This is another micro insurance plan from LIC that you can consider for your financial protection. You will find the Micro Bachat Plan designed to give you affordable life coverage and savings options. You can explore this plan if you want a low-premium solution that helps you secure your family’s financial future.
LIC Micro Bachat Plan Maturity Calculator
Calculation Results
| Category | Amount (₹) |
|---|
| Year | Age | Paid Premium (₹) | Normal Life Cover (₹) | Accidental Life Cover (₹) | Loyalty Addition (₹) | Death Benefit (₹) | Surrender Value (₹) | Paid-Up Value (₹) |
|---|
| Type | Value (₹) |
|---|
In this blog, you can discover every important feature, benefit, and condition of the plan. You will get all the details explained in simple language with practical examples that will help you understand everything easily and clearly.
What is LIC’s Micro Bachat Plan?
LIC’s Micro Bachat is a regular premium, participating, non-linked life microinsurance plan. It provides:
- Financial security for your family in case of your untimely death.
- A lump sum payout at maturity for your financial goals.
- Loyalty Additions to boost returns after 5 years.
This plan also provides liquidity through a loan facility and continues to offer coverage through an auto-cover period, even if premiums are not paid after a few years.
Are you looking to explore more LIC plans and calculate their benefits? Check out our range of LIC Premium Calculators below to find the perfect plan for your needs:
- LIC Yuva Credit Life Premium Calculator
- LIC New Jeevan Amar Premium Calculator
- LIC Jeevan Akshay Premium Calculator
- LIC New Jeevan Shanti Premium Calculator
- LIC Index Plus Plan Premium Calculator
- LIC Nivesh Plus Premium Calculator
Key Features of the Plan
- Affordable premiums for low-income groups.
- Savings and protection in a single plan.
- Loyalty Additions after 5 years.
- Loan facility is available after one year.
- Auto-cover period to keep insurance active even after missed payments.
- Flexibility to purchase offline or online.
Eligibility Criteria
| Criteria | Details |
|---|---|
| Minimum Basic Sum Assured | ₹1,00,000 |
| Maximum Basic Sum Assured | ₹2,00,000 (multiples of ₹10,000/₹20,000) |
| Minimum Age at Entry | 18 years |
| Maximum Age at Entry | 55 years |
| Policy Term | 10 to 15 years |
| Premium Payment Term | Equal to Policy Term |
| Maximum Maturity Age | 70 years |
Benefits of LIC’s Micro Bachat Plan
1. Death Benefit
The nominee will receive the Sum Assured on Death, which is:
- Higher of 7 times the annualized premium OR Basic Sum Assured.
- Not less than 105% of the total premiums paid (excluding taxes and extra charges).
Conditions:
- Death within 5 years: Sum Assured on Death is payable.
- Death after 5 years: Sum Assured on Death + Loyalty Additions (if applicable) is payable.
2. Maturity Benefit
If you survive the policy term, you will receive:
- Basic Sum Assured, plus
- Loyalty Additions (if applicable).
3. Loyalty Additions
Policies that complete 5 years will receive Loyalty Additions, depending on LIC’s performance.
- Payable at death, maturity, or surrender.
- For paid-up policies, loyalty additions are given only if the policy was active for at least 5 years.
4. Surrender Benefit
You can surrender the policy after paying at least one full year’s premium.
- Guaranteed Surrender Value (GSV): A percentage of premiums paid.
- Special Surrender Value (SSV): Reviewed annually based on LIC’s guidelines.
| Policy Year | Policy Term = 10 | Policy Term = 12 | Policy Term = 15 |
|---|---|---|---|
| 1 | 0% | 0% | 0% |
| 2 | 30% | 30% | 30% |
| 3 | 35% | 35% | 35% |
| 4–7 | 50% | 50% | 50% |
| 8 | 65% | 60% | 57.5% |
| 9 | 90% | 70% | 65% |
| 10 | 90% | 90% | 72.5% |
5. Policy Loan
- For active policies: Loan up to 70% of the surrender value.
- For paid-up policies: Loan up to 60% of the surrender value.
6. Auto-Cover Period
If you have paid at least 3 years of premiums, the policy remains active even if further premiums are unpaid:
- 3–5 years of premiums paid: Auto-cover for 6 months.
- 5+ years of premiums paid: Auto-cover for 2 years.
Detailed Example
Scenario:
- Age: 30 years
- Policy Term: 15 years
- Basic Sum Assured: ₹1,00,000
- Annual Premium: ₹5,380
| Year | Annual Premium (₹) | Cumulative Premiums (₹) | Guaranteed Benefits (₹) | Loyalty Additions (₹) | Maturity/Death Benefit (₹) |
|---|---|---|---|---|---|
| 1 | 5,380 | 5,380 | 1,00,000 | 0 | 1,00,000 |
| 5 | 5,380 | 26,900 | 1,00,000 | 0 | 1,00,000 |
| 10 | 5,380 | 53,800 | 1,00,000 | 2,500 | 1,02,500 |
| 15 | 5,380 | 80,700 | 1,00,000 | 5,000 | 1,05,000 |
Riders Available
Two optional riders can be added for extra coverage:
1. Accidental Death and Disability Benefit Rider
- Provides a lump sum or monthly payouts in case of accidental death or disability.
- Rider premium cannot exceed 30% of the base premium.
2. Accident Benefit Rider
- Offers an additional lump sum payout for accidental death.
Grace Period
- 30 days for yearly, half-yearly, or quarterly premiums.
- 15 days for monthly premiums.
Revival of Lapsed Policy
You can revive a lapsed policy within 5 years from the first unpaid premium by:
- Paying all due premiums with interest.
- Providing necessary documents for insurability.
How to Purchase LIC’s Micro Bachat Plan
- Offline: Contact an LIC agent or visit your nearest branch.
- Online: Buy directly on LIC’s official website.
Why Choose LIC’s Micro Bachat Plan?
- Affordable premiums for low-income groups.
- Provides life protection and savings.
- Offers loyalty additions to give good returns.
- The auto-cover period makes sure it provides uninterrupted coverage.
- Allows policy loans in emergencies.
Conclusion
LIC’s Micro Bachat Plan is an excellent choice for you to get an affordable insurance plan with a savings component. You can use this plan to protect your family and build a strong financial safety net that ensures your loved ones remain secure.
So don’t wait and start securing your future today with LIC’s Micro Bachat Plan and take a smart step towards financial protection.
