LIC of India
LIC Bhagya Lakshmi Policy

LIC Bhagya Lakshmi

The Bhagya Lakshmi Plan from LIC is specifically designed for individuals who have low incomes. It is a non-participating, limited payment, protection-oriented, and micro-insurance plan that guarantees 110 percent of premium repayment on the policyholder’s maturity date and pays a death benefit to the nominee in the event of the policyholder’s death. There is no GST included in the plan as well as the individual does not have to undergo any kind of medical test in purchasing this policy.

Plan's Major Highlights

Plan No.939
UIN No.512N292V04
Date Of Launch01.03.2022
Type Of PlanMicro Insurance
Online AvailabilityNo

What Makes Bhagya Lakshmi Policy So Special?

Bhagya Lakshmi Plan from the Life Insurance Corporation of India (LIC) includes a slew of features for policyholders and their families. Some of them are discussed below:

  • Multiple Premium Payments Mode: In the Bhagya Lakshmi Plan, the company provides you with a number of premium payment choices. The policyholder can choose their preferred method of premium payment. The premium payments can be made quarterly, monthly, half-yearly, or yearly. 
  • Grace Period: This plan includes a 60-day grace period from the due date of the premium for two calendar months. During this period of time, the policy will be regraded in force without any interruption as per the policy’s terms and conditions. The policy will lapse if the premium is not paid before the grace period expires.
  • Rebates: The frequency with which you pay your premiums will result in certain rebates on the premium amount. In the case of yearly mode, you will receive a reimbursement of 2% of the tabular premium. You will receive a 1% refund on the tabular premium if you pay in half-yearly instalments.
  • Revival: If you do not pay the premium within the grace period, your insurance coverage will lapse. However, you can reactivate a lapsed coverage by paying all outstanding premiums plus applicable interest. You will have 5 years from the date of the first unpaid premium to restore the lapsed policy and continue to receive benefits.
  • Paid-Up Value: If you have paid premiums for less than one year and do not pay premiums after that, your insurance will not be void. It will be continued as a fully paid-up policy.
  • Free Look Period: The Bhagya Lakshmi Plan from the Life Insurance Corporation of India (LIC) allows you to review your policy terms and conditions and features for a period of 15 days. You can return your policy if you are dissatisfied with any of the plan’s terms and provide a reason.

Eligibility Conditions For LIC Bhagya Lakshmi Plan

Minimum Entry Age8 Years (Completed)
Maximum Entry Age

For Premium Paying Term Of 5 Years: 42 Years

For Premium Paying Term Of 6 To 13 Years: 55 Years

Minimum Premium Paying Term5 Years
Maximum Premium Paying Term13 Years
Policy TermPremium Paying Term + 2 Years
Maximum Age At Maturity65 Years
Minimum Sum AssuredRs. 50,000/-
Maximum Sum AssuredRs. 2 Lakhs

Benefits Of LIC Bhagya Lakshmi Policy

Bhagya Lakshmi Plan can be an excellent investment and saving instrument for increasing your savings and securing your future financial needs. The Bhagya Lakshmi Plan from the Life Insurance Corporation of India (LIC) provides the following benefits to policyholders:

  • Death Benefit

A death benefit will be paid to the nominee if the life assured dies before the policy matures. If all premiums have been paid in full, this benefit is provided to the policyholder. The death benefit includes the highest of 7 times annualized premium or 105 percent of the premium amounts paid up to the date of death or sum assured, whichever is greater.

  • Maturity Benefit

The maturity benefit is paid by the company if the policyholder survives until the date of maturity and the policy is still in existence. This includes the total sum assured at maturity, which will be 110 percent of all premiums paid throughout the insurance period.

  • Surrender Benefit

Because an emergency might happen at any time, this insurance plan allows you to surrender the policy and receive the money. Only if you have paid your premiums on time for a year will you be eligible for this benefit. The company will determine the policy’s surrender value, which will be the highest of the “Special Surrender Value” and “Guaranteed Surrender Value”. 

  • Tax Benefits

When you pay your premiums under this plan, you will receive incredible tax benefits and deductions. These benefits are available to you under Section 80C and Section 10(10D) of the Income Tax Act of 1961. For the most up-to-date information on tax regulations that change on a regular basis, consult your tax counselor or insurance advisor.

Buying Process Of LIC Bhagya Lakshmi Plan

You can go to your nearest LIC branch office to purchase the “LIC Bhagya Lakshmi Plan” policy in person. Make sure you have all of the required papers in order to purchase the policy without any interruption. 

You may also purchase the policy by calling the company at +91-022 6827 6827. Once you pay the premium of the policy, your policy details will be sent to you at your registered mail address or phone number.

Basic Documents Required

  • Identity proof
  • Age proof
  • Address proof
  • A completely filled proposal form
  • The latest passport-sized photograph
  • Premium amount cheque or cash

General Exclusions Under The LIC Bhagya Lakshmi

The policy will be null and void in the event of a suicide:

  • If the person assured (whether sane or insane) commits suicide within 12 months of the start of the risk, LIC will only pay out 80 percent of the premiums paid, excluding any taxes, extra premiums, and rider premiums, if any.
  • If the life assured (whether sane or insane) commits suicide within 12 months of the date of revival, the higher of 80 percent of the premiums paid up to the date of death (excluding any taxes, extra premiums, and rider premiums, if any) or the surrender value, whichever is greater, is payable, provided the policy is in force.

Frequently Asked Questions

With the LIC’s Bhagya Lakshmi Plan, you can get the benefits of a fantastic micro-insurance plan at a low cost. It will provide you and your family with unending safety. Even if an ill-fated catastrophe strikes you quickly, your loved ones will be financially reliant on you. With this plan, you may ensure that your loved ones’ hopes and goals are fulfilled.

No, this plan does not offer a high sum assured rebate option.

There are no additional rider benefits available under the plan.

You need to submit the following documents for claiming against LIC’s Bhagya Lakshmi policy:

  • Medical reports or treatment information
  • NEFT details or form
  • Original policy document
  • Proof of title
  • Age proof
  • In case of a death claim, certificate of death is required. 
  • Photocopy of bank passbook

The minimum instalment premium under the LIC’s Bhagya Lakshmi plan is Rs. 500. However, you can also make more payments as per your budget and requirement.

No. Under the plan, there is no loan facility available to the policyholder. Therefore, make sure that the users should plan his/her finances accordingly.

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