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/-
Minimum Entry Level 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
|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|
Maximum Maturity Age:
|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
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.
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.
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
|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||
• 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
• 7 times of (“Tabular Premium for the chosen Basic Sum Assured” plus modal loading, if any); or
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.