Introduction
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.
Table No.
851
Plan Type
non linked, participating micro insurance plan
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
18 years
Maximum :
55 years (nearer birthday)
Maturity Age
Maximum
70 years (nearer birthday of the insured)
Basic Sum Assured
Maximum
Rs. 50,000
Minimum
Rs. 200,000
The Basic Sum Assured is available in multiples of Rs.5,000
Policy Term
10 to 15 Years
Policy Paying Term
Same as Policy Term
Premium Payment Frequency
yearly,
half-yearly,
quarterly or monthly
Premium Payment Frequency
Following are some of the sample tabular annual premium
rates (exclusive of applicable taxes, if any) per Rs. 1000/-
Basic Sum Assured:
| Age | Policy term 10 years | Policy term 12 years | Policy term 15 years |
| 18 | 85.45 | 68.25 | 51.50 |
| 25 | 85.55 | 68.35 | 51.60 |
| 35 | 85.90 | 68.80 | 52.20 |
| 45 | 87.60 | 70.75 | 54.50 |
| 55 | 91.90 | 75.40 | 59.80 |
Depending on age of life to be assured, Policy Term and Sum
Assured chosen, for annual mode of premium payment, the
premiums may vary from Rs 2,524 p.a. to Rs 17,612 p.a.
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Loyalty Additions
- Auto Cover Benefit
Key Features
- It is a regular premium, non-linked, participating endowment microinsurance plan.
- Any healthy individual with an age group of 18 to 55 years can purchase this plan.
- No medical examination is required for buying this policy.
- This insurance plan offers risk coverage and savings.
- The tenure of this policy is between 10 to 15 Years.
- A Loan can be availed during the policy term after three policy years.
- Optional accidental and disability riders available with this plan.
- Sum assured from Rs.50000 to 2 Lakh.
- Income tax benefits under section 80 C is available for the premium payment.
- The amount received during maturity is tax-free.
- One can purchase multiple LIC Micro Bachat Policies but total coverage cannot exceed 2 Lakh.
Policy Benefits
Death Benefit
- If death occurs within 5 years from the policy date, “Sum Assured on Death “would be paid to the nominee.
- If death occurs after 5 years from the policy date, but before maturity, then “Sum Assured on Death” + Loyalty additions (if any) would be paid to the nominee. Sum Assured on death is highest of the following;
- 10 times of your annualized premiums
- 105% of basic sum assured
- Sum Assured on Maturity.
- Basic Sum Assured or absolute amount assured to be paid on death.
Maturity Benefit
If the life assured survives till maturity and all premiums are paid, then, “Sum Assured on Maturity” + Loyalty Additions (if any) would be paid to the to the life assured. Sum Assured on Maturity is equal to Basic Sum Assured.
Loyalty Addition
According to the insurance company, the pln is eligible for Loyalty Addition, if any, at such rate and on such terms as may be declared by the company itself. IN case of death of the insured or Maturity claim in respect of inforce policies, Loyalty Addition will be payable but only after completing 5 years of policy.
Auto Cover Period
Auto cover period under a paid up policy will be there as specified below. The auto cover period will start from the first unpaid premium and includes the Grace Period as well. The applicable duration of Auto Cover will be:
- If at least three full years’ but less than five full years’ premiums have been paid and any subsequent premium is not duly paid: Auto Cover Period of six months will be there.
- If at least five full years’ premiums have been paid under a policy and any subsequent premium is not paid: Auto Cover Period of two years shall be available.
Ideal Plan
This plan is ideal for those who looking for all benifits but have low income.
Tax Benefits
You will also get income tax deduction under section 80C on the premium payments.
Loans
The insured can avail loan during the policy term after completing 3 years of plan and subject to the terms and conditions as the corporation may specify from time to time. The maximum loan as a percentage of surrender value shall be as under:
- For inforce policies – upto 70%
- For paid-up policies – upto 60%
Riders
Accidental Death and Disability Rider
- The rider can be opted for any time within the premium paying term of the base plan provided the outstanding
premium payment term is atleast 5 years. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. - The premium for LIC’s Accidental Death & Disability Benefit Rider or LIC’s Accident Benefit Rider shall not exceed 100% of premium under the base plan. Rider Sum Assured cannot exceed the Basic Sum Assured.
Accident Benefit Rider
The rider can be opted for any time within the premium paying term of the base plan provided the outstanding
premium payment term is atleast 5 years. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan.
Surrender Value
Guaranteed Surrender Value
The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied
by the Guaranteed Surrender Value factor applicable to total premiums paid under the policy. These Guaranteed
Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered and are specified as below.
