LIC’s Micro Bachat is a regular premium, non-linked, participating micro-insurance plan which offers a combination of protection and savings. This plan provides financial support for the family in case of the unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholder. This plan also takes care of liquidity needs through its Loan facility.
Eligibility Conditions and Other Restrictions
(This plan is only available for standard healthy lives without undergoing any medical examination)
a) Minimum Basic Sum Assured : Rs. 50,000
b) Maximum Basic Sum Assured per life* : Rs. 200,000 The Basic Sum Assured shall be available in multiples of Rs.5,000/-.
c) Minimum Age at entry : 18 years (completed)
d) Maximum Age at entry : 55 years (nearer birthday)
e) Policy Term : 10 to 15 years
f) Premium Paying Term : Same as Policy Term
g) Maximum Age at Maturity : 70 years (nearer birthday)
* The total Basic Sum Assured under all policies issued under this plan for an individual life shall not exceed Rs. 2 lakh. Date of commencement of risk: Under this plan the risk will commence immediately from the date of acceptance of the risk.
Payment of Premiums
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals over the term of policy.
Sample Premium Rates
Following are some of the sample tabular annual premium rates (exclusive of applicable taxes, if any) per Rs. 1000/- Basic Sum Assured:
| AGE/TERM | 10 | 12 | 15 |
|---|
| 18 | 85.45 | 68.25 | 51.50 |
| 25 | 85.55 | 68.35 | 51.60 |
| 35 | 85.90 | 68.80 | 52.20 |
| 45 | 87.60 | 70.75 | 54.50 |
| 55 | 91.90 | 75.40 | 59.80 |
Depending on age of life to be assured, Policy Term and Sum Assured chosen, for annual mode of premium payment, the premiums may vary from Rs 2,524 p.a. to Rs 17,612 p.a.
Mode Rebate
Yearly mode 2% of Tabular Premium
Half-yearly mode 1% of Tabular premium
Quarterly Mode NIL
In case of Monthly mode additional 3% of tabular premium shall be charged.
High Basic Sum Assured Rebate
Basic Sum Assured (BSA) Rebate (Rs.)
Rs 50,000 to Rs 1,45,000 Nil
Rs 1,50,000 to Rs 1,95,000 Rs 1.50‰ Basic Sum Assured
Rs 2,00,000 Rs 2.00‰ Basic Sum Assured
Benefits
a) Maturity Benefit: On the life assured surviving to the end of the policy term, provided all due premiums have been paid, “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
b) Death benefit – On death of the Life Assured during the policy term provided all due premiums have been paid: On death during the first five years: “Sum Assured on Death” shall be payable.
On death after completion of five policy years but before the date of maturity: “Sum Assured on Death” and Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Death” is defined as the highest of :
10 times of annualized premium; or
Sum Assured on Maturity as defined in 7(a) above or
Absolute amount assured to be paid on death, i.e. Basic Sum Assured.
The death benefit shall not be less than 105% of all the premiums paid as on date of death. Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premiums, if any.
Policy Loan
Loan can be availed during the policy term provided at least 3 full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.
The maximum loan as a percentage of surrender value shall be as under:
For inforce policies – upto 70%
For paid-up policies – upto 60%
The interest rate to be charged for policy loan and as applicable for the entire term of the loan shall be determined at periodic intervals. Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.
