Introduction
LIC’s New Bima Bachat is a participating non-linked savings cum protection plan, where premium is paid in lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term. In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.
Table No.
816
Plan Type
Participating Non-Linked Savings cum Protection Plan
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
15 Years
Maximum :
- 9-Year Policy Tenure: 66 Years
- 12-Year Policy Tenure: 63 Years
- 15-Year Policy Tenure: 60 Years
Maturity Age
Minimum
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Maximum
| 75 Years |
Basic Sum Assured
Maximum
- 9-Year Policy Tenure: Rs.35,000
- 12-Year Policy Tenure: Rs.50,000
- 15-Year Policy Tenure: Rs.70,000
Minimum
No Limit
Policy Term
- 9 Years
- 12 Years
- 15 Years
Policy Paying Term
Single Premium
Premium Payment Frequency
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Coverage
Death Benefit
- Death Benefit
- Survival Benefit
- Maturity Benefit
- Loyalty Addition
- Participation In Profit
- Simple Reversionary Bonus
- Final (Additional) Bonus (if any)
Key Features
- A one-time premium is required to buy the plan.
- Money-back benefits are given after every 3 years.
- Loyalty Additions are added depending on the insurer’s business performance.
- Loans can also be taken under the plan for meeting any financial contingency after the plan has completed one year. The loan amount can be upto 60% of the Surrender Value of the plan.
- LIC Bima Bachat is a Single Premium Plan of LIC Endowment & Saving Traditional plans.
- LIC Bima Bachat is a Simple money back plan with bonus option
- LIC Bima Bachat can be taken for a period of 9 years, 12 years or 15 years
- Under LIC Bima Bachat, if the Life Insured is alive at the end of every 3 years, 15% of the Basic Sum Assured is paid as Survival Benefit and the policy continues
- Under LIC Bima Bachat, on survival till the end of the policy tenure, the entire Single Premium paid along with Loyalty Addition would be paid to the policyholder as Maturity Benefit and the policy terminates
- Under LIC Bima Bachat plan, if the life insured dies within the policy tenure, the entire Sum Assured + Loyalty Addition would be paid to the nominee as Death Benefit
Insurance Cover as well as Investment Returns
Helps Plan Course of Life with Regular Payouts
Returns Begin to Accrue After Few Years
Policyholder Receives Full Sum Assured on Maturity
Time Value of Money Higher with a Money Back Policy
Helps Counter Volatility Arising from Market Linked Investments
Bonus at Maturity Increases Overall Payout
Policy Benefits
Death Benefit
- If the insured dies within the first 5 Policy Years, the Nominee would receive the entire Sum Assured, irrespective of the Survival Benefits already paid
- If the insured dies after the first 5 Policy Years, the Nominee would receive the entire Sum Assured, irrespective of the Survival Benefits already paid + Loyalty Addition
Survival Benefit
- For a Policy Term of 9 years – 15% of Sum Assured is payable at the end of 3 and 6 years. A total of 30% of Sum Assured is payable
- For a Policy Term of 12 years – 15% of Sum Assured is payable at the end of 3, 6 and 9 years, a total of 45% of Sum Assured is payable
- For a Policy Term of 15 years – 15% of Sum is payable at the end of 3, 6, 9 and 12 years, a total of 60% of Sum Assured is payable
Maturity Benefit
If the insured survives the entire term of the plan, the Single Premium paid and Loyalty Additions are also paid to the insured. This is called the Maturity Benefit.
Loyalty Addition
Depending on the performance of the company, Loyalty Additions are paid on maturity or death provided that the policy has completed at least 5 years.
Rebate
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Profit Participation
Depending upon the Corporation’s experience the policies shall be participate in the profits and shall be eligible for Loyalty Addition. The Loyalty Addition, if any, is payable on death after completion of five policy years and on policyholder surviving to maturity, at such rate and on such terms as may be declared by the Corporation.
Ideal Plan
This plan is ideal for people who require money at different stages in their life to meet fixed long and short-term financial needs such as buying a car and/or house, international vacations, paying for health expenses, school fees, etc.
