3 LIC Micro Insurance Plans – Who can invest?

LIC Micro Insurance Plans ReviewLIC Micro Insurance Plans – Who can invest?


LIC is one of the well known and trusted insurance company in India. While there are several insurance plans, there are few insurance plans that are for low earners. LIC has launched such plans to promote small savings for such low income families and provide risk protection. These offer insurance plans for small sum assured. In this article we would provide the details about 3 LIC Micro Insurance Plans i.e. Micro Bachat Plan, LIC Jeevan Mangal and LIC Bhagyalakshmi Plan.

Also Read: LIC Tech Term Vs Jeevan Amar – Which is the Best Term Plan from LIC?

What are 3 Micro Insurance Plans offered by LIC?


#1 – LIC Micro Bachat Plan

#2 – LIC New Jeevan Mangal

#3 – LIC Bhagya Lakshmi Plan

3 LIC Micro Insurance Plans – Who can invest?


Now let us get into details about these Micro Insurance Plans from LIC and who can invest in these insurance plans.

#1 – LIC Micro Bachat Plan


LIC Micro Bachat Plan is a non-linked, regular premium, participating micro-insurance plan that is a combination of protection and savings. Apart from providing financial support to the family in case of the untimely death of the policyholder during the policy term, it also provides a lump sum amount at the time of maturity for the surviving policyholder.

What are the features of the LIC Micro Bachat Plan?

The following are the salient features of the LIC Micro Bachat Plan-

The minimum sum assured is Rs. 50,000 and the maximum is Rs. 2,00,000 (shall be available in multiples of Rs. 5,000).

The minimum age of the policyholder at the time of entry has to be 18 years and the maximum is 55 years.

The policy term is 10 to 15 years and the premium payment term is the same as the policy term.

The policy can be paid at yearly, half-yearly, quarterly, or monthly intervals over the term of the policy.

A grace period of 1 month will be allowed for payment of all modes of premium. The policy shall be considered as lapsed if the premiums are not paid at the end of the grace period.

The lapsed policy can be revived within 2 years from the date of the first unpaid premium subject to certain conditions.

The following two optional Riders are available under this plan on payment of additional premium – LIC Accidental Death and Disability Benefit Rider and LIC Accidental Benefit Rider. These two riders can be opted for anytime within the premium paying term of the base plan provided the outstanding premium payment term is at least five years.

The policy can be surrendered at any time provided the premium has been paid for at least one full policy year.

The loan can be availed during the policy term provided at least three years of full premium have been paid and subject to certain terms and conditions specified by the corporation from time to time.

The policyholder also gets a free look period. In it, if the policyholder is not satisfied with the terms and conditions of the policy, he can return the policy to the Corporation within 15 days from the date of receipt of the policy bond stating the reason for the objection.

The company also provides for loyalty addition in case of death or maturity claim in respect to in-force policies. Loyalty addition shall be payable provided premiums have been paid for at least a full five years and after completion of five policy years. 

What are the various exclusions in this plan?

There are certain exclusions in the policy:

The policy shall stand void if the life insured (whether sane or insane) commits suicide at anytime within 12 months from the date of commencement of risk, the corporation will not entertain any claim except for 80% of the premiums paid provided the policy is in force.

If the life assured commits suicide within 12 months from the date of revival of the policy, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value.   

What are the Benefits of LIC Micro Bachat Plan?

The benefits on the life insured surviving to the end of the policy term and all due premiums have been paid-

The sum insured along with the loyalty addition (if any) shall be payable death.

Benefit on the death of the life assured during the policy term provided all due premiums have been paid-

On death during the first five years, the sum assured on death shall be payable.

On death after completion of 5 years, but before the date of maturity, the sum assured on death and loyalty addition (if any) shall be payable.

The death benefit shall not be less than 105% of all the premiums paid as on the date of death the company.

Who can consider LIC Micro Bachat Plan?

This product of LIC offers dual advantages of insurance and savings in a single plan. As the name suggests, it is ‘micro bachat’ means small savings for the middle-class families who cannot invest high amounts. It is designed to provide financial support to the family in case of the untimely death of the policyholder. Its loan facility serves the purpose of liquidity.

#2 – LIC New Jeevan Mangal


This is a protection plan with a return of premiums on maturity. In this plan, you may pay the premium either in a lump sum or regularly over the term of the policy. It has an inbuilt accident benefit that provides double risk cover in case of accidental death.

What are the features of LIC New Jeevan Mangal?

The salient features of the LIC New Jeevan Mangal policy are:

The minimum age of entry in this policy is 18 years and the maximum is 55 years. The maximum age at maturity has to be 65 years.

The policy term is 10 to 15 years for a regular premium and 5 to 10 years for a single premium.

The minimum installment premium is Rs. 60 under monthly mode. The minimum sum assured is Rs. 10,000 and the maximum is Rs. 50,000 (shall be payable in multiples of Rs. 1,000).

The modes of premium payment allowable are yearly, half-yearly, quarterly or monthly.

The single premium mode is available for terms from 5 to 10 years.

There is no loan facility available on this plan.

A grace period of 2 months will be allowed for all modes of payments.

