LIC's New Bima Bachat Plan No. 916 is a non-linked, participating, one-time investment plan offered by the Life Insurance Corporation of India (LIC). This plan is designed to provide a lump sum amount at maturity or in case of unfortunate death of the policyholder during the policy term.
Features of LIC's New Bima Bachat Plan No. 916:
- Policy Term: The policy term of the plan ranges from 9 to 40 years, depending on the age at entry of the policyholder.
- Premium Payment: This plan requires a one-time premium payment. The premium amount is decided based on the policy term, age at entry, and the amount of coverage selected.
- Death Benefit: In case of death of the policyholder during the policy term, the sum assured plus the applicable loyalty addition, if any, is paid to the nominee.
- Maturity Benefit: If the policyholder survives the policy term, the sum assured along with applicable loyalty addition, if any, is paid as maturity benefit.
- Surrender Benefit: This plan also offers a surrender benefit, where the policyholder can surrender the policy after completion of one policy year. The surrender value will be higher if the policy is surrendered after completion of a higher number of policy years.
- Loan facility: This plan also offers a loan facility after completion of one policy year.
Benefits of LIC's New Bima Bachat Plan No. 916:
- Guaranteed returns: This plan offers a guaranteed return on investment, which makes it a safe investment option for individuals who do not want to take any market risks.
- High sum assured: This plan offers a high sum assured, which makes it an ideal option for individuals who want to secure their family's financial future.
- Tax benefits: The premium paid towards this plan is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The maturity and death benefits received are also tax-free under Section 10(10D) of the Income Tax Act, 1961.
- Loyalty additions: This plan also offers loyalty additions, which are added to the sum assured at the time of maturity or in case of death of the policyholder during the policy term.
Eligibility criteria for LIC's New Bima Bachat Plan No. 916:
- Minimum age at entry: 15 years
- Maximum age at entry: 66 years
- Minimum sum assured: Rs. 35,000
- Maximum sum assured: No limit
Explain With A Simple Example
Suppose a 30-year-old individual wants to invest a lump sum amount of Rs. 1 lakh in LIC's New Bima Bachat Plan No. 916 for a policy term of 15 years. Based on the premium chart provided by LIC, the premium amount for this plan would be Rs. 63,425.
If the individual survives the policy term, he/she will receive a maturity benefit of Rs. 1,37,500, which includes the sum assured of Rs. 1 lakh and a loyalty addition of Rs. 37,500 (assuming a loyalty addition rate of Rs. 2,500 per Rs. 1 lakh of sum assured per policy year).
If the individual dies during the policy term, the nominee will receive a death benefit of Rs. 1,00,000, which is the sum assured amount.
Additionally, the individual can also avail of a loan facility after completion of one policy year, if needed.
Overall, this plan offers a guaranteed return on investment, tax benefits, a high sum assured, and loyalty additions, making it a good investment option for individuals looking for a safe and secure investment with life insurance coverage.
Conclusion
In conclusion, LIC's New Bima Bachat Plan No. 916 is a good investment option for individuals who want a guaranteed return on their investment and a high sum assured to secure their family's financial future. With tax benefits, loyalty additions, and a loan facility, this plan offers a range of benefits to policyholders. However, individuals should carefully consider the policy terms and their financial goals before investing in this plan.
FAQ
Q: What is the minimum and maximum age of entry for LIC's New Bima Bachat Plan No. 916?
A: The minimum age at entry is 15 years, and the maximum age at entry is 66 years.
Q: What is the policy term for LIC's New Bima Bachat Plan No. 916?
A: The policy term of the plan ranges from 9 to 40 years, depending on the age at entry of the policyholder.
Q: Can I surrender the policy before the completion of the policy term?
A: Yes, you can surrender the policy after completion of one policy year. The surrender value will be higher if the policy is surrendered after completion of a higher number of policy years.
Q: Is there a loan facility available with LIC's New Bima Bachat Plan No. 916?
A: Yes, this plan offers a loan facility after completion of one policy year.
Q: What are the tax benefits available with LIC's New Bima Bachat Plan No. 916?
A: The premium paid towards this plan is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The maturity and death benefits received are also tax-free under Section 10(10D) of the Income Tax Act, 1961.
Q: What is the minimum and maximum sum assured for LIC's New Bima Bachat Plan No. 916?
A: The minimum sum assured is Rs. 35,000, and there is no maximum limit on the sum assured.
Q: What is a loyalty addition in LIC's New Bima Bachat Plan No. 916?
A: Loyalty addition is an additional amount added to the sum assured at the time of maturity or in case of death of the policyholder during the policy term. The amount of loyalty addition depends on the policy term and the sum assured selected by the policyholder.
