LIC Micro Insurance Plan
Life Insurance Corporation of India has served customers from different economic backgrounds with various affordable life insurance plans. It offers term plans, child plans, endowment plans, pension plans, investment plans, money-back plans, etc.
LIC of India has introduced micro insurance plans for low-income people. These pocket-friendly plans help create funds for future liabilities and provide a sense of security and peace of mind, knowing that you and your family are protected.
Reading ahead, you will learn about the details of the LIC micro insurance policy, including benefits, working hours, and the list of micro insurance plans offered by the LIC of India.
Table of Content
What is the LIC Micro Insurance Plan?
LIC Micro insurance plans provide policyholders with the dual benefits of savings and life risk coverage. These plans offer basic life insurance protection at a low premium and ensure that individuals with limited financial resources can secure their future and their loved ones. Also, upon maturity of the LIC micro insurance policy, the insured gets the premium amount paid during the policy term.
Benefits of Buying LIC Micro Insurance Plan
Investing in an LIC micro insurance plan can help individuals stay financially protected against the twists and turns of life. The affordable savings and insurance plan offers the following benefits:
Financial Security of Loved Ones
In case of any unforeseen circumstances with life assured, the family gets financial help as sum assured. The lump sum received can be used to replace the family income for a certain period, build another source of income, or fulfil short-term needs.
Simple Terms
LIC micro insurance plans are easy to understand and can be purchased in less time as they require minimal paperwork.
Saving Tool
The premiums paid towards the LIC micro insurance plan are paid back to the life assured when they survive the whole policy term. Some of these plans also offer additional bonus, which ultimately increases the sum assured you get in hand after the completion of the policy tenure.
Affordable Premiums
These plans are designed to be budget-friendly, making them affordable to low-income groups.
List of LIC Micro Insurance Plan
Depending on the requirements of the individuals, LIC of India offers the following micro insurance plans. Have a look at them with their eligibility criteria and benefits covered:
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LIC Bhagya Lakshmi |
Coverage Benefits
- Maturity benefit
- Death benefit
- Policy rebate
Eligibility Criteria
Entry Age: 8 years - 55 years
Basic Sum Assured: Rs. 50K - Rs. 2 Lakhs
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LIC New Jeevan Mangal Plan |
Coverage Benefits
- Death benefit
- Maturity benefit
- Accidental death benefit
Eligibility Criteria
Entry Age: 18 years - 55 years
Basic Sum Assured: Rs. 50K - Rs. 2 Lakhs
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LIC Micro Bachat Plan |
Coverage Benefits
- Loyalty additions
- Optional riders
- Death benefit
Eligibility Criteria
Entry Age: 18 years - 55 years
Basic Sum Assured: Rs. 50K - Rs. 2 Lakhs
How Does LIC Micro Insurance Plan Work?
Assume you buy a LIC micro insurance plan per your financial suitability and pay the premiums regularly as per your preference (annually, half-yearly, quarterly, or monthly). You receive the assured benefits as listed under the micro insurance LIC plan:
Death Benefit
In case of the unfortunate demise of the life assured during the policy term, the nominee receives the ‘sum assured on death’ defined under the selected LIC micro insurance policy. If you select the LIC New Jeevan Mangal plan, , the nominee receives an additional sum equal to the sum assured upon death due to an accident.
Maturity Benefits
If the life assured survives the policy tenure, they receive the premium paid during the policy term. Depending on the LIC micro insurance plan terms and conditions, the maturity benefit can equal the sum assured on maturity.
Loyalty Additions
Depending on the Life Insurance Corporation's experience, the LIC Micro Bachat policy offers loyalty with the death benefit and maturity benefit.
Optional Riders
Optional riders can be added to the LIC Micro Bachat policy by paying an extra premium based on the requirements of the policyholder.
Why Should You Buy a Micro Insurance Plan from LIC of India?
Life Insurance Corporation of India is a trusted and reputable insurance company with a long history of serving Indians with insurance and financial products. Here’s why you should consider buying a micro insurance plan from LIC of India:
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Reliability
The Life Insurance Corporation of India has a strong track record of claim settlements since its inception. As per the IRDAI's Annual Report 2022-23, the company records the claim settlement ratio of death claims as 98.60% and maturity claims as 92.65%.
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Nationwide Network
The Life Insurance Corporation of India has an extensive network of LIC branches and agents, making it easy to access any support required during LIC micro insurance policy purchase or claim filing.
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Tailored Plans
Based on the income flow of the families, LIC of India has specific plans designed to meet savings and insurance needs. Also, some LIC micro insurance plans offer optional riders to enhance the base policy coverage and gain additional benefits.
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Government Backing
LIC of India is a government-owned entity that ensures stability and trustworthiness. The company has recorded a solvency ratio of 1.87, which ensures its financial stability.
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Digitally Advanced
LIC of India has launched LIC e-services to simplify customer policy management. Suppose you purchase a micro insurance plan from LIC or any other plan. In that case, you can list it on the LIC customer portal, complete premium payments, track policy status, and update information from anywhere. No more need to visit LIC branches.
What to Consider While Purchasing a LIC Micro Insurance Policy?
Before purchasing a LIC micro insurance plan, you can consider the following points:
Coverage Amount
Choosing the right sum assured amount is critical, as it should meet your financial protection needs when the time comes.
Premium Affordability
The premium you wish to pay for the LIC micro insurance plan should comfortably fit within your budget. So, you need to consider your present and future income streams.
Policy Term
The policy term of the LIC micro insurance plan should align with your financial goals and life stage.
Benefit Structure
Besides the underlying benefits offered by the LIC micro insurance plan, look for possible customizations and any additional riders you can add to the base policy.
Considering the above, you can align the policy per your financial needs and future goals.
Final Words
LIC micro insurance plan can be a good investment option for individuals from low-income groups to secure their financial future and protect their loved ones. With affordable premiums and easy-to-understand terms, these plans are designed to provide the policyholder peace of mind and financial assistance in times of need.
You can buy an LIC micro insurance plan by contacting the nearest LIC branch or an LIC agent. If you have any queries regarding policy information, plan purchase, or claim assistance, contact the LIC customer support team.
Take the help of RenewBuy Advisor Connect and make your journey easy to find a life insurance agent near you.