Life Insurance Corporation of India (LIC) introduced ‘Micro Bachat’, a non- linked, participating endowment micro- insurance plan, which offers a combination of protection and savings. A press release said that for the first time a micro insurance plan has
been launched providing coverage up to `2 lakh.
been launched providing coverage up to `2 lakh.
This plan provides financial support for the family in case of the unfortunate death of the policyholder during the policy term, and a lump sum amount at the time of maturity for the surviving policyholders. Policies under this plan will be eligible for loyalty additions, if any, at rates and terms as may be declared by the Corporation.
It will be available in case of maturity, death or surrender if the policy has completed five years and five full years’ premium has been paid under the policy. This plan also takes care of the liquidity needs through its loan facility, provided three full years’ premium has been paid, added the release. It is available for standard healthy lives in the age group of 18 to 55 years. The policyholder need not undergo any medical examination.
The total basic sum assured under all policies issued under this plan for an individual life shall not exceed `2 lakh. The release added that if at least three full years’ premium has been paid under a policy and any subsequent premium is not duly paid, an auto cover period of six months will be available. If at least five full years’ premium is paid then an auto cover period of two years will be available. Premium can be paid regularly at yearly, half-yearly, quarterly or monthly intervals over the term of the policy. The optional benefit of LIC’s Accidental Benefit Rider or LIC’s Accidental Death and Disability Rider can be availed by payment of additional premium.
