LIC Micro Bachat Plan 851 Calculator

LIC Micro Bachat Plan 851 was a low-cost insurance and savings plan designed for individuals in India seeking accessible life coverage and savings benefits.

What is LIC Micro Bachat Plan 851?

LIC Micro Bachat Plan 851 was a regular premium, non-linked, participating life insurance plan offered by the Life Insurance Corporation of India (LIC). It was especially suitable for low-income earners who desired a combination of savings and financial protection for their families.​

Under this plan, if the policyholder survived the policy term, a maturity benefit was paid out. In the unfortunate event of the policyholder’s death during the term, the family received a financial payout. The plan also provided additional options such as loyalty additions and optional riders for enhanced coverage.

Launch and Withdraw Dates

• Launch Date: 18th February 2019.
• Withdraw Date: 1st February 2020.​

Thus, the plan is not available for new purchases but many policyholders still hold active policies.

Key Features of LIC Micro Bachat Plan 851

• Non-linked, Participating: The plan’s returns depended partially on LIC’s profits through loyalty additions.
• Available for Healthy Lives: Only for healthy individuals (no medical test required).​
• Protection + Savings: Offers a blend of insurance and guaranteed maturity value.​
• Flexible Policy Term: Choose between 10 and 15 years.
• Simple Premium Payment: Pay premiums for the duration of the policy.
• Loan Facility: Loans can be availed after paying three years’ worth of premiums.
• Tax Benefits: Premiums eligible for tax deduction under Section 80C.

Eligibility Conditions

Premiums and Rebates

• Premium Frequency: Yearly, Half-yearly, Quarterly, or Monthly (NACH/ECS).
• Premium Rebates:
  • 2% rebate for yearly premiums.​
  • 1% rebate for half-yearly premiums.
  • 1.5% high sum assured rebate for ₹1.5–1.95 lakh sum assured.
  • 2% high sum assured rebate for ₹2 lakh sum assured.

How the LIC Micro Bachat Premium and Maturity Calculator Works

To make the plan easy to understand and select, LIC and various financial websites provide premium and maturity calculators. You simply input:

• Sum Assured
• Policyholder Age
• Policy Term (years)
• Premium Frequency

The calculator instantly displays:

• Yearly/Monthly premium before/after rebate and GST
• Total premium paid across the term
• Estimated maturity benefit
• Applicable loyalty additions​

Premium Calculation Formula

Premium rates were based on insured’s age, sum assured, and policy term. Typically:Tabular Premium=Rate per ₹1,000 Sum Assured×(Sum Assured1,000)\text{Tabular Premium} = \text{Rate per ₹1,000 Sum Assured} \times \left( \frac{\text{Sum Assured}}{1,000} \right)Tabular Premium=Rate per ₹1,000 Sum Assured×(1,000Sum Assured)

Then adjust for rebates and GST.

Note: Premiums included GST. Loyalty Additions were not guaranteed and depended on LIC’s profits.​

Example Premium Chart (Annual, for ₹1,000 Sum Assured)

Multiply the rate by (Sum Assured ÷ 1,000) to get your annual premium.

Benefits of LIC Micro Bachat Plan 851

Death Benefit

If the policyholder passes away during the term:

• The nominee gets the sum assured on death plus loyalty addition (if applicable).
• No claim if death by suicide within first 12 months.​

Sum Assured on Death:
Max of:

• 10 × Annualized Premium, or
• Sum Assured

Maturity Benefit

If policyholder survives and completes all premium payments:

• Receives Basic Sum Assured + Loyalty Addition (if any).

Surrender Value

• Can surrender after one full year’s premium.
• Guaranteed value: 30–80% of premiums paid (excluding taxes and rider premiums).​

Loan Facility

• Policy loans available after paying 3 years’ premiums.

Riders

• Accidental Death and Disability Benefit Rider
• Accident Benefit Rider
  • Both come at extra cost for even greater financial protection.​

Loyalty Additions

Loyalty additions are extra bonuses (one-time) announced by LIC based on their performance and profits and are paid at policy maturity or death after completing at least 5 years.

Example: LIC Micro Bachat Plan 851 Calculator in Action

Let’s use a practical example:

Case Study: 35-Year-Old Taking a ₹1,00,000 Policy for 15 Years

• Age: 35 years
• Base Sum Assured: ₹1,00,000
• Policy Term: 15 years
• Annual Premium: ₹5,116 (excluding GST, rebates applied)

Death Scenarios

• If death occurs after 5 years: Nominee gets ₹1,00,000.
• After 10 years: ₹1,00,000 + Loyalty Addition (approx. ₹6,500) = ₹1,06,500.
• On surviving 15 years: ₹1,00,000 + Loyalty Addition (approx. ₹11,500) = ₹1,11,500.​

Advantages and Disadvantages

Advantages

• Simple entry and eligibility.
• No medical test required.
• Low, fixed premiums.
• Double benefit (savings + protection).
• Policy loan and surrender options.
• Rebate benefits for high sum assured.
• Income tax benefits under section 80C.​

Disadvantages

• Maximum sum assured is low (₹2 lakh).
• No coverage for high-income groups.
• Loyalty additions not guaranteed.
• Plan now withdrawn, so not available for new purchase.​

How to Calculate Your Premium and Maturity Value (Step-by-Step)

1. Visit an Official LIC Calculator:
   • Use trusted tools such as LIC’s Calculator or other reliable calculator sites.​
2. Input Details:
   • Age
   • Sum Assured (₹50,000 – ₹2,00,000)
   • Term (10-15 years)
   • Premium Frequency
3. Result:
   • The tool will display yearly/quarterly/monthly premium, rebates, GST, total premium paid, and projected maturity value.

Surrender and Loan Provisions

• Surrender value arises after one year of premium payment.
• Loan facility accrues after three years’ worth of premiums.
• Surrender values grow with policy tenure and premiums paid.

Comparing Micro Bachat to Other LIC Plans

Frequently Asked Questions

Conclusion

LIC Micro Bachat Plan 851 brilliantly democratized insurance by making low-ticket protection and savings accessible to millions. Though the plan is now withdrawn, its simple features, straightforward benefit calculation, and accessible eligibility made it popular among rural and lower-middle-class families in India.

Existing policyholders can still use online calculators to track premiums and projected maturity benefits. For similar current plans or renewal queries, always refer to the LIC website or contact your LIC agent.