Life Insurance Corporation of India (LIC) has launched a new plan known as ‘Micro Bachat’ in the month of February this year. For the first time, LIC has introduced a micro insurance plan that provides coverage of up to Rs 2 lakh.
LIC’s Micro Bachat is a regular premium, non-linked, participating endowment plan that offers a combination of protection and savings.
The new plan is mainly targeted at low-income group individuals as well as families. For instance, to obtain a cover of Rs 1 lakh, a 35-year-old will have to invest Rs 5,220 / annum.
A hale and hearty person in the age group of 18 to 55 can get this policy without going through any medical examination. The minimum & maximum sum assured under the Micro Bachat policy is between Rs 50,000 - Rs 2 lakh. The period of the policy is 10 to 15 years.
A person who wants to surrender the policy can do it after payment of 1 full year premium. The loyalty additions will be rewarded if premiums are paid for 5 full years.
Here the Benefits of LIC’s Micro Bachat Plan
Maturity Benefits
If the life assured is able to survive till the maturity of the Micro Bachat policy and has paid all premiums on time then he / she will be paid the amount assured along with the loyalties. At this juncture, the ‘sum assured on maturity’ is equal to the basic sum assured.
On the other hand, if the policy holder dies during the first 5 years of the policy period then the ‘sum assured on death’ will be paid to the nominee appointed. And in case the person dies after completion of 5 years but before the maturity period then a ‘sum assured on death’ along with loyalty additions, if any, will be given.
Optional Covers
The policy holder can get optional riders that include the Accidental Death & Disability Benefit by giving an additional premium along with the policy.
Auto cover
Auto cover is yet another important feature of the Micro Bachat policy. If the policy holder could not submit the premium on a regular basis after completion of 3 years then Life Insurance Corporation will offer an auto cover period of 6 months, before which the unpaid premium has to be paid.
Loan facility
If the premiums are paid for 3 years then loan up to 70 % of the surrender value can be availed for the policies that are in use.
Revival benefit
A lapsed policy of the insured can be revived or renewed in two consecutive years from the date of first unpaid premium or as is permitted under the valid Product Regulations, and before the date of maturity.
Grace Plan
With the Micro Bachat plan, the insured will be given a grace period of 1 month but not below 30 days will be permitted for payment of all modes of premium.
Free Look period
If the policy holder is not fulfilled or happy with the ‘Terms & Conditions’ of the policy then he or she can return the policy to LIC in fifteen days from the date of issuance mentioning the reason for it.
For more information visit the official website of Life Insurance Corporation of India
