LIC of India launches Bachat Plus, may be taken to avail LTC Scheme benefit

by Jeremy

The applicants may either pay the premium in a lump sum (single premium) or avail of the 5-year limited premium paying option. India’s Life Insurance Corporation (LIC) has launched Bachat Plus, a non-linked, participating, individual life assurance savings plan. The applicants may either pay the premium in a lump sum (single premium) or avail of the 5-year limited premium paying option.

 

With the taxpayers searching for options to save tax, this close-ended plan – available for sale for a maximum period of 180 days – would not only provide the tax-saving option u/s 80C. Still, it would also provide an ideal opportunity for people availing of the single premium option to avail the LTC Scheme benefits.

Premium Payment Options

There are two options, each under the single premium and limited premium plans. Under the single premium plan, Option A provides a Sum Assured on Death of 10 times the tabular premium for the chosen Basic Sum Assured. In comparison, Option B provides a Sum Assured on Death of 1.25 times the tabular premium.

Death Benefits

On the other hand, Option 1 provides a Sum Assured on Death of 10 times the tabular premium for the chosen Basic Sum Assured under the limited premium plan. In comparison, Option 2 provides a Sum Assured on Death of 7 times the tabular premium.

Survival Benefits

The survival benefit will be the Guaranteed Sum Assured on Maturity, i.e., the Basic Sum Assured. As it’s a participating plan, Loyalty Addition may also be there, provided the policy has completed five years, and all the premiums are paid.

Age of Entry

The minimum entry age under the single premium plan is 90 days (completed) for both Option A and Option B. In contrast, the maximum access period is 44 years (nearer birthday) for Option A and 70 years (closer birthday) for Option B.

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