LIC of India
LIC Bachat Plus Policy

LIC Bachat Plus

LIC Bachat Plus (Plan No. 861, UIN No. 512N340V01) 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 Date15th March 2021
Plan Number861
UIN512N340V01
Plan TypeNon-Linked, Participating, Individual, Life Assurance, Savings Plan
Online AvailabilityYes
Premium Payment Term5 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

ParametersValues
Minimum Entry Age90 Days To 40 Years
Maximum Entry Age44 To 70 Years
Minimum Maturity Age18 Years
Maximum Maturity Age65 To 80 Years
Policy Term10 To 25 Years
Minimum Basic Sum AssuredRs. 1,00,000
Maximum Basic Sum AssuredNo 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 PremiumOption A10 X Tabular Premium For The Chosen Basic Sum Assured
Option B1.25 X Tabular Premium For The Chosen Basic Sum Assured
Limited PremiumOption 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%.

YearNet Cash Flow
1-9215
2-9215
3-9215
4-9215
5-9215
6 To 250
262,00,000 (Maturity Benefit: Sum Assured + Loyalty Addition)
Return6.57%


If Mr. Agarwal Dies Within The Policy Term

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.

How To Purchase LIC Bachat Plus Policy?

You can buy LIC Bachat Plus Plan by any of the following methods:

ONLINE METHOD

  1. Visit the official website of the company and click on “Buy Policy Online”

  2. Select “LIC Bachat Plus Plan” and then click on “Buy Online”.

  3. To establish an access id and OTP, provide your contact information, including your name, date of birth, phone number, email address, and nearest city.

  4. Fill out the captcha and submit. You will receive a 9-digit access code as well as an OTP on your email and phone number.

  5. Proceed to the next step by entering your OTP.

  6. To calculate premiums, enter the sum assured and the term, select “Yes” from the radio button, and complete the form.

  7. Confirm the details and proceed with payment after the proposal has been successfully submitted.

  8. Premiums can be paid using net banking, credit card, or other methods.

  9. Following payment, you will receive an introduction email.

  10. All relevant documentation must be uploaded to the company’s platform. You will be sent a link. Based on the documents you present; non-medical cases will be completed.

  11. MSP will contact you regarding medical issues. The case will be underwritten by LIC after the medical.

  12. LIC will assign a policy number and provide details to your registered email address after receiving the decision.

  13. You will receive a copy of the policy via mail as well as by post.

OFFLINE METHOD

This plan can be purchased in person from the LIC branch office in the country or through a LIC agent or other intermediary.

Frequently Asked Questions

1. Can I surrender my LIC Bachat Plus policy?

If premiums have been paid for at least two years, the policy can be surrendered at any time. LIC will pay the surrender value equal to the higher of the guaranteed surrender value and any applicable special surrender value when the policy is surrendered.

2. How much loan can I get under LIC’s new Bachat Plus Plan?

You can apply for a loan once your insurance has been active for more than three months. The amount of money you can borrow is determined by the amount of surrender value you have. The loan amount ranges between 80 percent and 90 percent, based on the premium payment method chosen and the policy’s current state.

3. What is the commencement date of the risk under the LIC Bachat Plus policy?

If the life assured’s age at entry is less than 8, the risk under this plan will begin 2 years from the policy’s start date or from the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever comes first.

Risk will begin immediately for those who are 8 years or older at the time of admission, i.e., from the date of acceptance of the risk or from the date of policy issuance.

4. What is the paid-up value of LIC’s new Bachat Plus Plan?

If less than two years’ premiums have been paid and the policy has not been resurrected, all benefits under the policy will stop after the grace period expires, and no payment will be made. If at least two full years’ premiums have been paid and any subsequent payments have not been paid on time, the policy will not be void and will continue to be a paid-up insurance until the policy term expires.

5. What is excluded under the LIC Bachat Plus Policy?

The policy shall become void in the following conditions:

  1. Under Single Premium
  • If the life assured commits suicide within 12 months of the commencement of risk. An amount of 90% of a single premium will be paid.
  1. Under Limited Premium
  • If the life assured commits suicide within 12 months of the commencement of risk, 80% of the total premiums will be provided.
  • If the life assured commits suicide within 12 months from the date of revival, 80% of the total premium or the surrender value shall be payable.
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