LIC New Bima Bachat Plan

Most individuals prefer investing their money rather than accumulating at home. So, the safest mode of investment is to take an insurance plan that gives a lot of benefits. Therefore, you can consider the LIC New Bima Bachat Plan that will help you accumulate a lot of funds for your future. You will get loyalty additions that will increase your Sum Assured. On the other hand, you will also get death benefits and maturity benefits in this insurance plan. So, let’s explore the key features of this insurance plan and see how it can be beneficial for you in the future.

Key Features of Bima Bachat Plan

1. It is a Single Premium plan where you will only have to pay the premium once.
2. The minimum age of entry in this plan is 15 Years.
3. You have the flexibility of choosing the Policy Term and the Sum Assured.
4. There is no maximum limit of Sum Assured.
5. You can add riders to this plan.
6. The nominee will get the Death Benefit in case of unfortunate death of the insured.
7. You can take a loan against the policy.

Benefits of Bima Bachat Plan

Here are the benefits of this plan that will help you boost your savings. You will just need to pay a single premium and your savings will grow during the policy term.

Death Benefits

In case of unfortunate death of the insured during the first 5 years, the nominee is entitled to receive the death benefit that will include Sum Assured on death. If the Insured dies after 5 years of the policy term, the nominee will receive Sum Assured on Death plus the loyalty additions. The value of the Death Benefit will be the
highest of the following:-

1. Basic Sum Assured
2. 1.25 times of the single premium

Maturity Benefits

If the insured successfully survives the following durations, he is entitled to receive the following:-

1. 9-year Policy Term- 15% of the Basic Sum Assured at the end of the 3rd Policy Year and 6th Policy Year.
2. 12-year Policy Term- 15% of the Basic Sum Assured at the end of the 3rd, 6th and 9th Policy Year.
3. 15-year Policy Term- 15% of the Basic Sum Assured at the end of 3rd , 6th, 9th and 12th Policy Year.

Sum Assured on Maturity Benefits

If the insured is alive after the expiry of the policy term, he/she is entitled to receive Sum Assured on Maturity plus the loyalty additions. The value of the Sum Assured on Maturity will be the following:-

1. Single-Premium Paid without Taxes
2. Rider’s Premium
3. Extra Premium

Loyalty Additions

The company will pay loyalty additions to the insured at the time of maturity. If the insured dies after 5 years of the policy term and before completing the whole policy term, the nominee will receive the loyalty additions.

Option to Take Death Benefits in Instalments

The company allows you to take the death benefit in installments under the LIC New Bima Bachat Plan. You can take the death benefit in installments for 5, 10  and 15 years. Here are the different minimum amounts for different payment modes.

1. Monthly – INR 5,000
2. Quarterly – INR 15,000
3. Half-Yearly – INR 25,000
4. Yearly – INR 50,000

Rebates on Premiums

You will get a rebate on the premium amount by choosing a high value of the Sum assured. Check the rebate details in the following table:-

Surrender Benefits

You can surrender this policy in case of an emergency and take the surrender value. On surrendering the policy, you will be eligible to receive the following Sum of Money.

1. If you surrender the policy during the 1st year of the policy term, you are entitled to receive 75% of the Single Premium Paid as the surrender value.
2. If you surrender the policy after the completion of 1st year of the policy term, you are entitled to receive 90% of the Single Premium Paid as the surrender value.

Loan Against Policy

If you don’t want to surrender the policy and still need some funds, you can take a loan against the policy from Life Insurance Corporation of India (LIC). But you are allowed to take a loan against the policy only up to 60% of the Surrender Value and the company will start charging interest on the loan amount from the date the loan is sanctioned.

Free-Look Period

In case you don’t like this plan, LIC gives you a time of 15 days to return the policy. This is known as the free look period. You will get a free-look period of 30 days if in case you have purchased the plan online.

Add-on Benefits

You can add some optional benefits to this plan. These benefits will cover some extra risks related to your life. You can explore the riders that you can add to this plan.

1. Accidental Death and Disability Benefit Rider
2. New Term Assurance Rider

LIC New Bima Bachat Plan Eligibility Criteria