Review of LIC Bhagya Laxmi

Mr. Rajat Lal bought LIC BhagyaLaxmi Plan in 2021. Being the sole earning member, he wanted to protect his family financially, however, does not want to be burdened with the high premiums. After talking to him for days, we understood his requirements and advised him to go with the LIC Bhagya Laxmi plan.

Let us explore more about the plan and see what made Mr. Rajat buy this plan:

Benefits of LIC BhagyaLaxmi Plan

LIC BhagyaLaxmi offers several benefits such as

1. Maturity Benefit

   If the policyholder lives until the end of the policy tenure, he/she will receive the amount assured on Maturity. The amount payable on Maturity is equal to 110% of the total premiums paid during the policy's duration.

2. Death Benefit

   In case the policyholder died before the end of the policyholder, the nominee gets the Death Sum Assured by the Company, provided all due premiums are paid.

   This amount paid on the death will be higher of:

   • 105% of total premiums paid up to the time of death or 

   • 7 X Annualized Premium.

3. Paid-up Policy

   The "Death Paid-Up Sum Assured" is the amount that will replace the Sum Assured on Death under a paid-up policy. It is equal to the Sum Assured on Death multiplied by the proportion that the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable.

4. Tax Benefits

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

Eligibility Conditions of LIC BhagyaLaxmi Policy

Other Details of LIC Bhagya Laxmi

1. Surrender Value

   If the premiums for at least one complete insurance year have been paid, the policy may be relinquished. The Company will pay the Surrender Value higher of: 

   Special Surrender Value or Guaranteed Surrender Value.

2. Grace Period

   A grace period is a time duration given to the policyholder to pay their outstanding premiums. If the premium payment frequency is once per month, a grace period of 30 days is provided. If the premium payment frequency is on a quarterly, half-yearly, or annual basis, a grace period of 60 days is provided.

3. Revival

   In the event that the premiums are not paid during the grace period, the BhagyaLakshmi Plan Policy will lapse. However, by paying all outstanding premiums and any applicable interest, a lapsed policy may be reinstated. The insured will have five consecutive years starting on the first unpaid premium due date but before the maturity date, if applicable, to continue receiving benefits from the lapsed policy.

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