LIC Bhagya Lakshmi Plan is a non-participating limited payment protection oriented micro insurance plan offered by Life Insurance Corporation of India. This plan returns a total of 110% of the premiums paid on maturity to the policyholder in case of survival or Sum Assured on Death as death benefit to the beneficiaries in case of the demise of the policyholder.
The purpose of the existence of this plan is to provide financial assistance to people of low income. Thus, this plan has been categorized as a micro insurance plan by the Insurance Regulatory and Development Authority of India.
Note: All information regarding LIC’s Bhagya Lakshmi Plan has been sourced from the official website of Life Insurance Corporation of India.
As mentioned above, this is a non-participating limited payment protection plan which offers life cover with low premium payments.
The minimum sum assured is ₹20,000 while the maximum sum assured is ₹50,000.
You can make the premium payments via quarterly, monthly, half-yearly or yearly mode or in the form of salary deductions.
This plan comes with an extended grace period of 60 days from the premium due date for two calendar months.
You are entitled to a rebate of 2% of tabular premium in the yearly mode.
You are entitled to a rebate of 1% of tabular premium in the half-yearly mode.
The maximum premium payment term is 13 years while the minimum premium payment term is 5 years.
The policy term is premium payment term plus 2 years. The minimum policy term is 7 years, while the maximum policy term is 15 years.
Death Benefit - In case of demise of the policyholder before the date of maturity, the death benefit will be payable to the nominee, where death benefit includes the sum assured under the policy.
Maturity Benefit - In case of survival of the policyholder till the end of the policy term, the maturity benefit will be payable to the nominee, where maturity benefit is equal to 110% of the total premiums payable during the policy term.
Surrender Value - You can surrender the policy at any time during the policy term, provided premiums have been paid for at least two consecutive years if premium paying term is less than 10 years and for at least three consecutive years if premium paying term is 10 years or more. For policies with a premium paying term less than 10 years, the surrender value will accrue post 2 full years if all premiums have been paid. For policies with a premium paying term greater than 10 years, the surrender value will accrue post 3 full years if all premiums have been paid.
Free Look Period - If the policyholder is does not agree with any of the Terms and Conditions of LIC Bhagya Lakshmi Plan, the policy may be returned to LIC within 15 days from the date of receipt of the policy stating the reason of objections. Once the receipt has been received by LIC, they will cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium for the period on cover and charges for stamp duty.
Revival - If the policyholder seeks to revive a lapsed policy, they can do so within a period of two consecutive years from the date of first unpaid premium but before the date of maturity.
Paid-Up Value - Policies with Premium Paying Term less than 10 years shall become a paid-up policy only if at least two years of premiums have been paid and further premium payments are stopped. Policies with PPT (Premium Paying Term) of 10 years or more shall become a paid-up policy if at least three full years of premiums have been paid and further premium payments are stopped.
The Death Paid-up Sum Assured will be Sum Assured on Death X (number of premiums paid/number of premiums payable during the policy tenure).
The Maturity Paid-up Sum Assured will be Sum Assured on Maturity X (number of premiums paid/number of premiums payable during the term of the policy).
You do not have the facility of taking a loan against this policy.
In case of suicide, the policy will be void:
If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and LIC will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and rider premiums, if any.
If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums, if any) or the surrender value, provided the policy is in force, shall be payable.
Listed below are sample annual tabular premium rates (exclusive of service tax) per ₹1,000/- Sum Assured.
| Entry Age | Premium Payment Term (PPT) in Years | ||
| 7(5) | 10(8) | 15(13) | |
| 20 | ₹127.45 | ₹64.35 | ₹37.20 |
| 30 | ₹129.30 | ₹65.80 | ₹38.55 |
| 40 | ₹138.30 | ₹72.80 | ₹44.25 |
| 50 | ₹164.10 | ₹91.40 | ₹57.15 |
| 55 | ₹179.90 | ₹103.05 | - |
To make a claim on LIC Bhagya Lakshmi Plan, the following documents will have to be submitted:
NEFT Details/Form.
Original Policy Document.
Medical Reports/Treatment Information.
Certificate of Death (in case of a death claim).
Proof of Age and Title.
Photocopy of Bank Passbook/Cancel Cheque.
Why should you buy LIC’s Bhagya Lakshmi Plan?
You should buy the LIC Bhagya Lakshmi as it provides life cover for you and your entire family along with a dual benefit of death benefit and maturity benefit.
What are the premium payment modes available?
The different modes of premium payment are monthly, quarterly, semi-annually and annually.
Can I avail a loan under the LIC Bhagya Lakshmi Plan?
No, this policy does not come with the facility of availing a loan against this policy
Is there a high sum assured rebate in LIC Bhagya Lakshmi Plan?
No, there is no high sum assured rebate available under this plan.
What is the minimum sum assured for the LIC Bhagya Lakshimi Plan?
The minimum sum assured under this plan is ₹20,000.
