Micro Savings Plan 951 is the cheapest plan of LIC, because this plan has been made for those people whose income is low. This is a non linked and participating plan. This means that this plan is not linked to the share market. In this micro savings plan, LIC company shares some part of its profit with the insured ie you. In this plan, you do not need to give any kind of medical test.
Eligibility Criteria for LIC Micro Bachat Plan
Age should be between 18 to 55 years
Policy term between 10 to 15 years
Sum Insured Rs.50,000 to Rs.2 Lakh
Payment Types – Monthly, Quarterly, Half Yearly, Yearly
Benefits of LIC Micro Savings Plan
There are many benefits of LIC micro savings plan, which we are going to know here step by step.
- Maturity Benefit
LIC Micro Savings Plan After maturity, you had taken this plan of winning rupees, you will get that money. But along with this you will also be given more money in the form of Loyalty Addition.
- Death Benefit
If the insured dies before 5 years, then the amount for which you had taken this plan will be given to your nominee. For example, if you had taken a micro savings plan of Rs 1 lakh, but you die before 5 years, then the nominee will be given Rs 1 lakh by LIC.
If you die after 5 years, then the amount of money you had taken this plan will be given to the nominee. But along with this, more money will also be available in the form of loyalty additions.
- Rider Benefit
Additional benefits that the insured gets on paying an additional premium are called riders. There are 2 riders available to you in the micro savings plan. Out of these two, the insured can choose only 1 rider. LIC’s Accidental Death-Disability Benefit Rider and LIC’s Accidental Benefit Rider.
- Loan Benefit
You are also provided with the facility of loan in LIC Micro Savings Plan. You can avail the loan facility from the Micro Savings Plan after paying the premium for 3 years.
- Tax Benefit
The amount of premium you pay in LIC Micro Savings Plan is exempted under Income Tax Act 80C.
Apart from this, the amount of death and maturity benefit is also exempt under Income Tax Act 10 (10D).
- Micro Savings Plan Surrender
You can also surrender the Micro Savings Plan after paying for at least 1 year. But this will harm you, because you will be given back less money than the premium you have paid till now.
- Free Look Period Benefit
You are also given the facility of free look period in micro savings plan. After the free look period i.e. if you are not satisfied with the micro savings plan, you can return the plan within 15 days. But why you want to return this plan, you have to tell the reason for it.
LIC Micro Bachat Plan Grace Period
You get 30 days time even after the last date to pay the premium in micro savings plan. This is called Grace Period. But if you do not pay the premium even in these 30 days, then your plan will lapse.
LIC Micro Bachat Plan Revival
After the lapse of any plan or policy, in what time can it be started back, this time is called revival. You can get LIC Micro Savings Plan re-started within 5 years. But while getting the plan started, along with the rest of the premium, you will also have to pay some extra charges.
Suicide Exclusion in LIC Micro Savings Plan
If the insured commits suicide within 12 months after taking the policy, 80% of the total premium will be given to its nominee.
Rebates in LIC Micro Savings Plan
There are two types of discount options available in this plan. One is rebate in premium payment mode and the other is rebate in higher sum assured premium payment mode.
If you pay premium annually in premium payment mode, you get a discount of 2%. But if you pay premium for 6 months, you get a discount of 1%.
If you pay 50,000 to 1.45 lakhs in High Sum Assured premium payment mode, then you will not get the discount. But if you pay between 1.50 lakh to 1.95 lakh, then you will get a discount of 1.50%. And if you pay more than 2 lakhs, then you will get a discount of 2%.