LIC’s New Bima Bachat is a participating non-linked savings cum protection plan, where the premium is paid in a lump sum at the outset of the policy. It is a money-back plan which provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term.
In addition, on maturity, the single premium shall be returned along with Loyalty Addition, if any. This plan also takes care of liquidity needs through its loan facility.
a) Death Benefit –
The death benefit payable in case of death of the Life Assured before the Date of Maturity shall be as under –
Where “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single Premium.
Single-Premium referred above shall not include any taxes, rebates, extra premium and rider premium, if any. The Death Benefit shall be paid in a lump sum or in installments, as specified in Policy Document.
b) Survival Benefit –
On the Life Assured surviving to the end of the specified durations during the policy term, a fixed percentage of Basic Sum Assured shall be payable . The fixed percentage for various policy terms is as below –
c) Maturity Benefit –
On Life Assured surviving the stipulated Date of Maturity, “ Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable. Where “Sum Assured on Maturity” is equal to Single Premium for Base Policy excluding extra premiums, taxes and rider premium(s), if any.
The Policyholder/Life Assured shall have an option to receive the Maturity benefit in a lump sum or in installments (Settlement Option), as specified in the Policy Document.
d) Rider Benefits –
There are two riders are available under this policy –
These riders are available only at the inception of the policy on payment of additional premium.
e) 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 policyholder surviving to maturity, at such rate, and on such terms as may be declared by the Corporation.
Is there any loan facility in the policy?
Yes, there is a loan facility available under the Policy within the surrender value of the policy –
Is there a possibility if I can surrender the policy?
Yes, the policy can be surrendered by the policyholder at any time during the policy term. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.
The Guaranteed Surrender Value allowable shall be as under –
Single-Premium for Base policy referred above shall not include taxes, rider premium(s) & extra premium if any. No Surrender Value will be available on Rider(s) if any.
Can I return the policy, if I didn’t like the terms and conditions of the policy?
Yes, the policy can be returned to the corporation within 15 days from the date of receipt of the Policy Document by the Policyholder, stating the reason for objections. This 15 days period is called the Free Look Period.
On receipt of the same, the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for Base Policy and Rider, if opted for) for the period of cover and charges for medical examinations, special reports, if any and stamp duty.
Is there any tax benefit under this policy?
Is there any option if death benefits can be taken in installments?
Yes, the option to receive Death Benefit in installments is allowed over the chosen period of 5 or 10 or 15 years instead of a lump-sum amount. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her life time; for full or part of Death benefits payable under the policy.
Is there any settlement option available for maturity benefit?
Settlement Option is an option to receive Maturity Benefit in installments over the chosen period of 5 or 10 or 15 years instead of a lumpsum amount. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, for full or part of Maturity proceeds payable under the policy.
Suicide Exclusion –
If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, under such case an amount which is higher of 90% of Single Premium for Base Policy (excluding any taxes, extra premium & rider premium other than term assurance rider, if any) or the Surrender value available as on date of death shall be payable.
Note – The Corporation will not entertain any other claim under this policy.
So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.
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