Paisawiki is a Part of Logo

LIC New Bima Bachat Plan

Claim Settlement Ratio - 98.04%*
*Data according to IRDA Annual Report (2018-19)
*Please note that the quotes shown will be from our partners

LIC Bima Bachat, a money-back policy of LIC’s Saving and Endowment Traditional Plan, comes with both savings and protection benefits. It provides financial protection against the death of the policyholder as well as survival benefits during the policy period. The premium of LIC Bima Bachat is paid in a lump sum on the onset of the policy period, and on maturity, the amount is returned with additional loyalty benefits, given that there is any. The applicant can compare the policy details online and apply for one.

Features of LIC New Bima Bachat Plan

1: A money-back plan of LIC Endowment and Saving Traditional Plans
2: The amount insured is the sum assured on maturity plus the bonus, if any
3: When availing this policy, the policyholder needs to pay the premium one time given that this is a single premium policy
4: The minimum age of the policyholder needs to be 15 years and the maximum can be 65 years at the time of availing the policy
5: The LIC Bima Bachat shall be availed for different policy tenures such as 9 yrs, 12 yrs, and 15 yrs
6: 15% of the sum assured is payable by the insurer to the policyholder by the end of every three years of the tenure
7: The plan can be availed online and offline after a series of plan option comparisons

Benefits of LIC New Bima Bachat Plan

Survival Benefits:

In LIC Bima Bachat, if the policyholder is alive by the end of every three years, 15% of the sum assured will be paid as benefits of survival.
1: Policy Tenure of 9 years: Payable by the end of the third and sixth policy year
2: Policy Tenure of 12 years: Payable by the end of the third, sixth, and ninth policy year
3: Policy Tenure of 15 years: Payable by the end of the third, sixth, ninth, and twelfth policy year

Death Benefits:

Only the assured sum is paid if death occurs within five years of the onset of policy.
If death occurs after five years of the onset of policy, the assured sum is paid in addition to the loyalty.

Maturity Benefit:

If the policyholder survives till the end of the policy tenure, the entire premium, in addition to loyalty additions are paid.

Loyalty Addition:

The loyalty addition, given that there is any, is payable by the end of the five years during the policy tenure.

It should be noted that the amount assured upon maturity or demise of the policyholder shall be excluded from taxes paid and the extra premium paid if there are any

What is Not Covered in LIC Bima Bachat?

Rebates for high sums assured

For a tenure of 9 years

a) Less than INR 75,000- NIL
b) INR 75,000 and less than INR 1,50,000- 6%
c) INR 1,50,000 and above- 8%

For a tenure of 12 years

a) Less than INR 1,00,000- NIL
b) INR 1,00,000 and less than INR 2,00,000- 4%
c) INR 2,00,000 and above- 6%

For a tenure of 15 years

a) Less than INR 1,50,000- NIL
b) INR 1,50,000 and less than INR 3,00,000- 3%
c) INR 3,00,000 and above- 5%


Taxes, in addition to the service tax, shall be applicable from time to time as per tax laws. The amount of tax shall be paid by the life assured along with the single premium, including extra premium if the policyholder opts for any. Also, the amount of tax paid shall not be considered for calculating other benefits payable under the policy.


The policyholder can avail the loan, given that one year of total tenure has been completed. The loan amount shall be 60% of the surrender.


Prime benefits of the policy make it one among the sought-after life insurance policies. The Bima Bachat Plan provides a loan of 60% against the surrender value guaranteed.


The Bima Bachat Policy shall be held null and void if, the policyholder commits suicide within 12 months of the commencement of the plan and 90% of the single premium, excluding taxes and extra premium, if any, shall be payable to the nominee.

