Life Insurance Corporation of India is a fundamental factor in the widespread use of insurance products across India. LIC’s Bhagya Lakshmi Plan is one of the most effective microinsurance product that is designed to facilitate savings and act as an insurance and investment tool. LIC’s Bhagya Lakshmi Plan is a non-profit-participating plan that offers financial protection. The LIC’s Bhagya Lakshmi Plan is a limited premium payment plan that guarantees 110% of premium repayment on the date of maturity to the policyholder and pays a death benefit to the nominee in the case of death of the policyholder.
The LIC’s Bhagya Lakshmi plan offers the following key features to the policyholders :
Thus, above are the features offered by the LIC’s Bhagya Lakshmi Plan.
The LIC’s Bhagya Lakshmi Plan is designed to cater to the finance and insurance needs of the people belonging to the lower income group. The Bhagya Lakshmi Plan can act as the best investment and saving tool for boosting investment and securing future financial needs. The LIC’s Bhagya Lakshmi Plan offers following benefits to the policyholder :
In order to avail the LIC’s Bhagya Lakshmi Plan, the policyholder has to fulfil certain eligibility criteria and conditions. If the policyholder fits in the pre-defined eligibility criteria then the policyholder can easily purchase the LIC’s Bhagya Lakshmi plan for safeguarding the future financial needs of their loved ones. Following are the basic eligibility criteria and conditions of the LIC’s Bhagya Lakshmi Plan :
|Minimum Age at Entry||18 Years completed|
|Maximum Age at Entry||55 Years Nearing Birthday|
|Minimum Premium Paying Term||5 years|
|Maximum Premium Paying Term||13 years|
|Minimum Policy Tenure||Minimum Premium Paying Term + 2 Years i.e. 7 Years|
|Maximum Policy Tenure||Maximum Premium Paying Term + 2 Years i.e. 15 Years|
|Maximum Age at Maturity||65 Years Nearing Birthday|
|Minimum Sum Assured||Rs 20,000|
|Maximum Sum Assured||Rs 50,000|
Following is a list of related relevant documents required for purchasing LIC’s Bhagya Lakshmi Plan :
Upon receipt and validation of all the above relevant required documents and on receipt of the premium amount LIC shall issue the Bhagya Lakshmi Policy.
The premium of the LIC’s Bhayga Lakshmi Plan is decided as per the premium rates stated in the tabular premium rate chart. This tabular premium rate chart determines the annual premium per Rs 1,000 of sum assured opted under the basic plan by the policyholder.
Following is the sample illustration of the premium rate chart of the LIC’s Bhagya Lakshmi Plan :
|Age of the insured||Policy term: 7 years
Premium paying term: 5 years
|Policy term: 10 years
Premium paying term: 8 years
|Policy term: 15 years
Premium paying term:13 years
|For 20 Years||127.45/INR 1,000 sum assured||64.35/INR 1,000 sum assured||37.20/INR 1,000 sum assured|
|For 30 years||129.30/INR 1,000 sum assured||65.80/INR 1,000 sum assured||38.55/INR 1,000 sum assured|
|For 40 years||138.30/INR 1,000 sum assured||72.80/INR 1,000 sum assured||44.25/INR 1,000 sum assured|
|For 50 years||164.10/INR 1,000 sum assured||91.40/INR 1,000 sum assured||57.15/INR 1,000 sum assured|
Sample premium : For LIC Bhagya Lakhsmi Plan per INR 1,000 sum assured.
|Policy Tenure||15 years|
|Premium Paying Term||13 years|
|Sum Assured||INR 30,000|
|Annual Premium||INR 1,156.50 + applicable taxes|
|Annual||2% of Tabular Premium|
|Semi Annual||1% of Tabular Premium|
|Quarterly and Monthly||NIL|
High Sum Assured discount : NIL
LIC for the ease of its customers has introduced various premium payment modes for the ease of payment of premium to the policyholders. The policyholder can choose the premium payment mode as per their convenience. The premium payment modes offered under the LIC’s Bhayga Lakshmi Plan are as under :
The policyholder’s of the LIC’s Bhagya Lakshmi plan have to pay the premiums on or before the stipulated due date further LIC also provides a grace period of 2 months i.e. not less than 60 days period for the payment of premium. If the policyholder fails to pay the unpaid premium the policy shall stand lapsed and all the benefits of the policy shall cease.
LIC’s Bhagya Lakshmi Plan lapsed policy can be revived by paying the unpaid premiums plus interest, if any, within the period of 2 consecutive years starting from the date of first unpaid premium but before the end of policy tenure i.e. before the maturity date of the policy. The policy shall be revived upon payment of unpaid premiums, interest and submission of the proof of continued insurability to LIC.
The LIC’s Bhagya Lakshmi policy can at any given time during the tenure of the policy be surrendered. The process for surrendering the policy is very simple. in order to surrender the policy the policyholder has to submit the following documents to the nearest LIC Office or branch:
Upon submitting the above-stated documents LIC shall register the surrender claim and credit the surrender value of the policy in the policyholder’s bank account. Kindly note the surrender value is payable only if the premium of one policy year has been paid in full. A guaranteed surrender value shall be payable which is equivalent to the premiums paid till the date of surrendering the policy. The guaranteed surrender value is determined using the guaranteed surrender value factor. The guaranteed surrender value factor of LIC’s Bhagya Lakshmi Plan is expressed in terms of percentage and is based on the policy term and the policy year in which the Bhagya Lakshmi policy was surrendered by the policyholder.
Following is a sample illustration depicting the guaranteed surrender value factor applicable to total premiums paid :
|Policy year of surrender||Policy term 7 years||Policy term 10 years||Policy term 15 years|
Kindly note, under the Bhagya Lakshmi Policy, special surrender value shall be paid if it is more favourable to the policyholder. The special surrender value shall be calculated as per the special surrender value factor * maturity paid-up sum assured.
For registering a normal death claim under the LIC’s Bhagya Lakshmi Plan the nominee has to submit the following documents to LIC :
While in case of maturity claim registration the policyholder is required to submit the following documents:
Thus upon receipt of relevant required documents, LIC shall register and process the death claim or maturity claim and pay the benefit. Once the benefit is paid to the policyholder or nominee, in case of the death benefit, the insurance contract shall come to an end.
The exclusion under the LIC Bhagya Lakshmi plan is suicide. If the life insured’s death is due to suicide, then the policy and its benefits shall stand void but only following benefit shall be paid –
Kindly note, the above benefit shall only be paid if the policy is in force.
The LIC’s Bhagya Lakshmi Plan offers the following premium payment modes
Yes, the LIC’s Bhagya Lakshmi Plan offers a grace period of two months i.e. not less than 60 days as a grace period for payment of unpaid premiums. If the policyholder fails to pay the premium within the completion of grace period the policy stands lapsed.
No, the LIC’s Bhagya Lakshmi plan does not offer loan on policy.
Yes, if the policyholder is not satisfied with the terms and conditions of the policy he / she can cancel the policy by returning the policy to LIC. The policyholder must return the original policy bond to LIC along with a letter stating the valid reason for cancellation. This cancellation of policy can be done in the free-look period or the cooling-off period offered by the Life Insurance Corporation of India.
If the policyholder returns the policy to LIC in the free look period then LIC registers the request under cancellation of policy and returns the premium to the policyholder after deduction of certain charges related to stamp duty, the premium for the period on cover etc.
Yes, the plan allows rebates on the choice of mode of premium payment as under:
The surrender value / paid-up value under this plan will accrue