LIC Microinsurance Plans

Life Insurance Corporation of India (LIC) Micro Insurance Plans

Micro Insurance plans are specifically catered to provide insurance coverage and meet the financial needs of economically-weaker sections of society. Micro insurance plans usually have a sum assured of Rs.50,000 or less and offer low premium rates, thus making premium payments convenient for policy buyers. The Life Insurance Corporation of India (LIC), one of the premier life insurance firms in India, offers micro insurance plans with attractive benefits to customers.

Benefits of Life Insurance Corporation of India (LIC) Micro Insurance Plans

• Selection of plans: Policy buyers can choose to purchase LIC’s New Jeevan Mangal plan or LIC’s Bhagya Lakshmi plan, based on whichever plan best matches their needs since both policies offer varying benefits.
• Range of Benefits: Under both micro insurance plans that are offered by the insurer, the policyholder or his/her nominee is entitled to receive a maturity benefit/death benefit. In addition, one may also be entitled certain other policy-specific benefits from the insurer.
• Customisable Policy Terms: Since the policy tenure range is quite vast, a policy buyer can opt for a policy term that best suits his/her coverage needs.
• Low Premium Rates: A policy buyer who purchases a micro insurance plan from LIC is provided a risk cover against death. This cover and the applicable benefits are provided at an attractive premium rate.
• Tax Benefits: Lastly, one can also avail tax benefits for premiums paid and benefits received under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

List of Micro Insurance Plans offered by Life Insurance Corporation of India (LIC)

1.LIC’s New Jeevan Mangal Plan

The New Jeevan Mangal Plan from LIC is a protection plan that is offered with an in-built Accident Benefit, thereby providing an additional benefit in case the life assured meets with death due to an accident.

Benefits and Features of LIC’s New Jeevan Mangal Plan

• Flexible Premium Payment options: Under this plan, policyholders have the option of paying their premium as a lump sum amount or in instalments throughout the policy tenure.
• Maturity Benefit: Upon attaining the date of maturity, the policyholder will receive the Maturity Sum Assured, which will amount to the value of all the premiums paid during the policy tenure.
• Death Benefit: If the policyholder meets with an untimely death while the policy is in full force, his/her nominee will receive the ‘Sum Assured on Death’. The value of the ‘Sum Assured on Death’ will vary based on whether it was a regular premium policy or a single premium policy.
• Accidental Death Benefit: If the policyholder meets with an untimely death due to an accident, the nominee will be paid an additional benefit which will be equal to the sum assured amount.
• Low Premium Rates: Premiums for this policy start from Rs.60, under the monthly mode of premium payment, thereby enabling you to receive a comprehensive risk cover at a low cost.
• Flexible Premium Payment Modes: The policyholder can choose to pay the due premiums on an annual, bi-annual, quarterly, or monthly basis. One can also opt to for the single premium mode.
• Surrender Value: Single premium policies can be surrendered any time during the policy tenure. Regular premium policies can be surrendered if one has paid a minimum of 3 years’ premiums. Upon surrendering the policy, the insurer will pay the applicable surrender benefit.
• Policy Term: Policy buyers can choose a policy term between 10 and 15 years for regular premium policies and a policy tenure between 5 and 10 years for single premium policies.
• Sum Assured: One can opt for an optimum sum assured between Rs.10,000 and Rs.50,000, when purchasing the policy.

Plan Name	Entry Age	Maturity Age	Premium
LIC’s New Jeevan Mangal Plan	18 – 55 years	65 years	Starting from Rs.60 (under the Monthly Mode)

2.LIC’s Bhagya Lakshmi Plan

The Bhagya Lakshmi Plan from LIC is a protection-oriented, non-par, limited payment policy which offers policy buyers a range of benefits at a competitive rate.

Features and Benefits of LIC’s Bhagya Lakshmi Plan

• Maturity Benefit: If the life assured survives till maturity of the policy, a sum amounting to 110% of the total premiums paid will be given to the policyholder.
• Death Benefit: If the policyholder succumbs to an untimely death during the policy tenure, the full sum assured will be paid to the nominee.
• Sum Assured Range: When purchasing this policy, one will have to opt for a sum assured between Rs.20,000 and Rs.50,000.
• Flexible Premium Payment Term: Policy buyers can opt for a premium payment term between 5 years and 13 years, when purchasing the policy.
• Rebate: If the policy buyer chooses to pay the due premiums via the yearly or half-yearly mode, he/she can avail a rebate of 2% or 1% on the total premium amount.
• Surrender Benefit: The insurer will pay the Guaranteed Surrender Value or the Special Surrender Value, based on whichever is the higher of the two, if the policyholder decides to surrender the policy.

Why should one opt for an LIC Micro Insurance Plan?

Micro insurance plans from Life Insurance Corporation of India (LIC) are a great way to secure the lives of your dependents, at a low cost. The insurer offers these plans to customers at attractive premium rates and also provides a range of benefits. LIC is one of the leading insurance firms in India and has a pan-India presence. The insurer has also recorded a high claim settlement ratio of 98.33%, for FY 2015-2016.