Investment Plans 3443 views August 10, 2020

LIC Micro Bachat Plan

It is always a wise move to save some part of your monthly income and invest it somewhere. This will help you to enhance your savings and you can utilize the saved funds in your future. But the problem with many individuals is that they are confused among the various investments. So, if you are looking for a small monthly investment then you must explore the LIC Micro Bachat Plan that is a regular premium insurance plan. It is a combination of protection and savings that will give you death benefits and maturity benefits. You will also receive loyalty additions in this insurance plan that will increase your maturity benefits. Let’s explore all other key features of this insurance plan.

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Key features of Micro Bachat Plan

  1. This is a regular premium insurance plan.
  2. This plan is for individuals only.
  3. You will get death benefits and maturity benefits in this insurance plan.
  4. The company will also give you loyalty additions that will increase your maturity benefits.
  5. You can also add riders to this insurance plan to cover more risks.
  6. There is no need for a medical examination in this insurance plan.
  7. 18 years is the minimum age of entry in this insurance plan.
  8. 30 days of the grace period is given if you are unable to pay the premium on the due date.

Benefits of Micro Bachat Policy

You can explore some of the exclusive benefits of this plan and see how it will help to enhance your savings. You must save some part of your income and invest it as a premium in this insurance plan.

Maturity Benefits

If you survive the policy term successfully then you will be entitled to receive the maturity benefits. The value of the maturity benefit will be the Sum Assured at the time of maturity and Loyalty Additions. Your basic sum assured will be sum assured on maturity and it will be decided by you when you are buying the plan.

Death Benefits

If in case the insured dies an unfortunate death during the first five years of the policy term then the nominee will receiver on the Sum Assured on Death. But if the insured dies after five years of the policy term then the company will pay the sum assured on death and the loyalty additions up to the date of the death to the nominee.

The Sum Assured on Death will be the highest of the following:-

  1. 7 Times of the Annualised Premium.
  2. Basic Sum Assured

Loyalty Additions

You will also get loyalty additions in this the micro Bachat Plan. The loyalty additions will increase your maturity amount and in case of death of the insured, the loyalty additions will be paid to the nominee. The company will only give the loyalty additions to the nominee on death if you have paid all the premiums for the first five policy years. No loyalty additions will be given to the nominee if the insured dies within the first five policy years.

Multiple Premium Paying Frequencies

The company gives you various options to make the payment of the premium. You can pay the premium amount as per your convenience on the following basis:-

  1. Monthly
  2. Quarterly
  3. Half-Yearly
  4. Yearly

Premium Rebates

You can also enjoy rebates on the premium as per the paying frequency and the Sum Assured. You can see the rebates below:-

  1. 2% of the tabular premium will be given as a rebate in case of a yearly mode of payment.
  2. 1% of the tabular premium will be given as a rebate in case of a half-yearly mode of payment.

There are also rebates on choosing a high amount of the Sum Assured:-

  1. 1.5% of the Basic Sum Assured will be given as rebate if the amount of the Sum Assured is between Rs.150000 to Rs.195000.
  2. 2% of the Basic Sum Assured will be given as rebate if the amount of the Sum Assured is Rs.200000.

Add Riders to this Plan

You can also enjoy rider benefits in this plan. The company allows you to add riders to the LIC Micro Bachat Plan in order to enjoy more coverage. The rider options available are as follows:-

  1. LIC Accidental Death and Disability Benefits Rider
  2. LIC Accident Benefit Rider

Grace Period

You will also get a grace period of 30 days if you are unable to make the payment of premiums on the due date. 30 days of the grace period is applicable to all the modes of payment whether it is Monthly, Quarterly, Half-Yearly, and Yearly.

Revival of Lapse Policy

If you don’t make the payment of the premium within the grace period then your insurance policy will lapse. But you can revive a lapsed policy by paying all premiums due with applicable interests. The company gives you a time of 5 consecutive years from the date of the first unpaid premium to revive the lapsed policy.

Surrender Benefits

You can also surrender the Micro Bachat policy in case of an emergency and take the surrender value. You can surrender this policy only if you have paid the premiums regularly for 1 year. The company will calculate the surrender value and it will be the highest of the following:-

  1. Special Surrender Value
  2. Guaranteed Surrender Value

Policy Loan

You can also take a policy loan if you don’t want to surrender the policy. But you will have to pay all the premiums for 3 years in order to take the policy loan. The maximum loan amount as per the percentage of the surrender value will be as follows:-

  1. Up to 70% of the Surrender Value for in-force policies.
  2. Up to 60% of the Surrender Value for paid-up policies.

Free Look Period

You will also get a free-look period of 15 days during which you can return the policy if you don’t find it interesting. Sometimes the insured doesn’t find the terms and conditions of the policy suitable so he wants to return the policy. So in such a situation, the company gives you a free-look period of 15 days.

LIC Micro Bachat Plan Eligibility Criteria

ParticularsDetails
Minimum Amount of the Sum AssuredRs.50000
Maximum Amount of the Sum AssuredRs.200000
Minimum Age of Entry18 Years
Maximum Age of Entry55 Years
Minimum Policy Term10 Years
Maximum Policy Term15 Years
Premium Paying TermSame as the Policy Term
Maximum Age of Maturity70 Years

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