LIC Bhagya Lakshmi Plan

LIC Bhagya Lakshmi Plan offers both maturity benefits and death benefits. This plan is a micro-insurance product that facilitates savings and acts as an investment and an insurance tool. This scheme by Life Insurance Corporation of India is a non-participating, non-linked life insurance plan. It comes under the category of micro-insurance and also offers a savings scheme.

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The LIC Bhagya Lakshmi Plan provides financial assistance to low-income group people. Thus, this plan has been categorized as a micro-insurance plan by India's Insurance Regulatory and Development Authority. This limited premium payment policy guarantees 110% of premium repayment on the policy maturity date to the policyholder. In case of the demise of the policyholder, this plan pays a death benefit to the nominee.

Eligibility Criteria of LIC Bhagya Lakshmi Plan

The eligibility criteria to invest in LIC Bhagya Lakshmi Plan are as follows:

  • Minimum Sum Insured: Rs 20,000/-
  • Maximum Sum Insured: Rs 50,000/-
  • Policy Term: Premium Paying Term + 2 years
  • Entry Age: Minimum Age is 18 years completed
  • Maximum Entry Age at entry:
    • Premium Paying Term 5 years-42 years
    • Premium Paying Term 6 to 13 years-55 years and maximum Maturity Age of 65 years.
  • Maximum Maturity Age: 65 years (nearer birthday). It depends on the Premium Paying Term chosen.
  • Minimum Premium Paying Term: 5 years
  • Maximum Premium Paying Term: 13 years

Core Benefits of LIC Bhagya Lakshmi Plan

The LIC Bhagya Lakshmi Plan provides various benefits to the policyholder.

Maturity Benefit

If the insured survives until the policy terms' date of maturity, then LIC will pay the Sum Assured on Maturity to the insured.

Sum Assured on Maturity == 110% X Total Premiums payable during the policy term.

The premium referred to above does not include any extra premium or any taxes.  

Death Benefit

Suppose the insured person's death occurred before the policy matures, but the policy is effective, and the policyholder had paid all premiums to date. In that case, the nominee gets the Death Sum Assured on by the Company.

This Sum is the higher of 105% of total premiums paid up to the time of death or 7 X Annualized Premium.

The premium referred shall not include any taxes and extra premium, if any.

Paid-up Policy Benefit

Suppose the policyholder has paid premiums for less than 12 months since the policy purchase. Any succeeding premium is unpaid. In that case, all the benefits under the LIC Bhagya Lakshmi Plan Policy will end.

This happens immediately after the expiry of the grace period from the first unpaid premium date, and nothing shall be payable.

Whereas at least one full policy year's premiums have been paid and any succeeding premium is unpaid, this LIC Bhagya Lakshmi Plan Policy shall not be wholly cancelled but shall continue as a paid-up policy.


Paid-up Death Sum Assured = Sum Assured on Death x (Number of premiums paid during the policy tenure)

Paid-up Maturity Sum Assured = Sum Assured on Maturity x (Number of premiums paid during the policy term)

Tax Benefits

The premiums paid under the policy are tax exempt as per the applicable Income Tax rates. These taxes will be subject to change as per the laws of the land.

Salient Features of LIC Bhagya Lakshmi Plan

The key features of the LIC Bhagya Lakshmi Plan are as follows:


LIC Bhagya Lakshmi Plan Policy lapses if the premiums are not paid within the grace period. A lapsed policy can be revived by paying all premiums due with applicable interests. To revive the lapsed policy, the insured will get five consecutive years from the first unpaid premium due date but before the maturity date, as the case may be, to enjoy the benefits.

LIC has the reservation of the right to accept a surrendered policy at either the original terms or at any modified terms. They can even decline the revival of a discontinued policy.

Premium Structure

LIC Bhagya Lakshmi Plan premium amount can be paid by the insured monthly, quarterly, half-yearly, or yearly during the premium paying terms of the policy.

An insured even gets a grace period if he/she cannot pay the premium on time during the policy. This grace period allows the plan to stay active till the time the policyholder does not make the payment within the prescribed time limit.


