LIC New Bima Bachat Plan 816 offers a good combination of savings and life insurance. The plan offers liquidity in the course of plan tenure by paying the money back benefits at different intervals of time. Life insured needs to pay only a single premium and loyalty addition will be added at the completion of the policy term.
LIC Plan 816 is a participating non-linked plan. The plan offers maturity benefits as well as death benefits. It also provides survival benefits at specific intervals during the policy term. The plan was launched in January 2014 by the Life Insurance Corporation of India.
Table of Contents
Key features
- Single lump-sum premium at the initiation of the policy
- Money-back benefits
- Loan facility available under this plan
- Freelook period of 15 days
- Dual benefits of savings and life insurance
- Income tax benefits under Section 80C and Section 10(10D)
Eligibility
| Entry Age | Minimum- 15 years Maximum- 66 years(9 years policy) 63 years(12 years policy) 60 years(15 years policy) |
| Maturity Age | Maximum- 75 years |
| Premium Payment Term | Single-Premium |
| Sum Assured | Minimum- Rs.35,000(9 years policy) Rs.50,000(12 years policy) Rs.70,000(15 years policy) |
Benefits
- Death benefits:
An amount equal to the sum assured shall be payable to the nominee in case life insured demise unfortunately in the course of the first five years of the policy term. Sum assured along with the loyalty addition bonus will be paid to the nominee if the policyholder dies after completion of five year period.
- Maturity benefit:
An amount equal to the one-time lump sum paid along with the loyal addition shall be payable to the life insured after the successful completion of the policy term. Loyal addition is subject to the corporation’s performance in the market.
- Survival benefit:
A determined part (15%) of the sum assured will be given as a survival benefit from the 3rd policy year. This amount will be paid further for completion of every 3 years of the policy term.
- Policy tenure of 9 years: Payable at the completion of the third and sixth year of the policy.
- Policy tenure of 12 years: Payable at the completion of the third, sixth and ninth year of the policy.
- Policy tenure of 15 years: Payable at the completion of the third, sixth, ninth and twelfth year of the policy.
- Tax benefit:
LIC New Bima Bachat Plan 816 is exempted from tax under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
- Loan facility:
LIC Plan 816 provides liquidity in the form of a loan facility. 60% of the surrender value can be availed as a loan under this policy. However, the policy needs to complete a minimum of one year of the policy term.
- Grace period:
No grace period is available under this policy as a single premium in lump sum has to be paid on the initiation of the policy.
Exclusion
In case the life insured commits suicide during the 12 months from the date of initiation of the policy. Only 90% of the lump sum premium will be paid after the deduction of taxes and additional premiums if any.
Other than this, no claims will be entertained by the Life Insurance Corporation of India.
Final words
LIC New Bima Bachat Plan 816 carries a variety of benefits upon its sleeves. Whether it’s a combination of protection and savings or liquidity and survival benefits, the plan offers it all. It can be a good option for individuals seeking multiple benefits from a single policy. Only the facility of additional riders is missing in LIC plan 816.
A money-back policy can be ideal for individuals who need financial aid at different intervals of life. It can be used as a long or short term expense like buying accommodation, travel, vehicle, medical fees or pursuing higher education.
Life Insurance Corporation of India has a very high consumer base and is the largest insurance company in India. Its policies portfolio orients any class of society who wants an insurance plan for themselves. Founded in 1956, the company has over 2,000+ branches and 1,400+ satellite and central offices. Owned by the government of India, LIC is popular for its no-risk policy standards. You can find further information by contacting 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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