Easily Organize, Claim and Renew Insurance!

LIC’s Government and Micro Insurance Plans

LIC’s Government and Micro Insurance Plans

Formed in the year 1956, LIC is the oldest insurance company in the market. It offers a range of life insurance plans to its customers, both individuals as well as corporates. Among the bouquet of plans offered by the company, there are Government directed insurance plans as well as micro insurance plans. Let us understand these categories of life insurance plans offered by the company as well as the plan (s) which are available in each category.

What is a Government directed insurance plan?

A Government directed life insurance plan is a plan which has been designed and prescribed bythe Government of India for the welfare of the Indian population. Insurance companies have to offer such Government prescribed life insurance plans to their customers and LIC is no different. LIC also sells the life insurance plan prescribed by the Government to eligible customers.

What is a microinsurance plan?

A microinsurance plan is an insurance plan designed for the rural sectors of the country. These plans are meant to cover people living in rural areas. The sum assured under these plans is limited and premiums are extremelyaffordable so that the rural population can afford them.

Salient features of Government and micro insurance plans

Both Governments prescribed insurance plans and micro insurance plans have some unique features which are as follows –

  • Both types of plans are for the economically weaker sections of the society
  • Sum assured is very low so that the premiums are affordable under Government and micro insurance plans
  • Buying the plans is simple as minimal documents are required

Government prescribed insurance plans offered by LIC

There is one Government prescribed life insurance plan offered by the LIC. This plan is called the Aam Admi Bima Yojana and it came into effect from 1st January 2013. The features of the scheme are as follows –

  • Individuals aged between 18 years and 59 years can be covered under LIC’s Government insurance plan
  • Below poverty line families or families which are marginally above the poverty line who have been identified under the vocational group or rural landless household can buy the plan
  • Age proof is required to buy LIC’s Government insurance plan
  • Coverage of up to INR 30,000 is allowed for which the premium is INR 200
  • Death, disability and medical contingencies are covered under LIC’s Government insurance plan

Micro insurance plans offered by LIC

In the microinsurance category, LIC offers three different types of plans which are discussed below –

  • LIC’s Micro Bachat Plan
    This is a participating endowment plan which provides insurance coverage as well as savings. Loyalty Additions help increase the corpus of LIC’s Micro Bachat Plan and the plan also allows loans for meeting liquidity requirements. The features of LIC’s Micro Bachat Plan are as follows –
    • Sum assured ranges from INR 50,000 to INR 2 lakhs
    • Premium discounts are allowed if the premium is paid yearly or half-yearly and also for choosing sum assured of INR 1.5 lakhs and above
    • Optional accidental benefit rider is available for increasing the scope of LIC’s Micro Bachat Plan coverage
  • LIC’s New Jeevan Mangal Plan
    LIC’s Jeevan Mangal Plan is a term insurance plan which provides protection against the risk of death. Moreover, the plan is issued as a return of premium plan wherein the premiums paid are returned back if LIC’s Jeevan Mangal Plan matures and the insured is alive. The following are the features of this plan –
    • The premiums can be paid in lump sum at once or regularly throughout the policy tenure
    • There is an inbuilt accidental death benefit rider under LIC’s Jeevan Mangal Plan which pays the double sum assured if the insured dies during the term of the plan due to an accident
    • Premium starts from as low as INR 60 per month
    • Maximum sum assured which can be taken under LIC’s Jeevan Mangal Plan is limited to INR 50,000
  • LIC’s Bhagya Lakshmi Plan
    LIC’s Bhagya Lakshmi Plan is a savings oriented insurance plan which pays back the premiums if the insured survives till maturity. The salient features of the plan are as follows –
    • Premiums are payable only for a limited period which is two years less than the policy tenure
    • 110% of the premiums paid are returned back on maturity if the insured is alive
    • Sum assured of up to INR 50,000 is allowed under LIC’s Bhagya Lakshmi Plan
    • Premium discounts are available if premiums are paid yearly or half-yearly


No, Janashree Bima Yojana is not available under Government directed life insurance plans. The Aam Admi Bima Yojana has been launched merging the two schemes of social security which were Aam Admi Bima Yojana and Janashree Bima Yojana.

To buy Aam Admi Bima Yojana, any of the following age proofs can be submitted –

  • Voter’s list
  • Ration card
  • Extract from the birth register
  • Identity card which has been issued by a reputed employer or a Government department
  • Extract from the school register
  • Aadhar Card

The accidental benefit rider covers accidental deaths. If the insured dies due to an accident during the term of the plan, an additional sum assured is paid along with the basic sum assured of LIC’s Government and micro insurance plans.

LIC allows you to pay premiums annually, half-yearly, quarterly or monthly whichever suits your finances.

Yes, LIC allows two years from the date of the last unpaid premium to revive a lapsed policy.
For reviving the policy, the outstanding premium should be paid along with an interest and, in some cases, a declaration of good health might also be required.

If the premium is not paid within the due date, the insurance plan allows a grace period. Grace period is an additional time allowed to policyholders to pay the outstanding premium. You can, therefore, pay the premium within the grace period and the policy would not lapse.

The maximum coverage age varies from plan to plan. However, under most plans, coverage is allowed for up to 65 years.

Life Insurance Companies