Life Insurance Corporation (LIC) Micro Bachat is a regular premium, non-linked, participating micro-insurance plan which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholder. This plan also provides liquidity needs through its loan facility. The total basic sum assured under this plan for an individual life is maximum of Rs 2 lakh, as per the LIC website. 

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The micro insurance plan provides coverage up to Rs 2 lakh, while the minimum basic sum assured is Rs 50,000. As far as the loan facility is concerned, the interest rate for the loan shall remain at 10.42 per cent p.a. However, a rebate of a month for the payment of premium will be there. As it is a life insurance policy, the insuree will get an income tax deduction under Section 80C on his premium payment.

LIC Micro Bachat Plan- Eligibility Conditions and Other Restrictions:

a) Minimum Basic Sum Assured: Rs 50,000
b) Maximum Basic Sum Assured per life: Rs 2,00,000  The Basic Sum Assured shall be available in multiples of Rs 5,000.
c) Minimum Age at entry: 18 years (completed)
d) Maximum Age at entry: 55 years (nearer birthday)
e) Policy Term: 10 to 15 years
f) Premium Paying Term: Same as Policy Term
g) Maximum Age at Maturity: 70 years (nearer birthday)

Under this, if a person under the age of 18 years takes a 15-year plan, will have to pay a premium of Rs 51.5 per thousand. A 25 year old will have to pay Rs. 51.60 for the same period and Rs. 52.20 per thousand for the 35 year old people. The premium in the 10 year plan would be Rs 85.45 to 91.9 rupees per thousand. If a 35 year old person takes a 15 year policy with a sum assured of Rs. 1 lakh, the annual premium value shall be Rs. 5116, accor ding to LIC India website. 

LIC Micro Bachat Plan- benefits: 

a) Maturity Benefit: On the life assured surviving to the end of the policy term, provided all due premiums have been paid, 'Sum Assured on Maturity' along with loyalty addition, if any, will be payable (Sum Assured on Maturity is equal to Basic Sum Assured). 

b) Death benefit: On death of the Life Assured during the policy term provided all due premiums have been paid: On death during first five years: 'Sum Assured on Death' will be payable.

c) Optional Benefit: The insuree can also opt for optional benefits like LIC’s Accidental Death & Disability Benefit Rider and LIC’s Accident Benefit Rider benefits. 

LIC Micro Bachat Plan- Policy Loan

Loan can be availed during the policy term provided at least 3 full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time. The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. In case of any loan outstanding along with interest, the amount shall be recovered from the claim proceeds at the time of plan exit.

The maximum loan as a percentage of surrender value is as under:

- For inforce policies – upto 70%
- For paid-up policies – upto 60%

As far as the payment of premiums is concerned, they can be paid regularly at yearly, half-yearly, quarterly or monthly intervals over the term of policy. While the grace period of 30 days will be allowed for payment of all modes of premium.