LIC Bima Bachat (Plan No. 916)


LIC Bima Bachat Plan can be characterized as a non-linked savings and protection plan. It is a money-back policy that is incredibly helpful to ease financial problems. The premium is paid in a lump sum at the initiation of the policy.

It provides monetary protection should there be a demise. Additionally, at the time of maturity, the single premium will be returned with Loyalty Addition, if there is any. The plan also provides liquidity needs through loans.

Major Benefits in the LIC Bima Bachat plan

  • Death benefits- If the policyholder meets an unfortunate demise during the first 5 years. The assured will receive the Basic Sum Assured.

If the policyholder suffers a death post 5 years after with the completion of the policy years, then the assured gets the Maturity amount = Basic Sum Assured+ Loyalty Addition (if applicable)

  • Survival Benefits- If the policyholder survives till the policy is termed, then depending upon the term of the policy, the policyholder will receive the following benefits.

Policy term of 9 years- To get 15% of the Sum Assured at the end of the 3rd and 6th year of the policy.

Policy term of 12 years- 15% of the Sum Assured by the end of the 3rd, 6th and, 9th years of the policy.

Policy Term of 15 years- 15% of the Sum assured by the end of the 3rd, 6th, 9th, and 12th years of the policy.

  • Maturity Benefit- The Company will pay in a single time, with the addition of Loyalty Addition, if any, provided that the Life Assured is surviving until the end of the policy term. Taxes and additional premiums aren’t included.
  • Loyalty Addition- If the policyholder manages to pay all his premiums for 5 years and has no unpaid dues, then the policyholder is eligible for Loyalty Addition. However, depending upon the corporate’s policies and terms, the Loyalty Addition is payable due to the demise after the completion. These policies shall be updated by the Corporation.

Parameters and Eligibility

Gender Male or Female
Minimum age of entry 15 years
Maximum age of entry 66 years (for a term of 9 years)

63 years(for a term of 12 years)

60 years (for a term of 15 years)

Maximum Maturity Age 75 years
Policy Term 9 years, 12 years, 15 years
Minimum Sum Assured Rs. 35,000 (for a term of 9 years)

Rs. 50,000 (for a term of 12 years)

Rs. 75,000 (for a term of 15 years)

Maximum Sum Assured No Limit
Premium Payment Mode Single Premium only



For a term of 15 years
Less Than Rs. 150,000 Nil
Between Rs. 150,000 and 3,00,000 3%
Rs. 300,000 and above 5%
For the term of 12 years  
less than Rs. 100,000      NIL
Between Rs. 100,000 and Rs. 200,000 4 %
Rs. 200,000 and above 5%
For the term of 9 years  
Less than Rs.75,000 Nil
Between Rs.75,000 and Rs. 150,000 6%
Rs. 150,000 and above 9%



As per this plan, Loans can be provided after completing at least one year of the policy term. The loan needs are equal to 60% of the surrender value, which is sanctioned on the date of the loan issued.

Surrender Value 

While the policy terms may look like a stretch, surrender value is what is helpful in these cases. To terminate the policy before the termed date, the policyholder needs to surrender to the contract.

This is when LIC offers a surrender value which will be issued to the policyholder, or the survived assured when and if he or she chooses to surrender the policy.

On surrendering the policy within the first year of the date of issue, a guaranteed surrender value of 70% of the single premium will be provided. This value excluded the taxes.

On surrendering in any other year after the first year, 90% of the single premium will be offered. This will exclude taxes, extra premiums, and all the survival benefits that were paid earlier.

Cooling Period

If the policyholder has a change of mind or does not agree with the terms and policies of the Corporation, then there is allowed a cooling period of 15 days from the date of issue. In such cases, corporate shall return the single payment of premium after deducting the proportionate risk premium for a period on cover, charges for medical examinations, special reports if there are any, and stamp duty.


If the policyholder happens to commit suicide within 12 months from the date of issue of the policy, the company shall not pay any heed to the claim under the policy. However, 90% of the single premium will be paid, leaving out the taxes and any extra payment.


  1. How many times do we need to pay the premiums? 

The plan has the freedom to pay only once. So you need to pay only one time at the beginning of the commencement of the risk.

  1. What is the LIC Bima Bachat Policy? 

The New Bima Bachat Policy is a single premium plan wherein you pay only once at the commencement of the policy. It is an anticipated endowment plan with scheduled payments during the term of the policy. It is also called the money-back plan.

  1. Does Loyalty Addition apply to Bima Bachat Plan?

Yes, if the policyholder manages to keep a hold on to the policy for at least five years, then Loyalty addition is applicable

  1. What is the tax on Bima Bachat Plan? 

Survival or maturity, the payouts are not taxable under Section 10 D of the income tax act.

  1. What is a Money-back plan? 

LIC’s money-back plan or Bima bachat plan provides financial support after a demise throughout the term

  1. How much is the Loyalty Addition in LIC? 

The rate of Loyalty addition in the last 25 years is Rs. 1100 per 1000 sum assured that is 110% of the Sum assured.

  1. Is Bima Bachat and Bachat Plus Plan same?

In the Bachat Plus plan, the payment mode can be either a single payment or a lump sum over 5 years.

  1. How much does a LIC agent get on commission? 

An agent gets a 25% commission. It is for the first premium, the commission for the second and third is 7.5%

  1. What if my LIC agent dies? 

The commission for that agent will go to his or her nominee, and a new agent will be assigned to the policyholder

  1. Is Bima Bachat good? 

Bima Bachat runs of anticipated endowment plan, which means you get an assured amount throughout the term of the policy with a single payment at the beginning of the issue. Checkout other LIC policies as well.

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