LIC Micro Bachat is LIC’s regular‑premium, low‑ticket micro‑insurance savings plan for lower‑income customers, currently offered as Plan No. 751 with UIN 512N329V03 (earlier 851 and 951 versions are withdrawn).
Plan type and purpose
- Plan type: Par, non‑linked, individual, savings, life micro‑insurance plan.
- Objective: Provide basic life cover plus small‑ticket savings for economically weaker sections, with affordable premiums and modest maturity value.
Current active version (751 / UIN 512N329V03)
From LIC’s Micro Insurance page and latest sales brochure (2024–25 onwards):
- Regular premium, participating (eligible for loyalty additions; no regular bonuses mentioned in summary).
- Non‑linked: No market/NAV exposure.
- Life cover + savings: Death benefit during term and maturity benefit at end if the life assured survives.
- Micro segment: Sum assured is small (in lakhs) with low premiums and simple conditions.
Eligibility snapshot (indicative for Micro Bachat 951/751)
Aggregator and brochure‑style summaries give the following grid (you should confirm exact numbers from the latest LIC brochure for 751/UIN 512N329V03):
- Entry age: 18 to 55 years.
- Maximum maturity age: 70 years.
- Policy term: 10 to 15 years.
- Premium Paying Term: Same as policy term.
- Sum Assured:
- Premium modes: Yearly, half‑yearly, quarterly, monthly.
Benefits
Death benefit
If death occurs during the policy term while the policy is in force, nominee gets:
- Sum Assured on Death (at least the Basic Sum Assured, with regulatory minimum 105% of total premiums paid, excluding taxes/extra/rider premiums), and
- Any applicable loyalty addition (if death happens in later policy years, as per LIC rules).
For the micro‑segment illustrations (Plan 951): death benefit is shown as the guaranteed sum assured (e.g., ₹2 lakh in sample) plus any loyalty addition if applicable.
Maturity benefit
If the life assured survives till the end of the policy term with all premiums paid:
- Maturity benefit = Basic Sum Assured + Loyalty Addition (if any).
Example table for 951 from an illustration: Sum Assured ₹2,00,000 + estimated loyalty addition ₹30,000 = maturity ₹2,30,000.
Other features
- Loan facility: Available after the policy acquires a surrender value (typically after 3 full years’ premiums paid).
- Surrender and paid‑up: Permitted as per LIC rules once minimum premiums are paid; reduced paid‑up sum assured and reduced benefits apply.
Positioning and suitability
- Target segment: Low‑income/irregular‑income customers needing basic life cover + small savings with very low premiums.
- Strengths: Low ticket size, simple structure, loyalty additions to boost maturity, loan and surrender options, tax benefits as per prevailing law.
- Limitations: Low maximum sum assured (about ₹2 lakh segment), moderate returns (bonus/loyalty based), long‑term commitment.
For your advisory or website, you can describe current Micro Bachat (751) as: “Regular‑premium par micro‑insurance plan, 10–15 year term, entry 18–55, SA up to ₹2 lakh, life cover throughout plus maturity with loyalty addition, with loan and surrender facility.”