LIC Micro Bachat Plan Helps You in Future Financial Planning

 LIC Micro Bachat plan is a non-linked, participating, Individual Life Assurance plan from LIC which offers a combination of protection and savings to the policyholder. Under the plan, you will get financial support for your family in case of your unfortunate death during the policy term and a lump sum amount at the time of maturity for if the policyholder survived. The LIC Micro Bachat Plan also provides liquidity needs through its loan facility. Read the post and know more about this life insurance plan.

List of LIC Micro Bachat Plan Benefits

Let’s know what you will get out from the LIC Micro Bachat Plan -

  • What if you die during the policy term of the LIC Micro Bachat Plan? On the death of the Life Assured during the policy term when all due premiums have been paid, in the first five years the nominee or beneficiary will get a “Sum Assured on Death”. If the life assured dies after completion of five policy years but before the date of maturity the nominee or beneficiary will get the Sum Assured on Death” and a Loyalty Addition (if any). In LIC Micro Bachat Plan the “Sum Assured on Death” is 7X the annualized premium; or the Basic Sum Assured. But it won’t be less than 105% of all the paid premiums. The accounted premium that is referred to in death benefit shall not include any taxes, extra premium, and rider premium (if any).

  • What if I Survive in the LIC Micro Bachat Plan term? On surviving to the end of the policy term, provided all due premiums have been paid, the policyholder gets a “Sum Assured on Maturity” along with a Loyalty Addition (if any). Where the “Sum Assured on Maturity” is equal to the LIC Micro Bachat Plan Basic Sum Assured.

  • Based upon the corporation’s experience, the policies under LIC Micro Bachat Plan are eligible for Loyalty Addition, at such a rate and on such terms that have been declared by the corporation. In the case of Death or Maturity claim where the policy is in force, Loyalty Addition is payable for at least five full years and after completion of five policy years.

Note: In case of Death or Maturity claim for LIC Micro Bachat Plan for paid-up policies or Surrender (both in force) the loyalty addition will be payable provided five policy years are completed with at least five full years’ premium payment and Maturity Paid-up Sum Assured is ` INR 50,000 or more. In such cases, the Loyalty Addition is considered for a completed policy year for which policy has been in force. Whereas in surrender, Loyalty Addition is considered in special surrender value only.

Optional Benefit Under the LIC Micro Bachat Plan

Below are the following optional riders that are available under this plan, if you do the payment of an additional premium. However, you can opt for only one of the riders.

  • LIC’s Accidental Death & Disability Benefit Rider: This rider can be opted at any time within the policy term of the Base Plan, provided that the life assured outstanding policy term of LIC Micro Bachat Plan (Base Plan) is at least 5 years. If this rider opts, and in case of accidental death, the Accident Benefit Sum Assured will be payable as a lump sum along with the death benefit under LIC Micro Bachat Plan (base plan). In case of an accidental disability due to an accident within 180 days from the date of the accident, an amount equal to the Accident Benefit Sum Assured will be payable to the life assured in monthly installments for over 10 years. And your future premiums for an Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured will be equal to the Accident Benefit Sum Assured which is waived by the insurer.

  • LIC’s Accident Benefit Rider: The rider is for any time within the policy term of the Base Plan, provided the outstanding policy term of the LIC Micro Bachat Plan is at least 5 years. The benefit shall be available during the policy term only. In case of accidental death, the Accident Benefit Rider Sum Assured will be payable in a lump sum along with the death benefit to the nominee or beneficiary. 

The premium amount for these LIC’s Accidental Death & Disability Benefit Rider or LIC’s Accident Benefit Rider may not exceed 100% of the premium under the LIC Micro Bachat Plan (base plan). If you think all these benefits of the LIC Micro Bachat Plan are made for you, apply for the policy online or visit the nearest LIC branch.


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