LIC’s New Bima Bachat is a great plan for people seeking both life cover and savings options in a single policy. Here the policy purchaser would have to pay a single installment of lump amount premium and reap its long lasting rewards. It is a money-back policy that supplies fiscal security in the instance of a premature demise in the course of the plan duration with the added facility of reimbursement of subsistence benefits at definite intervals throughout the plan tenure. Moreover, when the plan matures, the solitary premium would be reimbursed accompanied by any applicable Loyalty Additions. The policy purchaser could even benefit from the loan availability feature against the plan and take care of his/her monetary issues.
Maturity Benefits in LIC’s New Bima Bachat
The Life Assured would receive an amount of Solitary Premium (exclusive of levies and any added premium) together with any applicable Loyalty Addition if he/she successfully completes the complete policy duration.
Death Benefits in LIC’s New Bima Bachat
Demise in the course of initial five plan years: The beneficiary would receive the Amount Guaranteed.
Demise post completion of five plan years: The beneficiary would receive Amount Guaranteed added with any Loyalty Addition.
Survival Benefits
The New Bima Bachat plan 816 provides attractive survival benefits at regular time intervals. Being an LIC Money Back Policy, New Bima Bachat offers a money back at certain intervals as shown underneath if the policyholder stays alive till the completion of the stated intervals:
Plan durations of 9 years: 15 percentile of the Amount Guaranteed at the conclusion of every third and sixth plan year.
Plan durations of 12 years: 15 percentile of the Amount Guaranteed at the conclusion of every third, sixth and ninth plan year
Plan durations of 15 years: 15 percentile of the Amount Guaranteed at the conclusion of every third, sixth, ninth and twelfth plan year
Bonus (Loyalty Additions)
The Corporation rewards its policy members for choosing the LIC plan and showing loyalty to the company by sharing with them in its corporate’s profit. Hence, Loyalty Additions are special bonus additions provided along with the New Bima Bachat plan. The Loyalty Addition is funded on demise post completion of five plan years and on policy member remaining alive till the maturity period at a percentage and terms that might be prefixed by the Corporation.
Policy Loan
After the successful completion of the initial one plan year, the Life Assured could any time apply for a loan. This credit must be equivalent to 60 percent of the submission amount according to the loan sanction date.
Surrender Value
Purchasing a plan of life coverage is a long duration undertaking. Nevertheless, if the purchaser wants then he/she could surrender the plan before the completion of the policy term and receive a monetary compensation.
The Definite Surrender Amount permissible would be as shown below:
Surrender during the initial one year: 70 percent of the Solitary premium exclusive of levies and any added premiums.
Surrender after completion of the first-year term: 90 percent of the Solitary premium exclusive of levies, any added premium, along with entire survival paybacks funded previously.
The Organisation might choose to compensate for an Exceptional Surrender Amount as appropriate as on surrender date in case the same is greater to Definite Surrender Amount.
Policy Eligibility for LIC’s New Bima Bachat
| Lowest Eligibility Age | The candidate must have completed 15 years of age |
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Highest Eligibility Age:
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| Highest Age of Maturity | The candidate must be below or equivalent to 65 years on his/her oncoming birthday |
| Plan Duration | 9, 12 and 15 |
| Lowest Amount Guaranteed |
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| Highest Amount Guaranteed | There is no upper ceiling on the highest amount, hence it is limitless |
Premium Payments
The policyholder would have to fund a onetime solitary premium payment and enjoy the long lasting rewards.
Rebate
The Corporation provides guaranteed rebate amounts on high-value policy purchase. The rebate amounts on different premium amounts are listed as under.
For a 9 year Tenure
Below 75,000 INR: Zero
Between 75,000 INR and below1.5 lakh INR: 6 percent of the premium amount.
More than or equal to 1.5 lakh INR: 8 percent of the premium amount.
For a 12 year Tenure
Below 1 lakh INR: Zero
Between 1 lakh INR and below 2 lakh INR: 4 percent of the premium amount.
More than or equal to 2 lakh INR: 6 percent of the premium amount.
For a 15 year Tenure
Below 1.5 lakh INR: Zero
Between 1.5 lakh INR and Below 3 lakh INR: 3 percent of the premium amount.
More than or equal to 3 lakh INR: 5 percent of the premium amount.
Cooling off Duration
In case the policyholder disagrees with the “Terms and Conditions” of the plan then he/she has the option to return back the policy to the company within a time frame of 15 days from the date of policy receipt. This time frame is known as Cooling Off duration. The policyholder would also have to provide a written reason stating the cause of objection. If the policyholder returns the policy during the cooling off duration then he/she would get a refund on the premium amount after deduction of the miscellaneous expenditures experienced by the company on paperwork, medical examination, etc.
Exclusion
In the instance of a suicide within a year of the risk commencement date, the plan will be annulled. It would not matter if the member is mentally stable or unstable and under the policy rule the Company would not take up any claim excepting to the amount of 90 percent of the solitary premium funded exclusively of levies and any additional premium funded.
