Life Insurance company of India popularly known as LIC has been serving the nation for six decades and continues to bring happiness to their clients’ faces. LIC works under the ownership of the Ministry of Finance, India;, and has been offering all types of insurance and investment policies to millions of people. 

The newly launched LIC Bachat Plus Plan 861 is an individual, non-linked life assurance savings plan that combines the benefits of both protection and investment. Under this policy, the death benefit is offered if the insured unfortunately loses his life during the policy term. However, if the policyholder survives the policy he is awarded a maturity benefit. LIC Bachat Plus plan also takes care of its policyholder’s liquidity requirements and offers loan facilities. 

Read on to find out more details about the policy.

Benefits of the LIC Bachat Plus plan 861

  1. Death Benefit
    In case the insured individual passes away during the tenure of the policy, his appointed nominee receives the death benefit. This benefit can be taken as a lump sum or in installments over 5/ 10/ 15 years.

    When buying the policy, the policyholder has the choice between two options each under Single Premium and Limited Premium Payment. The policyholder needs to make his choice carefully. 

    1. Single-Premium Policy:
      1. Option A: Sum assured on death is 10 times the tabular premium for chosen Basic SI
      2. Option B: Sum assured on death is 1.25 times the tabular premium for the chosen Basic Sum Insured
    2. Limited premium Option:
      1. Option 1: Sum assured on death is higher of 10 times the tabular premium for the selected Basic Sum Assured along with modal loading OR Guaranteed Sum Assured at the time of Maturity (Basic Sum Assured)
      2. Option 2:
        Sum assured on death is higher of 7 times the tabular premium for the selected Basic Sum Assured along with modal loading OR Guaranteed Sum Assured at the time of Maturity (Basic Sum Assured)
      3. Tabular Premium refers to the premium that is applicable for Single Premium or Limited Premium for the option that has been chosen and the Basic Sum Assured.

    3. Maturity Benefit
      If the insured individual outlives the term of an active policy, he would receive the Sum Assured on Maturity. If there are any loyalty additions, they will be added to this amount. The maturity benefit can be taken as a lump sum or in installments.
    4. Loyalty Addition
      If the policy has completed five years and all the dues have been paid regularly, then the policy may be eligible for loyalty additions, depending on LIC’s terms and conditions.
    5. Tax Benefits
      LIC Bachat Plus Plan 861 allows you to save taxes under Section 80C. The premiums that you pay towards the policy are tax-exempted up to INR 1.5 lakhs. 

    Key features of LIC Bachat Plus Plan 861

    1. Grace Period:

      LIC Bachat Plus Plan No. 861 offers an attractive grace period to its policyholders. A 15-day grace period is offered to the individuals paying premiums on a monthly basis. Whereas a 30-day grace period is allowed to the policyholders paying their premiums quarterly, semi-annually, and annually. The policyholders will have to pay their premiums before the allowed grace periods to save their policy from lapsing.

    2. Revival of Lapsed Policy:

      It is important for the policyholders to pay their premiums before the assigned grace period to save their policy from lapsing. However, the insured can revive the lapsed policy in a time period of 5 consecutive years starting from the date of first due premium till the date of maturity of the plan.

    3. Free Look Period:

      It may happen that due to some reasons the policyholder remains unsatisfied with the terms and conditions of the policy. In this case, the policy can be returned to the corporation within a period of 15 days for offline purchases and 30 days for online bought plans.

    4. Policy loan:

      An attractive feature offered under the Bachat Plus Plan 861 is the loan facility.

      • For single premium payers
        The loan facility for single premium payers shall be available only after a period of 3 months from the start of the policy. Also, the loan amount can go up to 90% of the surrender value.
      • For limited premium payers
        The loan facility for limited premium payers shall be available only after a period of 2 years of regular premium payment. The loan amount can vary from 80-90% of the surrender value according to the terms.

    LIC Bachat Plus Plan Calculator

    The LIC Calculator is a great and efficient online tool that helps you in calculating the amounts that you may have to spend or the amount that you / your nominee would receive. It comes in very handy to make a well-informed decision about how much the Basic Sum Assured and the Tenure of the policy should be, and also gives you an idea of how much you would have to spend while buying the policy. 

    • LIC Bachat Plus Plan Premium Calculator
      Before finalizing the plan, you may want to find out the premium that you would have to pay when you buy the LIC Bachat Plus Plan No. 861. In such a scenario, LIC Bachat Plus Plan Premium Calculator can come in very handy. Just enter details such as the Sum Assured you plan to go for, your present age, and the policy term. After entering the details, you would be able to get a fair idea of the amount you need to pay.
    • LIC Bachat Plus Death Benefit Calculator
      You can also get an estimate of the death benefit that would be payable by entering details like the Sum Assured you have chosen and the years after which the death may take place. 
    • LIC Bachat Plus Maturity Value Calculator
      As Bachat Plus Plan 861 is a plan that also offers a maturity benefit, you can make use of the LIC Bachat Plus Maturity Value Calculator to get a fair estimate of the amount you would receive if you outlive the policy tenure. You would have to enter the Sum Assured and the tenure of the policy and you will soon get the estimate on your screen.