A lapsed policy can be revived by paying the arrears of premium along with interest within a period of two years from the date of first unpaid premium but before maturity.  

In case of regular premium policies, if after at least 3 full years’ premium have been paid and any subsequent premium be not duly paid, the policy should not be wholly void, but shall subsist as a paid up policy. The sum assured on death shall be reduced to a sum called the Death Paid-up Sum Assured. It shall bear the same ratio to sum assured on death as the premiums paid bears to the total amount of premiums payable.

If the policy holder is not satisfied with the terms and conditions of the policy, he can return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason for objection.

In single premium policies, the policy may be surrendered for cash at any time during the policy term. If it is surrendered within the first three policy years from the date of commencement, 70% of the premium paid is returned to the policy holder and thereafter 90% of the single premium excluding taxes and extra premium.

In case of regular premium policies, the policy may       be surrendered for cash provided the premiums have been paid for at least three consecutive years. The Guaranteed Surrender Value shall be equal to Guaranteed Surrender Value factor multiplied by total premiums paid.

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What are the Benefits of LIC New Jeevan Mangal?

The following are the benefits of LIC New Jeevan Mangal-

Maturity benefits- On the survival of the policyholder till the end of the term of policy, the sum assured on maturity shall be payable which is equal to the total amount of premiums paid during the term of the contract.

Death benefits- Due to any reason other than accident

For regular premium policies-Sum assured on death shall be payable which is highest of 10 times of annualized premiums or105% of all the premiums paid as on date of death or sum assured on maturity.

For single premium policies- Sum assured on death shall be payable which is defined as higher of 125% of single premium or absolute amount to be paid.

If the death is due to an accident, an additional sum equal to sum assured shall also be payable.

What are the various exclusions in this plan?

The various exclusions in this plan are:

In the case of suicide:

The policy shall stand void if the life insured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the corporation will not entertain any claim except for

90% of the single premium paid excluding taxes and extra premium.. incase of single premium

80% of the regular premiums paid excluding taxes and extra premium paid.

If the life assured commits suicide within 12 months from the date of revival of the policy, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value.   

In the case of Accidental Benefit:

The corporation is not liable to pay the additional sum referred if the death of the life assured is caused by intentional self-injury, or due to consumption of intoxicated liquor, drug or narcotic, or injuries resulting from taking part in civil commotion, rebellion, war, invasion, hunting, racing of any kind, paragliding, parachuting, or death occurring due to taking part in any type of adventurous sports, or any kind of act committing any breach of law with criminal intent or occur after 180 days from the date of accident of the life assured.

Who can consider LIC New Jeevan Mangal?

This plan is for the middle-class segment of the society. It has inbuilt accidental coverage, which provides for a double benefit to the policyholder. It also gives an option of a one-time payment, which the people can avail to park their lump sum money.

#3 – LIC Bhagya Lakshmi Plan


The LIC Bhagya Lakshmi plan is non-participating limited payment protection oriented micro- insurance plan with a return of 110% of the total amount of premiums payable on maturity and the premium paying term is two years lesser than the policy term.

What are the features of the LIC Bhagya Lakshmi Plan?

The minimum age of the policyholder at the time of entry has to be 18 years and the maximum is 55 years.

The minimum sum assured is Rs. 20,000 and the maximum is Rs. 50,000.

The minimum premium paying term is 5 years and the maximum is 13 years.

The policy term is premium paying term plus 2 years that comes to a minimum of 7 years and maximum of 15 years.

The premium can be paid either yearly, half-yearly, quarterly, monthly or through salary deduction.

A grace period of two calendar months is provided for all modes of payments.

The paid-up or surrender value of the policy will occur only after the payment of two full years’ premium is paid with premium paying term less than 10 years and after 3 full premiums paid years under the policies with premium paying term more than 10 years.

No loan facility is available on this plan.

What are the benefits of the LIC Bhagya Lakshmi Plan?

Maturity benefit- it is equal to 110% of the total amount of premium payable during the term excluding taxes and extra premiums.

Death benefit- It is the sum assured on death which is equal to the sum assured under the policy.

What are the various exclusions in this plan?

The policy shall stand void if the life insured (whether sane or insane) commits suicide at anytime within 12 months from the date of commencement of risk, the corporation will not entertain any claim except for 80% of the premiums paid provided the policy is in force.

If the life assured commits suicide within 12 months from the date of revival of the policy, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value.

Who can consider LIC Bhagya Lakshmi Plan?

This plan is for the low-income or low-salaried people as the premium can be deducted directly from the salary. It is a good way of saving money as the premium paying term is two years less than the policy term.

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Should you opt for LIC Micro Insurance Plans?


LIC has a broad range of insurance-based products that cater to the needs of every type of insurance-seekers. These micro plans are for the low-income group that looks more or less investment and insurance plans. There are several term insurance plans, however, most of them have high minimum assured compared to these plans. Your first step should be to check the online term insurance plans that come with low premiums. If the minimum sum assured is not within what you are looking for, then you can go for LIC Micro Insurance Plans.

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Suresh KP

LIC Micro Insurance Plans Review

Suresh KP

I have done my Post Graduation in Finance. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPO Reviews, Analyzing Life Insurance and Health insurance Plans etc.

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