LIC Bhagya Lakshmi Plan 829 is a micro-insurance plan which comes with term insurance features. A total of 110% of the premiums paid on plan maturity to the surviving life insured, or pays out a death benefit to the nominee of the policyholder in the case of his/her unfortunate demise.
It is a non-participating limited payment protection based micro-insurance policy. This plan is mainly oriented for the low-income class community. Therefore, the Insurance Regulatory and Development Authority of India has classified it as a micro-insurance plan.
Table of Contents
Key features
- A non-participating limited payment protection plan
- Low premium payments
- Premium payment modes in a deduction from salary, monthly, quarterly, half-yearly, yearly.
- Up to 60 days of the extended grace period
- 7 years and 15 years policy term
- Surrender anytime, will receive the guaranteed surrender value
- No loan facility under this policy
Eligibility
| Entry Age | Minimum- 18 years Maximum- 55 years (nearest birthday) |
| Basic Sum Assured | Minimum- Rs.20,000 Maximum- Rs.50,000 |
| Age at Maturity | Maximum 65 years (nearest birthday) |
| Premium Payment Term | Minimum- 5 years Maximum- 13 years |
| Policy Term Period | Minimum- 7 years (premium paying term +2 years) Maximum- 15 years (premium paying term +2 years) |
| Premium Payment Mode | Salary deduction, Monthly, Quarterly, Half-yearly, Yearly |
Benefits
- Death benefit:
Sum assured on death will be paid to the nominee in case policyholder’s unfortunate demise. Here sum assured is defined as amount received with other bonuses eligibility subject to policy is in force.
- Maturity benefit:
The benefit will be given at the time of maturity which is 110% of the total premiums paid during the policy tenure. Maturity benefit is applicable after the successful completion of the entire policy term.
- Freelook period:
If the policyholder feels unsuitable with any of the Terms and Conditions of LIC Bhagya Lakshmi Plan 829, the policy may be returned to LIC within 15 days from the date of receipt of the policy stating the reason.
- Surrender value:
You can surrender the policy at any time in the course of the policy term.
- After 2 years premiums are paid in case of premium paying term is less than 10 years.
- Completion of 3 years premiums paid with premium paying term for more than 10 years.
- Tax benefits:
LIC Bahgya Lakshmi Plan 829 is eligible for tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961. Tax deductions are applicable to premiums paid.
Exclusions
If the life insured commits suicide and dies within 1 year after the starting of the policy, then in such case, the nominee will be able to get 80% of the premiums that have been paid till the date of death.
If the life insured dies after committing suicide in 1 year from the policy revival, then the surrender value or 80% of the premiums that have been paid till death shall be payable to the nominee.
*No claims will be entertained by the Life Insurance Corporation of India other than the above mentions for more info you can contact the LIC Customer care number.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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