LIC Bima Bachat Plan

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The new LIC Bima Bachat Plan is for all those people who would prefer security overspending. It is a single premium participating endowment policy, that is, it is the traditional cash back plan with scheduled payments coupled with the return of the entire premium in addition to loyalty points given at the completion of policy tenure.

LIC Bima bachat – Key details-

  • It is a single premium cash back plan, that is, the lump sum of money is invested in the policy in return for a death benefit.
  • The loyalty addition promised is payable upon maturation of policy or on earlier demise.
  • 15% of the sum assured is returned after three years as a survival benefit (will be elaborated later).
  • Discount is provided on the higher sum assured.
  • Surrender Benefit or Policy Termination: Within the first year of the policy term’s commencement, if the applicant withdraws, 70% of the single premium is returned excluding taxes. If one retreats after the 2nd year launches, then 90% of the single premium is returned.
  • If the policy seems unapproachable for you, the option of canceling the LIC New Bima Bachat Plan within 15 days rests with you
Eligibility Conditions And Restrictions 
Minimum age15 years (Completed)
Maximum age66 years for 9 years term
63 years for 12 years term
60 years for 15 years term
Maximum maturity age75 years
Premium term9 years / 12 years / 15 years
Minimum Sum AssuredRs.35,000 for 9 years term
Rs.50,000 for 12 years term
Rs.70,000 for 15 years term
Maximum Sum AssuredNo limit
Premium paymentSingle premium
LoanEligible after 1st year
SurrenderEligible with immediate effect
On DeathSum Assured (1st five years)
Sum Assured + Loyalty addition (After 5 years)
Income Tax BenefitsPremium paid is eligible for Tax rebate u/s 80c

Advantages Of The LIC New Bima Bachat Plan-

Survival Benefit:
Mentioned earlier under the key details of this policy, this clause under the LIC Bima Bachat Plan ensures that, on survival, 15% of the sum assured is rewarded to the policyholder and the policy resumes.

Loyalty Addition:
After the completion of 5 years since the commencement of the policy term, LIC Bima Bachat Plan announces loyalty points’ addition.

Maturity Benefit:
If the investor survives the entire policy tenure, the entire premium submitted at the beginning of policy term along with the loyalty addition will be returned.

Death Benefit:
If the insured person dies before the conclusion of the policy period, the following events can occur under the LIC Bima Bachat Plan:

  • If the policyholder dies before the end of 5 years of the policy tenure, then only the sum assured is returned to the nominee.
  • If the policyholder dies after the completion of 5 years of the policy tenure, then only the sum assured along with the loyalty addition (if any) is returned to the nominee.
  • As mentioned previously, there is a rebate available for high sum assured
  • As per section 80C, income tax is excused for the premium paid and on the claims received, according to the Income Tax Act.