LIC Micro Bachat Policy

LIC India has catered to the needs of Indian customers for more than a century now. They have come up with several affordable plans and policies covering a wide range of insurance products, like, term insurance, endowment plans, annuity plans, investment plans, and even child savings and retirement plans. Savings are a crucial part of one’s financial plan and should be encouraged to create funds for covering up any kind of future liabilities. With this in mind, LIC had launched its LIC Micro Bachat Policy.

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This is a policy of LIC that aims to provide financial support to the policyholder's family in case of his death during the term of the policy.  It also guarantees a lump sum for the surviving policyholder at the time of policy maturity.  

Eligibility Criteria of LIC Micro Bachat Plan

Only healthy individuals are eligible to avail of the LIC Micro Bachat Plan without undergoing any medical examination.

  • Entry Age: Minimum age is 18 years, and the maximum age is 55 years as per the last birthday.
  • Maturity Age: The maximum age as per the last birthday is 70 years.
  • Policy Term: The policy term can range from 10-15 years
  • Premium Payment Term: The premium paying term will be the same as the policy term
  • The risk under this policy will begin on the same date as the date of acceptance of the risk.
  • Basic Sum Assured:
  • Minimum: Rs. 50000
  • Maximum: Rs. 200000.
  • This Sum assured is available in multiples of Rs. 5000
  • The total basic Sum assured for an individual life cannot exceed Rs. 2 lakh under this policy.

Benefits of LIC Micro Bachat Policy

There are two main benefits that a policyholder can avail of under the LIC Micro Bachat Policy.They are as follows:

1. Death Benefits

In the event of the policyholder's death during the first five years of the policy's term, the Sum Assured on Death will be payable on the condition that all premiums due have been paid.

In the event of the policyholder's death after completing the first five years but before the policy term ends, the Sum Assured on Death will be payable, along with any loyalty addition.

Here, the Sum Assured on Death is:

Higher of (Basic Sum Assured or 7 X Annual Premium)

The death benefit will be a minimum of 105% of all the paid premiums  

2. Maturity Benefit

In the event that the policyholder survives till the policy term end of the LIC Micro Bachat Plan, the Sum Assured on Maturity will be payable, provided the policyholder has paid all due premiums.  Loyalty benefit, if any, is added to the Sum Assured.  

Here, Sum Assured on Maturity will be equal to the Basic Sum Assured.

3. Loyalty Addition

Loyalty additions in case of maturity claim or death under the LIC Micro Bachat Policyfor policies in force will be payable only if the premiums have been paid for five years and the policy has completed five years.

Loyalty additions in such cases for either paid up or surrendered policies will be payable if five policy years are completed with five years premiums paid and maturity paid-up sum assured is Rs. 50000 or more.

4. Optional Benefit

Two optional benefits are available under the LIC Micro Bachat Plan:

LIC's Accidental Death & Disability Benefit Rider

Under this rider, in case of death by accident of the policyholder, the nominee will get the Accident Benefit Sum Assured.

If there is an accidental disability due to the accident, the Accident Benefit Sum Assured is payable in monthly installments. The payments will be spread out over a period of 10 years, and the policyholder will get a premium relief as future premiums are waived.

LIC's Accident Benefit Rider

Under this rider, the policyholder can avail of the Accident Benefit Rider Sum Assured along with the death benefit. It is paid as a lump sum.

Documents Required

The documents required to claim a LIC Micro Bachat Policy are as follows

In case of death of the policyholder

  • Claims form
  • Original policy document
  • Death Certificate
  • Age proof
  • NEFT mandate

In case of maturity of the policy

  • Original policy document
  • Discharge form
  • NEFT mandate
  • Age proof

Online purchase of LIC Micro Bachat Policy

LIC Micro Bachat Plancan most conveniently be purchased online.  It saves the time, effort, and added expenses that the policyholder might have to bear in purchasing the policy from a branch office of the Corporation.  The following steps are to be undertaken:

Step 1: Visit the official website of Life Corporation of India.