Sample Premium Rates

Illustration of the sample premium rates of LIC Bhagya Lakshmi Plan Policy (exclusive of taxes) per Rs. 1,000/- Sum Assured

Age of the Insured

Premium Paying Terms

Policy Term: 7 years

PPT: 5 years

Policy Term: 10 years

PPT: 8 years

Policy Term: 15 years

PPT: 13 years

20 years

Rs 127.45/-

Rs 64.35/-

Rs 37.20/-

30 years

Rs 129.30/-

Rs 65.80/-

Rs 38.55/-

40 years

Rs 138.30/-

Rs 72.80/-

Rs 44.25/-

50 years


Rs 91.40/-

Rs 57.15/-

PPT= Premium Paying Term

Premium Savings

Under this policy, the customers can also avail of premium payment benefits on the basis of the frequency of premium payment. The details of premium saving rates are:

  • Yearly mode: 2% of tabular premium
  • Half-yearly mode: 1% of tabular premium
  • Other modes: Nil
  • High Sum assured rebate: Nil

Documents Required for LIC Bhagya Lakshmi Plan

Documents required to purchase the policy are:

  • Application form or Proposal form issued by U & R Department, with a photo.
  • Age proof
  • Address proof
  • Any required medical reports

Documents required for claiming procedure are:

  • Original Policy Document.
  • Death Certificate.
  • NEFT Mandate Form
  • Proof of Title
  • Accident or Disability Proof
  • School/ College/ employer’s certificate.
  • Proof of age

The Online Process to buy LIC Bhagya Lakshmi Plan

One can purchase LIC Bhagya Lakshmi Plan online and the premium amount can pay through Net Banking or phone banking.

Steps to be followed are:

Step 1:Users have to log in to the bank/service provider's website.

Step 2:Policyholders have to add LIC as biller with the policy details and other requisite information.

Step 3:LIC validates the registration data and informs the bank about the registration status

Step 4:On confirmation of registration, LIC will initiate its policy servicing by sending bills and premium due to invoices to the bank.

Key Exclusions

Other than the regular plan features and the benefits provided with the plan, there are certain conditions when the plan does not hold good. These exclusions are covered below.

LIC Bhagya Lakshmi Plan shall be void in case of suicide.

  • If the insured dies due to the commission of suicide within 12 months from the policy risks commencement date, then the nominee will get only 80% of the total premiums paid until death.
  • If the insured dies by suicide within 12 months after the policy revival, then the surrender value or 80% of the premiums that have been paid till now will be paid to the nominee.


  • Q1. What are the various modes of the premium payment that I can use?

    A1. LIC Bhagya Lakshmi Plan Policy offers various modes of payment such as monthly, quarterly, half-yearly, and annual payment of premiums.

  • Q2. Is there any grace period offered by LIC Bhagya Lakshmi Plan?

    A2. Yes, this policy offers a grace period. The number of days offered as a grace period is:

    • 30 days grace period is offered if the premium paying frequency is every month
    • 60 days grace period is offered if the premium paying frequency is on a quarterly, half-yearly, and yearly basis.

    During this period, the LIC Bhagya Lakshmi Plan policy will be considered in force with the risk cover without any interruption as per the policy terms.

    The LIC Bhagya Lakshmi Plan policy lapses if the premium is unpaid before the expiry of the grace period.

  • Q3. Can I avail myself of the loan for LIC New Bhagya Lakshmi Plan?

    A3. No, LIC does not provide any loan facility under the plan.

  • Q4. What happens if I return the policy papers to LIC during the free-look period?

    A4. If the policyholder returns the policy to Corporation in the free look period, then Corporation registers the request under policy cancellation of the policy. Then the policyholder gets back the premium after deduction of stamp duty charges and the premium for the period on the cover.

  • Q5. What is the free look period under this policy?

    A5. If the policyholder is not happy with the terms of the policy, he can return the policy to LIC India within 15 days from the policy receipt of the policy. He needs to state the reason for dissatisfaction.  On receipt of the policy, LIC India shall cancel the policy and return the amount of premium paid to the insured after deducting the proportionate risk premium for the period of cover and charges for stamp duty.

  • Q6. Can a single mandate be used for multiple LIC policies?

    A6. No, the policyholder has to provide a separate mandate for each of his LIC policies. The customer has to write or submit a fresh mandate at his servicing LIC branch at the local level.

  • Q7. How can I make my payments for policy premiums?

    A7. Customers have various available options to take care of the payment of their policy premiums. They are available both online as well as offline as per their convenience. Online customers can visit the LIC portal and make their premium payments. They can even use their net banking or mobile apps for the same. Cards, digital wallets, and authorized payment services from banks and franchises are also available.

    Customers can also visit the nearest LIC or bank branch to make the payment.

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

*The investment risk in an investment portfolio is borne by the policyholder.