Tax Benefits
- Premiums Paid – Only plans which meet the criteria of Sum Assured being greater than 10 times the premiums paid are eligible for tax exemptions. This plan does not meet that criteria. So only a limited part of the single premium paid by you will be tax free. In the above example, Rs. 3,64,415 is the premium for a cover of Rs. 5 lakhs. So only a value of Rs. 50,000 (10% of Rs. 5 lakhs) of the premiums paid will be tax free under Sec 80C
- Maturity Benefits – Since the Premium is more than 10% of the Sum Assured, the benefits accruing under this plan will be taxable
- Death Claims – There is no limit on the amount of claim received and the entire claim would be tax-free.
Loans
Policyholders can avail a loan after the completion of a minimum of 1 policy year. The maximum loan amount permissible is 60% of the surrender value of the policy.
Riders
No additional riders can be purchased by the policyholder in order to increase the protection accorded by the base policy.
Accidental Death and Disability Rider
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Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
- If surrendered within the first year of the plan, 70% of the premium paid is paid back as the surrender value.
- If the plan is surrendered any time after the completion of the first year, 90% of the premium paid is returned as surrender value.
Guaranteed Surrender Value
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Special Surrender Value
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Rebates
Individuals who choose a high sum assured may be eligible to receive a rebate from the insurer.
- 9-Year Policy Tenure: Individuals can claim a rebate upon opting for a sum assured over Rs.75,000.
- 12-Year Policy Tenure: A rebate can be claimed upon opting for a sum assured over Rs.1 lakh.
- 15-Year Policy Tenure: Policyholders can claim a rebate for choosing a sum assured over Rs.1,50,000
Rebate on Premium Payment Mode
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Rebate on Sum Assured
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High Sum Assured and Mode Rebate
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Other Details
Revival Period
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Free Look Period
f the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance.
Grace Period
Not applicable under LIC Bima Bachat as there is no need for further premium payment.
Nomination
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Assignment
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Exclusions
Suicide
If the insured dies due to suicide within 12 months of policy inception only 90% of the single premium paid is refunded.
Claim Process
Death Claim
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Maturity Claim
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Surrender Claim
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Claim Details in LIC New Bima Bachat Plan
How to make a maturity or surrender claim?
A maturity claim is easy to make. The policyholder would have to fill and sign the claim discharge form and submit it to the insurer for availing the maturity benefit along with original policy document, NEFT Mandate Form and age proof if age was not admitted earlier.
In case of surrender, the policyholder should inform the company in writing to avail the surrender value.
How to make a death claim?
In case of a death claim, the nominee should fill up the claim discharge form and submit it to the company along with:
- Original policy document
- NEFT Mandate Form for direct settlement of claim into the nominee’s bank account
- Proof of Title which is the nominee’s Identity Proof
- Proof of Death – death certificate
- Medical treatments availed prior to death
- Proof of age if age was not admitted in the policy
- Police inquest report, newspaper cuttings reporting the accident, copy of driving license for road accidents, post-mortem report, etc. might be required in case of an accidental or unnatural death.
Examples
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FAQs
Does the plan have any riders?
No the plan does not have any additional riders.
What is the rate of Loyalty Additions?
Loyalty Additions are not guaranteed by the insurer. They depend on the insurer’s profit which is dictated by the Insurance company’s market performance.
When can one apply for a loan under the plan?
Once the policy completes one full year since the date of issuance, one can easily apply for a loan under the plan.
Can I cancel the plan any time after I buy it?
Yes, you can cancel/surrender the plan any time after purchasing it but the benefits received would be low. If you cancel within the first 15 days of policy issuance, you are cancelling within the free-look period of the policy and you get the premium refunded after the deductions of minor charges. If you surrender the plan after the first 15 days and within a year of policy issuance, 70% of the single premium is refunded as the Guaranteed Surrender Value. Any time after the completion of the first policy year, 90% of the single premium is returned if the policy is surrendered.
What additional benefits does one get on maturity of a LIC Bima Bachat policy?
