Lic Bima Bachat Policy plan no – 175 Review

Lic Bima Bachat Policy plan no – 175 Review

Lic Bima bachat plan was INTRODUCED ON – 14/11/2005 and WITHDRAWN ON-

Bima bachat plan is a single premium money back type plan. Under this plan the single premium paid by the policyholder will be paid back to him along with the loyalty addition (if any) on the maturity date.

Also the SB (Survival Benefits) installments are payable on survival of the life insured during the specified term. If in case, death of the policyholder occurs during the specified term, only sum assured is paid as the death claim without any loyalty addition.

SB installments are more and duration between two SB installments is only 3 years. 1st SB

installment will be paid after 3 years from date of commencement.

Lic Bima bachat policy Conditions

AGE AT ENTRY:                                  Minimum: 15 years completed   

                                                          Maximum:  66 years

POLICY TERM:                                    9 years, 12 years, 15 years                              

MODE OF PAYMENTS:                        Single Premium only

MAXIMUM MATURITY AGE:               75 years

SUM ASSURED:                                  Minimum:   20,000

                                                          Maximum:  No limit

SUM ASSURED IN MULTIPLE:            Rs. 5,000

Lic Bima bachat policy Rebates

Sum assured rebate:  

Bima bachat plan is having High Sum assured rebate.

Sum assured	Rebate
Up to 45,000	Nil
50,000 to 95,000	5%
1,00,000 to 1,95,000	7%
2,00,000 and above	8%

There is no Mode rebate under Bima bachat policy.

CEIS rebate:

For basic plan, CEIS rebate will be 2% of the tabular premium for the eligible employees of the corporation.

Lic Bima bachat policy Survival benefits

If life insured survives till the specific duration as given in policy schedule, then life assured will be paid back with certain percentage of Basic sum assured as survival benefit on maturity date.

Policy Term		I	II	III	IV
9	AB	15%3 years	15%6 years
12	AB	15%3 years	15%6 years	15%9 years
15	AB	15%3 years	15%6 years	15%9 years	15%12 years

Where      A = % of Basic sum assured payable as Survival Benefit amount.

         B = Survival benefit amount payable at the end of the no. of years from date of commencement of policy.

Lic Bima bachat policy Maturity benefits

If life insured survives till the end of the term, then

Maturity claim = (Single premium paid – extra premium) + loyalty addition (if any)

SB that are paid earlier will not be deducted.

Lic Bima bachat policy Death claims

If life insured dies during the policy term, then

Death claim = Sum assured

Here, Loyalty addition is not payable.

Lic Bima bachat policy Additional benefits

Loyalty addition:

1. Bima bachat plan is having the benefit of Loyalty addition.
2. It is paid along with maturity claim, only if the life assured survives on the maturity date.
3. In Death claim and Surrender value, loyalty addition is not payable.          

Riders available in Lic Bima bachat policy

DAB/EPDB:

Under Lic Bima bachat policy, Double Accident Benefit / EPDB is not available

GUARANTEED SURRENDER VALUE:

Under Lic Bima Bachat plan Guaranteed surrender value will be available after completion of 1 year from commencement of policy.

GSV = 90% (single premium paid) – ( extra premium & amount of SB paid)

PAID UP VALUE:

Under Lic Bima Bachat plan,

Paid up value = single premium paid – extra premiums (if any)

Survival benefit need not be deducted from the Paid up value.

SPECIAL SURRENDER VALUE:

After completion of 1 year from date of commencement, Bima bachat policy will acquire Special Surrender Value (SSV).

SSV = ( paid up value) x S.V. factor

Additional Information about Lic Bima bachat policy

LOAN:

• Loan is available under Bima bachat policy, after completion of 1 year from date of commencement of policy.
• The rate of interest on loan will be as determined from time to time.
• Loan will be granted 90% of SSV.

Lic Bima bachat policy Benefit illustration

Example:

Mr. Raju plans to buy Lic Bima Bachat plan for sum assured of Rs 1,00,000/- and policy term is 9 years. He is 30 years old. He pays a single premium of Rs. 74,592/-.

Now, under Bima bachat plan Survival benefits are,

On completion of 3rd year, 15% of Basic sum assured (1,00,000/-) i.e., Rs. 15,000/- is payable and On completion of 6th year, 15% of Basic sum assured (1,00,000/-) i.e., Rs. 15,000/- is payable as SB amount.

Under Bima bachat plan Death claims are,

If Mr. Raju dies during the first 5 years of policy term, his nominee will receive the sum assured (Rs 1,00,000/-).

If Mr. Deepanshu Arora dies after completing first five years of the policy term, his nominee will receive the sum assured (Rs 1,00,000/-) + Loyalty additions.

Under Bima bachat plan Maturity benefits are,

If Mr. Raju survives up to the duration of the policy, at the maturity time, the single premium amount is returned (excluding extra premium) along with the loyalty additions (if any).