LIC: IRDAI has created this special category of insurance policies to promote coverage among the economically weaker sections of the society.
LIC: Insurance has got a boost during the uncertain times of the pandemic. If you are planning to buy a policy at a lower premium, then micro insurance plans can be suitable. LIC’s micro insurance plans are very popular.
The premium is comparatively low
The Insurance Regulatory and Development Authority of India (IRDAI) has created this special category of insurance policies to promote coverage among the economically weaker sections of the society. The premiums of these policies are comparatively low.
Micro Insurance Plans Very Popular
Debashish Dutta, LIC agent associated with Million Dollar Roundtable said, “LIC micro insurance plans are very popular.
Due to high premiums, people from the economically weaker section of the society are often unable to opt for traditional life insurance plans.
Micro insurance plans are primarily designed for those low income groups, so that they can also cover their lives. The premium under these categories is comparatively less,”
LIC micro plans
The country’s largest insurance company LIC launched two micro insurance plans New Jeevan Mangal and Micro Bachat Plans on February 01, 2020.
New Jeevan Mangal
LIC’s New Jeevan Mangal plan is a non-linked, non-participating, individual, Jeevan, Suraksha plan with return of premium on maturity.
You can pay premiums either in lump sum or regularly during the term of the policy. The plan provides double risk cover in case of accidental death.
Any person between 18 years to 55 years is eligible to buy it. The maximum maturity age is 65 years. The minimum and maximum sum assured is Rs 10,000 and Rs 50,000 respectively.
The policy term for regular premium is 10 to 15 years and can be paid regularly during the policy term in yearly, half yearly, quarterly or monthly mode.
Alternatively one can also buy a single premium policy for a tenure of 5 to 10 years.
Payment of death benefit equal to Sum Assured
In the event of the death of the Life Assured due to any cause other than an accident, a death benefit equal to the Sum Assured will be paid to the nominee of the policyholder.
This amount depends on the type of policy and the premium paid. In case of accidental death, an additional sum equal to the sum assured will be paid to the nominee.
Micro savings
Micro Bachat is a regular premium, non-linked, participating, individual, life assurance plan. It offers a combination of security and savings.
The scheme also has the option of liquidity needs through its loan facility. Any person between 18 years to 55 years is eligible to buy it.
The maximum maturity age is 70 years. The minimum and maximum sum assured is Rs.50,000 and Rs.200,000 respectively. The policy term is 10 to 15 years.
Premiums can be paid annually, half yearly, quarterly or monthly depending on the policy term.
