LIC Micro Bachat Plan (Plan 751) is a non-linked, participating, regular premium, individual micro-insurance savings plan offered by the Life Insurance Corporation of India (LIC). It is specifically designed to provide financial security to individuals from economically weaker sections of society. Here's a brief overview of the plan:
Features:
Maturity Benefit: The plan provides a lump sum payment to the policyholder at the end of the policy term, provided they survive the entire duration of the policy.
Death Benefit: In case of the unfortunate demise of the insured during the policy term, the nominee receives the death sum assured along with accrued bonuses.
Premium Payment Term: Premiums are paid throughout the policy term.
Participation in Profits: The plan participates in the profits of LIC through bonuses declared by the corporation.
Loan Facility: Policyholders have the option to avail of a loan against the policy, providing liquidity in times of need.
Eligibility:
Entry Age: Minimum entry age is 18 - 55 years, and the maximum entry age varies depending on the chosen policy term.
Policy Term: Policy terms range from 10 to 15 years.
Sum Assured: The minimum sum assured is Rs. 50,000, and the maximum sum assured is Rs. 2 lakh (in multiples of Rs. 1,000).
Premium Payment Options:
Regular Premium: Premiums are paid throughout the policy term.
Premium Modes: Premiums can be paid annually, semi-annually, quarterly, or monthly, as per the policyholder's convenience.
Tax Benefits:
Premiums paid under the plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, the maturity proceeds and death benefits received are also tax-exempt under Section 10(10D) of the Income Tax Act, 1961.
LIC Micro Bachat Plan is specifically designed to provide affordable and accessible life insurance coverage to individuals from economically weaker sections of society. It offers both protection and savings benefits, ensuring financial security and peace of mind for policyholders and their families.
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