LIC New Bima Bachat
LIC’s New Bima Bachat (Plan No. 916, UIN No. 512N284V02) is a popular life insurance plan by LIC that comes with the perfect blend of savings and financial protection. The insurance plan offers maximum financial protection to the nominee/family of the policyholder in case of his/her death during the tenure of the policy. This money-back plan also provides survival benefits at specified intervals while the single premium and loyalty addition shall be returned on the date of maturity.
Under the policy, the amount of the premium entirely depends on the period of the plan. Also, the plan efficiently adheres to the needs of the liquidity through its loan facility.
Eligibility Criteria of LIC's New Bima Bachat
Here are the eligibility criteria for LIC New Bima Bachat Plan:
|Minimum entry age||15 years (completed)|
|Maximum entry age|| years (nearer birthday) for term 9, 12 and 15 years|
|Period of the Policy||It consists of three different periods: 9, 12 and 15 years|
|Maximum maturity age|
|Premium payment mode||Single-Premium only|
|Minimum Sum Assured:|
Rs. 35,000 for term 9 years
Rs. 50,000 for term 12 years
Rs. 70,000 for term 15 years
|Maximum Sum assured||No limit|
Features & Benefits of LIC New Bima Bachat
Here’s the list of the features and benefits of LIC New Bima Bachat;
1. Survival Benefits: If the policyholder survives at the different durations of the policy period, then he/she will get a fixed percentage of the basic sum assured. Let’s take a look at the different percentages of the amount that is payable to the policyholder on different policy terms:
- For policy term 9 years: At the end of each of 3 & 6 policy years, 15% of the Basic Sum Assured shall be paid.
- For policy term 12 years: At the end of each of 3, 6 & 9 policy years, 15% of the Basic Sum Assured shall be paid.
- For policy term 15 years: At the end of each of 3, 6, 9 & 12 policy year, 15% of the Basic Sum Assured shall be paid.
2. Death Benefit: If the policyholder, unfortunately, dies during the period of the policy, then the payable death benefit would be:
If the person dies during the five initial years of the policy period, then the nominee shall receive the “Sum Assured on Death”.
If the person dies after the completion of five policy years, then they will receive the sum assured on death along with the loyalty addition.
The “Sum Assured on Death” is defined as the higher of the two amounts.
- 1.25 times the single premium; or
- Minimum Sum Assured.
Taxes, extra premiums, and rider premiums, if applicable, are not included in the above-mentioned single premium.
3. Loyalty Addition: The policyholders may share in the Corporation’s profits and be eligible for Loyalty Addition, based on the Corporation’s expertise. If the policyholder survives the maturity period or dies after five policy years, then loyalty addition shall be paid by the Life Insurance Corporation of India.
4. Maturity Benefit: If the user lives to the end of the policy term, the “Sum Assured on Maturity,” in addition to the Loyalty amount shall be paid by the company after verifying the necessary documents.
Where “Sum Assured on Maturity” matches the Single Premium paid, excluding the premium of the rider, taxes, and additional premium.
5. Loan Facility: This plan allows you to take out a loan at any time once you’ve completed one policy year. The amount of the loan must be equivalent to 90% of the surrender value as of the loan’s sanction date.
At periodic periods, the interest rate to be paid for the policy loan and as applicable for the whole term of the loan will be calculated. The corporation uses the IRDAI-approved process to determine the applicable interest rate. At the time of exit, any unpaid loan, including interest, will be recovered from the claim proceeds.
6. Free Look Period: If the Policyholder is unhappy with the “Terms and Conditions” of the policy, then he/she may return the policy to the Corporation within 15 days of receiving the policy bond, citing his or her complaints. After withdrawing the proportionate risk premium for the duration of cover, the expense incurred for medical examination, special reports, if applicable, and stamp duty charges, the Corporation will cancel the policy and refund the amount of Single Premium deposited.
7. Surrender Benefit: The policyholder can cancel the coverage at any point throughout the policy year. The Corporation will pay the Surrender Value, which is higher than the Guaranteed Surrender Value and the Special Surrender Value when the policy is surrendered.
The Special Surrender Value may be determined by the Corporation at any time with IRDAI’s prior consent and it is subject to change.
During the policy period, the Guaranteed Surrender Value will be as follows:
- 75 percent of the Single premium is paid in the first year.
- Following that, 90% of the Single premium is paid, less any survival benefits that have already been paid.
What is Excluded from LIC New Bima Bachat Plan?
Though the inclusions of the policy have already been discussed above under the benefits section, there’s one exclusion that one must know about the LIC New Bima Bachat Plan.
