LIC New Bima Bachat Plan
With a rich history of safeguarding dreams, LIC of India is helping individuals shape their futures through diverse life insurance products. Whether it be LIC term insurance, LIC endowment, LIC child plan, or LIC whole life plan, LIC has an insurance solution for every life stage planning. LIC New Bima Bachat is another example of commitment, offering a unique blend of savings and protection.
What is LIC New Bima Bachat Plan?
LIC New Bima Bachat Plan is a traditional, participating, non-linked, life insurance savings cum protection plan. The plan is a money-back insurance plan with a single premium paying option. Bima Bachat LIC plan offers financial protection to the family of life assured in case of his/her death during the policy term. Also, the Bima Bachat LIC plan provides survival benefits at predefined intervals, and the single premium is returned at the time of maturity, along with the loyalty additions.
Highlights of LIC New Bima Bachat Plan
Bima Bachat LIC plan is for all those individuals who prefer savings and protection benefits under a single plan. To get more detail about the plan, have a look at the key highlights
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Plan Type
-
Premium Payment Mode
Single Premium Payment
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Policy Term
9, 12, 15 years
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Loan
90% of the Surrender Value
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Free Look Period
15 days
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Risk Commencement
Immediately
Eligibility Criteria of LIC New Bima Bachat
The following are the eligibility criteria and restrictions of the LIC New Bima Bachat Plan that an individual must consider before purchasing the plan.
| Particular | Specification |
|---|---|
| Entry Age | 15 - 50 years |
| Maturity Age | 9 years term: 59 years 12 years term: 62 years 15 years term: 65 years |
| Minimum Sum Assured | Rs. 35,000 for term 9 years Rs. 50,000 for term 12 years Rs. 70,000 for term 15 years |
| Maximum Sum Assured | No Limit |
New Bima Bachat LIC Plan Benefits
Buying LIC New Bima Bachat Plan comes up with fair benefits that help secure your life against any risk and provide financial support during fixed intervals and at the policy maturity. Let’s look at the New Bima Bachat benefits in detail:
Death Benefit
In case of the death of the life assured during the policy term, the death benefits are paid to the beneficiaries as
On the death of the life assured during the first five policy years: The beneficiaries receive the Sum Assured on Death.
On the death of the life assured after completing the first five policy years: The beneficiaries receive the Sum Assured on Death along with Loyalty Additions. The Sum Assured on Death is higher of 1.25 times of a single premium or Basic Sum Assured.
Survival Benefit
Under the LIC Bima Bachat Plan, the life assured gets a fixed percentage of the basic sum assured on surviving a specified period during the policy term. This periodic amount is the survival benefit that can be used to fund short-term financial goals.
Survival benefits are payable to the beneficiaries in the following manner.
| Policy Term | Survival Benefit |
|---|---|
| For 9 years policy term | 15% of the Basic Sum Assured at the end of each 3rd and 6th policy year |
| For 12 years policy term | 15% of the Basic Sum Assured at the end of each 3rd, 6th, and 9th policy year |
| For 15 years policy term | 15% of the Basic Sum Assured at the end of each 3rd, 6th, 9th and 12th policy year |
Maturity Benefit
If the life assured survives the policy term, a maturity benefit as the Sum Assured on Maturity is payable along with the loyalty additions. The Sum Assured on Maturity is equal to the single premium paid.
Loyalty Additions
LIC New Bima Bachat Plan participates in the profits made by the LIC of India and is eligible to gain loyalty additions. These loyalty additions are payable on the death benefit (if the death occurred after the completion of 5 policy years) and the maturity benefit.
Tax Benefits
The life assured can avail of tax benefits on the premium paid towards the LIC New Bima Bachat Plan under Section 80C of the Income Tax Act, 1961. Additionally, the benefits received are tax exempted under Section 10 (10D) of the Income Tax Act.
LIC New Bima Bachat Plan Premium Chart
To gain a clear understanding of how the Bima Bachat LIC plan works, have a look at the premium chart. The single premium rates mentioned below are applicable for a Basic Sum Assured of Rs. 1 Lakh for standard lives.
| Age (Nearer Birthday) | Policy Term | ||
|---|---|---|---|
| 9 Years | 12 Years | 15 Years | |
| 15 | Rs. 72,187 | Rs. 74,016 | Rs. 77,155 |
| 25 | Rs. 72,281 | Rs. 74,112 | Rs. 77,270 |
| 35 | Rs. 72,540 | Rs. 74,434 | Rs. 77,680 |
| 45 | Rs. 73,569 | Rs. 75,566 | Rs. 78,925 |
* The above premium rates represented are taken from the sources available on the official website of LIC of India.
Optional Benefits Under LIC New Bima Bachat Plan
Except for the underlying benefits mentioned above, the New Bima Bachat LIC policy also offers a bunch of optional benefits. The policyholder can opt for any of these to enhance their benefits per their suitability. The optional benefits are mentioned as
Optional Rider Benefits
The policyholder can opt for any of the following riders available under the LIC New Bima Bachat Plan by paying an additional premium. These add on riders can be purchased only at the time of policy inception, and benefits covered are available during the policy term.
