LIC Micro Bachat Plan offers both protection and savings. It is a traditional, non-linked, participatory micro-insurance plan
This plan, named ‘Micro Bachat’ (small savings), is intended to provide financial support for the family in the event of the unfortunate death of the policyholder.
A lump sum amount is payable if the policyholder dies during the policy term. You can also borrow money from the plan to cover liquidity needs. This plan is perfect for those with low income.
Features – LIC Micro Bachat
- This plan has both insurance and savings benefits.
- It provides loan facilities to meet the policyholder’s liquidity needs.
- Customers have the option of choosing from a variety of riders that are cost-effective and affordable.
- The paid premiums as well as the maturity amount are eligible for tax benefits.
- The plan can be purchased without a medical exam.
- You will also receive loyalty bonuses and other benefits.
Eligibility for LIC Micro Bachat
Entry Age 18-55 Years
Mature Age: up to 70 Years
Minimum Sum Assured: Rs. 50 Thousand
Maximum Sum Assured: 2 Lakhs
Premium Cycle: Monthly/Quarterly/Half-yearly/Annual
Benefits – LIC Micro Bachat
No cost Period
The Policyholder can request a refund if he/she isn’t satisfied with the policy’s ‘Terms & Conditions. This must be done within 15 days of the issue.
Auto Cover Benefit
A paid-up policy provides auto cover. The auto coverage period begins with the first unpaid premium. This includes any Grace Period. If the premiums have been paid for at least three years, but less than five years (i.e. If premiums have not been paid for at least 3 years but less than 5 years (i.e., between 3-5 and 5 years), an Auto Cover Period of 6 Months will apply as per the terms.
If at least 5 years of premiums have been paid under a plan and no subsequent premium has been paid, an Auto Cover Period of two years will be available.
If all premiums have been paid, and the policyholder is still alive at the end of the policy term, the Sum Assured upon maturity will be payable along with the Loyalty Supplement. The Sum Assured on Maturity is equal to the Basic sum Assured. Life Insurance Corporation of India declares the loyalty additions.
If the policy term ends before maturity, and all premiums have been paid, the Sum Assured on Death will be payable in the event of death.
The death benefit cannot be lower than 105% of all premiums paid on the date of death.
After completing the 3-year term of the plan, the policyholder may apply for a loan to help meet his or her liquidity needs. The terms and conditions of the loan are subject to change by the Corporation.
The maximum loan amount as a percentage surrender value is 70% for in-force policies and 60% for paid-up policies.