LIC’s New Bima Bachat offers a combination of savings and protection. A popular feature of the plan is the addition of bonuses to the base sum assured that allows one to increase the benefit amount on death and maturity.
Every participating plan comes with bonuses in the form of guaranteed/ non-guaranteed additions. These additions are subject to the bonus rates declared by the company every year. These bonus rates are subject to the profits made by the company and its financial valuation every year. LIC declares various types of bonuses, and the accrued amount is added to the policy benefits at the time of final payout.
The different types of bonuses declared by LIC are:
Simple reversionary bonus
Final additional bonus
With LIC Bima Bachat, policyholders can enjoy loyalty additions. These additions are an excellent way to encourage customers to continue their policies with the company. They are thus rewarded with the bonus amount for their loyalty to LIC.
Loyalty additions are attached to the death benefit amount as well as the maturity benefit under LIC’s New Bima Bachat cover. The bonus amount is added as a one-time amount and paid out in a lump sum. The loyalty addition rate for LIC Bima Bachat policyholders is fixed at a rate per thousand sum assured.
For instance, let’s say the sum assured is Rs.10 lakhs and if the bonus rate for LIC Bima Bachat is fixed at Rs.50 per thousand sum assured. The bonus for that particular year will be calculated as:
10,00,000 X 50/1000 = Rs.50,000
Therefore, you will receive a total of Rs.10,50,000 as the final benefit payout.
Please note that the rate is subject to change as per the company’s valuation in a year. Further, the bonus rates also vary according to the sum assured. It is usually higher for higher sum-assured. The bonus rates for each year can be found on LIC’s official website.
The bonus (if applicable) is payable for LIC Bima Bachat policy only under two conditions:
If the life assured survives the policy term, loyalty addition would be attached at a rate specified by LIC along with the maturity benefit.
If the death of the life assured occurs after completing five years of the policy, loyalty addition at applicable bonus rates would be attached to the death benefit amount.
Now that we are aware of the LIC Bima Bachat bonus rate let’s study the plan briefly.
LIC’s New Bima Bachat is a money-back policy that offers survival benefits as specific durations within the policy term. Further, on paying a lump sum premium amount, the policy provides financial protection to the family of the life assured on his/her death.
Important features of LIC Bima Bachat are:
The death benefit is payable along with loyalty additions at defined bonus rates on the death of the life assured.
The policy offers survival benefits at defined periods. For LIC Bima Bachat, it is 15% of the basic sum assured.
At the end of the 3rd and 6th policy years on choose a policy term of 9 years.
At the end of the 3rd, 6th, and 9th policy years on choose a policy term of 12 years.
At the end of 3rd, 6th, 9th, and 12th policy years on choosing a policy term of 15 years.
Sum assured on maturity is payable along with loyalty addition on surviving the policy term.
The minimum and maximum entry age are fixed at 15 years and 50 years, respectively.
The plan offers flexibility in choosing the policy term from 9, 12, or 15 years.
The minimum sum assured varies per the policy term chosen. It is Rs.35,000 for a policy term of 9 years, Rs.50,000 for a 12 years' policy term, and Rs.70,000 for a term of 15 years.
You can avail of loan facilities with LIC Bima Bachat policy subject to the acquired surrender value. Please note that the maximum loan amount that can be availed is 90% of the surrender value.
Both death and maturity benefits can be received in installments over 5, 10, or 15 years.
LIC Bima Bachat bonus rates can change every year based on LIC's profits in a particular year. Further, loyalty additions are non-guaranteed bonuses, and therefore one should check its applicability with their policies before purchase. Despite changes in bonus rates, the final bonus amount with LIC's New Bima Bachat should be decent enough to fund various essential capital needs. Further, with survival benefits and the loan facility, you can rest assured of financial help at regular intervals.