The LIC Bachat Plus plan 861 is a new plan that comes with Single Premium Participation. It is also an Anticipating Endowment plan which makes it a money back plan where the payments are scheduled along with return of the single premium that was paid along with loyalty additions at the end of the policy term.

The reason why this plan is so popular among the investors is because of the money back guarantee that offers restitution of money over many intervals of times within the policy tenure.

Key features-

The plan comes with several attractive key features that allow the investors to make an informed decision. They are chronicled as follows:

• It is a single premium plan with traditional endowment facilities.
• It provides redemption of money along with additional bonuses.
• There is a choice over the policy period- 9 years, 12 years and 15 years
• On survival of every 3 years, the policyholder receives a survival benefit of 15% of the basic sum assured
• At the end of the policy term, the survival will receive the Single premium amount along with Loyalty Additions maturity benefit.
• If the policyholder passes away within the policy term, then the nominee will be payable the entire sum assured + loyalty addition as the death benefit

Benefits of the plan

Now that we have established the key features of the plan, let us talk about how this pla benefits you.

• Survival Benefit – With the Bima Bachat Plan, if the policyholder survives the end of the policy term then he or she will be paid 15% of the sum assured in intervals under the following terms of policy:

Policy term	Intervals of money payable
9 years	Payable at the end of 3rd and 6th year
12 years	Payable at the end of 3rd , 6th year and 9th year
15 years	Payable at the end of 3rd , 6th year ,9th year and 12th year

 

• Maturity benefit – The maturity benefit will be provided when the policyholder survives the end of the policy term. The amount will equal to Single premium paid + loyalty additions

 

• Death Benefit – If the life insured dies within the policy term then he or she is liable to be paid a death benefit by the policy under the following circumstances:

On death within the first 5 years of the policy term, the nominee will be paid the entire basic sum assured.

On death after the first 5 years of the policy term, the nominee will be paid the entire sum assured and loyalty addition (if any) as the death benefit.

A high sum assured discount is provided along with the LIC Bima Bachat plan

Eligibility

To incur with the plan, a person needs to meet the following parameters:

Minimum entry age	15 years
Maximum entry age	66 years for a policy term of 9 years 63 years for a policy term of 12 years 60 years for a policy term of 15 years
Minimum maturity age	—
Maximum Maturity age	75 years
Policy term	9 years, 12 years and 15 years
Premium paying term	Single
Premium paying mode	Single
Sum assured	Rs. 35,000 for policy term of 9 years Rs. 50,000 for policy term of 12 years Rs. 70,000 for policy term of 15 years

 

Additional Benefits of the policy

Some additional benefits that the policy provides are:

Surrender Value-  If the policyholder surrenders the plan within the first year of the issuance of the policy, then he or she will be allowed 70% of the single premium that was paid excluding taxes and extra premium (if any)

If the policyholder surrenders the policy after the first year is complete them he pr she will be allowed 90% of the single premium that was paid excluding the taxes and extra premium (if any)

Free look period- The free look period of 15 days is provided from the issuance of the term during which, if the policyholder is not pleases with the service of the company or does not agree to the terms and conditions, then he or she can terminate the policy provided that there is no claim.

FAQs

1. How long is the grace period under this policy?

Grace period does not apply to this policy

2. Can I avail loan under the bima bachat plus?

Yes, you can avail loan upto  60% of the surrender value.

3. How is money back policy better than other policies?

The money back policy is an endowment plan wherein the policyholder is liable to get his money back in instalments over the period of the policy term.

4. What would be the maturity value under the policy?

The maturity benefit will be a lump sum of Single premium paid + Loyalty addition

5. What tax benefits will receive?

The policy adheres to tax benefits nder section 80C and 10D of the income tax act of India 1961

6. How much insurance will I get under the bima bachat?

The policy will provide a lump sum of Sum assured which will be the single premium paid along with money back life insurance where the amount will be paid in instalments to the nominee in the events of death of the policyholder.

7. When can I get the guaranteed surrender value?

The policy can be surrendered any time before the end of the policy ter. In that case the surrender value is calculated based on pre-defined formulae decided by the company.

8. Are there any terms and conditions under the policy?

To buy the policy the individual should meet all the eligibility criteria mentioned above.

9. What tax benefits do I get under the policy?

The company adheres to Section 80C and 10C of the Income Tax Act of India 1961

10. Do I get any advantages of LIC phone banking?

The advantages of phone banking are as follows:

You can pre pay your premiums

Access to your policy any time

Get reminders by email and app alerts

Instant payment

No need to personally visit the branch