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LIC Micro Bachat Plan – Features, Benefits, Eligibility & Premium Rates

Introduction on LIC Micro Bachat plan

Life Insurance Corporation of India, mostly referred to as LIC, has been providing excellent services for over 6 decades now. With the motive to protect the valuable lives of all Indians, LIC has always been in the running to introduce innovative policies in the market. 

LIC Micro Bachat Plan 951 has been recently launched by the corporation that offers dual benefits and multiple advantages all at affordable prices. LIC Micro Bachat Plan is a traditional, non-linked micro-insurance plan that includes both the aspects of insurance and savings. Under this plan, if the policyholder survives the maturity period then he is awarded the maturity benefit, however, if he loses his life, the family receives the death benefit. With loan facility and several other benefits, LIC Micro Bachat Plan is fit for “small savings”; especially for people belonging to the low-income group. 

Benefits of LIC Micro Bachat plan

  • Death BenefitIn case of the policyholder’s unfortunate demise within the policy term, his nominee would be eligible to receive a death benefit according to the norms of the LIC Micro Bachat Plan 951. Among seven times the annualized premium and basic sum assured, whichever would be the highest shall be awarded as the death benefit to the family of the late policyholder.
  • Maturity Benefit:In case the policyholder survives the LIC Micro Bachat Plan, he is paid a maturity benefit along with loyalty benefit in a lump sum amount. The maturity benefit offered shall be based on the basic sum assured.
  • Loyalty Additions:Those investing in the LIC Micro Bachat Plan shall be eligible for receiving loyalty Additions as per the terms and rates decided by the corporation. These additions shall be paid along with either the death benefit or the maturity benefit, but only after the policy has completed a period of 5 years.

Key features of the LIC Micro Bachat plan

  1. Optional riders in LIC Micro Bachat plan
    • LIC’s Accidental Death & Disability Benefit RiderThis optional rider can be added to the base plan anytime within the policy duration provided the policy has completed a minimum of 5 years. If the policyholder dies in an accident, the family will be paid an Accidental Benefit along with the death benefit in a lump sum amount. However, in case of accidental disability, the Accident Benefit sum shall be paid in installments for around 10 years.
    • LIC’s Accident Benefit RiderThis rider can be added to the base plan anytime within the policy duration provided the policy has completed a minimum of 5 years. Upon adding this rider to his base plan, the accidental benefit rider sum assured is paid along with the death benefit if the policyholder loses his life during an accident.
  2. Loan FacilityThe LIC Micro Bachat Plan offers loan facilities for the policyholders to meet their liquidity needs. For the insured to avail a loan under this policy it is mandatory for him to have paid at least 3 full years’ premiums. The loan facility will also depend on the terms, conditions, and interest rates set by the corporation.
  3. Policy surrender facilityLIC Micro Bachat Policy has a provision under which the policyholders can surrender their plan but only if they have made the payments for at least one full year. On surrendering the plan, the corporation pays the surrender value considering the higher amount among guaranteed surrender value and special surrender value.
  4. Grace periodLIC Micro Bachat Plan 951 offers a grace period of 30 days to the policyholders to make their premium payment.
  5. Free Look periodIf, by any chance, the policyholder remains unsatisfied with the policy, he can return it back to the corporation within a time period of 15day from the issuance.

Eligibility criteria of LIC Micro Bachat plan:

Entry Age (Last Birthday)Minimum: 18 years ( completed)Maximum: 55 years ( nearer birthday)
Maximum Maturity Age 70 years ( nearer birthday)
Basic Sum AssuredMinimum: INR 50,000
Maximum: INR 2 Lakhs
NOTE: The Basic Sum Assured is only available in multiples of INR 5000.
Policy Tenure 10 years to 15 years
Premium Payment TermSame as the Policy term
Premium payment modesAnnually, semi-annually, quarterly and monthly.

How does LIC Micro Bachat plan work?

LIC Micro Bachat Plan comes with two major benefits including insurance and investment. In this way, this plan secures the policyholder’s life and simultaneously builds a corpus to fulfil his goals. 

A person can choose among the Basic Sum Assured options and premium payment modes provided under the LIC Micro Bachat Plan as per his requirements and affordability. In case of the unfortunate death of the policyholder, the family shall be paid a death benefit in a lump sum amount to provide them financial support. On the other hand, if the policyholder survives the LIC Micro Bachat plan, he will be paid a maturity benefit at the end of the plan.

