LIC New Bima Bachat Plan

1.  LIC’s New Bima Bachat plan gives money-back option to the policyholder
2.  It is a single premium plan that provides the policyholder with profit and protection

1. This plan allows the policyholder to avail themselves of the loan facility in case of emergency
2.  If the policyholder is alive at the end of every three years, 15% of the basic sum assured is paid as survival benefit, and the policy continues.

1.  If the policyholder is alive at the maturity of this plan, then they are entitled to the entire single premium amount along with loyalty addition

1.  In case the policyholder dies within the policy tenure, then the policy nominee is entitled to the entire sum assured along with loyalty addition as death benefit

Benefits of LIC’s New Bima Bachat Plan

The LIC’s New Bima Bachat Plan offers the policy holder multiple benefits, they are as follows:

1.   Survival benefit: The policy holder gets a survival benefit of 15% of the basic sum assured. This amount will be paid as follows:

For Policy Tenure of 9 years

o   Payable at the end of the 3rd Policy Year

o   Payable at the end of the 6th Policy Year

For Policy Tenure of 12 years

o   Payable at the end of the 3rd Policy Year

o   Payable at the end of the 6th Policy Year

o   Payable at the end of the 9th Policy Year

For Policy Tenure of 15 years

o   Payable at the end of the 3rd Policy Year

o   Payable at the end of the 6th Policy Year

o   Payable at the end of the 9th Policy Year

o   Payable at the end of the 12th Policy Year

1.  Loyalty addition: The policyholder is entitled to loyalty addition if the policy completes five years tenure.

1.  Maturity Benefit: If the policyholder survives the policy tenure, they would be entitled to the entire single premium amount along with loyalty additional amount.

1.  Death Benefit: In case the policy holder dies during the policy tenure in case of unfortunate events, then:

o   If the policy holder dies during the first five policy years, then only the sum assured will be paid

o   If the policy holder dies completing the five years of policy, the nominee would receive sum Assured along with loyalty addition amount (if any) as death benefit.

1.  Tax Benefit: According to Section 80C of the Income Tax Act, the policy holder can claim Income tax benefit on the premium paid for LIC’s New Bima Bachat.

Parameters of LIC’s New Bima Bachat Plan

Premium Details of LIC’s New Bima Bachat Plan

The annual premium (tax excluded) of LIC’s New Bima Bachat Plan for sum assured of Rs.1 lakh is as follows:

Documents required for LIC’s New Bima Bachat Plan

The following documents are required to apply for LIC’s New Bima Bachat Plan

1. Identity proof: Aadhaar card, Passport, PAN card, Driving Licence, etc.
2. Address proof: Ration card, electricity bill, water bill, etc.
3. Application form
4. A medical check-up may be required

Free-Look Period

In case the policyholder is not happy with the terms and conditions of New Bima Bachat plan, he/she can return the policy within 15 days from the receipt date to the Corporation. In case the policy has been purchased online, the policy can be returned within 30 days.

The individuals must state the reasons for the cancellation of the plan. Once the policy has been cancelled, the premium that has been paid will be returned after the annuity paid and stamp duty have been deducted.

Exclusions

The policyholder will not be entitled to sum assured if:

1.   If the policyholder commits suicide within a year of the policy commencement, then the insurer will not be entitled to pay any claim amount except return 90% of the single premium paid (excluding taxes, rider premiums and extra premium)
2.   Any other claim will not be entertained by the insurer.