LIC Micro Bachat Plan 951 Calculator

Life Insurance Corporation of India (LIC) has been a trusted name in life insurance for over six decades, committed to providing financial security to millions of Indians. One such policy introduced by LIC to cater to the needs of low-income groups is the LIC Micro Bachat Plan 951. This plan combines the benefits of life insurance protection and savings in an affordable and accessible manner.

What is LIC Micro Bachat Plan 951?

The LIC Micro Bachat Plan 951 is a non-linked, participating micro-insurance plan designed specifically for people from economically weaker sections who want to make small, affordable savings while availing life insurance coverage. This plan offers dual benefits:

• Protection Benefit: Financial support to the nominee in case of the policyholder’s unfortunate death during the policy term.
• Savings Benefit: Maturity amount paid to the policyholder if he/she survives the policy term.

The plan encourages disciplined saving and provides a safety net for the policyholder’s family at a very affordable premium amount.

Launch and Withdrawal Dates

• Launch Date: February 1, 2020
• Withdrawal Date: October 1, 2024

The LIC Micro Bachat Plan 951 was launched on February 1, 2020, and was withdrawn from sale on October 1, 2024. Although the plan is withdrawn from new sales, existing policyholders will continue to enjoy the benefits as per the plan terms.​

Who Should Consider LIC Micro Bachat Plan?

The LIC Micro Bachat Plan is ideal for low-income individuals who want an affordable life insurance policy combined with a savings component. It is particularly suitable for:

• Individuals aged 18 to 55 years.
• Those who want a policy term of 10 to 15 years.
• People looking for life insurance with small premium payments.
• Individuals keen on safe, low-risk savings with guaranteed benefits.
• Families needing financial protection against unforeseen events.

Key Features of LIC Micro Bachat Plan 951

• Policy Type: Traditional, non-linked, participating micro-insurance plan.
• Premium Payment: Regular premiums payable monthly, quarterly, half-yearly, or annually.
• Basic Sum Assured: ₹50,000 to ₹2,00,000 (in multiples of ₹5,000).
• Policy Term: 10, 12, or 15 years.
• Minimum Entry Age: 18 years (last birthday).
• Maximum Entry Age: 55 years (last birthday).
• Maximum Maturity Age: 70 years (nearest birthday).
• Grace Period: 30 days for premium payment.
• Loan Facility: Available after payment of at least 3 full years’ premiums.
• Surrender Value: Paid after at least one full year of premium payment; higher of the Guaranteed or Special Surrender Value.
• Auto Cover: Insurance coverage continues for 6 months after due premium in case the premium is not paid.
• No GST on premium: The plan is exempted from GST making it more affordable.

Benefits of LIC Micro Bachat Plan 951

Death Benefit

In case of the demise of the policyholder during the policy term, the nominee receives the higher of:

• Seven times the annualized premium, or
• The basic sum assured.

This provides a financial safety net to the family after the loss of the breadwinner.

Maturity Benefit

If the policyholder survives till the end of the policy term, a lump sum maturity amount is paid. This includes:

• The basic sum assured.
• Loyalty additions declared by LIC.

Loyalty additions are bonuses given as a reward for continuing the policy, paid after completion of five years.

Loyalty Additions

Policyholders receive loyalty additions as per LIC’s declared rates, enhancing returns on savings.

Loan Facility

Policyholders can avail loans against the policy after paying premiums for at least 3 full years. The interest rate and terms are determined by LIC.

Policy Surrender

After paying premiums for one full year, the policyholder can surrender the policy and receive the surrender value.

Optional Riders

LIC offers riders such as:

• Accidental Death and Disability Benefit Rider: Provides additional benefits if the policyholder dies or becomes disabled due to an accident.
• Accident Benefit Rider: Adds extra cover in case of accidental death.

These optional riders provide extra protection as per the policyholder’s needs.

Eligibility Criteria for LIC Micro Bachat Plan

Understanding LIC Micro Bachat Plan 951 Calculator

A calculator for LIC Micro Bachat helps estimate the premium amount payable based on several parameters such as:

• Age of the policyholder at entry.
• Policy tenure selected (10/12/15 years).
• Basic sum assured amount.
• Frequency of premium payment (monthly, quarterly, half-yearly, annually).

Using these inputs, the calculator computes:

• The amount of premium payable under each mode.
• Total premiums to be paid during the policy term.
• Approximate maturity benefit (including expected loyalty additions).
• Death benefit to nominee in case of policyholder’s death.

This tool makes it easy for prospective policyholders to evaluate the affordability and benefits of the plan upfront for better decision-making.

How to Use LIC Micro Bachat Plan 951 Calculator?

1. Enter Age: Input your current age (must be between 18 to 55 years).
2. Select Policy Term: Choose from 10, 12, or 15 years.
3. Choose Sum Assured: Select the basic sum assured amount (₹50,000 to ₹2,00,000 in multiples of ₹5,000).
4. Select Premium Mode: Monthly, Quarterly, Half-yearly, or Annually.
5. Calculate Premium: The calculator will display the premium amount payable for the selected terms.
6. Results: View the total premiums payable, maturity benefits (approximate), and death benefits.

This helps tailor the policy to meet budget and insurance needs.

Premium and Rebate Details

Premiums are calculated based on the age, sum assured, premium paying term, and frequency. LIC offers rebates based on the mode of payment and sum assured, such as:

• Rebate on Annual Premium Payment: 2% discount on tabular premium.
• Semi-Annual Rebate: 1% discount.
• Quarterly: No rebate.
• Monthly: Additional 3% premium charged.
• Rebate on Sum Assured: For sum assured between ₹1.5 lakhs to ₹1.95 lakhs, a 1.5% rebate applies; for ₹2 lakhs, 2% rebate applies.

These rebates make paying annually or half-yearly more affordable.​

Policy Revival and Lapse

If premiums are not paid within the grace period of 30 days, the policy lapses. However, the policy can be revived within 5 years of missed premium payment by paying due premiums along with interest. The interest rate on revival is decided by LIC.

If revival is not done within this period, the policy terminates without benefits.

Exclusions and Important Conditions

• If the policyholder commits suicide within 12 months of policy start or revival, the nominee receives only 80% of the total premiums paid or surrender value, whichever is higher.
• No other claims are entertained beyond these conditions.
• Delayed loan interest payments beyond specified limits may terminate the policy.

Advantages of LIC Micro Bachat Plan 951

• Affordable premiums for low-income groups.
• Dual benefits of insurance and savings.
• No GST on premiums, reducing costs.
• Flexibility in premium payment modes.
• Policy loan facility for liquidity needs.
• Optional riders for additional cover.
• Loyalty additions enhance maturity benefits.
• Grace period and auto cover for premium defaults.
• Guaranteed surrender value provides financial relief in emergencies.

Disadvantages

• Withdrawn from fresh sales after October 1, 2024.
• Limited maximum sum assured (up to ₹2 lakhs).
• Fixed policy terms (10-15 years) may not suit all.
• Loyalty additions are not guaranteed and depend on LIC profits.

Frequently Asked Questions

Conclusion

LIC Micro Bachat Plan 951 was an excellent micro-insurance product aimed at encouraging small savings and providing life insurance protection at affordable rates to the economically weaker sections. Though withdrawn from new sales since October 2024, existing policyholders can continue to benefit from it until maturity.