Life Insurance Corporation (LIC) of India is offering Bachat Plus plan which is an individual, participating, non-linked life assurance scheme. On availing this scheme, you will receive not only a maturity amount which will allow you to take care of your future financial needs, but also provide death benefit to your family in case something happens to you.
The process to apply for this scheme is very simple. You can apply either online or offline.
Details of LIC’s Bachat Plus Plan
Given below are the details of LIC’s Bima Jyoti:
|Minimum sum assured||Rs.1 lakh|
|Maximum sum assured||No limit (Basic coverage amount to be in the multiples of Rs.50,000)|
|Minimum entry age|
|Maximum entry age|
|Minimum maturity age||18 Years|
|Maximum entry age|
|Policy term||10 years to 25 years|
|Premium paying term||Policy term minus 5 years|
Benefits available under LIC’s Bachat Plus Plan
Some of the benefits available under Bachat Plus scheme are given below:
- Maturity benefit:You will receive a maturity benefit from the insurance company if you survive the policy term. The maturity benefit will be equal to the basic sum assured payable on maturity including the loyalty additions.
- Death benefit:In the event of your death, the insurance company will pay the nominee the death benefit. The death benefit will be the basic sum assured payable in case of the death of the policyholder. However, the amount payable will depend on the options chosen by you. Given below in the table is the detail of the death benefit options available. You can choose only one of the options and it cannot be altered later:
|Sum assured payable on the death of the policyholder:|
|Single premium||Option A||10 times the tabular premium for the basic sum assured chosen by the policyholder|
|Option B||1.25 times the premium for the chosen basic sum assured|
|Limited premium||Option A||The higher of 10 times the premium for the basic sum assured including the modal loading applicable or guaranteed sum assured payable on maturity which is the basic sum assured|
|Option B||The higher of 7 times the premium for the basic sum assured including the modal loading applicable or guaranteed sum assured payable on maturity which is the basic sum assured|
Features of LIC’s Bachat Plus Plan
Some of the features of LIC’s Bachat Plus Plan are given below:
The list of riders offered by LIC is given below:
|Grace Period||A grace period of 30 days will be offered to allow you to pay your premiums for half-yearly, or quarterly payment of premiums, and 15 days for monthly payment of premiums. Grace period is applicable only if you choose the limited premium option and not applicable for single premium option.|
|Payment of Premiums||You can choose to pay your premiums on a yearly, half-yearly, quarterly, or on a monthly basis. You can choose to pay your premiums as a lump-sum amount or in installments.|
|Revival||Your policy will lapse if you fail to pay your premiums once the grace period is over. However, you can revive your policy within a period of 5 years before the maturity date by clearing all your arrears of premiums including the interest charged.|
|Surrender||You can surrender your policy provided you have paid the premiums for two full years. You will receive a surrender value in return by the insurance company.|
|Loan against policy||You can avail up to 90% of the surrender value as loan against your policy provided you have met the conditions as put forward by the insurer.|
|Free look period||You will enjoy a free-look period of 15 days if you purchase the policy offline and 30 days for online purchase of the policy during which if you choose to return the policy, the insurance company will return the premium amount deposited by you.|
There is a suicide clause under this policy which states:
- If the policyholder commits suicide within a year of the commencement of the policy, then the insurer will not pay any claim amount except return 90% of the single premiums paid.
- The nominee will not be liable to receive any claims except the return of 80% of the total premiums paid if the policy holder commits suicide within a year of the revival or purchasing of the insurance policy. This rule will be applicable under the limited premium option.
- Will I receive discount on my premiums under the Bachat Plus plan?
- What is the modal loading applicable?
- I have chosen the monthly payment mode. How can I make the payment?
Yes, you may receive rebate ranging up to 2% and 7% of the premium payable under the single premium and limited premium options respectively.
Depending on your mode of payment, the modal loading may range between 0% to 3% under the limited premium option.
You can choose to pay your monthly premiums through either NACH or salary deductions.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017