LIC’s Micro Bachat Plan (951)

LIC’s Micro Bachat Plan 951 is basically a regular premium, non linked, participating micro insurance plan which offers 2 benefits of protection and savings in one single policy. This policy also offers loan facility provided the premium of 3 years have been paid.

In case of an active insurance plan, 70 percent of loan can be availed on the total premium paid. Whereas, in case of a paid-up policy, a loan of 60 per cent can be availed.

Features of this policy – (Table 951)

1. This is a non-linked and participating insurance plan.
2. People aged between 18 to 55 yrs can take this policy.
3. This policy is a combination of protection + savings.
4. The tenure of the policy is between 10 to 15 years.
5. Loyalty additions after 5 years onwards (provided all insurance premiums are paid).
6. 2 optional rider available in this policy.
7. Loan facility available only after paying 3 years full premium.
8. Income Tax benefit u/s 80C of Income Tax Act,1961.
9. Premium can be paid monthly, quarterly, half yearly and yearly.

Benefits of the policy

A) Death Benefit –

The death benefit payable in case of death of the policyholder before the stipulated maturity date provided the policy is in force shall be as under.

• On death during the first five years: “Sum Assured on Death” will be payable
• On death after completion of five policy years but before Maturity: “Sum Assured on Death” + Loyalty Addition if any.
• Where “Sum Assured on Death” is defined as the highest of –
  • 10 times of annualized premium; or
  • Sum Assured on Maturity as defined in Condition 1B below; or
  • Absolute amount assured to be paid on death, i.e. Basic Sum Assured.

This death benefit shall not be less than 105% of the total premiums paid excluding extra amount if charged under the policy due to underwriting decision and Rider(s) premium, if any, as on date of death.

B) Maturity Benefit –

If the policyholder survives till the end of the maturity period, “Sum Assured on Maturity” + Loyalty Addition, if any, shall be payable provided the policy is in force.. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

C) Rider Benefit –

There are 2 rider benefits under this policy which any policyholder can opt for by paying an additional premium. The policyholder can opt between either of the LIC’s Accidental Death & Disability Benefit Rider) or LIC’s Accident Benefit Rider under this policy.

Eligibility conditions of this policy

LIC’s Micro Bachat Plan (951) with an Example

An example of Suraj who is "LIC jeevan labh plan 936 buy online" with following details.

As per above example, policy holder needs to pay the premium of Rs. 9953/- every year for 15 years (Premium Paying Term) and after completion of 15 years (Policy Term). The benefits (maturity & Year-wise death claims) related to this plan is given below.

Maturity Details

If Policy holder survives 15 years, then Maturity (Sum Assured + Bonus +FAB) will be as under.

Maturity of LIC’s Micro Bachat Plan 951 is available after completion of Policy Term and maturity will be equal to Basic Sum Assured + Loyalty Addition (if any) during the policy term.

 Normal Life Cover = Death Sum Assured + Loyalty Addition (if any).

Accidental Life Cover = Death Sum Assured + Loyalty Addition (if any).

To understand year-wise death claim, suppose death happens in year 2029, by that policy year, total paid premium will be 79624 and Normal Life Cover and Accidental Life Covers will be 200000 and 400000 respectively. Please refer to highlighted row in the above table.

Please Note: Above calculator is developed for helping people to understand this plan and it is based on personal understanding of this plan. Bonus is based on already declared bonus rates of New Endowment Plan (814). FAB is based on declared FAB rate of similar plan group.