A. If the policyholder outlives the duration of the LIC Bima Bachat policy, he/she receives the entire single premium (excluding extra premium) along with loyalty additions, if any, at the time of maturity.
Q. How much insurance does one get under LIC Bima Bachat?
A. The policyholder is insured for an amount equal to the sum assured, clearly stated in the LIC Bima Bachat policy papers.
Q. How much insurance does one get under LIC Bima Bachat plan if one has already received an instalment?
A. Under LIC Bima Bachat, the insurance cover remains the same irrespective of any instalments received.
Q. When does one become eligible for guaranteed surrender value under LIC Bima Bachat policy?
A. The guaranteed surrender value is available only after completion of at least one policy year under LIC Bima Bachat. The value is equal to 90% of the single premium paid (excluding taxes and extra premium).
Q. What other benefits does LIC Bima Bachat insurance policy offer?
A. LIC’s New Bima Bachat is the only money back policy that offers a loan facility. A loan can be availed under LIC Bima Bachat plan any time after completing one policy year. The loan amount will be equal to 60% of the surrender value on the date of sanctioning of loan. The rate of interest for the loan is determined by the corporation from time to time.
This money back insurance policy – LIC Bima Bachat, also offers other benefits like a 15 day cooling off period, grace period in case of late payment of premium and policy revival if premium had not been paid for some time.
Q. Who is eligible for LIC Bima Bachat policy? Are there any other conditions or restrictions under LIC Bima Bachat policy?
A. Any person applying for LIC Bima Bachat policy must be aware of the below mentioned requirements:
- The policy applicant should have completed 15 years and should not be older than 66 years
- LIC Bima Bachat policy matures when the policyholder turns 75 years old
- There is a choice of 3 terms under LIC Bima Bachat policy depending on the age and requirements of the applicant – 9, 12 and 15 years
- Under LIC Bima Bachat, the minimum sum that needs to be assured is Rs. 35,000 (9 yr. term), Rs. 50,000 (12 yr. term) and Rs. 70,000 (15 yr. term). There is no upper limit on this amount.
- It is important to note that the sum assured should be in multiples of Rs. 5,000 only
- LIC Bima Bachat policy requires the policyholder to pay a single premium only
Q. What are the benefits of paying LIC Bima Bachat premium through net-banking / phone-banking?
A. LIC offers its policyholders various benefits including letting them pay their premium through online channels. Some benefits include:
- Freedom to decide and authorise payments – 24 hours a day, 7 days a week because of anytime-anywhere access to internet
- Ability to issue payment instructions from within the confines of home or office – no need to personally visit a LIC branch
- Saves time as one does not have to wait in queues for making payment
- Free service – no charge has to be paid to LIC or its authorised agencies
- Get reminders and alerts by email and SMS from banks and service providers about premium dues of LIC Bima Bachat
- Avoid demand draft/pay order charges (for outstation policy premiums) and postage/courier expenses in sending premium to LIC
Q. Which organisations are authorised to collect LIC Bima Bachat premium through net-banking / phone-banking?
A. The following banks and service providers are authorised to collect premium for LIC Bima Bachat policy.
Authorised Banks:
- HDFC Bank
- ICICI Bank
- Bank of Punjab
- UTI Bank
- Federal Bank
- Corporation Bank
- Citibank
Authorised Service Providers (available in select cities only):
- BillJunction.com
- Timesofmoney.com
- BillDesk.com
Q. What are the important points to be noted for availing this payment facility under LIC Bima Bachat policy?
A. Keep the below points in mind:
- Avoid payment at cash counters once you have successfully registered for premium payment for LIC Bima Bachat through net-banking or phone-banking because there have been instances where payment reminder for the same month has been sent twice.
- Have your current address updated in the LIC Bima Bachat policy records so that renewal premium receipts are sent to the correct postal address
- In case of non-receipt of LIC Bima Bachat renewal premium receipt, premium paid certificate can be collected from the servicing branch of your LIC Bima Bachat policy
- There is a short gap between the debit date in your bank account and the date when the LIC Bima Bachat policy shows updated status post-premium payment