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HomePersonal FinanceLife InsuranceLIC Bachat Plus Plan 861 - Should you Invest?

LIC Bachat Plus Plan 861 – Should you Invest?

LIC Bachat Plus Plan 861 is newly launched plan by LIC. LIC Bachat Plus plan 861 is a non-linked, participating, individual life assurance cum saving plan. This plan is closed ended plan available for 180 days from 15th March, 2021.

LIC Bachat Plus plan is available as single as well as limited premium plan. The premium payment term of this plan is 5 years. LIC Bachat Plus plan can be purchased offline as well as online. LIC Bachat Plus Plan is Life Assurance, Savings plan which offers a combination of protection and savings. This combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.

LIC Bima Bachat Plus Plan

Key features benefits and eligibility details of LIC Bachat Plus plan is given below.

LIC Bachat Plus Plan 861 – Eligibility Features & Benefits

  • Flexibility to choose the coverage.
  • Single premium as well as limited premium term for 5 years.
  • Buyer have two options to choose “sum assured on death”.
  • Option to take death benefits in installments.
  • Option to purchase plan online as well as offline.
  • Rider Benefits available.
Minimum Age Entry Single Premium

90 days in option A and B

Limited Premium

90 days in option 1

40 years in option 2

Maximum Age Entry Single Premium

44 years in option A

70 years in option B

Limited Premium

60 years in option 1

65 years in option 2

Policy Term Single Premium

10 to 25 years up to Age 40 under Option A

10 to 16 years from Age 41 to Age 44 under Option A

Limited Premium

10 to 25 years both for Option 1 and Option 2

Premium Paying Term Option A & Option B – Single Premium

Option 1 & Option 2 – 5 Years

Basic sum assured Minimum 1 Lakh, Maximum No Limit
Premium Paying Mode Single, Yearly, Half Yearly, Quarterly, Monthly

LIC Bachat Plus Plan Benefits

Maturity Benefits

On Life Assured surviving the policy period, “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable, where “Sum Assured on Maturity” is equal to Basic Sum Assured.

The policyholder shall have option to receive maturity benefit in lumpsum or in installment.

Death Benefits

#1 On death during first five years

Before the Date of Commencement of Risk – Refund of premium without interest shall be payable.

On or after the Date of Commencement of Risk – “Sum Assured on Death” shall be payable.

#2 On death after completion of five policy years but before maturity

Sum Assured on Death along with Loyalty Addition, if any, shall be payable.

For Single premium payment, “Sum Assured on Death” is defined as

  • Option A – 10 times of ‘Tabular Premium for the chosen Basic Sum Assured.
  • Option B – 1.25 times of Tabular Premium for the chosen Basic Sum Assured.

For Limited premium payment, “Sum Assured on Death” is defined as higher of

  • Option 1 – 10 times of guaranteed sum assured on maturity.
  • Option 2 – 7 times of guaranteed sum assured on maturity.

The death benefits shall be paid in lump sum or in installments.

Premium Detail Example                                                                                                                                          

#1 Single Premium

Single Premium example for option A and option B with basic sum assured of 1 Lakh is given below.

LIC Bima Bachat Premium single premium

#2 Limited Premium

Limited Premium example for option 1 and option 2 with basic sum assured of 1 Lakh is given below.

LIC Bima Bachat Premium limited premium

Should you Invest?

At the first instance LIC Bachat Plus is lucrative option. You should consider below points before taking any decision of buying.

  • This policy gives advantage of selecting coverage as well as method for payment.
  • Premium paying term is five years for single premium.
  • This plan is projected as Life assurance saving plan and not insurance option.
  • The policy is likely to give 5-6% return on the maturity.

As per me if you are planning to purchase LIC Bachat Plus as insurance you should think twice and purchase term plan which are available at much lower premium. If you wish to purchase this policy for investment you can plan to invest. However, there are many other option available that offer you higher return.

Shitanshu Kapadia
Shitanshu Kapadiahttps://moneyexcel.com/
Hi, I am Shitanshu Kapadia founder of moneyexcel.com. I have written 1750+ articles on this blog. I am PGDBA(marketing), engaged in blogging for 5 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. The purpose of this blog is to spread financial awareness and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.
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