**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

***Tax benefit is subject to changes in tax laws.

Average Rating
(Based on 26 Reviews)
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LIC Bhagya Lakshmi Plan Reviews & Ratings

4.6 / 5 (Based on 26 Reviews)
(Showing Newest 25 reviews)
Chalakudy, April 16, 2021
Easy claim settled
I bought the Lic India term plan from the suggestion of my family friend and he recommended me a lot of plans. He said that the claim settlement ratio is quick and easy. Also, it is protective plan.
Asifabad, April 14, 2021
Additional riders
Along with my Lic India term insurance plan I have got the additional riders too. It has been an important thing for me and can be useful at any point in time. It can be added with a minimal amount.
Lakhimpur Kheri, April 13, 2021
Tax rebate
I bought a Lic India term insurance policy online and it has been into my budget. Also, I like one thing that I would able to get the tax benefits under it. It is a good option and can be beneficial for all tax payers.
Raghunathpur, April 09, 2021
Happy customers
I am one of the happiest customer of Lic India term plan and I have found various good deals. It is the plan which has come under my budget. And it has been a protective shield for me and my family.
Agra, April 07, 2021
Good plan
I like my Lic India term plan from the online market and I found the solace in this plan. It is a good thing to support yourself by getting the best term plan so secure the life.
Babina, March 23, 2021
Additional riders and benefits
It is a good idea for everyone to buy a LIC term plan as I have got the additional riders too under the same. The plan is very nice and much helpful.
Anantnag, March 22, 2021
Tax benefits
With this LIC term insurance plan I received a tax rebate and tax benefits. I found it much better as compared to other plans and it’s a kind of coverage and investment for me. I am totally happy with this plan and found it worthy.
Mawana, March 16, 2021
Secure your family
I have secured my family by buying a LIC term insurance plan. It is a long term plan with a lot of benefits under the same. At-least I will be satisfied that my family will safe and financially secured after I am not around. It’s a great plan under my budget.
Baleshwar, March 02, 2021
Premium payment is easy
It’s really easy to pay for the premium amount of my lic India term plan. Also, I pay it online because it is transparent in nature. I bought this plan like about 4 years back and continuing it for its safety purposes.
Bablabona, February 22, 2021
Sufficient plan
I have recently bought a lic India term insurance plan and it has been a wonderful plan for me and my family. A sufficient plan for the safety and security of my family. It has given me few benefits too which makes the plan a wonderful.
Badayun, February 16, 2021
Affordable premiums
The term insurance plan which I bought of Lic India is first class and very amazing. I like the plan because it has various features and benefits which makes the plan worthy. Also, the premium rate of the plan is according to my budget and much affordable.
Malpur, November 05, 2020
Beneficial plan
My LIC India term insurance plan is really good and beneficial in nature. They have provided with certain features and my life has been protective to me and my family.
Latur, November 05, 2020
Low premium
I got my term insurance plan of LIC India. It is really easy to attain and my term plan is really good as it has several add on features included into the same. The premium rate of my plan is really affordable in nature.
Dehradun, November 05, 2020
Tax benefits
Somebody into my circle recommended me to get the LIC India term insurance policy. So, I gave it a try and started searching for some plans. Quite easy to check features and benefits of all LIC term plans.
Garhmukteshwar, October 21, 2020
Amazing plans
It is a really good and amazing plan and I took the LIC term insurance plan for the safety and security of my plan needs and wants.I took the plan online and have checked good number of plans of LIC term plan.
Faridabad, October 21, 2020
Best policy
My lic term insurance plan which I bought recently have given me so much of help and satisfaction. It is a good plan with sense of safety and security. Claims are easy to go and basically it is a best plan for your future needs.
Haldwani, October 21, 2020
Good plans
I have got the lic India term insurance. The maturity year is pretty good and I am much happy with my term plan.
Basanti, January 08, 2019
Very Good Plan
Recently I took the Term insurance of LIC and found it too useful. The maturity year is good which 75 years. I feel it is good as it can used by my family after me if by chance some problem may occur. We should always secure our life so it was a good experience and I am getting good benefits too. Thank you.
Buxar, July 20, 2016
Excellent Work
The premium is low but the paybacks are high. Service is fast and because of that the claiming is simple to sanctioned. The lic term plan is suggested by my father and after seeing the terms and conditions i buy it.
Ahmedabad, July 20, 2016
Super Policy
My lic term plan is providing the best services. Policy covers maximum expenditures and good returns. Claims are easy to sanctioned, updates of the plan is mailed to email address. Best investment which reduces taxes.
Uttamnagar, July 19, 2016
Perfect Policy
LIC online term plan is very easy to buy and renewals is also simple. The updates regarding policy can be visit on the website of the insurance company. Service is fast and behaviour of the staff is nice. The investment is less and the returns are high.
Jaipur, July 19, 2016
The lic term insurance plan is fantastic which i have seen comes from ages and providing good policies to the customers. Service is the best no doubt in that, online portal is also easy to access and anyone can operate it easily.
Hyderabad, July 19, 2016
Good Service
I have lic term insurance plan which is very beneficial for me and my family members from last few years. The policy coverage is high and the premium is less. Service is fantastic which is facilitate by the executives and members.
Ahmednagar, March 09, 2016
help me, plane choose
Noida, January 02, 2016
life insurance
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