If the Life Assured (irrespective of his/her mental condition) commits suicide within just one 1 year of the policy period of the start of the risk, the policy will be void, and the amount payable will be greater than 90 percent of the Single Premium paid (excluding any taxes) or the Surrender Value shall be paid on the date of death. Any other claim under the policy will be denied by the Corporation.
Functioning of LIC's New Bima Bachat
An individual chooses a certain insurance term (9, 12 or 15) by paying a single premium for a sum assured under the LIC Bima Bachat Plan. The premium is determined by the policy period chosen. He/she receives 15% of the basic guaranteed after every third year. The insured receives the original single premium and loyalty additions at the end of the term. If the insured dies within the insurance term, his nominee receives the money assured.
Let’s take an instance of a policyholder named Ram.
A 35-year-old Ram pays a single lump-sum premium of Rs 72145 for a 12-year insurance term with a payout assured of Rs 1 lakh. He receives Rs 15000 (15 percent of Sum Assured) as a survival benefit after the third year, which is paid again at the end of the sixth and ninth years, respectively. The insured receives about Rs. 112945 at maturity, including the premium along with the loyalty addition. If the insured dies, the nominee has entitled to a death payout of Rs. 1 lakh.
How To Apply or Buy LIC New Bima Bachat Policy?
If you are looking to buy LIC New Bima Bachat Plan, please get in touch with LIC. Their experts/agents will guide you through all the steps and offer the best buying experience possible. However, if you continue to have issues, you can contact Probus Insurance for assistance.
Documents For Applying LIC New Bima Bachat Plan
If you are looking to buy LIC New Bima Bachat Plan, you need to provide documents to the company. The list is given below:
- A valid ID Proof
- Address Proof (permanent)
- A cheque for the Single Premium
- A Passport Sized Photo
- Application Form Filled in and duly signed by the owner
- Proof of the valid date of birth
- Income proof (or regular payment you are getting from the company)
Claim Process of LIC New Bima Bachat Plan
If you want to claim the LIC Bima Bachat Plan, you need to know the right step to make it hassle-free and convenient.
Procedure for making a maturity or surrender claim –
Making a maturity claim is simple. To get the maturity benefit, the policyholder must fill out and sign the claim discharge form and send it to the insurer with the original policy document, NEFT Mandate Form, and proof of age if it was not previously accepted.
The policyholder must notify the firm in writing to receive the surrender amount.
Procedure for filing a death claim-
- In the event of a death claim, the nominee must complete the claim discharge form and submit it to the firm together with the following documents:
- Documentation of the original policy
- NEFT Mandate Form for the direct settlement of a claim into the bank account of the nominee
- Proof of Title, which is the nominee’s proof of identity.
- Proof of Death – death certificate
- Before death, medical remedies were obtained.
- If your age was not mentioned in the policy, you will need to provide proof of your age.
- In the event of unnatural or accidental death, a police inquest report, newspaper clippings documenting the accident, a copy of the driver’s license for road accidents, a post-mortem report, and other documents may be required.
Frequently Asked Questions
1. What is the rate of Loyalty Additions in LIC Bima Bachat?
The insurance does not guarantee loyalty additions. They are reliant on the insurer’s earnings, which are determined by the market performance of the insurer.
2. Is it possible to get a bonus with the LIC Bima Bachat plan?
No, loyalty enhancement is made to the policy when the plan matures or if the death benefit becomes payable. This is a one-time increase made when a person dies or reaches adulthood, and it is based on LIC’s profits. However, no bonus is applied to the policy’s total value.
3. What to Look for while availing payment facility under LIC Bima Bachat?
Here are the things that you need to consider while availing of the payment facility under LIC Bima Bachat
- If you have already registered for premium payment through net banking or phone banking, make sure you avoid payment at cash counters. It has been observed that the reminder for payment has been sent twice to the policyholder.
- Make sure you have updated the correct residence address to ensure that the renewal receipts are sent to the right postal address.
- A user can collect a premium paid certificate from the nearby branch of their Bima Bachat Policy only in case of the non-receipt of the policy’s renewal premium receipt.
4. At what time does someone become eligible for guaranteed surrender value under the LIC Bima Bachat?
Just after one policy year, the guaranteed surrender value is available. The value should be 90% of the single premium paid.
5. How much insurance is offered to the policyholder under the LIC Bima Bachat?
The amount of the insurance is generally equal to the sum assured, clearly mentioned in the official document of LIC Bima Bachat Policy.
6. Does the policy cover accidental death and disability riders?
Yes! This rider is only accessible when the policy is first purchased. This rider’s benefit coverage will be available throughout the policy. If this rider is selected, the Accident Benefit Sum Assured will be paid in a lump sum in the event of accidental death.
If you become disabled as a result of an accident within 180 days of the date of the accident, you will be paid an amount equal to the Accident Benefit Sum Assured in equal monthly payments over ten years.