LIC New Bima Bachat Plan

Most of the 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 take a look at the LIC New Bima Bachat Plan that will help you to accumulate a lot of funds for your future. You will get loyalty additions in this plan 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 in which 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 limited for choosing the Sum Assured.
5. You can add riders to this plan.
6. The nominee will get Death Benefits 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 to boost your savings. You will just have to pay a single premium in this insurance and it 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 benefits that will include Sum Assured on death If the Insured dies after the 5 years of the policy term then 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 then he is entitled to receive the following:-

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

Sum Assured on Maturity Benefits

After the expiry of the policy term, if the insured is alive then he 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 in case the insured dies after 5 years of the policy term and before completing the whole policy term then the nominee will receive the loyalty additions.

Option to Take Death Benefits in Instalments

The company allows you to take the death benefits in installments in the LIC New Bima Bachat Plan. You can take the death benefits for the time span of 5 years, 10 years, and 15 years. You can take the death benefits in instalments instead of taking the lump sum amount. Here are the different minimum amounts for different payment modes.

1. Monthly Rs.5000
2. Quarterly Rs.15000
3. Half-Yearly Rs.25000
4. Yearly Rs.50000

Rebates on Premium

You will get a rebate on the amount of premium if you choose a high value of the Sum assured. You can see the details of the rebate 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 then 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 then 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 then 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 when the loan is sanctioned.

Free-Look Period

If in case you don’t want this plan then 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

There are some optional benefits in this plan that you can add to this plan. These benefits will cover some extra risks that are 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