Micro Bachat stands for ‘small savings’. LIC plan 851 offers a combination of savings and life insurance in a single policy. The family of the policyholder will get financial support in case of his/her unfortunate demise. On the other hand, the life insured will get a lump sum amount in case of successful completion of the policy term.
The plan was officially launched in February 2019. According to LIC, Rs.2,00,000 is the maximum total sum assured provided in Plan 851. The plan is very cost-effective with lots of benefits, such as tax benefits under Section 80C of the Income Tax Act, 1961.
Table of Contents
Key features
- Combination of protection and savings
- Tax benefits under the Income Tax Act
- Loan facility is available under this plan
- Additional riders are also available
- Cost-effective policy with loyalty additions
- Freelook period of 15 days
Eligibility
| Entry Age | Minimum- 18 years Maximum- 55 years |
| Maturity Age | Maximum 70 years (nearest birthday) |
| Basic Sum Assured | Minimum- Rs.50,000 Maximum- Rs.2,00,000 |
| Policy Term Period | 10 years to 15 years |
| Premium Payment Mode | Monthly, Quarterly, Half-yearly, Yearly |
Benefits
- Death benefits:
Sum assured on death shall be payable to the nominee in case the life insured demise during the first five years from the date of policy term initiation.
On unfortunate demise after the completion of five policy years but before the date of maturity, Sum assured on death along with loyalty addition, if any, will be paid to the nominee.
- Maturity benefit:
If the policyholder survives the entire policy term, Sum Assured on Maturity which is equal to Basic Sum Assured along with loyalty addition will be paid to the life insured. Subject to all due premiums has been paid.
- Loan:
A maximum of 70% of the surrender value can be availed for the loan subject to policy is in force. Life insured is eligible for the loan after the completion of 3 years of the policy term.
- Grace period:
A relaxation of 30 days is applicable to all the premium payment modes in case the policyholder was unable to pay the premium on time.
- Tax benefits:
For a life insurance policy, tax benefits are also available for the life insured. Premiums paid under this plan are exempted from tax under Section 80C of the Income Tax Act, 1961.
- Revival:
The policy will void if premiums are not paid by the end of the grace period. A lapsed policy can be revived within a period of 2 consecutive years from the date of the first unpaid premium.
Exclusion
- 80% of the premiums paid subject to policy is in-force shall be payable to the nominee. This will be applicable if life insured commits suicide within starting 12 months of the policy term.
- The amount which is higher, 80% of the premiums paid or surrender value shall be payable to the nominee. In case the policyholder commits suicide during 12 months from the date of policy revival.
*Other than these benefits any other claim will not be entertained by the Life Insurance Corporation of India. To Find out more, you can contact the LIC Customer Care Number.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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