Page 45 - Insurance Times April 2021

Bachat Plus Scheme

from Life Insurance Corporation of
India

T he Life Insurance Corporation of India has premium plan is 90 days (completed) for both Option A and

Option B, while the maximum age of entry is 44 years
launched Bachat Plus, a non-linked,
(nearer birthday) for Option A and 70 years (nearer birthday)
participating, individual life assurance savings
plan. The applicants may either pay the
premium in lump sum (single premium) or may avail the 5- for Option B.
year limited premium paying option. Under the limited premium plan, the minimum age of entry
is 90 days (completed) for Option 1 and 40 years (nearer

With the taxpayers searching for options to save tax, this birthday) for Option 2, while the maximum age of entry is
close ended plan - available for sale for a maximum period 60 years (nearer birthday) for Option 1 and 60 years (nearer
of 180 days - will not only provide the tax-saving option u/ birthday) for Option 2.
s 80C, but also provide an ideal opportunity for people
availing the single premium option to avail the LTC Scheme Age at Maturity: The minimum age at maturity will be
benefits. 18 years, while under the single premium plan, the
maximum age at maturity will be 65 years (nearer birthday)
Premium Payment Options: There are two options each for Option A and 80 years (nearer birthday) for Option B.
under the single premium and limited premium plans. Under the limited premium option, the maximum age at
Under the single premium plan, Option A provides a Sum maturity will be 75 years (nearer birthday) for Option 1 and
Assured on Death of 10 times the tabular premium for the 80 years (nearer birthday) for Option 2.
chosen Basic Sum Assured, while Option B provides a Sum
Assured on Death of 1.25 times the tabular premium. Policy Term: The minimum policy term may be opt for is
10 years and maximum 25 years under all the options,
Death Benefits: On the other hand under the limited except for the age range of 41 years to 44 years under the
premium plan, Option 1 provides a Sum Assured on Death single premium Option A, where the policy term may be
of 10 times the tabular premium for the chosen Basic Sum availed is between 10 years and 16 years.
Assured, while Option 2 provides a Sum Assured on Death
of 7 times the tabular premium. Maturity & Life Coverage: While the rate of return on
maturity is not very significant, the main benefit is the life
Survival Benefits: The survival benefit will be the cover up to 10 times the premium paid, which would remain
Guaranteed Sum Assured on Maturity, i.e. the Basic Sum intact for the full policy term without any chance of getting
Assured. As it's a participating plan, Loyalty Addition may lapsed.
also be there, provided the policy has completed 5 years
and all the premiums are paid. Tax Benefits: Moreover, by availing the single premium
option, people up to 44 years of age may avail either the
Age of Entry: The minimum age of entry under the single 80C benefit or the LTC Scheme benefit.

The Insurance Times, April 2021 45