LIC launches Micro Bachat plan with assured sum of Rs 2 lakh: Check benefits

LIC’s Micro Bachat is a regular premium, non-linked, participating micro-insurance plan which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its loan facility.

For the first time, a micro insurance plan has been launched providing coverage up to Rs 2 lakh. The minimum basic sum assured is Rs 50,000.

This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholders.

A loan can also be availed during the policy term, provided at least 3 full years’ premiums have been paid. In case of an in-force policy, 70 per cent of loan can be availed on the total premium paid. While in case of a paid-up policy, loan for a 60 per cent amount can be availed.

The interest rate for the loan shall remain at 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 insuree will get an income tax deduction under Section 80C on his premium payment.

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This plan is available for standard healthy lives only in the age group of 18-55 years without undergoing any medical examination. However, the maximum age at maturity should be 70 years as per the policy norms.

The premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals over the term of policy. The person will also get a facility to add LIC's Accidental Rider. However, for this, the insuree has to pay the premium separately.

If a person pays the premium for 3 consecutive years, and no premium is paid afterwards, the insurance facility will remain continued for 6 months only. If a premium is paid up to 5 years then the insuree will get a 2-year auto cover. 

In this Micro Bachat plan, there are options to pay premiums for 10 years, 12 years and 15 years. Under this, if a person under the age of 18 years takes a 15-year plan, will have to pay a premium of Rs 51.5 per thousand. 

A 25 year old will have to pay Rs. 51.60 for the same period and Rs. 52.20 per thousand for the 35 year olds. The premium in the 10 year plan would be Rs 85.45 to 91.9 rupees per thousand. 

If a 35 year old person takes a 15 year policy with a sum assured of Rs. 1 lakh, the annual premium value shall be Rs. 5116.