LIC Bachat Plus ( Plan No.861) – Features, Benefits and Review

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LIC Bachat Plus (Plan No.861) is available from 15th March 2021 and available for sale online as well as offline for a maximum period of 180 days.

LIC Bachat Plus ( Plan No.861)

LIC‘s Bachat Plus plan is a Non-Linked, Participating, Individual Life Assurance Savings plan. Under this plan, the premium can be paid either as Lumpsum (Single Premium) or as Limited Premium with a Premium Payment Term of 5 years. Under each of these premium payment options the proposer will have two options to choose “Sum Assured on Death”.

As I said above, the plan is available online and offline also.

LIC Bachat Plus (Plan No.861) – Features and Eligibility

Let us see the features and eligibility for LIC Bachat Plus plan.

LIC Bachat Plus (Plan No.861) - Features and Eligibility

LIC Bachat Plus (Plan No.861) – Benefits

Let us now look into the benefits of LIC Bachat Plus Plan.

a) Maturity Benefit

If the Life Assured survived till the maturity of the policy, he will receive Sum Assured at maturity and Loyalty Addition (LA) is payable. Here, sum assured at maturity means basic sum assured.

Note that LA is not payabe if you convert your policy to paid up.

b) Death Benefit

Here, the sum assured on death benefits can be available to choose for the policyholder at the time of buying the policy. The premium and benefits will vary based on the option you choose here. The benefits are as below.

LIC Bachat Plus (Plan No.861) - Sum Assured on Death

Death benefits along with the above sum assured on death benefits are as below:-

a) Death during the first 5 years-

If death occurs before the commencement of risk, LIC will refund the premium without any interest.

If death occurs after the commencement of risk, then LIC will pay the nominee Sum Assured on Death.

b) Death after 5 years but before the maturity-

Sum Assured on Death+Loyalty Addition.

Other featurs of LIC Bachat Plus (Plan No.861)

1) Settlement Option for maturity-Under this, one can receive the paid-up as well as maturity benefits in installments like 5 yrs, 10 years or 15 years.

2) Settlement Option for death-Under this, nominee can receive the death benefits as installements for 5 yrs, 10 years or 15 years.

LIC Bachat Plus ( Plan No.861) – Should you invest?

Let me take an example. I have taken an example of Age-35 Yrs, PPT-5 Yrs, Sum Assured-Rs.1,00,000, Policy Period-25 Yrs, LA Rate-Rs.1,000 per Rs.1,000 Sum Assured.

LIC Bachat Plus (Plan No.861) Returns

Considering the current LIC bonus or LA trend, and assuming the highest LA rates, you noticed that the returns are around 6.6%. Do remember that I have not considered the GST Tax. If you consider GST, then returns may be lesser than 6.6%.

Hence, if you feel by investing around 25 years and looks 6.6% is FANTASTIC returns, then go ahead. However, if you are looking for real returns (returns beating the inflation), then stay away from this product.

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Basu Nivesh

Basu Nivesh

Basav is a SEBI Registered Investment Adviser (SEBI RIA) practicing the Fee-Only Financial Planning Service. He is a CFP (Certified Financial Planner) and blogger at Basu Nivesh. He services around 300+ satisfied clients.
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