Micro Bachat Plan 951
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 951 Matters for Every Indian Family
Life in India is full of uncertainties—rising expenses, medical emergencies, and the need to secure family dreams. While many people aspire to buy life insurance, affordability often becomes a barrier. That’s exactly where the LIC Micro Bachat Plan 951 steps in.
This plan is specially designed by the Life Insurance Corporation of India (LIC) to cater to low-income and middle-income families who need affordable life cover along with guaranteed savings. It is a non-linked, participating, endowment insurance plan which means:
- It is not linked to the stock market (safe for conservative investors).
- It offers dual benefits – life protection + lump sum savings at maturity.
- It is highly affordable with premiums starting as low as ₹50 per day (depending on policy term and sum assured).
In this guide, we’ll cover everything you need to know about LIC Micro Bachat Plan 951 – from features, eligibility, benefits, maturity examples, investor scenarios, tabular illustrations, to FAQs and expert insights.
Key Features of LIC Micro Bachat Plan 951
Here are the most important highlights of this plan:
- Plan Type: Non-linked, participating, endowment plan.
- Target Audience: Especially designed for economically weaker and low-income families.
- Entry Age: 18 years to 55 years.
- Maximum Maturity Age: 70 years.
- Policy Term: 10 to 15 years.
- Premium Paying Term (PPT): Same as policy term.
- Minimum Sum Assured: ₹50,000.
- Maximum Sum Assured: ₹2,00,000.
- Premium Payment Mode: Monthly, quarterly, half-yearly, yearly, or through salary deduction.
- Loan Facility: Available after 3 years of premium payment.
- Surrender Value: Available after 3 years.
- Bonus Facility: Eligible for loyalty additions.
Benefits of LIC Micro Bachat Plan 951
1. Death Benefit
In case of the policyholder’s death during the policy term, the nominee receives:
- Sum Assured on Death = Higher of 7 times the annualized premium OR Basic Sum Assured.
- Plus Loyalty Additions (if any).
- Minimum death benefit = 105% of total premiums paid.
2. Maturity Benefit
At the end of the policy term, if the policyholder survives:
- Sum Assured on Maturity + Loyalty Additions (if any).
3. Loan Facility
After paying at least 3 years’ premium, the policyholder can avail loans against the policy.
4. Tax Benefits
- Premium paid eligible for deduction under Section 80C of Income Tax Act.
- Maturity amount/death benefit eligible for tax exemption under Section 10(10D) (subject to conditions).
5. Accidental Death & Disability Rider (Optional)
Policyholder can add rider benefits for enhanced protection.
Eligibility Conditions at a Glance
| Particulars | Details |
|---|---|
| Plan Name | LIC Micro Bachat Plan 951 |
| 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 | Monthly/Quarterly/Half-Yearly/Yearly |
| Loan Facility | Yes (after 3 years) |
| Surrender Value | Yes (after 3 years) |
Example: LIC Micro Bachat Plan 951 Illustration
Let’s understand with a realistic example:
Case 1: Mr. Ramesh (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 (including loyalty additions) |
👉 In this case, Mr. Ramesh pays ₹8,500 annually and at maturity he may get around ₹1.5–1.6 lakh, plus he enjoyed life cover of ₹1 lakh throughout 15 years.
Multiple Investor Scenarios
Scenario 1: Low-Income Worker
- Annual premium affordable at ₹5,000 – ₹6,000.
- Provides family protection if something happens unexpectedly.
- At maturity, creates a small but useful savings corpus.
Scenario 2: Small Shopkeeper
- Can choose ₹2 lakh sum assured with 15-year term.
- Provides risk cover + lumpsum for child’s education or marriage after 15 years.
Scenario 3: Farmer with Seasonal Income
- Can opt for half-yearly premium mode.
- Ensures that income irregularities don’t disrupt insurance cover.
Why LIC Micro Bachat Plan 951 is Unique
- Low Premiums: Tailor-made for economically weaker sections.
- Assured Protection: Even with small savings, family security is assured.
- Savings Habit: Encourages long-term disciplined savings.
- Loyalty Additions: Increases maturity benefit.
- Flexibility in Payment: Different premium modes available.
Analyst Opinions – Expert Insights
- Insurance Analysts say: LIC Micro Bachat Plan 951 is one of the most inclusive insurance plans available in India. It fills the gap for rural and semi-urban households where large premium policies are unaffordable.
- Financial Planners point out: Although the returns are moderate compared to market-linked products, the risk-free and guaranteed nature makes it suitable for conservative investors.
- Tax Experts suggest: For individuals looking for tax benefits under Section 80C, this plan offers dual advantage – insurance + savings.
Investor Examples
- Example 1: A vegetable vendor pays ₹7,000 annually. After 15 years, he receives around ₹1.3 lakh at maturity along with insurance cover during the term.
- Example 2: A daily wage worker pays ₹600 per month. After 12 years, his family receives protection plus a maturity benefit of ₹1.1 lakh+.
- Example 3: A small shop owner pays ₹12,000 annually. After 15 years, maturity benefit crosses ₹2 lakh.
Advantages & Limitations
Advantages
- Affordable premium for low-income groups.
- Life cover + savings in one plan.
- Tax benefits.
- Loan & surrender options.
- Bonus (loyalty additions).
Limitations
- Low sum assured (max ₹2 lakh).
- Returns are moderate (not suitable for high-return seekers).
- Long-term commitment required.
Tips for Policyholders
- Choose the maximum policy term for better loyalty additions.
- Opt for annual mode to reduce premium cost.
- Take optional riders for extra protection.
- Pay premiums regularly to avoid policy lapse.
LIC Micro Bachat Plan 951 vs Other Plans
| Feature/Plan | Micro Bachat 951 | LIC New Endowment 914 | LIC Jeevan Labh 936 |
|---|---|---|---|
| Target Group | Low-income families | Middle-income groups | Middle to high income |
| Sum Assured | ₹50,000 – ₹2 lakh | ₹1 lakh+ | ₹2 lakh+ |
| Policy Term | 10–15 years | 12–35 years | 16–25 years |
| Risk Coverage | Basic + Loyalty Additions | Basic + Bonuses | Basic + Bonuses |
| Premiums | Very low | Medium | Medium to high |
| Returns | Moderate | Higher | Higher |
Frequently Asked Questions (FAQs)
Q1. Who should buy LIC Micro Bachat Plan 951?
Anyone with limited income but wanting insurance + savings should consider this plan.
Q2. What is the minimum and maximum sum assured?
Minimum is ₹50,000 and maximum is ₹2,00,000.
Q3. Does the plan offer loan facility?
Yes, after 3 years of premium payment.
Q4. Are premiums eligible for tax deduction?
Yes, under Section 80C of the Income Tax Act.
Q5. Is this plan market-linked?
No, it is a non-linked plan, meaning it is not affected by stock market fluctuations.
Q6. What happens if I stop paying premiums?
If stopped within 3 years, the policy lapses. After 3 years, a reduced paid-up value continues.
Q7. Does it provide accidental cover?
Yes, with optional rider benefits.
Final Thoughts – Should You Invest in LIC Micro Bachat Plan 951?
The LIC Micro Bachat Plan 951 is not just an insurance plan—it is a financial security net for families who cannot afford high-premium policies. While the sum assured and returns are modest, the peace of mind, affordability, and dual benefit of savings + protection make it highly impactful for rural, semi-urban, and low-income households in India.
👉 If you are looking for a safe, low-cost, no-risk insurance policy that builds savings over time, LIC Micro Bachat Plan 951 is a wise choice.
