The LIC New Bima Bachat policy is nothing but simple partaking non-linked savings as well as protection plan in which the premium is payable in a lump sum right at the beginning. New Bima bachat is an efficient money-back plan that offers financial protection in case of an unfortunate death during the active policy term with a prerequisite of a payment of survival benefits at predetermined times all through the policy term. Also, the single premium will be refunded to the policyholder together with the Loyalty Addition (if there is any) on maturity. The need for liquidity is also taken care of through the loan facility of this plan.
- 1 Key Features
- 2 Eligibility and criteria of New Bima Bachat
- 3 LIC Bima Bachat Premium Calculator
- 4 New Bima Bachat Payment of Premiums
- 5 Policy Loan on New Bima Bachat
- 6 Taxes on New Bima Bachat
- 7 Cooling-Off Period of New Bima Bachat
- 8 Exclusion of New Bima Bachat
- 9 Reviews of New Bima Bachat
- It is claimed to be Single Premium Plan
- It is a money back scheme with the option of bonus
- 9 years, 12 years as well as 15 years are the different term periods of this plan
- Loan can be availed to meet any unforeseen financial contingency
New Bima Bachat policy benefits:
The vital benefits of this policy are as follows:
- Death benefit
- Survival benefit
- Maturity benefit
- Loyalty Addition
If the policyholder dies during an active policy term, provided all the outstanding premiums have been cleared:
- The Sum Assured is paid in case of death any time during the very first five years of the policy
- Sum Assured together with the Loyalty Addition(if any) is paid in case of death at any time after the conclusion of five years of the policy
If the policyholder survives till the specified policy term, he/she shall receive the following specified payment:
- 15% of the total Sum Assured shall be paid at the conclusion of each of the 3rd and 6th policy year and it is applicable for the policy term of 9 years
- 15% of the total Sum Assured shall be paid at the conclusion of each of the 3rd, 6th and 9th policy year and it is applicable for the policy term of 12 years
- 15% of the total Sum Assured hall be paid at the conclusion of each of the 3rd, 6th, 9th and 12th policy year and it is applicable for the policy term of 15 years
Maturity benefit is applicable in a case where the policyholder survives till the end of the said policy term; the payable is:
- The Payment of a Single Premium which is exclusive of extra premium and taxes(if any) shall be payable
the Loyalty Addition(if any) shall be payable along with the Single Premium
On the basis of the experience of the Corporation, all the policies will partake in the profits. The policies shall be entitled to Loyalty Addition.
Note: The Loyalty Addition, if there is any, will be payable on death after the completion of the whole five years of the policy and on the policyholder who is surviving to the maturity, at such a rate and on such other terms which may be declared by the Corporation.
Eligibility and criteria of New Bima Bachat
- The minimum age of entry on policy is 15 years (completed)
- The maximum age of entry on policy is 66 years for a term of 9 years, 63 years for a term of 12 years and 60 years for a term of 15 years(nearest birthday is preferred)
- The maximum age of maturity is 75 years (being the nearest birthday)
- The Policy Term is 9 years, 12 years or 15 years
- The Minimum Sum Assured by the policy plan is Rs.35,000 for a term of 9 years, Rs.50,000 for a term of 12 years, Rs.70,000 for a term of 15 years
- There is no limit to the Maximum Sum that can be assured by the plan
- The Sum Assured will preferably be in the multiples of Rs.5,000
LIC Bima Bachat Premium Calculator
New Bima Bachat Payment of Premiums
The preferable Premium payment mode happens to be a Single Premium only.
The policyholders can avail the surrender value under the plan in case of an early termination of the policy scheme.
The permissible Guaranteed Surrender Value shall be as:
· 1st year- 70% of the total Single premium exclusive of extra premium and taxes (if any).
· After the 1st year: 90% of the total Single premium exclusive of extra premium and taxes, if any, along with the survival benefits that has been paid earlier paid earlier.
Note: The Corporation may choose to pay a Special Surrender Value that shall be applicable as on the date of policy surrender, given, it is higher than the Guaranteed Surrender Value.
Policy Loan on New Bima Bachat
The policyholder can avail loan under New Bima Bachat at any given time but only after the completion of one policy year. The loan of the policyholder shall be equivalent to around 60% of the total surrender value that was on the date of the authorization of the applied loan.
Taxes on New Bima Bachat
Taxes that will be chargeable on the policy is inclusive of Service Tax, if at all. The Chargeable tax shall be according to the Laws designed for Tax and the applicable rate of tax.
The policyholder shall pay the amount of tax on the invested single premium inclusive of additional premium, if at all. While calculating the benefits that shall be payable under the policy plan, the Tax that has been paid, shall not be measured.
Cooling-Off Period of New Bima Bachat
When a policy is not at all satisfied with the policy’s ‘Terms and Conditions’, the policyholder can return the said policy to the Corporation within a time period of 15 days from the actual date of receiving the policy.
The policyholder must state the reasons for objecting to the terms of the policy. The Corporation shall cancel the policy on its receipt from the policyholder and shall refund the sum of a single premium deposited after subtracting the proportionate risk premium applicable for the period of cover and other miscellaneous expenditures, if any.
Exclusion of New Bima Bachat
The New Bima Bachat policy shall be deemed void if policyholders, irrespective of their mental health end up committing suicide within the 12 months of the date of commencement of the risk.
The Corporation has the power to not consider any claim that falls under this policy with an exception of 90% of the single premium paid excluding taxes and any extra premium paid.
Reviews of New Bima Bachat
The new bima bachat plan from LIC is a single premium offering high returns along with guaranteed money back. This new policy is a non-linked insurance plan which will pay 15% of the total sum that you have assured after every 3 years. At the end of the tenure of the policy, the policyholder will be paid the initial premium along with the loyalty additions. However, if the policyholder meets with an unexpected death before the maturity then the total sum assured will be paid to the nominee regardless the money that has been paid earlier.
Moreover, if you are looking for tax exemptions then this policy can prove to be a good investment. You will be able to get exemptions on your tax under the section 80C and the maturity amount of the policy will also not be taxable under the section 10D of the Income Tax Act. Hence, there is no reason why you should not choose the new bima bachat policy of LIC.