Special Surrender Value
The Special Surrender Value shall be determined by the Corporation from time to time subject to prior approval of IRDAI.
Rebates
Rebate on Premium Payment Mode
| Yearly mode | 2% of Tabular Premium |
| Half-yearly mode | 1% of Tabular premium |
| Quarterly Mode | NIL |
| Monthly Mode | In case of Monthly mode additional 3% of tabular premium shall be charged. |
Rebate on Sum Assured
Write down here
High Sum Assured and Mode Rebate
| Basic Sum Assured (BSA) | Rebate (Rs.) |
| Rs 50,000 to Rs 1,45,000 | Nil |
| Rs 1,50,000 to Rs 1,95,000 | Rs 1.50‰ Basic Sum Assured |
| Rs 2,00,000 | Rs 2.00‰ Basic Sum Assured |
Other Details
Revival Period
15 days
Free Look Period
15 days
Grace Period
30 days
Nomination
Write down here
Assignment
Write down here
Exclusions
Suicide
- If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim except for 80% of the premiums paid, provided the policy is inforce.
- If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value as available on the date of death, shall be payable. The Corporation will not entertain any other claim. This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policy.
Claim Process
Death Claim
Write down here
Maturity Claim
Write down here
Surrender Claim
Write down here
Examples
Write down here
FAQs
1. Which organizations are authorized by LIC to collect premiums through their net-banking/phone-banking facility?
Authorized Banks: HDFC Bank, ICICI Bank, Bank of Punjab, UTI Bank, Federal Bank, Corporation Bank, and Citibank. Authorized Service Providers (available only in select cities): BillJunction.com, Timesofmoney.com, and BillDesk.com.
2. When can I pay the insurance premiums?
After the confirmation of the registration, LIC will rend the bills/invoices mentioning the due dates, premium amount, late fees, validity date, etc to the service provider/bank. As and when premium becomes payable under the registered policy, LIC sends the bills to the bank/service provider, and the information will be displayed by the bank/service provider in your net-banking account page.
3. Can I avail the claim form online?
Yes with the help of the LIC’s website, you can avail the claim form easily. All you have to do is visit the site, click on the claim forms and download the same.
4. If I apply for a loan with this policy what would be the interest rate.
If you go for the policy loan then the interest rate for the same would be around 10.42 percent per annum. In case of an in-force policy, 70 percent of loan can be availed on the total premium paid. While in case of a paid-up policy, loan for a 60 percent amount can be availed.
5. I am a 35-year-old person, if I take a 15-year policy with a sum assured of Rs. 1 lakh, then what will be the annual premium.
For a 35 years old person and sum assured of Rs 1 lakh with the 15-year policy the annual premium will be Rs. 5116.
What are the different benefits with this insurance policy?
With this insurance plan, you will be able to avail maturity benefit, death benefit, Surrender benefit, loyalty addition, loan facility, survival benefit and optional Rider benefits with additional premium as per the terms and conditions of the company.
Which are authorized organizations by LIC to collect the premiums for policy through net banking or phone banking facility?
Authorized Banks:
HDFC Bank, ICICI Bank, Corporation Bank, Bank of Punjab, Federal Bank, UTI Bank, and Citibank. Authorized Service Providers: Timesofmoney.com, BillJunction.com, and BillDesk.com.
When can I make payments for the insurance premium?
After completing and confirming the registration, LIC will send invoices with the details of due date, premium amount, validity date, late fees and more. As per the terms and conditions of the company, you can make the payments for the premium. You can make choice from several online banking options and services to make the payments of your premium for this policy.
Where can I get a claim form for this plan?
It will be easy for the policyholders to get the claim form and you can definitely use the online services for it. You just need to visit the official website of LIC where you can get claim form easily. You can directly download the claim form from the official website of LIC.
Can I avail the loan benefits with this policy? What will be the interest rate for the loan?
Yes, the policyholder will be able to avail the loan facility with this plan. If you are getting a loan with this policy, you will need to pay the interest rate of about 10.42% per annum. In the situation of in-force policy, you may avail 70% of a loan of total paid premium. In the case of paid-up policy, you will be able to avail 60% of the amount for the loan of total paid premiums.
Can I get any additional benefits with Riders with this plan?
Yes, you will get the options of Rider plans with this insurance plan for additional benefits. You can get the benefits of accidental death and disability Rider with this policy. You will need to pay an additional premium to avail the benefits of Rider with this insurance policy.