Eligibility Conditions to Avail LIC Bima Bachat Plan

1. Minimum entry age- 15 years (completed)
2. Maximum entry age-
a) 66 years (nearest birthday) for a tenure of 9 years
b) 63 years (nearest birthday) for a tenure of 12 years
c) 60 years (nearest birthday) for a tenure of 15 years

3. Maximum maturity age- 75 years (nearest birthday)

4. Minimum assured sum -
a) INR 35,000 for a tenure of 9 years
b) INR 50,000 for a tenure of 12 years
c) INR 70,000 for a tenure of 15 years

5. Maximum assured sum - No limit
Sum assured should be in the multiples of INR 5,000 /- only

LIC Bima Bachat Plan- Riders

Life insurance riders provide additional benefits like extra coverage when attached to a primary insurance policy. However, LIC Bima Bachat does not provide any riders when compared to other insurance providers.

Policy Renewal, Surrender Value and Cancellation of LIC Bima Bachat

There is no policy renewal option for LIC Bima Bachat. However, one can choose among different tenures viz. 9 yrs, 12 yrs and 15 yrs.

Although a life insurance plan is a long-term commitment, surrender value is available if the policyholder wishes for earlier termination of the contract.

The surrender value shall be as following:

d) Year 1: 70% of the single premium excluding taxes and extra premium, if any
e) After completion of the first year: 90% of the single premium excluding taxes and extra premium, if any

However, select surrender value may be paid by the corporation, if any applicable, on the date of surrender, given that it is higher than the previously guaranteed surrender value.

If an individual is not satisfied with the purchased policy, he may return the policy within 15 days of purchasing it, which is called the cooling-off period, stating valid reasons for the objection. On receiving the same, the corporation shall cancel the policy and return the single premium deducting any charges, if any, like that of medical examination, special reports, and stamp duty.

Claim Process of LIC Bima Bachat Plan

Firstly, in order to initiate/register a claim, these things are required:
1: Policy number
2: Name of the claimant
3: Name of the life assured
4: Date and cause of death/event
5: Contact details

Once the registration is done, a claim number is initiated, which shall be preserved for further correspondence.

Secondly, the following documents need to be submitted:

1: Death certificate
2: Proof of the age of the life assured
3: Deeds of assignments/reassignments (if any)

In the case of early death claim, the following documents are required:

Hospital statement stating that the deceased had been hospitalized
2: Medical certificate to prove any illness the deceased may have suffered from
3: Certificate of cremation or burial to be presented by a responsible person who witnessed the cremation or burial
4: Certificate of the employer, if any
5: In case of death due to medical issues, the doctor’s certificate and/or treatment records, if any
6: In case of an air crash, a certificate from the airline authorities stating the deceased was a passenger
7: In case of a shipwreck, a certificate from the logbook of the ship
8: In case of death due to suicide, murder, accident, any unknown cause, the police report may be required along with post mortem reports, if any

Lastly, the insurer decides on the claim after the prerequisites are fulfilled and pays the assured amount to the policyholder or the nominee/beneficiary in case of death of the life assured.

How to Buy LIC New Bima Bachat Policy?

To get the LIC Bima Bachat one must compare all the plan options available in the market. Fortunately, with the help of online websites, the process of policy comparison becomes easier.

The LIC Bima Bachat, cannot be availed online. However, if someone wishes to buy this plan, they can walk to a branch of the corporation and purchase it offline. One can also contact a broker, agent, or other company mediator working with LIC to buy the plan.

Documents Required to Apply for LIC Bima Bachat Plan

Insurance seekers need to fill an application form/proposal form with a correct medical history, and attach other required documents for a smooth flow of purchase with the company executives.

Following are the list of documents required:

A cheque for payment of a single premium
Address proof
Income proof
Identify proof
Date of birth proof
KYC documents
Passport-sized photographs

The corporation may or may not, as per the requirement, conduct any medical examination for the policyholder.

Advantages of a LIC Bima Bachat Plan

Being one of the best types of life insurance policy, money back policy offers guaranteed returns of money with a low degree of risk. These are ideal for people who need cash at different stages of their lives to meet long-term and short-term financial requirements viz. buying a house and/or a car, international vacations, paying for education and/or health expenses, et cetera. Unlike other endowment plans where returns are paid only upon completion of the tenure, money back policies provide liquidity for individuals to take care of any immediate expense they may face at some point during the tenure of the purchased policy as long as the policyholder is alive.

