LIC Bachat Plus Plan

• This is an insurance cum investment plan
• Loyalty Additions will be added after completion of 5 years
• Plan can be purchased online
• Single Premium or 5 year Limited Premium payment options

• Tax Benefits on Premiums, Death Benefit & Maturity Benefits

• You can avail a loan against this policy

Basic Sum Assured - Guaranteed amount that is payable on maturity of the plan. The customer has to select this amount when taking the plan.

Premium Payment Option - Customers can choose to pay as a single premium or select a limited premium payment of 5 years. The policy term can be higher.

Now the customer has to select the “Sum Assured on Death” based on his premium payment option as shown below.

Single Premium

• Option A - 10 times the Tabular premium for Basic Sum Assured
• Option B - 1.25 times the Tabular premium for Basic Sum Assured

Limited Premium of 5 years

• Option 1 - Higher of
  • 10 times the Tabular premium for Basic Sum Assured
  • Basic Sum Assured
• Option 2 - Higher of 
  • 7 times the Tabular premium for Basic Sum Assured
  • Basic Sum Assured

Important Note: In case the Basic Sum Assured in the plan is less than 10 times the annual premium, you will not be eligible for complete tax breaks for the premiums paid and on the maturity amount.

• 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.

Click to understand details of the Risk Commencement Date of LIC Bachat Plus Plan.

On reaching the date of maturity, you would receive Sum Assured + Loyalty Additions accumulated till date.

Loyalty Additions will be added after 5 policy years and will depend on the performance of the company .

You will be eligible to get a loan against this policy once it acquires a Surrender Value. 

• SIngle Premium plans - Loan  can be availed any time after 3 months of policy being in force. Loan amount can be a maximum of 90% of Surrender Value. The interest rate would depend on the prevailing at the time of taking the loan.
• Limited Premium plans -  Loan  can be availed any time after 2 years of the policy being in force. Loan amount can be a maximum of 90% of Surrender Value. For Paid-up plans, the maximum loan amount will be 80% of the Surrender Value. The interest rate would depend on the prevailing at the time of taking the loan.

The following riders can be taken by paying an additional premium:

• Accidental Death and Disability Benefit Rider - In case of Accidental death, the rider sum assured selected will be paid in addition to the base sum assured. In case of disability due to an accident, the extra sum assured selected is paid out in monthly instalments spread over 10 years. The future premiums for the base sum assured are also waived upto extra sum assured selected.
• Accident Benefit Rider - In case of Accidental death, the rider sum assured selected will be paid in addition to the base sum assured.
• New Term Assurance Rider - In case of death of the policyholder, an additional amount of cover as selected in this rider will be paid
• New Critical Illness Benefit Rider - In case the policyholder is diagnosed with any of the 15 Critical Illness covered in this plan, the Critical Illness Sum Assured will be paid out.
• Premium Waiver Benefit Rider - in case of death of the policyholder, all future premiums will be waived.
• Option to take the Death Benefit in instalments - The Death Benefit can be taken in instalments over a period of 5, 10 or 15 years. The instalments could be monthly, quarterly, half yearly or yearly. The policyholder has to choose this option during the policy term. An option to take part lumpsum and the balance in instalments is also available. An interest rate of 4.71% per annum (current rate applicable, subject to change) will be used to calculate the instalment amounts.
• Option to take the Maturity Benefit in instalments - The Maturity Benefit can also be taken in instalments over a period of 5, 10 or 15 years. The instalments could be monthly, quarterly, half yearly or yearly. The policyholder has to choose this option during the policy term. An interest rate of 4.71% per annum (current rate applicable, subject to change) will be used to calculate the instalment amounts.

If premiums are not paid on time, even after the grace period, the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the date of Maturity. You will need to pay all the due premium with interest (compounding half-yearly) at a rate fixed by LIC.

If less than 2 years’ premiums have been paid and policy has not been revived, all the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable. If at least 2 full years’ premiums have been paid and any subsequent premiums are not duly paid, the policy shall not be void but shall continue as a paid-up policy till the end of policy term. 

The Sum Assured on Death under a paid-up policy shall be reduced to a sum called “Death Paid-up Sum Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable) * Sum Assured on Death].

The Sum Assured on Maturity under a paid-up policy shall be reduced to a sum called “Maturity Paid-up Sum Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable)*(Sum Assured on Maturity)].

The policy can be surrendered at any time provided premiums have been paid for at least 2 consecutive years. On surrender of the policy, LIC shall pay the Surrender Value equal to the higher of Guaranteed Surrender Value and any applicable Special Surrender Value. 

The Special Surrender Value is reviewable and shall be determined by the Insurer from time to time subject to prior approval of IRDAI. 

The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to LIC within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same LIC shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for base plan and rider, if any) for the period on cover and stamp duty charges.