LIC’s New Bima Bachat Plan (916)

LIC’s New Bima Bachat Plan is a saving cum protection plan. The plan gives regular money back income in every third year of policy term, that takes care of availability of liquidity to policyholder. It can be closely compared with Bank fix deposit scheme with added features of money back, life risk cover and income tax rebate. Premium is paid as lump sum ( one time only ) when one buys the policy. Even after money back, this plan also takes care of liquidity needs before maturity, through its loan facility. This is an endowment or traditional plan- which means it is not linked to stock market. The return on investment will be based on the profit of LIC and thereafter the declaration of loyalty addition rate for the particular product, if applicable. To know more about this policy let us start with its features:

 Premium paying term: Single Premium only

 Policy term (time until your policy matures): Three options: 9, 12 and 15 years

 Minimum Sum Assured:

` 35,000 for term 9 years
` 50,000 for term 12 years
` 70,000 for term 15 years

 Maximum Sum Assured: unlimited (with special medical reports and income proof)

 Minimum Entry Level Age: 15 years ( Completed )

 Maximum Entry Level Age: 50 years in nearest birthday for all three variants

 Maximum Accidental Death and Disability benefit rider applicable from the age of 18 to 65 years

 Maturity Benefit: Sum assured + Loyalty addition  (for illustration keep on reading)

 Loan: Loan can be availed under this plan any time after completion of one policy year. The loan shall be equal to 90% of the surrender value as on date of sanction of loan.

Surrender: The policy can be surrendered at any time during the policy year. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value or Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI The Guaranteed Surrender Value allowable shall be as under:
- First year: 75% of the Single premium
- Thereafter: 90% of the Single premium

 Benefit illustration:

Abdul Khan ( 38 years age ) an Agricultural Farmer has purchased LIC’s Bima Bachat Plan of Sum assured 1000000 INR for his Son Jamal at the age of  15 years, after considering following benefit illustration:-

All of these maturity is tax free under income tax act 10 (D)

*all maturity projection is based on current rate of bonus paid by LIC.