LIC Bima Bachat Plan - FAQs

  • Q1. How much insurance does one get in LIC Bima Bachat?

    The amount insured is the amount assured to the policyholder upon death or maturity of the life promised.

  • Q2. What if a policyholder has received an installment? How much insurance do they get?

    The insurance cover remains the same under this policy irrespective of the installment received if any.

  • Q3. Are there any additional benefits upon the maturity of a LIC Bima Bachat policy? If any, what are they?

    Yes. If the policyholder lives throughout the tenure of the policy, they receive the single premium in full, excluding any taxes or premium payment, along with loyalty, given that there is any.

  • Q4. When does one become eligible for surrender value?

    In LIC Bima Bachat, one can only surrender after completion of at least one year of the policy tenure.

  • Q5. What are some other benefits of the LIC Bima Bachat?

    LIC Bima Bachat, a dual benefit policy, covers security along with insurance.

    It is the only money-back policy available in the market, which also provides a loan. A loan amount equal to 60% of total surrender value can be availed after completion of one year of the policy tenure.

    This policy is also a highly liquid plan; that is, one can get immediate cash, if and whenever needed.

    There are other benefits viz. Policy revival, 15 days cooling-off period and grace period.

  • Q6. What are conditions and/or restrictions, if any, under the LIC Bima Bachat policy?

    Some critical conditions to keep in mind before purchasing this policy are:

    1: Any Indian resident is eligible for the policy, given that they fulfill the age requirements.
    2: The minimum age required is 15 years (completed), and the maximum could be 60, 63, and 66 years for tenures of 9, 12, and 15 years respectively.
    3: The minimum amount assured shall be INR 35,000 for nine years of the policy, INR 50,000 for 12 years of the policy, and INR 70,000 for 15 years of the policy. However, there is no upper limit for the amount to be assured.
    4: The amount assured shall be a multiple of INR 5,000.
    5: The policyholder is required to pay the premium in a single payment only.

  • Q7. What are the benefits of online banking for the payment of LIC Bima Bachat policy?

    1: Given that there is any time, anywhere internet access, the policyholders get the freedom to authorize and decide payments.
    2: Individuals can issue the payment instructions at ease on their devices without needing to visit a LIC branch.
    3: A lot of time and hassle is saved since there is no need to wait in queues for payments.
    4: No extra charge needs to be paid to LIC personnel.
    5: If needed, individuals can opt for reminders and alerts via emails and/or SMS from their banks and service providers regarding the policy.
    6: It can entirely avoid any other offline hassle like demand draft, courier/postage expense, which may or may not has been required if the payment were to be done offline.

  • Q8. What are some of the authorized service providers and/or banks for collecting the premium of policy through online banking?

    The authorized banks are:

    1: HDFC Bank
    2: Bank of Punjab
    3: ICICI Bank
    4: UTI Bank
    5: Corporation Bank
    6: Federal Bank
    7: Citibank

    The authorized service providers are:


  • Q9. What are the documents required for the claim process?

    One must keep the death certificate in case of the death of policyholder handy for claim intimation. Otherwise, the payment receipt and insurance ID along with valid ID proof, details of online payment (in case if made) are other essential prerequisites for the claim process.

  • Q10. What are some other points to adhere to while buying the LIC Bima Bachat policy?

    Some pints to adhere to while buying the policy are:

    1: Individuals should avoid payment on the cash counters if it has been done through online banking already.
    2: It is vital to get the postal address updated in the policy records to get the renewal payment receipts posted to the right address.
    3: In case one does not get the receipt posted, they should collect it from the concerned serving LIC branch. Duplicate receipts cannot be printed.
    4: Since the collections are not adjusted online, the transaction must reach the destination servicing branch for an update of policy status. Hence, there is a short gap between one’s bank account debit date and the date when the policy reflects the updated status.

Written By: Paisawiki - Updated: 12 April 2021