LIC Micro Bachat Plan (UIN: 512N329V03) is a Par, Non-Linked, Individual Life Micro-Insurance Savings Plan. It is designed to provide low-income individuals with financial security, ensuring both savings and life cover. With features like loyalty additions, flexible payment modes, and surrender benefits, this plan is a perfect blend of affordability and reliability.

Table of Contents

Key Features of LIC Micro Bachat Plan

Dual Benefits: Combines life insurance protection with savings.
Loyalty Additions: Offers additional benefits after five policy years.
Flexibility: Options to pay premiums yearly, half-yearly, quarterly, or monthly.
Surrender Benefits: Policyholders can surrender the plan after one full year’s premium payment.
Grace Period: Provides a 30-day grace period for yearly, half-yearly, and quarterly modes; 15 days for monthly mode.
Loan Facility: Loans are available after the first policy year.

Eligibility Conditions

Minimum Age at Entry: 18 years
Maximum Age at Entry: 55 years
Policy Term: 10 to 15 years
Minimum Sum Assured: ₹50,000
Maximum Sum Assured: ₹2,00,000
Premium Payment Term: Equal to the policy term.

Benefits of LIC Micro Bachat Plan

1. Death Benefit

During the Policy Term:
Higher of 7 times the annualized premium or the Basic Sum Assured is paid, plus loyalty additions (if any).
The benefit is at least 105% of the total premiums paid.

2. Maturity Benefit

At the End of Policy Term:
Basic Sum Assured plus loyalty additions (if any) is paid to the policyholder.

3. Loyalty Additions

Loyalty additions are payable after completing five policy years, enhancing the overall benefit amount.

4. Surrender Benefit

The policy can be surrendered after one full year of premium payment.
The surrender value is the higher of:
Guaranteed Surrender Value (GSV): Based on a percentage of premiums paid.
Special Surrender Value (SSV): Declared annually by LIC.

Premium Payment

Modes: Yearly, Half-Yearly, Quarterly, Monthly.
Premiums are to be paid throughout the policy term.

Exclusions

Suicide Exclusion:
If the policyholder commits suicide within 12 months of the policy commencement or revival, the nominee receives 80% of the premiums paid or the surrender value, whichever is higher.

Loan Facility

Loans are available after completing one full policy year.
Loan amounts are subject to terms and conditions based on surrender value.

Free Look Period

Policyholders have a 30-day free-look period to review and return the policy if not satisfied.

Revival of Lapsed Policies

Lapsed policies can be revived within the revival period, provided all arrears and interest are cleared.

Official Link-LIC

FAQs about LIC Micro Bachat Plan

1- What is the minimum Sum Assured under the LIC Micro Bachat Plan?
The minimum Basic Sum Assured is ₹50,000.

2- Can I surrender the LIC Micro Bachat policy early?
Yes, the policy can be surrendered after paying at least one full year’s premium.

3- Is there a loan facility under LIC Micro Bachat plan?
Yes, loans can be availed after completing one policy year.

4- Are there any loyalty additions in LIC Micro Bachat?
Loyalty additions are payable after five policy years, enhancing the total benefits.

5- What happens if I miss a premium payment?
A grace period of 30 days is provided for yearly, half-yearly, and quarterly payments, and 15 days for monthly payments.

6- What is the maximum age to purchase LIC Micro Bachat policy?
The maximum age at entry is 55 years.

7- Is there a tax benefit in LIC Micro Bachat Plan?
Yes, premiums paid and benefits received under this plan are eligible for tax exemptions as per prevailing tax laws.

8- Can the policy be revived if it lapses?
Yes, lapsed policies can be revived within the revival period by paying all dues with interest.

9- What is the premium payment term?
The premium payment term is equal to the policy term, ranging from 10 to 15 years.

10- Is the LIC Micro Bachat plan eligible for bonuses?
Yes, loyalty additions are declared and paid after five policy years.

Conclusion

LIC Micro Bachat Plan is a cost-effective and reliable insurance-cum-savings plan for low-income individuals. With its flexible payment options, loyalty additions, and comprehensive benefits, it ensures financial security for policyholders and their families. Visit the LIC website or your nearest LIC branch to learn more and secure your future with this affordable plan.

LIC Micro Bachat Plan 2025: Secure Your Future with Affordable Savings and Life Cover