LIC Accidental Death and Disability Benefit Rider: If this rider is opted for, in case of the accidental death of the life assured, the Accidental death Benefit Sum Assured is paid to the nominee in a lump sum.
In case of accidental disability arising (within 180 days of the accident date), an amount equal to Accident Benefit Sum Assured is paid in equal monthly instalments for 10 years.
LIC New Term Assurance Rider: If this rider is opted for, in case of the death of the life assured during the policy term, an amount equal to the Term Assurance Rider Sum Assured is paid to the nominee.
Settlement Option for Maturity Benefit
The policyholder or the life assured (in case of 18 and above) can choose to receive the full or part of the maturity benefit in instalments equally spread over the period of 5, 10 or 15 years. The minimum instalment amount for different payment modes is as follows
Settlement Option for Maturity Benefit
The policyholder or the life assured (in case of 18 and above) can choose to receive the full or part of the maturity benefit in instalments equally spread over the period of 5, 10 or 15 years. The minimum instalment amount for different payment modes is as follows
| Mode of Instalment Payment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000 |
| Quarterly | Rs. 15,000 |
| Half-yearly | Rs. 25,000 |
| Yearly | Rs. 50,000 |
Option to Receive Death Benefit in Instalments
Under this option, the policyholder or the life assured (in case of 18 above) can opt to receive the full or part of the death benefits in instalments over 5 or 10 or 25 years. The minimum instalment amount for different modes of payment is as follows
| Mode of Instalment Payment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000 |
| Quarterly | Rs. 15,000 |
| Half-yearly | Rs. 25,000 |
| Yearly | Rs. 50,000 |
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Additional Features of LIC New Bima Bachat 916
LIC New Bima Bachat policy has certain features that enhance the flexibility and gains for the policyholder. These features make the Bima Bachat LIC plan a suitable investment option. Let’s look at the features below.
High Sum Assured Rebates
The plan offers rebates/ discounts on the high sum assured selected by the policyholder in the following manner.
| Policy Term | Basic Sum Assured | Rebates |
|---|---|---|
| 9 years | Less than Rs. 75,000 | Nil |
| Rs. 75,000 and less than Rs. 150,000 | 6% | |
| Rs. 150,000 and above | 8% | |
| 12 years | Less than Rs. 100,000 | Nil |
| Rs. 100,000 and less than Rs. 200,000 | 4% | |
| Rs. 200,000 and above | 6% | |
| 15 Years | Less than Rs. 150,000 | Nil |
| Rs. 150,000 and less than Rs. 300,000 | 3% | |
| Rs. 300,000 and above | 5% |
Policy Loan
The policyholder can avail of the loan under LIC New Bima Bachat Plan after paying at least one full year of premium. The loan should be equal to 90% of the surrender value on the date of sanction of the loan.
Surrender Value
The policyholder can surrender the LIC Bima Bachat Policy at any time during the policy year. Once the policyholder surrenders the policy, the LIC of India pays the surrender value higher of
- Guaranteed Surrender Value
- Special Surrender Value
The Special Surrender Value is timely reviewed and determined by the corporation and priorly approved by IRDAI. The Guaranteed Surrender Value payable is determined as
For policy surrender during the first year: 75% of the single premium paid
For policy surrender thereafter:90% of the single premium paid less survival benefits paid (if any).
Free Look Period
A 15-day free look period is offered under the LIC Bima Bachat Plan. During this period, the policyholder can review the terms and conditions, and if they are not satisfied, they can return the policy to LIC of India. They just have to state the reasons for objection, and the corporation shall cancel the policy and return the single premium amount paid after deducting applicable charges.
Exclusions Under New Bima Bachat LIC Plan
New Bima Bachat LIC policy shall be considered void, and no benefits are payable if the life assured commits suicide at any time within 12 months from the date of commencement of risk. Under such circumstances, an amount higher than 90% of the Single Premium paid or Surrender Value on the date of death is payable to the nominee.
Conclusion
Buying the LIC New Bima Bachat Plan protects you against any uncertainties in life. Additionally, you get guaranteed benefits after the definite interval that can be used to fulfil your life stage goals. Upon maturity, you get all the premium paid with the loyalty additions. Meaning you get the dual benefit of protection and savings.
To buy the Bima Bachat LIC Plan, you can contact your nearest LIC branch or a LIC agent. Search for a life insurance agent or LIC agent nearby with the help of RenewBuy Advisor Connect.
Once you purchase LIC New Bima Bachat Plan, you can manage your LIC policy online using LIC e-services. You just have to log in to the LIC customer portal, and you can check LIC policy status, make LIC premium payments, check the LIC policy list, track LIC claim status, etc.
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