Planning for financial stability requires a balance between security and predictable growth. In today’s uncertain market conditions, many investors prefer life insurance plans that offer guaranteed benefits without exposing their hard-earned money to market volatility. One such option designed to deliver certainty along with life cover is LIC Bachat Plus.

LIC Bachat Plus is a non-linked, non-participating, single premium life insurance plan offered by Life Insurance Corporation of India (LIC). It is specially structured for individuals who want assured returns with minimal risk and a one-time investment commitment. The plan provides guaranteed additions along with life coverage, making it suitable for conservative investors seeking stability and long-term financial planning.

What is LIC Bachat Plus?

LIC Bachat Plus is a savings-oriented life insurance policy where you pay a single premium at the beginning of the policy term. In return, the insurer guarantees a lump sum maturity benefit along with fixed additions declared at the inception of the policy.

Since it is a non-linked plan, your returns are not dependent on equity or debt market performance. The benefits are defined at the start of the policy, offering clarity and predictability. This makes it ideal for individuals looking for safe investment options combined with insurance protection.

Key Features of LIC Bachat Plus

Here are the major highlights of the plan:

1. Single Premium Payment

You are required to pay the premium only once at the start of the policy. There are no recurring premium obligations.

2. Guaranteed Additions

The plan offers guaranteed additions per ₹1,000 of Basic Sum Assured, declared at policy inception. These additions accumulate over the policy term and are paid at maturity or on death.

3. Flexible Policy Term

Policy terms typically range between 10 to 25 years, allowing policyholders to align the maturity timeline with their financial goals.

4. Death Benefit

In case of the unfortunate demise of the policyholder during the policy term, the nominee receives:

• Basic Sum Assured, or
• Single Premium paid (excluding taxes and extra premium), whichever is higher
  along with accrued guaranteed additions.

5. Maturity Benefit

If the policyholder survives the policy term, the maturity benefit includes:

• Basic Sum Assured
• Accumulated Guaranteed Additions

This lump sum amount can help meet financial milestones such as children’s education, marriage, or retirement corpus supplementation.

6. Loan Facility

The policy offers a loan facility after completion of a specified period, providing liquidity during financial emergencies.

7. Optional Riders

You may enhance coverage by adding riders such as:

• Accidental Death and Disability Benefit Rider
• Term Assurance Rider

These riders are available at an additional cost and provide enhanced protection.

Eligibility Criteria

While exact eligibility may vary slightly based on regulatory updates, general criteria include:

• Minimum Entry Age: Around 90 days
• Maximum Entry Age: Up to 44 years (may vary by term)
• Minimum Policy Term: 10 years
• Maximum Policy Term: 25 years
• Minimum Sum Assured: As specified by LIC (generally ₹1,00,000 or above)

Before purchasing, applicants must undergo standard underwriting procedures as per insurer norms.

How Guaranteed Additions Work

Guaranteed additions are pre-declared amounts added per ₹1,000 of Basic Sum Assured for each policy year. These additions depend on the chosen policy term and are confirmed at the beginning of the policy.

For example:
If the guaranteed addition is ₹X per ₹1,000 Sum Assured and your Basic Sum Assured is ₹10,00,000, the additions accumulate annually and are paid along with the maturity or death benefit.

This structure ensures transparency because:

• The benefit is known at inception
• There is no dependency on bonus declarations
• No market-linked fluctuations

Benefits of LIC Bachat Plus

Financial Certainty

The plan guarantees fixed benefits, making it suitable for risk-averse investors.

One-Time Investment

Since it is a single premium policy, you avoid long-term premium payment commitments.

Safe Wealth Accumulation

It helps build a disciplined savings corpus without exposure to market volatility.

Life Protection

In addition to savings, the plan offers life coverage throughout the policy term.

Tax Benefits

Premium paid and benefits received may qualify for tax benefits under applicable sections of the Income Tax Act, subject to prevailing tax laws.

Who Should Consider LIC Bachat Plus?

This plan is ideal for:

• Individuals with surplus funds seeking safe investment avenues
• Parents planning long-term goals like education or marriage
• Conservative investors who prefer guaranteed returns
• Individuals looking for a combination of life cover and savings
• Those who do not want recurring premium commitments

It may not be suitable for investors seeking high market-linked returns or flexible premium payment structures.

Things to Consider Before Buying

1. Evaluate your liquidity needs since the premium is paid upfront.
2. Understand that returns are fixed and may be lower compared to equity-linked plans.
3. Check the lock-in period and surrender value provisions.
4. Compare the guaranteed addition rates across policy terms.
5. Assess whether additional riders are necessary based on your financial responsibilities.

Careful financial planning ensures the plan aligns with your long-term objectives.

Frequently Asked Questions (FAQs)

Q1. What type of plan is LIC Bachat Plus?
LIC Bachat Plus is a non-linked, non-participating, single premium life insurance plan offering guaranteed returns and life coverage.

Q2. Is LIC Bachat Plus market-linked?
No, it is not linked to market performance. Returns are guaranteed and declared at the beginning of the policy.

Q3. Can I pay the premium in installments?
No, the policy requires a one-time single premium payment.

Q4. What happens in case of the policyholder’s death during the term?
The nominee receives the higher of Basic Sum Assured or single premium paid, along with accrued guaranteed additions.

Q5. Is there a loan facility available?
Yes, a loan facility is available after completion of the required policy duration, subject to terms and conditions.

Q6. Are tax benefits available under LIC Bachat Plus?
Yes, tax benefits may be available on premium paid and benefits received as per prevailing tax laws.

Q7. Can I surrender the policy before maturity?
Yes, surrender is allowed after a specified period, and the surrender value will be paid as per policy conditions.

Conclusion

LIC Bachat Plus is a dependable option for individuals seeking guaranteed returns combined with life insurance protection. Its single premium structure, fixed benefits, and transparent additions make it a practical choice for conservative investors. While it may not offer high market-linked gains, it provides stability, predictability, and peace of mind.

If you are looking to understand how such guaranteed plans fit into your broader financial portfolio, Square Insurance can help you compare policy features, evaluate benefits, and choose the right coverage aligned with your long-term goals.