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Risk Commencement Date in LIC Bachat Plus Plan

Last Updated: Mar 23, 2021 | 474 Views

Risk Commencement Date in LIC Bachat Plus Plan

In the LIC Bachat Plus Plan, the life cover does not start immediately in all cases. It would depend on the age of the policyholder at the time of taking the plan. Let us understand this better in this post.

Date of Commencement of Risk - In case the age of entry of the policyholder is less than 8 years, the risk under this plan will commence on the policy anniversary date immediately after the policyholder attains the age of 8 year OR after 2 years of commencement of the policy, whichever is earlier.

This is important to understand as the Death Benefit are directly impacted as follows:

If the policyholder dies during the first 5 policy years
  • Before the risk commencement date - All the premiums paid will be returned to the nominee. Any extra premium charged or rider premiums will not be paid. 
  • On or after the risk commencement date - “Sum Assured on Death” in payable.
  • If the policyholder dies after the first 5 policy years - “Sum Assured on Death” is payable along with Loyalty Additions which have accumulated in the plan so far.
 
Let us understand the “Risk Commencement” date in LIC Bachat Plus Plan with the help of a few examples:

Example 1
 
Suppose policy start date = 25th March, 2021
Age of Policyholder = 3 years
Risk Commencement date = 24th March, 2023

 
Example 2
 
Suppose policy start date = 25th July, 2021
Age of Policyholder = 7 years
Risk Commencement date = 24th July, 2022
 

Example 3
 
Suppose policy start date = 25th July, 2021
Age of Policyholder = 8 years
Risk Commencement date = 25th July, 2021

Hope this makes it absolutely clear when the risk cover starts for the policyholder. If you have any queries regarding this, please add a comment below and we would be happy to help.

Want to know more about this plan - Read the LIC Bachat Plus Plan Review.

Deepak Yohannan
Deepak Yohannan is the CEO of MyInsuranceClub. He enjoys writing on Personal Finance and contributes regularly on sites like Reuters & Moneycontrol. He is a strong proponent of online insurance and is often found pointlessly babbling about it!

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