LIC Micro Bachat Plan 951 – Protection & Savings for All
What is LIC’s Micro Bachat Plan 951?
LIC’s Micro BachatPlan 951 is a Non-Linked, Participating, Regular Premium, Micro Insurance Plan designed to offer dual benefits of protection and savings. This policy is perfect for individuals with low income who want affordable insurance with guaranteed returns.
This plan offers life insurance coverage, maturity benefits, and the option to take loans — all bundled in one affordable package. You also get loyalty additions after completing 5 years, making it more rewarding over time.
Key Features of Micro Bachat Plan
| Feature | Details |
|---|---|
| Plan Type | Non-Linked, Participating, Regular Premium Micro Insurance |
| Target Segment | Low-income group with Aadhaar and PAN |
| Entry Age | 18 to 55 years (Nearest Birthday) |
| Maturity Age | Maximum 70 years (Nearest Birthday) |
| Policy Term | 10 to 15 years |
| Minimum Sum Assured | ₹50,000 |
| Maximum Sum Assured | ₹2,00,000 |
| Premium Payment Frequency | Yearly, Half-Yearly, Quarterly, Monthly (via SSS/NACH) |
| Riders Available | Accidental Benefit Rider / Accidental Death & Disability Rider |
| Loan Facility | Available after 3 full years of premium payment |
| Tax Benefits | Under Section 80C & 10(10D) of Income Tax Act |
Benefits of the Plan
A. Death Benefit
| Condition | Benefit |
|---|---|
| Death during first 5 years | Basic Sum Assured |
| Death after 5 years but before maturity | Basic Sum Assured + Loyalty Addition (if any) |
| Minimum Death Benefit | 105% of total premiums paid (excluding rider premiums & taxes) |
Sum Assured on Death is the highest of:
- 10 times the annualized premium
- Basic Sum Assured (Sum Assured on Maturity)
- Absolute amount assured on death
B. Maturity Benefit
If the policyholder survives till the end of the policy term:
- Basic Sum Assured + Loyalty Additions (if any) will be paid.
C. Rider Benefits (Optional)
You can choose one of the following two riders:
- LIC’s Accident Benefit Rider
- LIC’s Accidental Death & Disability Benefit Rider
These provide extra coverage for accidents, at an additional nominal premium.
Eligibility Criteria
| Criteria | Details |
|---|---|
| Age at Entry | 18 to 55 years |
| Maximum Maturity Age | 70 years |
| Policy Term | 10 to 15 years |
| Sum Assured Range | ₹50,000 to ₹2,00,000 |
| Loan Facility | After 3 full years of premium payment |
Example: LIC Micro Bachat Plan 951 – Mr. Suraj
Let’s understand the plan with an example:
| Particulars | Value |
|---|---|
| Policyholder Name | Mr. Suraj |
| Age at Entry | 30 years |
| Sum Assured | ₹2,00,000 |
| Policy Term / PPT | 15 years |
| Yearly Premium | ₹9,953 |
| Purchase Year | 2022 |
Mr. Suraj pays ₹9,953 annually for 15 years. If he survives the term, he will receive the maturity benefit. In case of death during the policy term, his nominee will receive the death benefit.
Maturity Benefit (On Survival Till 2037)
| Maturity Year | Age at Maturity | Total Premium Paid | Approx. Maturity Amount |
|---|---|---|---|
| 2037 | 45 years | ₹1,59,247 | ₹2,30,000 (SA + LA) |
Year-Wise Policy Details
| Year | Age | Annual Premium | Normal Life Cover | Accidental Life Cover (if opted) |
|---|---|---|---|---|
| 2022 | 30 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2023 | 31 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2024 | 32 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2025 | 33 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2026 | 34 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2027 | 35 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2028 | 36 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2029 | 37 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2030 | 38 | ₹9,953 | ₹2,00,000 | ₹4,00,000 |
| 2031 | 39 | ₹9,953 | ₹2,20,000 | ₹4,20,000 |
| 2032 | 40 | ₹9,953 | ₹2,24,000 | ₹4,24,000 |
| 2033 | 41 | ₹9,953 | ₹2,28,000 | ₹4,28,000 |
| 2034 | 42 | ₹9,953 | ₹2,32,000 | ₹4,32,000 |
| 2035 | 43 | ₹9,953 | ₹2,36,000 | ₹4,36,000 |
| 2036 | 44 | ₹9,953 | ₹2,40,000 | ₹4,30,000 |
If Suraj dies in 2029 (age 37), the nominee will receive:
- Normal Death Claim: ₹2,00,000 + Loyalty Addition
- Accidental Death Claim (if opted): ₹4,00,000 + Loyalty Addition
Summary of Benefits
| Benefit Type | Approx. Value (₹) |
|---|---|
| Guaranteed Sum Assured | ₹2,00,000 |
| Loyalty Additions (LA) | ₹30,000 |
| Total Maturity Benefit | ₹2,30,000 |
Benefits for Nominee (In Case of Death)
| Scenario | Total Payout |
|---|---|
| Natural Death | ₹2,00,000 + LA |
| Accidental Death (with rider) | ₹4,00,000 + LA |
Final Thoughts
LIC Micro Bachat Plan 951 is an ideal micro-insurance plan for individuals seeking a low-premium policy with life cover, savings, and loan facility. It’s especially designed for people who may not be able to afford large insurance plans but still want to protect their family and secure their savings.
