LIC’s Bima Bachat is a money-back policy
which offers financial security and assurance
to the policy holder and his family. Bima Bachat
requires the policy holder to pay only one premium.
The amount paid for the premium depends on the
duration of the policy taken and life insurance
is available till the date of maturity.
For a term of 9 years: The policy holder will
receive 15% of the sum assured at the end of
every 3rd and 6th policy year.
For a term 12 years: The policy holder will
receive 15% of the sum assured at the end of
every 3rd, 6th and 9th policy year.
For a term 15 years: The policy holder will
receive15% of the sum assured at the end of
every 3rd, 6th, 9th and 12th policy year.
If the policy holder outlives the duration of
the policy, at the time of maturity, a single
premium payment (excluding extra premium) is
made along with loyalty additions, if any.
The policy holder is insured for an amount equal
to the sum assured.
The insurance cover is irrespective of the installments
received.
The guaranteed surrender value is available
only after completion of at least one policy
year. This value is equal to 90 % of the single
premium paid (excluding extra premium).
Bima Bachat is the only money-back policy that
offers a loan facility. The rate of interest
for this will be determined from time to time
by the corporation. Presently the rate of interest
is 9% p.a. payable half-yearly.
It also offers other benefits like the 15 day
cooling off period, grace period and revival.
The following are the requirements that one
needs to be aware of before applying for this
policy:
· The person applying for the policy
should have completed 15 years and should not
be older than 66 years.
· The policy will mature when the person
is 75 years old.
· There is a choice of three terms to
choose from (9, 12 and 15 years) for the policy
depending on the age and requirement of the
applicant.
· The minimum sum that needs to be assured
is Rs 20,000/- and there is no limit on the
amount that can be assured.
· It is important to note that the sum
assured should be in multiples of Rs 5000/-
only.
· The policy requires the holder to pay
a single premium.
The sample premium rates are as under: -
|
|
9
|
12
|
15
|
|
15
|
716.40
|
771.35
|
804.00
|
|
20
|
717.20
|
771.85
|
804.40
|
|
25
|
717.55
|
772.25
|
804.95
|
|
30
|
718.45
|
773.35
|
806.10
|
|
35
|
721.05
|
775.75
|
808.55
|
|
40
|
725.80
|
780.25
|
812.95
|
|
45
|
734.10
|
787.60
|
819.60
|
|
50
|
746.60
|
797.90
|
828.95
|
|
55
|
762.65
|
811.95
|
841.75
|
|
60
|
784.80
|
831.30
|
859.35
|
|
65
|
816.25
|
-
|
-
|
Let’s take an example of a 30 year
old with a Bima Bachat policy for 12 years.
If the sum assured is Rs 45,000 then he has
to pay a premium of Rs 34800.75. But for a sum
assured amount of Rs 50,000 he will have to
pay a premium of Rs 36734.13 only, thus getting
a 5% rebate in premium.
| Less
than Rs. 50,000 |
NIL |
| Rs.
50,000 and Less than Rs.1 lakh |
5% |
| Rs.
1 lakh and Less than Rs.2 lakh |
7% |
| Rs.
2 lakh and above |
8%
|
