LIC’s Bhagya Lakshmi Plan: This is a micro insurance plan which means a plan which is meant for the economically backward people. This plan is specially designed for low income people. This plan is low sum assured in which no GST is applicable. Nor is it necessary to undergo a medical test to take the policy.
This plan is of ‘Term Plan with Return Premium’ i.e. whatever premium is paid during the plan, 110% of it is paid on maturity. This is a limited period premium plan in which premiums have to be paid for less than the term of the policy. The minimum age limit to take this plan is 19 years and the maximum age limit is 55 years. The premium paying term i.e. the number of years for which the premium is to be paid is minimum 5 years and maximum 13 years. The facility of life coverage is available for 2 years more than the number of years for which the premium paying term is.
How much do you get on maturity
The minimum sum assured in this policy is Rs 20,000 and the maximum sum assured is Rs 50,000. You can choose from yearly, half yearly, quarterly and monthly period to pay premium. The depositor gets a substantial amount as maturity benefit. 110 per cent of the money paid during the premium period is returned on maturity. If the depositor commits suicide within 1 year of taking the policy, then he will not get the benefit of coverage. The same if the incident of suicide occurs after 1 year then the benefit of coverage is given under Bhagya Laxmi policy.
Under the LIC Bhagya Lakshmi Policy, the depositor does not get the facility to take a loan. The facility of surrendering the policy is given. If the depositor surrenders the policy, then he will be given 30-90% of the deposited money. The longer the policy lasts, the higher its surrender value will be.
Understand with this example
Let us understand this with an example. Shafiq, 30, has taken a Bhagya Lakshmi policy for 20,000 Sum Assured and the premium payment term has been fixed at 13 years. Accordingly, Shafiq will have to pay a premium of Rs 756 every year and this payment will have to be made for 13 years. In this way, he will have to pay a total of Rs 9,823 during the entire policy. Its policy term is premium paying term plus 2 years, so the policy taken by Shafiq will be of 15 years.
If something happens to Shafiq within 15 years of taking the policy and he leaves the world, then his nominee will get the full sum assured i.e. 20 thousand rupees. Shafiq would have paid Rs 9,823 as premium but his nominee would be given Rs 20,000. If Shafiq survives for the entire policy, he will get 110 percent of the entire premium i.e. 110 percent of Rs 9,923 i.e. Rs 10,805. Loan facility is not available in this policy but money is returned on surrendering the plan.