LIC's Bhagya Lakshmi Plan 829

The research has gathered detailed information about LIC Bhagya Lakshmi Plan 829, including its features, benefits, eligibility criteria, premium details, launch and withdraw dates, and the concept of the plan as a micro insurance product aimed at low-income groups.

This plan is categorized as a limited premium payment micro insurance plan, with a maturity benefit of 110% of the premiums paid and relevant death benefits. The plan has been withdrawn recently as per the latest updates, with official details accessible from LIC’s website and related sources.

LIC Bhagya Lakshmi Plan 829 Calculator

Life insurance is an essential financial tool that provides protection and peace of mind to individuals and their families. For many, choosing the right insurance plan and understanding its benefits can be challenging. The LIC Bhagya Lakshmi Plan 829 is a specialized insurance scheme designed to cater to the needs of low-income groups with simple and effective financial security features.

What is LIC Bhagya Lakshmi Plan 829?

LIC Bhagya Lakshmi Plan 829 is a micro insurance policy introduced by Life Insurance Corporation of India (LIC). It is a non-linked, non-participating limited premium payment protection-oriented plan. This means it focuses primarily on providing insurance cover with a guaranteed return on the total premiums paid.

This plan is specially designed for people belonging to low-income groups who want an affordable and reliable insurance option. It offers life cover and savings benefits with a maturity payout of 110% of the paid premiums at the end of the policy term.

Launch and Withdrawal Dates

• Launch Date: LIC Bhagya Lakshmi Plan 829 was initially launched on December 29, 2014.
• Withdraw Date: The plan was withdrawn on January 31, 2025, as LIC revises its product portfolio from time to time to meet current market demands better.

Although the plan is withdrawn, many users still seek information and tools like calculators to understand past premiums and maturity values for existing policies.

Eligibility Criteria for Bhagya Lakshmi Plan 829

To apply for this plan, you need to meet certain eligibility conditions:

• Entry Age: Minimum 8 years and maximum 55 years.
• Maximum Maturity Age: Up to 65 years.
• Sum Assured: Minimum Rs. 20,000 and maximum Rs. 50,000.
• Policy Term: The policy term is typically 7 to 15 years, depending on the premium payment term.
• Premium Payment Term: Premiums are paid for a duration less than the policy term, usually 2 years less.

Key Features of LIC Bhagya Lakshmi Plan 829

Here are the important features of this plan that make it suitable for low-income groups:

• Limited Premium Payment: The premiums are to be paid for fewer years compared to the total policy term, easing financial pressure while maintaining coverage.
• Maturity Benefit: On survival till policy maturity, the policyholder gets 110% of the total premiums paid (excluding taxes and extra premiums).
• Death Benefit: In case of the death of the insured within the policy term, the nominee receives the sum assured, which is a financial support in tough times.
• Various Premium Payment Options: You can pay premiums monthly, quarterly, half-yearly, or yearly, whichever suits your convenience.
• Grace Period: The plan offers a 60-day grace period from the premium due date to pay premiums without the policy lapsing.
• Micro Insurance Classification: This plan caters specifically to the needs of low-income groups in compliance with micro insurance regulations.

Benefits of the Bhagya Lakshmi Plan 829

Maturity Benefits

If the insured person survives the entire policy term, LIC pays 110% of the total premiums paid by the policyholder. This amount excludes any taxes and additional premiums paid. This benefit acts as a savings tool providing a good return on the premiums invested.

Death Benefits

If the insured dies during the policy period, the nominee receives the sum assured chosen by the policyholder at the time of purchase. This death benefit provides financial protection for the family during unforeseen circumstances.

Tax Benefits

Premiums paid under this plan are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the maturity proceeds and death benefits are exempt from tax under Section 10(10D). This makes the plan a tax-efficient saving option.

How to Use the LIC Bhagya Lakshmi Plan 829 Calculator?

Understanding your potential premiums, maturity amount, and benefits is easier with an LIC Bhagya Lakshmi Plan Calculator. Here is how you can use the calculator effectively:

1. Enter the Sum Assured: Choose the amount you wish to insure (between Rs. 20,000 and Rs. 50,000).
2. Input Policy Term: Select the desired policy tenure, usually between 7 to 15 years.
3. Choose Premium Payment Term: Enter the premium paying duration, which is typically 2 years less than the policy term.
4. Select Premium Payment Mode: Choose how frequently you want to pay premiums – monthly, quarterly, half-yearly, or yearly.
5. Enter Your Age: The calculator will use your age to determine the premium amount.
6. Calculate: The tool will display the premium amount payable and the maturity benefit you will receive at the end of the policy term.

Using this calculator helps you plan your finances and make informed decisions about the policy.

Sample Premium and Maturity Calculation

To give a clearer idea, here are some sample premium rates for a sum assured of Rs. 1,000 under different age groups and terms:

These rates will be multiplied by the actual sum assured you choose (in thousands) to estimate your premium. At maturity, you will receive 110% of the total premiums paid.

Advantages of LIC Bhagya Lakshmi Plan

• Affordable Premiums: Suitable for low-income families, allowing easy financial planning.
• Savings Plus Protection: Combines life protection cover with maturity benefits.
• Flexible Payment Options: Multiple premium payment modes available.
• Tax Savings: Enjoy benefits on both premium payments and maturity proceeds.
• Peace of Mind: Ensures financial security for your family in your absence.

Important Points to Remember

• The plan is withdrawn as of January 31, 2025. No new policies are being issued.
• Existing policyholders can continue with their policies as per LIC’s rules.
• Always verify details and terms on the official LIC website or consult LIC agents before purchasing.
• Use reliable LIC calculators online to estimate premiums and maturity values accurately.

Frequently Asked Questions

Conclusion

LIC Bhagya Lakshmi Plan 829 was a thoughtful insurance product tailored to meet the needs of low-income individuals. It offered a simple, limited premium payment option with guaranteed returns and life cover, making it a valuable savings instrument.

Though the plan has been withdrawn, many still benefit from the maturity and death benefits it offered. Tools like the LIC Bhagya Lakshmi Plan 829 Calculator remain useful for understanding premium obligations and maturity values for those with active policies.