LIC’s New Bima Bachat Plan Benefits, Features, Details, Review

LIC’s New Bima Bachat Plan – LIC provides term insurance as well as savings plans to meet the needs of all customers. Since its inception in 1956, LIC has been providing individual services for more than 60 years. Throughout its history, the company has provided a variety of appealing insurance plans to assist people in meeting their financial responsibilities. Bima Bachat is one such LIC policy that assists individuals in setting up a savings account for their needs.

The Licensing and Registration Authority of India (LIC) has launched a new Bima Bachat plan 2023, which will help businesses reduce licensing delays and backlogs. LIC will provide better facilities and faster processing times for all licensing applications under the new plan. The goal is to make the licensing process easier and faster for businesses so that they can focus on their core business rather than paperwork. The following are some key details of the LIC Bima Bachat plan 2023.

LIC’s New Bima Bachat Plan 2023

The LIC New Bima Bachat insurance plan is a traditional, participating, money-back plan. By offering money-back benefits at predetermined intervals, the plan provides the policyholder with liquidity to meet his financial needs. The plan requires only one premium, which is also refunded when the policy matures. The policyholder receives not only a return on his investment but also additional money-back benefits over the course of the policy.

LIC’s new Bima Bachat plan,2023 will help foster inclusive growth for all. This new plan will provide LIC with the resources it needs to provide access to basic banking services, housing, health, and other essential services to all Filipinos. The Bima Bachat plan will also facilitate social and economic inclusion by creating quality jobs and strengthening the rural economy.

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LIC’s New Bima Bachat Plan Details

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Benefits of the New Bima Bachat Policy of LIC

The benefits of the LIC Bima Bachat plan are as follows:

1. Death benefit:
On death during the first five policy years: Sum Assured.
On death after completion of five policy years: Sum Assured along with Loyalty Addition if any.

2. Survival Benefits:
Payable as given below in case of Life Assured surviving to the end of the specified durations:
For policy term 9 years: 15% of the Sum Assured at the end of each of the 3rd & 6th policy year
For policy term 12 years: 15% of the Sum Assured at the end of each of the 3rd, 6th & 9th policy year
And For policy term 15 years: 15% of the Sum Assured at the end of each of the 3rd, 6th, 9th & 12th policy year

3. Maturity Benefit:
Payment of Single Premium (excluding taxes and extra premium, if any) along with Loyalty Addition, if any, in case of Life Assured surviving to the end of the policy term.

4. Loyalty Addition:
Depending upon the Corporation’s experience the policies shall participate in the profits and shall be eligible for Loyalty Addition. The Loyalty Addition, if any, is payable on death after completion of five policy years and on the policyholder surviving to maturity, at such rate, and on such terms as may be declared by the Corporation.

Surrender Value:

To continue with the strategy for the selected residency, you can cancel the arrangement and benefit from acquiescence esteem. The surrender value is determined by the date and time the policy is surrendered.

The time when the policy is surrenderedSurrender value
In the first policy year70% of the single premium paid
After the completion of the first plan year90% of the single premium paid

Policy loan

If you require funds for personal reasons, you can obtain a loan through the policy. Loans are permitted after the first policy year. You can only borrow up to 60% of the policy’s surrender value.

Key Highlights of the New Bima Bachat Plan from LIC

The Licensing Authority of India has introduced the new Bima Bachat Plan (LIC). The plan’s goal is to provide licencing and regulatory assistance to small and medium-sized enterprises (SMEs) in the technology and information technology (IT) industries.

The following are the most important features of the LIC Bima Bachat Policy:

  • The policy shares in LIC’s profits. After the first five years of the policy, it gets a loyalty bonus when the policy is over or if someone dies.
  • At predetermined intervals, money-back benefits equaling 15% of the amount insured are paid.
  • Premium rebates are also allowed if a high level of sum assured is chosen.
  • After the finishing of the main arrangement year, you can benefit from strategy advances for meeting your monetary necessities.

LIC’s New Bima Bachat Plan’s eligibility norms

Entry ageMinimum – 15 years Maximum:    66 years
Maturity ageMaximum – 75 years
Term of the plan9 years, 12 years, or 15 years
Sum assuredIf the Plan is 9 years – INR 35,000 If the Plan is 12 years – INR 50,000
Premium amountage and term
Premium payment modeSingle premium

Who should buy the new LIC Bima Bachat Plan?

The LIC Bima Bachat policy is suitable for those seeking to establish a guaranteed fund to meet their financial needs. The arrangement meets the needs of risk-averse individuals who need to build a corpus and also require liquidity. Because it has guaranteed returns, the plan can be taken for its risk-free returns. Furthermore, for those who require liquidity for a variety of financial reasons, the survival benefits due in the third policy year provide a consistent source of income.

The Fee Implications of LIC’s New Bima Bachat Policy

Because it is a life insurance policy, LIC Bima Bachat is tax-free. The benefits you receive as well as the premiums you pay for the policy may be tax deductible. The following are the tax implications of LIC’s new Bima Bachat plan:

Tax implication on premiums paid

You would be able to deduct the single premium paid to purchase the plan from your taxable income under Section 80C of the Income Tax Act.

Tax implication on benefits received

You are exempt from paying taxes on the maturity benefit, death benefit, and survival benefits you receive during the term of the plan under Section 10(10D) of the Income Tax Act of 1961. Tax-free benefits are limitless. You would owe no taxes on any benefit you receive.

LIC’s New Bima Bachat Plan Exclusions

The insured would be excluded if he or she committed suicide within a year of purchasing the LIC Bima Bachat plan. The policy would be cancelled, and 90% of the single premium would be refunded.

How do I apply for LIC’s new Bima Bachat policy?

The LIC Bima Bachat plan is available in person or online. Offline policies are sold by LIC agents and branches. You can approach either of them to purchase the policy. The policy must be purchased online through a LIC of India agent or the company’s official website. The online method is much simpler and more user-friendly.

Documents needed to apply for the LIC’s New Bima Bachat Plan

To purchase a LIC Bima Bachat policy, the following documents must be submitted:

  • valid identification document
  • a valid age document,
  • a valid address document,
  • income documentation if premiums are high,
  • recent coloured photographs,
  • bank account information,
  • and any other documents required by the insurance company.

LIC’s New Bima Bachat Plan’s Guarantee Cycle

The following are the procedures for filing claims under the LIC Bima Bachat policy:

Survival benefits claim

To receive the money-back benefits, you must submit a claim discharge form as well as a copy of your policy bond. Additional information about your bank account would be required in order for the survival benefits to be credited directly to your bank account.

Maturity claims

When the plan expires, submit the claim discharge form and policy document to receive the maturity benefit. To have the benefit credited directly to your bank account, you must also provide proof of identity and bank information.

Death claims

If the insured dies during the policy’s term, the nominee must complete Part A of Claim Form 3783. The form is easily accessible on the LIC website. The form is also available from a LIC agent or branch office. Fill out the form and send it to the insurance company with the nominee’s identity document, the insured’s death certificate, and the bank account where the claim will be processed. Once all of the documents are in order, LIC will process and settle the claims.

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