LIC’s New Bima Bachat Plan is a participating non-linked plan which also provides you cash back policy for your protection against death within the policy term. At specific time durations, there’s also a provision of Survival Benefits during the policy term. The premium of LIC’s New Bima Bachat Plan is to be paid in lump sum at the beginning of the plan. At the time of Maturity, Sum Assured is returned in addition to Loyalty Benefits, if any.
LIC’S New Bima Bachat Plan Benefits :-
Maturity Benefits :
If the policyholder survives till the end of the policy term, he would be paid the Single Premium ( excluding taxes and extra premium, if any) including the Loyalty Addition, if any.
Death Benefits :
If the insured dies within the period of five years of policy term, the nominee would be only be paid the Sum Assured.
If the policyholder dies after the 5 policy years during the policy term, the nominee would be paid Sum Assured plus Loyalty Addition, if any.
Survival Benefits :
There are three terms i.e. 9, 12 and 15 years policy terms as per the age and requirements of the policyholder. Therefore there’ll be three cases if the the insured survives.
If the LIC New Bima Bachat Plan term is of 9 years, the insured would receive 15% of the Sum Assured at the end of each of 3rd and 6th policy year.
If the LIC New Bima Bachat Plan term is of 12 years, the policyholder would receive 15% of the Sum Assured at the end of each 3rd, 6th and 9th policy year.
If the LIC New Bima Bachat Plan term is of 15 years, the insured would receive 15% of the Sum Assured at the end of each 3rd, 6th, 9th and 12th policy year.
Loyalty Benefits :
The rate and terms of the Loyalty Additions are to be declared by the corporation which are payable on the maturity of the policy or on the death of the policyholder on completion of five policy years, if any. These are based on the profits of the corporation.
Loan Benefits :
Insured can avail the loan upto 60% of the the Surrender Value of LIC New Bima Bachat Plan after the completion of one year of policy.
Surrender Benefits :
The 70% of the Premium would be paid back as Surrender Value if the policyholder wants to surrender his policy within the first five years of the policy term and 90% of Surrender Value after the completion of the five years of policy term.
Free-look Period :
LIC New Bima Bachat Plan provides you the period of 15 days if the insured is not satisfied with the policy he can cancel the policy. This period is called Free-look period.
Click on this link to see LIC’s Jeevan Lakshya Features, Benefits, Tax Benfits :- lics-jeevan-lakshya-plan-no-933
Income Tax Benefits :
Some part of the Single Premium paid by the insured would be tax free as per the Section 80C of Income Tax Act.
Procedure of LIC New Bima Bachat Plan
We’ll understand the LIC New Bima Bachat Plan’s procedure with the help of an example:
We assume that Sanket, an Indian who is 25 years old buys the LIC New Bima Bachat Plan of Rs. 10,00,000 i.e. the Sum Assured, for a term of 12 years. He’ll only pay the premium at the beginning of the policy i.e. also called Single Premium of Rs. 7,78,500. That becomes Rs. 7,87,258 after including the taxes.
If Sanket dies after 8 years of purchasing the plan within the policy term, the nominee would receive the Survival Benefits :
3rd policy year : 15% of Sum Assured i.e. 15% of Rs. 10,00,000 = 1,50,000.
6th policy year : 15% of Sum Assured i.e. 15% of Rs. 10,00,000 = 1,50,000.
At the time of death, the nominee would also receive the Sum Assured of 10,00,000 along with the Loyalty Additions, if any, as the policyholder has died after the completion of 5 policy years.
If Sanket survives till the maturity of the LIC New Bima Bachat Plan term, he would receive :
3rd Policy Year : 15% of the Sum Assured i.e. 15% of Rs. 10,00,000 = Rs. 1,50,000.
6th Policy Year : 15% of the Sum Assured i.e. 15% of Rs. 10,00,000 = Rs. 1,50,000.
9th Policy Year : 15% of the Sum Assured i.e. 15% of Rs. 10,00,000 = Rs. 1,50,000.
At the time of maturity of LIC New Bima Bachat Plan, the Single Premium would be to the insured i.e. Rs. 7,78,500 along with the Loyalty Additions.
Calculate your premium for LIC’s Bima Bachat Plan :- https://licindia.in/Customer-Services/Premium-Calculator
Only 90% of the Single Premium paid would be refunded if the policyholder dies due of the suicide within a year of policy term.
LIC New Bima Bachat Plan Eligibility Criteria
Documents required for buying the LIC New Bima Bachat Plan :-
To buy LIC’s New Bima Bachat Plan, one has to submit the following documents:
- Plan Proposal Form duly filled in and signed
- Cheque for the Single premium
- A passport sized photograph
- A valid Identity Proof
- A valid Address Proof
- Date of Birth Proof
- Valid income proof