unpaid premium and includes the Grace Period as well. The applicable duration of Auto Cover will be:
A lapsed policy of the insured can be revived within 2 consecutive years from the date of first unpaid premium or as is allowed under applicable Product Regulations, and before the date of Maturity.
With this plan, the insured will get a grace period of one month but not less than 30 days will be allowed for payment of all modes of premium.
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, then he/she can return the policy to the company in 15 days from the date issuance date stating the reasons of objections.
|Minimum Age at entry||18 years (completed)|
|Maximum Age at entry||55 years (nearer birthday)|
|Minimum Basic Sum Assured||Rs. 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 Term||Same as Policy Term|
|Maximum Age at Maturity||70 years (nearer birthday)|
|Date of commencement of risk:||The risk will commence immediately from the date of acceptance of the risk|
|Premium payment mode||Yearly, half-yearly, quarterly or monthly intervals over the term of policy.|
* The total Basic Sum Assured under all policies issued under this plan for an individual life shall not exceed Rs. 2 lakh.
There are two optional benefits in the form of riders that the insured can avail by paying an additional premium. The insured can choose any rider from the list.
The insured can add this rider anytime within the premium paying tenure of the base plan provided the outstanding premium payment tenure is minimum 5 years. Under this rider, in case of accidental death, the Accident Benefit Sum Assured will be payable as lump sum along with the death benefit.
The insured can add this rider this rider any time within the premium paying term of the base plan provided the outstanding premium payment term is minimum 5 years. If the insured go with this rider then in case of any accidental death, the Accident Benefit Rider Sum Assured will be payable as lump sum along with the death benefit.
Following are some of the sample in tabular form so that you can get an idea about the same (exclusive of applicable taxes, if any) per Rs. 1000/-. Basic sum assured -
|Age||Policy term 10 years||Policy term 12 years||Policy term 15 years|
*According to the age of the insured, Policy Term and Sum Assured chosen, for the annual mode of premium payment, the premiums can vary from Rs 2,524 p.a. to Rs 17,612 p.a.
|Yearly mode||2% of Tabular Premium|
|Half-yearly mode||1% of Tabular premium|
|Monthly Mode||In case of Monthly mode additional 3% of tabular premium shall be charged.|
|Basic Sum Assured (BSA)||Rebate (Rs.)|
|Rs 50,000 to Rs 1,45,000||Nil|
|Rs 1,50,000 to Rs 1,95,000||Rs 1.50‰ Basic Sum Assured|
|Rs 2,00,000||Rs 2.00‰ Basic Sum Assured|
Suicide: - It is not liable to get the cover under the policy.
If the Life Assured (whether sane or insane) commits within the initial 12 months of the policy, then the company will not be liable to offer the claim amount. However, 80% of the premiums paid, provided the policy is inforce.
ii. In case, where the insured (whether sane or insane) commits suicide in 12 months from the date of revival, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value. The company will not entertain any other claim.
Your policy can be immediately and automatically terminate on the earliest occurrence of any of the following events:
Documents that claimant has to submit at the time of filing the claim in case of death of the policyholder are:-
In 90 days from the date of death, an intimation of death along with death certificate must be notified in writing to the company.
In case of maturity claims, the insured have to submit-
In addition to above, any requirement mandated under any statutory provision will require.
1. Which organizations are authorized by LIC to collect premiums through their net-banking/phone-banking facility?
Authorized Banks: HDFC Bank, ICICI Bank, Bank of Punjab, UTI Bank, Federal Bank, Corporation Bank, and Citibank. Authorized Service Providers (available only in select cities): BillJunction.com, Timesofmoney.com, and BillDesk.com.
2. When can I pay the insurance premiums?
After the confirmation of the registration, LIC will rend the bills/invoices mentioning the due dates, premium amount, late fees, validity date, etc to the service provider/bank. As and when premium becomes payable under the registered policy, LIC sends the bills to the bank/service provider, and the information will be displayed by the bank/service provider in your net-banking account page.
3. Can I avail the claim form online?
Yes with the help of the LIC’s website, you can avail the claim form easily. All you have to do is visit the site, click on the claim forms and download the same.
4. If I apply for a loan with this policy what would be the interest rate.
If you go for the policy loan then the interest rate for the same would be around 10.42 percent per annum. In case of an in-force policy, 70 percent of loan can be availed on the total premium paid. While in case of a paid-up policy, loan for a 60 percent amount can be availed.
5. I am a 35-year-old person, if I take a 15-year policy with a sum assured of Rs. 1 lakh, then what will be the annual premium.
For a 35 years old person and sum assured of Rs 1 lakh with the 15-year policy the annual premium will be Rs. 5116.