LIC’s Bachat Plus Plan (861)

LIC’s Bachat Plus Plan is a saving cum protection plan. It can be closely compared with Bank fix deposit scheme with added features life risk cover and income tax rebate. Premium is paid as lump sum ( one time only ) when one buys the policy or other option is to pay the premium in limited term of five years. 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 or Limited premium for 5 years

  Payment of Premiums: Premiums can be paid either in lumpsum or regularly during the Premium Paying Term at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deductions (SSS).

 Policy term (time until your policy matures):

  • 10 to 25 years for limited premium and single premium for life up-to age 40 years
  • 10 to 16 years for single premium with option 'A' and life age from 41 to 44 years

 Minimum Sum Assured: 100000/-

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

 Minimum Entry Level Age:

Minimum Entry Age
Single Premium  90 days (completed) under Option A and Option B
Limited Premium 90 days (completed) under Option 1
40 years (nearer birthday) under Option 2

 Maximum Entry Level Age

Maximum Entry Age
Single Premium 44 years (nearer birthday) under Option A
70 years (nearer birthday) under Option B
Limited Premium 60 years (nearer birthday) under Option 1
65 years (nearer birthday) under Option 2

Minimum Maturity Age : 18 years (completed)

Maximum Maturity Age:

Maximum Maturity Age Table
Single Premium 65 years (nearer birthday)under Option A
80 years (nearer birthday) under Option B
Limited Premium 75 years (nearer birthday) under Option 1
80 years (nearer birthday) under Option 2

 Maximum Accidental Death and Disability benefit rider applicable from the age of 18 to 70 years

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

 Loan: For Single Premium Policy Loan can be availed under this plan any time after completion of three months of the policy or free look period, whichever is later. The loan shall be equal to 90% of the surrender value as on date of sanction of loan.

For limited premium paying term policy loan can be availed after paying premium of two full years.

Surrender: Single Premium 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

For limited premium paying term, policy can be surrendered after two years of full premium is paid the guaranteed surrender value is provided with policy document.

 Benefits

 Death Benefit: The proposer will have an option to choose “Sum Assured on Death” as per the two options available under each of Single Premium and Limited Premium payment. Following table illustrates the options vis-a-vis death benifit

Sum Assured on Death
Single Premium Option A 10 times of “Tabular Premium for the chosen Basic Sum Assured”
Option B 1.25 times of “Tabular Premium for the chosen Basic Sum Assured”
Limited Premium Option 1

Higher of

• 10 times of (“Tabular Premium for the chosen Basic Sum Assured” plus modal loading, if any); or

• Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured

Option 2

Higher of

• 7 times of (“Tabular Premium for the chosen Basic Sum Assured” plus modal loading, if any); or
• Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured

 

Maturity Benefit : Basic Sum Assured + Loyalty additions

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.