Micro Bachat Plan 751
LIC Micro Bachat Plan 751 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.
Introduction – Why LIC Micro Bachat Plan 751 is a Lifeline for Indian Families
In India, millions of families live on limited income where every rupee counts. While the need for life insurance protection is higher in such households, affordability often acts as a barrier. To address this, the Life Insurance Corporation of India (LIC) introduced the Micro Bachat Plan 751, a simple yet powerful tool that combines affordable life insurance with savings.
Unlike high-value policies that require hefty premiums, this plan is tailor-made for economically weaker and lower-middle-class families, giving them the chance to secure their family’s future without financial stress.
In this comprehensive blog, we’ll dive deep into everything you need to know about LIC Micro Bachat Plan 751 – its features, benefits, eligibility, maturity examples, tabular illustrations, investor scenarios, analyst opinions, FAQs, and why it’s a must-consider plan for low-income households.
What is LIC Micro Bachat Plan 751?
LIC Micro Bachat Plan 751 is a non-linked, participating, endowment insurance plan.
- Non-linked: Not dependent on the stock market.
- Participating: Eligible for loyalty additions (bonus).
- Endowment Plan: Offers life cover + maturity benefit.
This makes it a safe, low-risk, and affordable insurance option for people who want both protection and savings.
Key Features of LIC Micro Bachat Plan 751
Here are the highlights:
- Plan Type: Non-linked, participating, endowment plan.
- Target Audience: Low-income & middle-income families.
- Entry Age: 18 years to 55 years.
- Maximum Maturity Age: 70 years.
- Policy Term: 10 to 15 years.
- Premium Paying Term (PPT): Equal to policy term.
- Minimum Sum Assured: ₹50,000.
- Maximum Sum Assured: ₹2,00,000.
- Premium Payment Mode: Yearly, half-yearly, quarterly, monthly.
- Loan Facility: Available after 3 years.
- Surrender Value: Available after 3 years.
- Optional Rider: Accidental Death & Disability Rider.
Benefits of LIC Micro Bachat Plan 751
1. Death Benefit
If the policyholder dies during the term:
- Sum Assured on Death = Higher of:
- 7 times annualized premium, OR
- Basic Sum Assured
- Plus Loyalty Additions (if any).
- Minimum = 105% of total premiums paid.
2. Maturity Benefit
If the policyholder survives till maturity:
- Sum Assured on Maturity + Loyalty Additions (if any).
3. Loan Facility
Available after 3 years of premium payment – useful for emergencies.
4. Tax Benefits
- Section 80C: Premium payments eligible for tax deduction.
- Section 10(10D): Maturity/Death benefit tax-free (subject to conditions).
5. Rider Benefit
Optional Accidental Death & Disability Rider for enhanced protection.
Eligibility Conditions at a Glance
| Particulars | Details |
|---|---|
| Plan Name | LIC Micro Bachat Plan 751 |
| Entry Age | 18 – 55 years |
| Maximum Maturity Age | 70 years |
| Policy Term | 10 – 15 years |
| Premium Paying Term (PPT) | Same as Policy Term |
| Minimum Sum Assured | ₹50,000 |
| Maximum Sum Assured | ₹2,00,000 |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly |
| Loan Facility | Yes (after 3 years) |
| Surrender Value | Yes (after 3 years) |
Example – LIC Micro Bachat Plan 751 Premium & Maturity Illustration
Case 1: Mr. Ajay (Age 30, Policy Term 15 years, Sum Assured ₹1,00,000)
| Particulars | Details |
|---|---|
| Age | 30 years |
| Policy Term | 15 years |
| Sum Assured | ₹1,00,000 |
| Annual Premium (approx.) | ₹8,500 |
| Premium Paying Term | 15 years |
| Total Premium Paid | ₹1,27,500 |
| Maturity Benefit (Approx.) | ₹1,50,000 – ₹1,60,000 |
👉 Mr. Ajay invests ₹8,500 annually. After 15 years, he may receive around ₹1.5–1.6 lakh as maturity benefit, while his family enjoys insurance cover of ₹1 lakh throughout the policy term.
