LIC Micro Bachat Plan 851 Calculator
LIC Micro Bachat Plan 851 was an affordable life insurance and savings plan introduced by the Life Insurance Corporation of India (LIC) for individuals seeking financial protection along with long-term savings. The plan was particularly suitable for low-income earners because it offered insurance coverage, maturity benefits, and loyalty additions without requiring a medical examination for eligible lives.
What is LIC Micro Bachat Plan 851?
LIC Micro Bachat Plan 851 was a regular premium, non-linked, participating life insurance policy that combined protection and savings under a single plan. It provided financial security to the policyholder’s family in case of death during the policy term while also offering maturity benefits on survival till the end of the policy period.
The plan participated in LIC’s profits through Loyalty Additions, helping policyholders receive additional benefits over and above the guaranteed policy benefits.
Launch and Withdrawal Dates
- Launch Date: 18 February 2019
- Withdrawal Date: 01 October 2024
Although the plan is no longer available for new purchases, existing policyholders continue to enjoy all benefits according to their policy conditions.
Key Features of LIC Micro Bachat Plan 851
Protection and Savings Combination
The plan provided life insurance coverage together with maturity benefits, helping policyholders build savings while protecting their families.
Participating Insurance Plan
Being a participating plan, eligible policies could receive Loyalty Additions as declared by LIC.
No Medical Examination
The policy was designed for standard healthy lives and generally did not require medical examinations within prescribed underwriting limits.
Flexible Policy Terms
Policyholders could choose from the following policy terms:
- 10 Years
- 15 Years
Loan Facility
Policy loans were available after payment of at least three full years’ premiums, subject to LIC’s rules.
Tax Benefits
Premiums paid qualified for tax benefits under Section 80C of the Income Tax Act, subject to prevailing tax laws.
Eligibility Criteria of LIC Micro Bachat Plan 851
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 18 Years | 55 Years |
| Maturity Age | — | 70 Years |
| Basic Sum Assured | ₹50,000 | ₹2,00,000 |
| Policy Term | 10 Years | 15 Years |
| Premium Paying Term | Same as Policy Term | Same as Policy Term |
| Medical Examination | Not Required | Not Required |
The age at maturity under the policy could not exceed 70 years.
Premium Payment Modes
Policyholders could pay premiums through multiple modes:
- Yearly
- Half-Yearly
- Quarterly
- Monthly (through NACH/ECS)
Mode Rebates
LIC offered rebates for selected premium payment modes:
- 2% rebate on yearly premiums
- 1% rebate on half-yearly premiums
High Sum Assured Rebates
Additional rebates were available for higher Sum Assured amounts:
- 1.5% rebate for Sum Assured between ₹1.50 lakh and ₹1.95 lakh
- 2% rebate for Sum Assured of ₹2.00 lakh
These rebates helped reduce the overall premium burden for policyholders opting for higher coverage.
How the LIC Micro Bachat Plan 851 Calculator Works
The LIC Micro Bachat Plan 851 calculator is a useful tool that helps policyholders estimate premiums and expected policy benefits before purchasing the plan. By entering a few basic details, users can quickly understand the cost of the policy and the benefits available at maturity or in case of death.
To use the calculator, you typically need to enter:
- Age of the life assured
- Basic Sum Assured
- Policy Term
- Premium Payment Frequency
Based on these details, the calculator provides:
- Estimated premium amount
- Total premiums payable during the policy term
- Expected maturity benefit
- Projected Loyalty Addition (if applicable)
Premium Calculation Method
Premiums under LIC Micro Bachat Plan 851 were determined using factors such as age, sum assured, and policy term. The basic premium calculation follows:
Tabular Premium = Premium Rate per ₹1,000 Sum Assured × (Sum Assured ÷ 1,000)
After calculating the tabular premium, applicable rebates and taxes are adjusted to arrive at the final premium payable.
Please note that Loyalty Additions are not guaranteed and depend on LIC’s future performance and declarations.
Sample Annual Premium Rates (Per ₹1,000 Sum Assured)
| Age | 9-Year Term | 12-Year Term | 15-Year Term |
|---|---|---|---|
| 18 Years | ₹85.45 | ₹68.25 | ₹51.50 |
| 25 Years | ₹85.55 | ₹68.35 | ₹51.60 |
| 35 Years | ₹85.90 | ₹68.80 | ₹52.20 |
| 45 Years | ₹87.60 | ₹70.75 | ₹54.50 |
| 55 Years | ₹91.90 | ₹75.40 | ₹59.80 |
To estimate the annual premium, multiply the applicable rate by the selected Sum Assured divided by 1,000.
Benefits of LIC Micro Bachat Plan 851
Death Benefit
If the policyholder passes away during the policy term while the policy remains in force, the nominee receives the applicable death benefit along with Loyalty Addition, if eligible.
The Death Benefit is generally the highest of:
- 10 times the Annualized Premium
- Basic Sum Assured
- Any other minimum benefit applicable under policy conditions
Loyalty Addition becomes payable when the policy satisfies the required eligibility conditions.
Maturity Benefit
If the policyholder survives until the end of the policy term and all due premiums have been paid, LIC pays:
- Basic Sum Assured
- Loyalty Addition (if declared and applicable)
The maturity benefit is paid as a lump-sum amount at the end of the policy term.