Step 2:Click on “Products.”

Step 3:Search for LIC Micro Bachat Policy

Step 4:Enter all the details requested like name, age, address proof, contact number, etc.

Step 5:Choose the financial parameters suitably and upload scanned copies of all the documents.

Step 6:Study the quote of premium provided

Step 7:Pay the premium online

Key Exclusions of Micro Bachat Plan by LIC India

In the event that a policyholder should commit suicide, the LIC Micro Bachat Planwill immediately be considered void.  The following conditions will be taken into consideration before the claims are furbished.

  • In the event that the policyholder commits suicide within 12 months from the date of the beginning of risk, his beneficiaries will be entitled to 80% of the total premiums paid, provided the policy is in full force.
  • In the event that the policyholder commits suicide within a year from the date of revival, the amount which is higher than 80% of the premiums paid till the date of death or the surrender value available on the date of death will be payable to the beneficiaries of the policyholders.

Apart from these two, no other claims will be entertained by the Corporation.


  • Q1. Is there a grace period provided under the LIC Micro Bachat Plan?

    A1. Yes, there is a grace period that is applicable from the first unpaid premium due date.  It consists of a period of 30 days.  The policy will still be in force in this period with the risk commencement covered.  If the premium remains unpaid before the end of the grace period, the policy will automatically lapse.  This also applies to premiums for riders.

  • Q2. Can the LIC Micro Bachat Policy be surrendered?

    A2.If premiums have been paid for one full policy year, the policyholder can surrender the policy.  A surrender value will be payable to the customer, which will be higher than Guaranteed Surrender Value or Special Surrender Value.  One can know the Special Surrender Value from the LIC office. It is reviewed from time to time, with the prior approval of the IRDAI.

  • Q3. What is the auto cover facility that can be availed under the LIC Micro Bachat Plan?

    A3. Auto cover is a special feature that a policyholder can avail of under the policy.  This period starts from the date of the first unpaid premium and includes the grace period.  It can be used by a policyholder to gain more time in order to pay the next premium.  The term of the auto cover is as stated below:

    • An auto cover period of 6 months is available if at least three full years but less than five full years premiums have been paid.
    • An auto cover of 2 years is available if at least five full years premiums have been paid.
  • Q4. Can the LIC Micro Bachat Policybe revived if it has lapsed?

    A4.A policy that has lapsed may be revived within a period of 5 years from the date of the first unpaid premium and before the maturity date.  The revival of the policy will be effective as soon as all undue premiums along with interest are paid.  The revival of the rider benefits will be taken into account along with the revival of the base policy.

  • Q5. Is a loan facility available under LIC Micro Bachat Plan?

    A5.Once the policy has completed three full years, and all the premiums have been paid up, the policyholder is eligible to apply for a loan under the policy.  However, this is subject to change by the Corporation.

    The maximum loan as a percentage of surrender value is as stated below:

    For policies that are in force – up to 70%

    For policies that are paid up – up to 60%

    The rate of interest on the loan is decided by the Corporation and also subject to change from time to time.  If there is any outstanding loan amount, it will be recovered from the proceeds of the claim.

  • Q6. What is the free look period available with the policy?

    A6. If the policyholder is unsatisfied with the terms and conditions of the policy, he may return the policy to the Corporation within a period of 15 days from the date of receipt of the policy.  He must state his reasons for doing the same.  The Corporation will then cancel the policy and return the premium after a few deductions, e.g., stamp duty charges, expenses incurred during medical examinations, etc.

  • Q7. How can I pay the premiums under this policy?

    A7. One can make the premium payment either online on the website through cards or net banking or take help from the LIC merchants or authorized banks and franchises. For offline payments, one can use the NACH facility, ATM services, or even BillPay.

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.

Written By: PolicyBazaar - Updated: 14 September 2021

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