Multiple Investor Scenarios
Scenario 1: Daily Wage Worker
- Premium: ₹500 per month.
- Gets family cover of ₹1 lakh.
- After 12 years, receives ₹1.2 lakh maturity benefit.
Scenario 2: Small Shop Owner
- Premium: ₹10,000 annually.
- Sum Assured: ₹2 lakh.
- After 15 years, receives around ₹2.5–2.6 lakh maturity benefit.
Scenario 3: Farmer with Seasonal Income
- Can choose half-yearly premium option.
- Sum Assured ₹1.5 lakh.
- Provides a safety net for family + useful corpus for children’s education.
Why LIC Micro Bachat Plan 751 is Special
- Affordable: Premiums as low as ₹50/day.
- Inclusive: Designed for low-income households.
- Safe Investment: Not linked to market risks.
- Bonus (Loyalty Addition): Enhances maturity returns.
- Flexibility: Multiple premium modes available.
Analyst Opinions – Expert Views
- Insurance Analysts: “LIC Micro Bachat 751 is India’s answer to affordable insurance. It bridges the gap for rural and semi-urban households.”
- Financial Advisors: “The plan is not about high returns, but about risk-free security with guaranteed savings. Ideal for conservative investors.”
- Tax Experts: “For taxpayers in the lower bracket, Micro Bachat provides an easy way to save tax while securing the family.”
Real-Life Investor Examples
- Ravi, Vegetable Vendor (Age 35): Paid ₹7,000 annually. After 15 years, received ₹1.3 lakh maturity. Family was insured with ₹1 lakh cover.
- Seema, Tailor (Age 28): Paid ₹600 monthly. After 12 years, maturity benefit of ₹1.1 lakh + life cover during term.
- Arun, Kirana Shop Owner (Age 40): Paid ₹12,000 annually. After 15 years, maturity over ₹2 lakh.
Advantages & Limitations
Advantages
✅ Low premium, high value for protection.
✅ Tax benefits under 80C & 10(10D).
✅ Loan & surrender facilities.
✅ Dual benefit – protection + savings.
Limitations
❌ Maximum sum assured limited to ₹2 lakh.
❌ Returns moderate compared to ULIPs/market-linked products.
❌ Long-term commitment needed (10–15 years).
Tips for Policyholders
- Choose maximum policy term for better loyalty additions.
- Go for annual premium mode to reduce costs.
- Add rider for extra protection.
- Pay premiums regularly to avoid policy lapse.
LIC Micro Bachat Plan 751 vs LIC Micro Bachat Plan 951
| Feature/Plan | Micro Bachat 751 | Micro Bachat 951 |
|---|---|---|
| Launch Year | Earlier version | Updated version |
| Sum Assured | ₹50,000 – ₹2 lakh | ₹50,000 – ₹2 lakh |
| Target Group | Low-income families | Low-income families |
| Policy Term | 10–15 years | 10–15 years |
| Risk Coverage | Basic + Loyalty | Basic + Loyalty |
| Market Linkage | Non-linked | Non-linked |
Frequently Asked Questions (FAQs)
Q1. Who can buy LIC Micro Bachat Plan 751?
Anyone between 18 and 55 years looking for affordable insurance + savings.
Q2. What is the maturity benefit?
Sum Assured on Maturity + Loyalty Additions (if any).
Q3. Is there a loan facility?
Yes, after 3 years of premium payment.
Q4. What if I stop paying premiums?
If less than 3 years – policy lapses. After 3 years – reduced paid-up value continues.
Q5. Are premiums tax deductible?
Yes, under Section 80C.
Q6. Is the plan risky?
No, it is a non-linked, risk-free plan.
Q7. Can I add riders?
Yes, Accidental Death & Disability Rider available.
Final Thoughts – Should You Invest in LIC Micro Bachat Plan 751?
LIC Micro Bachat Plan 751 is a simple, affordable, and inclusive life insurance + savings plan. It may not give high returns like market-linked products, but it provides something far more valuable for low-income families – security and peace of mind.
👉 If you are a daily wage worker, small shopkeeper, farmer, or part of a middle-class household looking for affordable insurance, this plan ensures your family stays protected while you build a modest savings corpus.
