LIC Bima Bachat policy

Product Summary:

LIC's Bima bachat (Table No. 175)  is a single premium money back plan where single premium paid under the policy shall be paid back to the policy-holder along with loyalty additions, if any, on maturity. In addition, the survival benefit instalments are payable on survival of the policyholder till the specified durations.

The plan also provides the payment of sum assured in case of death during the term of the policy irrespective of whether or not any survival benefits, have been paid earlier. No rider benefits shall be available.

Loyalty additions:

This is a participating plan and the policy shall participate in the profits of the corporation's with-profit assurance business. The policy shall, however not be eligible for reversionary bonus and all shall participate to a share of profits in the form of loyalty addition (one time) only payable on maturity. On the life assured surviving the stipulated date of maturity, the policy may be eligible for payment loyalty addition, if any, depending upon the experience of the corporation at such rate and on such terms as may be declared the corporation.

Eligibilities:

• Age at entry: Min.15 yrs Completed Max 66 yrs
• Maturity age: Max. 75 yrs (NBD)
• Term: 9,12 or 15 yrs.
• Sum assured: Min. 20,000 Max. No. Limit
• S.A in multiples: 5,000
• Mode of payment: Single premium
• Policy loan: yes
• Housing loan: yes
• Assignment: yes
• Surrender of policy: yes

Underwriting:

• Form no: 300/340
• Age proof: Std/Non Std
• Medical exam: Not required for any S.A
• Risk coverage: SA
• Dating back @ 9%: Allowed
• High premium rebate (per 1000 S.A)
• Less then Rs.50,000 Nil
• Rs.50,000 & Less then Rs.1Lac 5%
• Rs.1 Lac & Less then Rs.2 Lac 7%
• Rs.2 Lac and above 8%

Surrender values (GSV) (SSV):

The policy can be surrendered for after completion of at least one policy year. The guaranteed value is equal to 90 percent of the single premium paid excluding extra premium paid and the survival benefits paid earlier. Special surrender value (SSV) is given below:

Benefits:

• Maturity benefit: single premium excluding extra premium with loyalty addition if any, shall be payable in case of life assured surviving to the end of the term.
• Survival benefit: in case the life assured is surviving to the specified durations the following benefits shall be payable.
• For policy term 9 years:15% of the sum assured at the end of each 3rd & 6th policy year. For policy term12 year: 15% of the sum assured at the end of each 3rd, 6th & 9th policy year.
• For policy term 15 years: 15% of the sum assured at the end of each 3rd, 6th,9th & 12th policy year.
• Death benefit: On death of the assured during the term of the policy an amount equal to the sum assured shall be payable.

Examples:

Mr. Niranjan aged 30 years takes a Bima Bachat Policy for 15 years term for Rs 2 lakhs SA. He pays single premium of Rs. 1,48,322. He receives Survival Benefit of Rs. 30,000 each at the end of 3rd, 6th, 9th & 12th year respectively. On Maturity, he will receive Rs 1,48,322 being the single premium paid by him. Thus total amount received by him will be Rs 2,68,322 (Rs 1,20,000 as Survival Benefits + 1,48,322 as single Prem paid) + loyalty additions if any.

If Mr. Niranjan dies during the 13th policy year, his nominee will get Rs 2 lakh as SA as death benefit (Survival benefit of Rs 30000 each received during 3rd, 6th, 9th & 12th year will not be deducted from the SA). Hence the total amount received would be Rs. 3,20,000.

For Insurance with LIC of India need Call 9985775558, or Email: gs.licadvisor@gmail.com