LIC's Bachat Plus: 6 Must-Know Details About The Protection and Savings Plan

LIC Bachat Plus offers financial aid to the family of the deceased policyholder at any time before maturity, as well as a lump sum balance at maturity for the remaining policyholders. The proposer may opt to pay the premium as a lump sum (single premium) or over a five-year term.

LIC's Bachat Plus is a Non-Linked, Participating, Individual, Life Assurance, Savings plan which offers a combination of protection and savings. This initiative also addresses liquidity issues through its loan facility.

Non-linked plans are not market-linked, and their success is independent of any underlying assets. You pay a fixed premium based on the amount guaranteed for non-linked plans. In term life insurance, the nominee receives the amount guaranteed in the event of your untimely death during the policy duration, regardless of market results.

What is the Death Benefit?

This plan offers the choice of selecting a Sum Assured on Death based on the two payment options available: Single Premium and Limited Premium. In the event of the unfortunate death of the Life Assured during the policy period, provided the policy is in effect, the "Sum Assured on Death" shall be payable after the date of danger commencement. On death after five policy years but before the specified Date of Maturity, the "Sum Assured on Death" plus any loyalty addition, if any, will be payable.

What will be the maturity amount?

If the Life Assured survives the stipulated Date of Maturity and the policy is still in place, the "Sum Assured on Maturity" plus any Loyalty Addition, if any, will be paid, where the "Sum Assured on Maturity" equals the Basic Sum Assured.

Minimum and Maximum amount

The minimum basic amount assured is Rs 1,000,000/- and there is no maximum. The eligibility requirements for the policy term, age at admission, maturity age, and so on will be determined by the premium payment and options selected by the proposer. For both forms of premium payment, a High Basic Sum Assured Rebate is available.

Surrender policy

The policy may be surrendered by the Policyholder at any point during the policy period under Single Premium Charge. The policy may be surrendered by an individual at any time if at least two full years' premiums have been charged under Limited Premium Payment. When the policy is surrendered, the Corporation may pay the Surrender Value, which is the greater of the Guaranteed Surrender Value or the Special Surrender Value.

Is a loan available on the Policy?

Under Single Premium: After three months from the policy's completion or the expiration of the free-look period, whichever comes first, a loan can be obtained under this scheme at any time during the policy's duration. The maximum loan amount that can be given is 90% of the surrender value.
Under Limited Premium: The loan will be made available under the scheme if at least two full years of premiums have been paid and the terms and conditions specified by the Corporation from time to time.

What does Loyalty Addition offer?

If the policy has completed five policy years and all due premiums have been charged, the policies under this plan will be liable for Loyalty Addition at the time of exit in the form of Death during the policy period or Maturity, at such rate and on such terms as the Corporation may declare, based on the Corporation's experience.