LIC NEW BIMA BACHAT
LIC’s New Bima Bachat is a special plan that provides life coverage along with lump sum payment at the maturity of the plan. It is an associated non-connected investment cum security plan. Here the policy holder would have to pay a single lump sum payment at the beginning of the policy and enjoy its benefits throughout his/her life. As the name suggests Bima Bachat is a money-back plan that gives fiscal security during the phase of plan in the case of an unexpected demise of the life assured. Additionally, on plan maturity, the solitary premium would be reimbursed along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.
BENEFITS & FEATURES
If the policy holder survives till the maturity of the plan then he/she would receive a single payment that would exclude entire taxes additional premium (if any). He/she may also receive a Loyalty Addition, if he/she is eligible for it.
Demise within 5 years of policy: The beneficiary would receive the basic guaranteed amount
Demise prior to conclusion of 5 policy years: The beneficiary would receive the basic guaranteed amount with a loyalty addition if applicable in the policy.
There are lucrative survival remunerations under LIC’s New LIC Table 816, a renovated plan from Table 175.
Nine Year Policy Duration: The policy holderwould twice receive 15 percent of Amount Guaranteed- once after 3 year period and second amount guaranteed after a 6 year policy period.
Twelve Year Policy Duration:The policy holderwould thrice receive 15 percent of Amount Guaranteed- once after 3 year period, second amount guaranteed after a 6 year policy period and third amount guaranteed after a nine year period.
Fifteen year Policy Duration: The policy holderwould receive 15 percent of Amount Guaranteed four times during the policy term. The first amount guaranteed after 3 year period, second amount guaranteed after a 6 year policy period, third amount guaranteed after a nine year period and fourth amount guaranteed after a 12 year period.
The Company could share the profits with its policy holders in the form of Loyalty Additions. These additions are provided to the policy holders on the successful completion of the policy duration. If in case the policy holder experiences an unexpected demise before the maturity of the Bima Bachat plan then his/her beneficiary could receive the Loyalty Addition provided the policy has completed the five year duration. All rates and terms are determined by the company and they could not be challenged.
The policy holder could avail the facility of loan under Bima Bachat policy. The loan amount would be no more than 60 percent of the base value.
The policy provides an annual income tax benefit on premium amounts up to 1 lakh INR beneath section 80C of tax rules. The 10(10)D of tax rules also allows tax benefits in terms of tax redemption on the Maturity Benefit .
The company provides its policy holder with the facility of plan surrender if the life assured is not able to pay the premiums on long term duration.
The permissible Assured Surrender Price would be as specified below:
1st year: 70 percent of the Solitary premium exclusive of levies and any added premium.
2nd year and after: 90 percent of the Solitary premium exclusive of levies, any added premium along with entre survival remunerations compensated previously.
Additionally, the Company might provide Distinctive Surrender amount as appropriate as on surrender date providing this value is more than Guaranteed Surrender amount.
ELIGIBILITY & PREMIUM PAYMENTS
a) Least applicable age: The policy holder must have completed 15 years.
b) Highest applicable age:
i. The policy holder must be 66 years on his/her oncoming birthday) for a nine year duration.
ii. The policy holder must be 63 years on his/her oncoming birthday) for a twelve year duration.
iii. The policy holder must be 60 years on his/her oncoming birthday) for a fifteen year duration.
c) Highest age of Maturity: The policy holder must be 75 years his/her oncoming birthday.d) Policy Duration: Policy durations are available for 9, 12 and 15 years.
e) Smallest Amount Guaranteed: The policy holder would receive an amount of 35,000 INR for a 9 year duration, 50,000 INR for 12 year duration and 70,000 INR for 15 year duration.
f) Highest Amount Guaranteed: It is limitless.
Amount Guaranteed would be in multiples of 5,000 INR only.
g) Premium payment method: The policy holder would have to pay a one-time solitary Premium.
Sample Premium Rates
The sample premium rates (exclusive of taxes) are as under: -
Rebate for High Amount Guaranteed:
Great Amount Guaranteed Reimbursements (As percentile of Tabular Premium):
9 year Duration
75,000 INR and less: No Amount.
Between 75,000 INR and 1.5 lakh INR: 6 percent.
More than or equal 1.5 lakh: 8 percent.
12 year Duration
100,000 INR and less: No Amount
Between 1 lakh INR and 2 lakh INR: 4 percent
More than and equal to 2 lakh INR: 6 percent
15 year Duration
1.5 lakh INR or less: No Amount
Between 1.5 lakh INR and Less 3 lakh INR: 3 percent
More than or equal to 3 lakh: 5 percent
The Bima Bachat Policy provides the policy holder with an opportunity to return the plan within a fortnight of the date or receipt if the policy holder finds himself/herself unsatisfied with its “Terms and Conditions”. However, the policy holder should give in writing his/her reason for objection. Once the policy is returned the policy holder will get a refund on his/her premium after subtracting the proportional danger premium for the duration on cover, health inspection costs, and any special reports along with stamp charges.
The LIC Table 816 policy would be nullified in instances of suicide. Hence, if the policy holder (whether stable or mentally disturbed) decides to take his/her life during the 1 year period from the date of beginning of danger, then the company holds the right to refuse the claim. In rare cases the company may provide a single lump payment of 90% to the nominee that would exclude all types of taxes and any added premium.