LIC’s New Bima Bachat Plan 2024 Benefits, Features, Details, Reviews

The most notable characteristics of the LIC Bima Bachat Policy are as follows:

• 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 strategy advances for meeting your monetary necessities.

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

1. Survival benefits

   Throughout the plan’s duration, this money-back policy provides regular survival benefits. The duration you choose will determine the survival benefits you receive. The distribution of survival benefits for various plan durations is as follows:

   Plan duration	Payment of survival benefits
   9 years	15% of the amount guaranteed at the end of the third and sixth policy years, respectively
   12 years	15% of the amount guaranteed at the end of the third, sixth, and ninth policy years, respectively
   15 years	15% of the total guaranteed toward the finish of the third strategy year, sixth approach year, ninth arrangement year and twelfth arrangement year Maturity benefit

2. The single premium paid is refunded at the end of the term, along with any loyalty bonus, if any.

3. Death benefit

   The insured’s death benefit would be as follows if they passed away during the policy’s term:

   Time of death	Death benefit payable
   Within the first 5 years of the plan	Sum assured
   After the first 5 years of the plan	The sum assured

   The existing survival benefits would not reduce the death benefit. No matter what money-back benefits you have already received under the policy, the full amount assured will be paid.

4. Premium discounts
   The premium rate may be reduced if you select a high level of sum assured. The term you choose and the level of coverage determine the discount allowed. Here are the limits that you can benefit –

If the term is 9 years

If the term is 12 years

If the term is 15 years

Surrender value

To proceed with the strategy for the chose residency, you can give up the arrangement and benefit an acquiescence esteem. The date and time at which the policy is surrendered would determine the surrender value.

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Policy loan

If you need money for your needs, you can get a loan through the policy. Loans are allowed after the first policy year is over. You can only borrow up to 60% of the surrender value of the policy.

Conditions for LIC’s New Bima Bachat Plan’s eligibility

Examples of LIC’s New Bima Bachat Plan’s premium rates

The table below displays the premiums that are due for various policy tenures and ages.

• The insured is a non-smoking male life
• The sum assured is INR 5 lakhs

The LIC Bima Bachat policy is good for people who want to build a guaranteed fund to meet their financial needs. The arrangement suits the necessities of hazard opposed people to make a corpus and furthermore need liquidity. The plan can be taken for its risk-free returns because it has guaranteed returns. Additionally, for those who require liquidity for a variety of financial requirements, the survival benefits that are due in the third policy year themselves provide a regular source of income.

Because it is a life insurance policy, LIC Bima Bachat is exempt from paying taxes. Both the benefits you receive and the premiums you pay for the policy may qualify for tax benefits. The New Bima Bachat plan from LIC has the following tax implications:

Tax implication on premiums paid

Under Section 80C of the Income Tax Act, you would be able to deduct the single premium that you pay to purchase the plan from your taxable income.

Tax implication on benefits received

Under Section 10(10D) of the Income Tax Act of 1961, you are exempt from paying taxes on the maturity benefit, the death benefit, and the survival benefits you receive during the plan’s term. Benefits exempt from tax are unlimited. You would not owe any taxes at all on any benefit you receive.

Exclusion would apply if the insured committed suicide within a year of purchasing the LIC Bima Bachat plan. The policy would be terminated and 90 percent of the single premium paid would be refunded.

The LIC Bima Bachat plan can be purchased in person or online. The LIC agents and its branches sell offline policies. To purchase the policy, you can approach either of them. You must either purchase the policy online through an LIC of India agent or through the company’s official website. The online method is much simpler and easier to use.

The following documents must be submitted in order to purchase an LIC Bima Bachat policy:

• a valid identity document
• a valid age document
• a valid address document
• income documentation if premiums are high
• recent colored photographs
• bank account information
• and any other documents that the insurance company requires.

The following is how various claims under the LIC Bima Bachat policy should be submitted:

Survival benefits claim

You must submit a claim discharge form and a copy of your policy bond to receive the money-back benefits. In order for the survival benefits to be credited directly to your bank account, additional information about your bank account would also be required.

Maturity claims

To receive the maturity benefit when the plan expires, submit the claim discharge form and policy document. In order for the benefit to be credited directly to the bank account, you would also need to submit proof of identity and bank information.

Death claims

Part A of Claim Form 3783 should be completed by the nominee if the insured passes away during the policy’s term. On the LIC website, the form is readily available online. The form can also be obtained from an agent or branch office of LIC. Fill out the form and send it to the insurance company along with the nominee’s identity document, the insured’s death certificate, and the bank information where the claim will be processed. The claims would be processed and settled by LIC once all of the documents are in order.

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