LIC Bachat Plus
LIC
Bachat Plus (Plan No. 861) is a
newly launched, non-linked, individual life assurance, and savings plan that
offers both protection and investment benefits. This combination gives
financial assistance to the policyholder’s family. The premium for this plan
can be paid as a lump sum (single premium) or as a limited premium with a
5-year premium payment term. The proposer will have two options for “Sum
Assured on Death” for each of these premium payment alternatives.
LIC Bachat Plus
Plan provides an appealing combination of savings and security for the
insured’s family in the event of his or her untimely death before the maturity
period. At the moment of maturity, if the policyholder survives, a lump sum
payment is made.
Read more to
know more about the Bachat Plus policy!
Key Highlights Of LIC
Bachat Plus Plan
|
Launch Date |
15th March 2021 |
|
Plan Number |
861 |
|
UIN |
512N340V01 |
|
Plan Type |
Non-Linked,
Participating, Individual, Life Assurance, Savings Plan |
|
Online Availability |
Yes |
|
Premium Payment Term |
5 Years OR Single |
What Are The Prominent
Features Of LIC Bachat Plus?
Following are
the key features of the LIC Bachat Plus plan:
- Revival Of A Lapsed Policy
It is critical
for policyholders to pay their premiums before the grace period expires in
order to avoid their policy lapses. The insured, on the other hand, has five
years from the date of the first due premium to the date of the plan’s maturity
to resuscitate the lapsed policy.
- Premium Payments
When we talk
about payment of premiums under the LIC Bachat Plus plan, it can be paid in one
lump payment or on an annual, half-yearly, quarterly, or monthly basis or
by salary deductions during the premium paying term.
- Grace Period
Policyholders
of the LIC Bachat Plus plan benefit from a generous grace period. Individuals
who pay premiums on a monthly basis are given a 15-day grace period.
Policyholders who pay their premiums quarterly, semi-annually, or annually are
given a 30-day grace period.
- Loan Facility
The loan
facility is an appealing aspect of the LIC Bachat Plus Plan. The loan
facility for single premium payers will be available after three months from
the policy’s start date. In addition, the loan amount can be as much as 90% of
the surrender value. The loan opportunity for limited premium payers, on the
other hand, will be available only after two years of continuous premium
payment. Depending on the parameters, the loan amount can range from 80% to 90%
of the surrender value.
- Free Look Period
It is possible
that the policyholder is dissatisfied with the policy’s terms and conditions
for a variety of reasons. The insurance can be returned to the company within
15 days for offline sales and 30 days for online purchases in this instance.
Eligibility Criteria
Of LIC Bachat Plus Plan
|
Parameters |
Values |
|
Minimum Entry Age |
90 Days To 40 Years |
|
Maximum Entry Age |
44 To 70 Years |
|
Minimum Maturity Age |
18 Years |
|
Maximum Maturity Age |
65 To 80 Years |
|
Policy Term |
10 To 25 Years |
|
Minimum Basic Sum
Assured |
Rs. 1,00,000 |
|
Maximum Basic Sum
Assured |
No Limit |
What Are The Benefits
Offered By LIC Bachat Plus Plan?
LIC Bachat Plus plan offers a variety of benefits as
discussed below:
- Death Benefit
As part of the two options accessible under each of the
“Single Premium” and “Limited Premium Payment” options, the proposer will have
the option of selecting “Sum Assured on Death.”
|
Death Benefits |
||
|
Single Premium |
Option A |
10 X Tabular Premium
For The Chosen Basic Sum Assured |
|
Option B |
1.25 X Tabular
Premium For The Chosen Basic Sum Assured |
|
|
Limited Premium |
Option 1 |
Higher Of • 10 X (Tabular
Premium For The Chosen Basic Sum Assured) + Modal Loading (If Any); OR • Basic Sum Assured |
|
Option 2 |
Higher Of • 7 X (Tabular
Premium For The Chosen Basic Sum Assured) + Modal Loading (If Any); OR • Basic Sum Assured |
|
- Maturity
Benefit
If an insured person lives to the end of an active policy’s
term, he will be paid the “Sum Assured on Maturity” under the plan. This amount
will be increased if there are any loyalty bonuses. The maturity benefit might
be received in one single sum or over time.
- Loyalty
Addition
If the policy has been in force for five years and all dues
have been paid on time, loyalty additions may be available, depending on the
terms and conditions of the LIC Bachat Plus Plan.
How Does LIC Bachat
Plus Policy Function?
To understand the functioning of the LIC Bachat Plus Plan,
we need to go through an example.
Mr. Aggarwal aged 35 years is looking to invest in the LIC
Bachat Plus Plan with a sum assured of Rs. 1 Lakh, policy term of 25 years, and
premium paying term of 5 years. The approximate annual premium will be Rs.
9,215. The “Loyalty Addition” rate is Rs. 1000 per Rs. 1000 Sum Assured.
If Mr. Aggarwal Survives The Policy
Tenure
Mr. Aggarwal needs to pay Rs. 9215 for 5 years and he will
receive Rs. 2,00,000 as Maturity Benefit on the 26th year, i.e.,
around 6.6%.
|
Year |
Net Cash Flow |
|
1 |
-9215 |
|
2 |
-9215 |
|
3 |
-9215 |
|
4 |
-9215 |
|
5 |
-9215 |
|
6 To 25 |
0 |
|
26 |
2,00,000 (Maturity
Benefit: Sum Assured + Loyalty Addition) |
|
Return |
6.57% |
If Mr. Aggarwal passes away while the insurance is in
effect, his nominee will be eligible to receive a death benefit from the
company, as discussed above in the “Death Benefit”.
Options Benefits
Available Under Bachat Plus Plan
Under LIC Bachat Plus Plan, the following options are
available to the policyholder:
Rider Benefits
Under the plan, the two optional riders are available to the
insured. The payment of additional premium for the optional riders is made at inception
only. The two rider options are:
- Accidental
Death & Disability Benefit Rider: A lump sum payment will be made
in the event of the insured member’s death or disability as a result of an
accident.
- New
Term Assurance Rider: If the insured member dies within the policy’s term,
a benefit equal to the rider amount is payable under this rider.
Settlement Option For Maturity Benefit
Under an in-force and paid-up policy, the “Settlement
Option” under the plan allows you to receive “Maturity Benefit” in
installments over a 5-, 10-, or 15-year term instead of a lump-sum payment.
Option To Take Death Benefit In
Instalment
Under an in-force and paid-up policy, this is an option to
receive “Death Benefit” in installments over a set term of 5 or 10 or 15 years
instead of a lump sum payment.
happy to help.
Thank You,
Team
(Growmore Insurance Point)