LIC's Micro Bachat 751

 LIC’s Micro Bachat 751 is a regular premium, participating, non-linked individual savings life insurance plan specifically designed for low-income groups to provide financial protection and help accumulate savings over time with guaranteed and loyalty benefits. This plan offers affordable premiums, life cover, loyalty additions, loan facilities, and maturity benefits, making it an ideal insurance option that balances protection and savings for individuals with limited budgets. 

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What is LIC’s Micro Bachat 751?

LIC’s Micro Bachat 751 is a traditional participating endowment plan meant for those seeking a systematic approach to savings along with insurance cover. The plan ensures financial assistance to the family on the unfortunate demise of the policyholder during the policy term while also providing maturity benefits in the form of the sum assured plus bonuses if the insured survives the term. Its affordability and features target financially vulnerable sections, helping them build a safety net and secure their future.​

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Key Features of LIC Micro Bachat 751

• Affordable Regular Premium: Offers a structured plan with regular premium payments, making it manageable for low-income earners.​

• Participating, Non-linked Plan: Accrues bonuses (loyalty additions) reflecting LIC’s profits enhancing the maturity and death benefits.​

• Sum Assured and Bonus: Provides sum assured on death or maturity plus loyalty additions after 5 years of regular premium payments.​

• Death Benefit: In case of unfortunate death during the policy tenure, the nominee receives the sum assured on death plus loyalty additions (if applicable), subject to conditions.​

• Maturity Benefit: On survival, lump sum of sum assured plus accrued bonuses is payable, incentivizing long-term savings.​

• Loan Facility: After completion of 1 year and once surrender value is acquired, policyholders can avail loans, offering liquidity support when needed.​

• Auto Cover Feature: Insurance coverage continues for 6 months even if premium payment is temporarily missed, providing grace during financial difficulties.​

• Flexible Premium Payment Modes: Allows payment of premiums annually, half-yearly, quarterly, or monthly through various modes to suit convenience.​

• Tax Benefits: Premiums eligible for deduction under Section 80C and maturity/death proceeds may be tax-exempt under Section 10(10D), subject to prevailing tax laws.​

• Lock-in Period: 5-year lock-in for withdrawals and surrenders, ensuring policyholder commitment.​

• Policy Terms: Available for 10 to 15 years, catering to medium-term savings goals.​

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Eligibility Criteria

Criteria	Details
Minimum Entry Age	18 years (nearest birthday)
Maximum Entry Age	55 years (nearest birthday)
Maximum Maturity Age	70 years (nearest birthday)
Minimum Policy Term	10 years
Maximum Policy Term	15 years
Sum Assured	Minimum ₹1,00,000 to ₹2,00,000
Premium Payment Term	Same as Policy Term
Premium Payment Modes	Yearly, Half-yearly, Quarterly, Monthly

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Benefits of LIC Micro Bachat Plan

Death Benefit

• If the policyholder passes away during the policy term, the nominee is entitled to receive sum assured on death plus loyalty additions (if applicable).

• The sum assured on death is the maximum of:

  • 10 times the annualized premium,

  • The sum assured,

  • 105% of total premiums paid till date.

• This ensures adequate protection for the family during the policy period.​

Maturity Benefit

• On surviving the policy term, the policyholder receives the sum assured plus loyalty additions as a lump sum.

• Loyalty additions are declared based on LIC’s profits and credited after 5 full years of premium payment.

• An incentive for consistent premium payment and long-term savings.​

Loan Facility

• Loan becomes available after 1 year of policy commencement and after surrender value has been accrued.

• The loan amount can be up to 70% of the surrender value with ease of access if financial needs arise.​

Additional Features

• Auto Cover: Even if premiums are missed, the insurance coverage continues for 6 months providing grace and coverage continuity.​

• Tax Benefits: Eligible for deductions under 80C while maturities may be tax-exempt per income tax provisions.​

• Flexible Premium Payment: Multiple payment modes ensure ease of payments fitting the cash flow situation of policyholders.​

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How LIC Micro Bachat Plan Works

1. Premium Payment
   Pay regular premiums throughout the policy term through an agreed premium-paying mode.

2. Life Cover Activation
   Coverage begins once the first premium is paid. If death occurs during the policy term, death benefit is paid.

3. Accrual of Bonuses
   Loyalty additions (bonuses) accrue after 5 full years and are payable on death or maturity, depending on profits.

4. Maturity Payment
   On survival till maturity, the sum assured plus accrued bonuses is disbursed as a lump sum.

5. Loan and Withdrawal
   Loans available post acquiring surrender value give you liquidity options without surrendering the policy.

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Who Should Buy LIC Micro Bachat 751?

• Low and middle-income individuals needing affordable insurance and savings.

• Those looking for a disciplined savings plan coupled with life cover.

• People seeking guaranteed returns through bonuses and loyalty additions.

• Buyers requiring flexible premium payment modes and easy loan access.

• Families wanting long-term financial security and maturity benefits.​

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Practical Points to Know

• Policy Term and Premium Payment Term: Both are equal and range between 10 to 15 years.

• Policyholders must make all premium payments on time to qualify for bonuses and benefits.

• Regular health and age proofs may be required during purchase.

• Surrender before the lock-in period yields low or no returns.

• Loan options provide financial fallback without policy termination.​

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Conclusion

LIC’s Micro Bachat 751 offers a well-rounded insurance product for those seeking life protection with systematic savings on affordable premiums. Its participation in LIC’s bonuses combined with flexible premium modes and loan options makes it a suitable vehicle for wealth accumulation and family financial security, especially targeting budget-conscious individuals with medium-term financial goals. This balance of protection, savings, liquidity, and affordability under LIC’s trusted umbrella makes Micro Bachat plan an attractive proposition for Indian consumers.