The Bima Bachat Plan from Life Insurance Corporation of India (LIC) is a money-back life insurance plan that provides financial security to the life assured and his/her loved ones, by way of the survival benefit payouts. The insurer also offers varying policy term options, and the policy buyer has the flexibility to choose one that best matches his/her needs.
This is a single premium payment policy, and the premium payable will vary according to the policy tenure, sum assured, etc. The life assured and his/her nominees will be eligible to claim tax benefits under the Income Tax Act, 1961.
Eligibility - Who is the LIC Bima Bachat Plan for?
Before this policy was withdrawn by the insurer, individuals between 15 years and 66 years could purchase it. The maturity age for this policy was 75 years.
Sum Assured and Premium Range - What you get and what it costs?
The sum assured is the least amount of money that one is eligible to receive from the insurer. As a policy buyer, you will have to choose an ideal sum assured amount before the commencement of the policy cover.
|Minimum Sum Assured||Rs.20,000|
|Maximum Sum Assured||No limit|
The premium is a fee that the policyholder pays to the insurer when he/she purchases a policy. This is a single premium plan, and thus the premium will have to be paid only at the time of purchasing the policy.
|Policy Tenure||9, 12, or 15 years|
|Premium Payment Mode||Single Premium|
*Premiums vary based on age, location, plan term, and other factors.
Plan Coverage - What the LIC Bima Bachat Plan covers?
|Death Benefit||A life cover, which is equal to the sum assured, is offered on the life of the policyholder.|
|Maturity Benefit||If the policyholder survives till completion of the policy term, the single premium paid with loyalty additions will be paid to him/her.|
Other Key Features – Free-Look Period, Surrender Value, Grace Period, etc.
|Surrender Value||Policies that have been active for at least one year can be surrendered. The insurer will 90% of the premium amount that was initially paid when the policyholder surrenders the policy.|
|Loan||Policyholders can take a loan against this policy.|
|Free-Look Period||A 15-day free-look period is offered to policy buyers. Thus, if the policyholder finds the policy terms and conditions unsatisfactory, he/she can choose to return it during the free-look period.|
|Revival||Policies that have been lapsed can be revived within a certain pre-defined period.|
|Rebate||If the policy buyer opts for a sum assured over Rs.50,000, he/she will be eligible to receive a rebate.|
Tax Benefits – How you can save with the LIC Bima Bachat Plan?
In addition to the many benefits provided by the Bima Bachat Plan, policyholders can also claim tax benefits for the single premium that they paid and the payouts that they receive from the policy, under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Other Features of LIC
Why you should buy the Bima Bachat Plan from the Life Insurance Corporation of India (LIC)?
The Bima Bachat Plan is a money-back insurance policy that provides the life assured survival benefits on certain policy anniversaries, thereby helping him/her meet significant milestones. In addition to this, the policy also provides a life cover and a maturity benefit in case the policyholder survives till the completion of the policy tenure.
Life Insurance Corporation of India (LIC) is a leading Indian insurance firm that was nationalised over 6 decades ago. The company has a pan-India presence, with 2,048 branch offices, 113 divisional offices, 8 zonal offices, and a number of agents present across the country. The insurer has reported an annual claim settlement ratio of 98.31% for FY16-17, and a grievances solved ratio of 100% for the same period. This was one of the highest in the industry.
Note: This plan has been withdrawn by LIC.