    Rebates offered on the sum assured by the LIC Bachat Plus plan 861

    The rebates offered on the high sum assured under the LIC Bachat Plus Plan No. 861 are shown in a tabular form below:

    For single premium payers:

    Basic Sum Assured 

    Reduction per INR 1,000 basic sum assured

    Term 

    10- 20 

    21- 25

    Up to INR 1.75 Lakhs

    Nil

    Nil

    INR 2 Lakhs to INR 4.5 Lakhs

    25 

    35

    INR 5 Lakhs to INR 9.5 Lakhs

    45 

    55

    INR 10 Lakhs and above

    50

    60

    For limited premium payers:

    Basic Sum Assured 

    Reduction per INR 1,000 basic sum assured

     

    Term 

     

    10- 20 

    21- 25

    Up to INR 1.75 Lakhs

    Nil

    Nil

    INR 2 Lakhs to INR 4.5 Lakhs

    7

    9

    INR 5 Lakhs to INR 9.5 Lakhs

    9

    11

    INR 10 Lakhs and above

    11

    19

    Rebates offered for the policy that has been purchased online:

    • Single-Premium: 2% of tabular premium
    • Limited Premium: 7% of tabular premium

    Eligibility criteria of LIC Bachat Plus plan 861

    Entry Age 

    Minimum: 90 days (Depending on the Option that has been selected)

    Maximum: 44 years to 70 years (Depending on the Option that has been selected)

    Maturity Age 

    Minimum: 18 years

    Maximum: 65 years to 80 years (Depending on the Option that has been selected)

    Basic Sum Assured

    Minimum: INR 1 lakh

    Maximum: No limit

    Policy Tenure 

    Single-Premium: 10 to 16/ 25 years (as per the option chosen)

    Premium Paying Term

    For Limited Premium: 5 years

    How does the LIC Bachat Plus plan 861 work?

    LIC Bachat Plus Plan No. 861 is a life assurance savings plan that comes with the dual benefit of investment and insurance. There are innumerable reasons that give an edge to this policy over other life insurance plans. If an individual buys the Bachat Plus plan 861 online but unfortunately loses his life during the policy tenure, his nominee would be eligible to claim a death benefit from the corporation. However, on the survival of the life assured individual till the maturity of the plan, he will be payable a guaranteed maturity benefit as a lump sum amount along with bonuses gained, if any. 

    Apart from this, LIC’s Bachat Plus plan understands its policyholders’ liquidity needs and thus, offers the loan facility up to 90% of the surrender value. The policy even offers attractive features like rider options, grace period, free-look period, premium payments options, etc, which make the policy worth investing in.

    Let us take a look at some sample premiums, to understand better how the LIC Bachat Plus Plan No. 861 works.

    Single-Premium Policy: 

    The sample is for standard lives, with a Basic Sum Insured of INR 1 lakh

    OPTION A

     

    Policy 

    Term

     

    Age

    10 years 

    15 years 

    20 years 

    25 years

    10 years

    66510

    53780

    44460

    37395

    40 years

    78040

    73220

    76735

    92365

    OPTION B

     

    Policy 

    Term

     

    Age

    10 years 

    15 years 

    20 years 

    25 years

    10 years

    63635

    50275

    40825

    33810

    40 years

    63580

    49430

    38900

    30585

    Limited Premium Policy: 

    The sample given below is for standard lives, with a Basic Sum Insured of INR 1 lakh

    OPTION 1

     

    Policy 

    Term

     

    Age

    10 years 

    15 years 

    20 years 

    25 years

    10 years

    15925

    12815

    10585

    8935

    50 years

    17240

    14335

    12180

    10495

    OPTION 2

     

    Policy 

    Term

     

    Age

    10 years 

    15 years 

    20 years 

    25 years

    40 years

    16455

    13410

    11545

    10310

    *These premiums are indicative only and subject to change at any point of time.

    Riders provided by LIC Bachat Plus plan

     A rider is a provision that can be added to your basic plan to either increase the benefits or amend the terms. At a little higher premium the extra coverage added by riders comes in handy when you are stuck in an emergency.

    Here are a few rider options offered under LIC Bachat Plus Policy 861:

    1. LIC’s Accidental Death and Disability Benefit Rider
      In case of death or disability of the insured member in an accident, a lump sum amount will be payable.
    2. LIC’s New Term Assurance Rider
      Under this rider, if the insured member passes away during the term of the policy, a benefit equal to the rider amount shall be payable.

    Before you Buy
    LIC Bachat Plus Plan 861, is an online policy that can be purchased via the company’s website, however, before you buy the policy, you can visit www.turtlemint.com to look at how the different variables will influence the policy premium and the payout. Turtlemint helps you in making a well-informed decision. 

    Conclusion

    The LIC Bachat Plus Plan No 861 comes with all the benefits a policy aspirant would look for. The insured can even take the death and maturity benefits in installments to take care of the financial needs of his family. Moreover, the loan facility provides financial support to the family whenever needed. LIC Bachat Plus will make sure your capital is secure and keeps growing while your life is protected. Now you can buy a Bachat Plus Plan 861 easily online.


FAQ’s

Under this policy, the policyholder can either opt for a lump sum payout or also opt to receive the maturity benefit in installments that can be spread over a period of 5 or 10 or 15 years as chosen at the time of policy purchase.


No, the calculator is a free online tool that is available on the company webpage. You can use it as many times as you want, without having to pay anything from your pocket.


Once your policy is more than 3 months old, you can request a loan. The loan that you are eligible for depends on the surrender value that has been acquired. The loan amount varies from 80% to 90% depending on the premium payment option selected as well as on the status of the policy.