Surrender Benefit
The policy can acquire surrender value after payment of the required minimum premium period.
The surrender value may be calculated as the higher of:
- Guaranteed Surrender Value
- Special Surrender Value
The actual amount depends on policy duration and premiums paid.
Loan Facility
Policy loans can be availed after payment of at least three full years’ premiums, subject to LIC’s prevailing loan rules and surrender value conditions.
Optional Riders
Additional protection can be obtained through optional riders such as:
- Accident Benefit Rider
- Accidental Death and Disability Benefit Rider
These riders are available by paying additional premium and are subject to eligibility conditions.
Loyalty Addition
Loyalty Addition is a one-time benefit that LIC may declare based on the overall performance of the participating fund. It is generally payable on:
- Policy maturity
- Death claim
- Eligible policy exits
Provided the policy has completed the minimum qualifying period specified by LIC.
Example Illustration
Example: Age 35, Sum Assured ₹1,00,000
Assume the following details:
- Age: 35 Years
- Sum Assured: ₹1,00,000
- Policy Term: 15 Years
Based on indicative premium rates, the annual premium may be approximately ₹5,116 (excluding taxes).
Scenario 1: Death During Policy Term
If death occurs after the policy becomes eligible for Loyalty Addition, the nominee may receive:
- Basic Death Benefit
- Applicable Loyalty Addition
Scenario 2: Survival Till Maturity
If the policyholder survives the full policy term and all premiums are paid:
- Basic Sum Assured = ₹1,00,000
- Loyalty Addition = As declared by LIC
The final maturity benefit will be the sum of the above amounts and will vary depending on the Loyalty Addition declared at the time of claim settlement.
Advantages and Disadvantages of LIC Micro Bachat Plan 851
Advantages
- Simple eligibility requirements with easy enrollment.
- No medical examination required for eligible applicants.
- Affordable premium structure suitable for low-income individuals.
- Combines life insurance protection with savings benefits.
- Loan facility available after meeting the minimum premium payment requirement.
- Surrender option available in case of financial emergencies.
- Premium rebates offered for higher sum assured amounts and selected payment modes.
- Eligible for income tax benefits under applicable provisions of the Income Tax Act.
Disadvantages
- Maximum sum assured is limited to ₹2,00,000.
- May not provide adequate coverage for individuals with higher insurance needs.
- Loyalty Additions are not guaranteed and depend on LIC’s future performance.
- The plan has been withdrawn and is not available for fresh purchase.
How to Calculate Premium and Maturity Value
The LIC Micro Bachat Plan 851 calculator helps estimate premiums and policy benefits in a few simple steps.
Step 1: Enter Personal Details
Provide the following information:
- Age of the life assured
- Desired Sum Assured (₹50,000 to ₹2,00,000)
- Policy Term
- Premium Payment Frequency
Step 2: Process the Calculation
The calculator applies the applicable premium rates, rebates, and other plan parameters to generate the estimates.
Step 3: Review the Results
The calculator displays:
- Premium amount payable
- Total premiums payable during the policy term
- Estimated maturity benefit
- Projected Loyalty Addition, if applicable
- Applicable rebates and tax-related calculations
This helps policyholders understand the financial commitment and expected benefits before purchasing the plan.
Surrender and Loan Benefits
Surrender Benefit
The policy acquires surrender value after the required minimum premium payment period. The surrender value generally increases as more premiums are paid and the policy progresses.
Loan Facility
Policyholders may avail a loan against the policy after payment of the prescribed number of full years’ premiums, subject to LIC’s prevailing terms and conditions.
Comparison of LIC Micro Bachat Plan 851 with Other LIC Plans
| Feature | Micro Bachat 851 | Jeevan Mangal 940 | Bima Jyoti 860 |
|---|---|---|---|
| Minimum Sum Assured | ₹50,000 | ₹10,000 | ₹1,00,000 |
| Maximum Sum Assured | ₹2,00,000 | ₹50,000 | No Limit |
| Medical Examination | Not Required | Not Required | May Be Required |
| Plan Status | Withdrawn | Active | Active |
| Savings Component | Yes | No | Yes |
Frequently Asked Questions
What is LIC Micro Bachat Plan 851?
LIC Micro Bachat Plan 851 is a regular premium life insurance plan that combines savings and protection benefits, especially for individuals looking for affordable insurance coverage.
Who can purchase this plan?
Eligible individuals within the prescribed entry age limits and underwriting conditions could purchase this plan without undergoing a medical examination.
What is the available Sum Assured range?
The plan offers a minimum Sum Assured of ₹50,000 and a maximum Sum Assured of ₹2,00,000.
What is the policy term?
The policy term options generally range between 10 and 15 years, with the premium payment term matching the selected policy duration.
What happens if a premium is missed?
A grace period is provided for premium payment. If the premium remains unpaid beyond the grace period, the policy may lapse but can generally be revived within the allowed revival period, subject to applicable conditions.
Conclusion
LIC Micro Bachat Plan 851 was created to make life insurance and savings benefits accessible to a wider section of society through affordable premiums and simple eligibility requirements. The combination of protection, maturity benefits, loan facilities, and potential Loyalty Additions made it a practical choice for many policyholders.
Although the plan is no longer available for new purchases, existing policyholders can continue enjoying the benefits as per policy terms and can use online calculators to estimate premiums, maturity values, and other policy benefits.
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