LIC Bhagya Lakshmi Plan

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.

Here,

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:

Revival

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

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.

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