Additional benefits like optional riders, grace period, free look period, loan facility and loyalty additions make this policy even more efficient and worth buying.

Premium rates in LIC Micro Bachat plan:

Let us take this sample illustration, where a healthy male opts for the LIC Micro Bachat plan with a Basic Sum Assured of INR 2 lakhs

Policy Term
Age10 years 12 years 15 years
25INR 16,368INR 12,997INR 9,714
35INR 17,180INR 13,760INR 10,440
45INR 17,520INR 14,150INR 10,990

Documents required for the claim process:

The policyholder/nominee shall submit the following documents to claim their benefits:

  1. Death claim:
    • Claim form as prescribed by the corporation
    • Original policy document
    • NEFT Mandate
    • Proof of Death
    • Proof of Title
    • School/college/employer’s certificate
    • Proof of Age
  2. Maturity or surrender claim:
    • Discharge Form
    • NEFT Mandate
    • Original Policy Document
    • Proof of Age

Conditions for termination of the policy

Here are a few conditions on the occurrence of which the LIC Micro Bachat Plan will automatically be terminated:

  1. After the payment of the death benefit
  2. After the settlement of surrender benefits
  3. On and after the date of maturity
  4. In case of delayed loan interest payment
  5. On the expiry of the revival period
  6. Upon the payment of the freelook cancellation amount

Rebates under LIC Micro Bachat plan

  • Rebate according to the premium payment mode:
Annual payment mode2% of Tabular premium
Semi-annual mode1 % of Tabular premium
Quarterly payment modeNill

NOTE: Additional 3% of the tabular premium shall be charged under the monthly payment mode.

  • Rebates offered upon High Basic Sum Assured values:
Basic Sum AssuredRebate offered
INR 50,000 to INR 1.45 lakhsNill
INR 1.5 lakhs to INR 1.95 lakhs1.5% of the Basic Sum Assured
INR 2 lakhs2% of the Basic Sum Assured

*These premiums are indicative only and subject to change at any point of time.

How to buy a LIC Micro Bachat plan online?

To save the policy aspirant’s time and efforts, the LIC Micro Bachat plan can be bought online in a hassle-free and easy manner. Follow the steps to buying the policy today:

  • Step 1
    Log on to LIC’s official website and click on the “Products” section
  • Step 2
    Search for the plan and read the LIC Micro Bachat Plan details
  • Step 3
    After understanding the plan, enter all the details asked by the page including your name, age, and contact number.
  • Step 4
    Complete the form and attach the scanned copies of your documents
  • Step 5
    Read the quote of premiums to be paid and make the payment to complete the process.

Before you BuyBefore you buy the LIC Micro Bachat plan, do not forget to visit www.turtlemint.com. This will help you understand how different variables can influence the policy premium as well as the payout. You will also be able to draw a comparison between different policies and be able to choose the best policy. 

Exclusions under LIC Micro Bachat plan

In the case of suicide committed by the policyholder, the policy shall stand void.

  1. In case the insured commits suicide within the initial 12 months of the policy the company shall not provide any claims except for 80% of the total premiums paid.
  2. In case the insured commits suicide within the 12 months of the date of revival of the policy, he shall be paid either the surrender value or 80% of the premiums paid, whichever may be the highest.


LIC Micro Bachat plan 951 is specially designed for the people of the low-income section so that they can do “small savings”. The best thing about the plan is that it offers dual benefits of both protection and investment at competitive rates. Apart from this the additional benefits and rebates offered by LIC are just the icing on the cake. 

If you are planning to secure your life and save your money, with the LIC Micro Bachat Plan you can do both of these things together.


According to the policy norms, if a person has paid the premiums for one full year but has failed to pay subsequent premiums his policy shall be considered as a paid-up policy until the end of the policy term. However, the policy offers an auto-cover period for all paid-up policies that decide the benefits to be received by the policyholder.

The maximum amount of loan that you can receive under your LIC Micro Bachat Plan are:

  • For In-force policies: 70% of the surrender value
  • For paid-up policies: 60% of the surrender value

Wherein surrender value refers to an amount payable to the policyholders if he withdraws his policy before the set date.

Yes, you can revive your LIC Micro Bachat plan within a period of 5 consecutive years starting from the date of the first unpaid premium until the maturity period.

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