LIC Bima Bachat Plan
LIC Bima Bachat Plan
Ever come across a large pile of banknotes? You know, by winning the lottery or hitting the jackpot at your favourite casino? Your first instinct must have been to buy a Porsche (that can’t really show its true skills owing to the Indian roads and the traffic) or to buy a house that could, possibly, contest for winning the show – MTV Cribs.
But, instead of dwelling on utopia, wouldn’t it be more prudent to consider your immediate surroundings? For example, your mother who loves to have you around just to start a bit of friendly banter or your younger brother who aspires to get into Yale but spends his weekends watching Gossip Girl.
Feeling a little less reckless, aren’t we? The new LIC Bima Bachat Plan is for all those people who would prefer security over spending. It is a single premium participating endowment policy, that is, it is the traditional cash back plan with scheduled payments coupled with the return of the entire premium in addition to loyalty points given at the completion of policy tenure.
Eligibility Criteria For LIC New Bima Bachat Plan
Here’s what makes one eligible to apply for this policy:
| LIC's New Bima Bachat Plan - Eligibility Criteria | ||
|---|---|---|
| Minimum | Maximum | |
| Age | 15 years | 66 years |
| Term | 9 years | 15 years |
| Sum Assured (in Rs) | 35,000 | No Upper Limit |
| Modes of Payment | Yearly, Half-Yearly, Quarterly and Monthly (ECS or SSS) |
A Few Obligations To Keep In Mind Regarding The LIC New Bima Bachat Plan
Some rules that all policyholders must abide by:
1. LIC New Bima Bachat policy attains maturity when the investor turns 75 years of age.
2. There are three choices of policy term offered to the investor depending on their age and requirements – 9, 12 and 15 years, among which the applicant must choose at the time of application.
3. The minimum sum assured varies as the term of the policy. For nine years’ term, a minimum of Rs 35000 must be insured, whereas, for 12 years’ and 15 years’ terms, Rs 50000 and Rs 70000 are the minimum amount of premiums required, respectively.
4. Also, the applicant must keep in mind that the amount assured must be a multiple of Rs 5000.
5. To make things easier, the LIC Bima Bachat Plan requires a single premium only.
Key Details Of The LIC New Bima Bachat Plan
Want to know what you’re getting into with this insurance policy? After all, not every life insurance plan is synonymous with each other. Take a look at the features that this policy entails:
1. It is a single premium cash back plan, that is, the lump sum of money is invested in the policy in return for a death benefit.
2. The loyalty addition promised is payable upon maturation of policy or on earlier demise.
3. 15% of the sum assured is returned after three years as a survival benefit (will be elaborated later).
4. Discount is provided on the higher sum assured.
5. Surrender Benefit or Policy Termination: Within the first year of the policy term’s commencement, if the applicant withdraws, 70% of the single premium is returned excluding taxes. If one retreats after the 2nd year launches, then 90% of the single premium is returned.
6. If the policy seems unapproachable for you, the option of cancelling the LIC New Bima Bachat Plan within 15 days rests with you.
Advantages Of The LIC New Bima Bachat Plan
What’s so tempting about this policy? Why should you revoke your desire to spend all your money in one go and become a dull person investing in policies? Read on to find out.
Survival Benefit:Mentioned earlier under the key details of this policy, this clause under the LIC Bima Bachat Plan ensures that, on survival, 15% of the sum assured is rewarded to the policyholder and the policy resumes:
1. To be paid at the termination of 3rd year
2. To be paid at the termination of 6th year.
1. To be paid at the termination of 3rd year
2. To be paid at the termination of 6th year.
3. To be paid at the termination of 9th year.
1. To be paid at the termination of 3rd year
2. To be paid at the termination of 6th year.
3. To be paid at the termination of 9th year.
4. To be paid at the termination of 12th year.
After the completion of 5 years since the commencement of the policy term, LIC Bima Bachat Plan announces loyalty points’ addition.
Maturity Benefit:If the investor survives the entire policy tenure, the entire premium submitted at the beginning of policy term along with the loyalty addition will be returned.
Death Benefit:If the insured person dies before the conclusion of the policy period, the following events can occur under the LIC Bima Bachat Plan:
1. If the policyholder dies before the end of 5 years of the policy tenure, then only the sum assured is returned to the nominee.
2. If the policyholder dies after the completion of 5 years of the policy tenure, then only the sum assured along with the loyalty addition (if any) is returned to the nominee..
3. As mentioned previously, there is a rebate available for high sum assured.
4. As per section 80C, income tax is excused for the premium paid and on the claims received, according to the Income Tax Act.
Inclusions
There are a few honourable mentions, when it comes to the prime benefits of the LIC Bima Bachat Plan, making it one of the most sought after life insurance policies. Loans can be availed against 60% of the surrender value, under this life insurance plan.
Exclusions
If the policyholder’s death results due to suicide within a year of the policy tenure, only 90% of the sum assured is returned to the nominee.
Where To Buy The LIC New Bima Bachat Plan?
This is an offline plan, so you will have to contact the company’s executives or visit the company branches. Also, it can be bought through agents, brokers or other company mediators.
Documents Required
You can’t go to a company and claim any life insurance plan without a few identity proofs. So, here’s what you need to carry for a smooth encounter with the company executives while buying the LIC New Bima Bachat Plan:
Cheque for the Single premium
Address proof
Know Your Customer Documents
A passport sized photograph
Date of Birth proof
Identity proof
Income proof
Application Form filled in with correct medical history and attested
Medical examination (may be necessary based on the applicant’s age and the sum assured)
Claiming Process In LIC New Bima Bachat Plan
You will, of course, need to extract your insured amount after the life insurance plan’s maturity or upon the death of the investor, in which case the nominee will have to undergo a procedure to demand the cash. This calls for the explanation of the claiming process.
So, it must be obvious to you now, that the claiming process differs, depending on the situation that calls for the claim. There are two types of claims:
In case of maturity claim, the policyholder will have to fill and attest a suitable form and submit it to the officials undertaking this task. This will enable the insured to avail the maturity benefit. Along with the form, the investor must submit the original policy document, the NEFT (National Electronic Funds’ Transfer) mandate form and his or her age proof, if it was not produced earlier. For surrender claim, the policyholder must provide a written request to the company to gain the surrender value.
Death claim:In case of the death of the investor, the nominee will have to fill up the claim discharge form and submit it to the company executive along with the following documents:
NEFT Mandate Form for direct payment of the claim’s settlement to the nominee’s preferred bank account.
Original policy document belonging to the investor.
Proof of Identity of the nominee in order to validate his or her claim, that is, the proof of title.
Proof of Death of the investor, that is, his or her death certificate.
Prior to the investor’s death, a detailed account of the medical treatments availed must be provided and attested.
Proof of age of the policyholder if it was not duly noted in the policy.
In case of accidental or unnatural death, the post-mortem report, police inquest report, newspaper cuttings reporting the accident (in case of death by accident), a copy of driver’s license for road accidents and other similar documents may be required.
LIC’s New Bima Bachat Plan is beneficiary to the common man because it requires only a single premium and thus, eliminates the harassment of paying money to the company continually. It is a traditional savings plan with a bonus of loyalty additions. This life insurance plan serves as a boon to everyone looking for a nifty investment.
