Financial security shouldn’t be a luxury reserved only for the wealthy. Recognizing the need to protect the economically weaker sections of society, the Life Insurance Corporation of India (LIC) introduced the LIC Micro Bachat Plan 751. This micro-insurance plan acts as a dual-purpose tool, offering both robust life protection and a reliable savings mechanism.
LIC's Micro Bachat (Plan 751) Calculator
A Participating Non-Linked Micro Insurance Plan.
However, understanding insurance calculations—like how much premium to pay, what the maturity amount will be, or what happens if you surrender the policy—can be confusing. That is exactly where our LIC Micro Bachat Plan 751 Calculator comes into play.
In this comprehensive guide, we will break down the complete LIC Micro Bachat Plan 751 plan details, review its unique benefits, explain the commission structure for agents, and show you how to use the calculators to make an informed financial decision.
What is LIC Micro Bachat Plan 751?
The LIC Micro Bachat Plan 751 is a non-linked, participating, individual, life micro-insurance savings plan. Simply put, it is a traditional life insurance policy that guarantees a lump sum payout at maturity, while also providing a death benefit to your family if something unexpected happens to you during the policy term.
Because it is a “participating” plan, LIC shares a portion of its profits with policyholders in the form of “Loyalty Additions.” What makes this plan truly special is that it is specifically tailored for low-income individuals, meaning the premiums are highly affordable, and the documentation required is minimal.
Complete LIC Micro Bachat Plan 751 Plan Details
To truly understand how the lic calculator works, you first need to know the eligibility criteria and rules of the plan. Here is a quick snapshot:
| Feature | Plan 751 Details |
|---|---|
| Minimum Entry Age | 18 Years (Completed) |
| Maximum Entry Age | 55 Years (Nearest Birthday) |
| Policy Term | 10 to 15 Years |
| Premium Paying Term | Same as the Policy Term (Regular Premium) |
| Minimum Basic Sum Assured | ₹50,000 |
| Maximum Basic Sum Assured | ₹2,00,000 |
| Maximum Maturity Age | 70 Years |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly |
Top LIC Micro Bachat Benefits: Why Choose This Plan?
Before jumping into the numbers, let’s look at why this plan is highly recommended. The LIC Micro Bachat benefits go far beyond simple life cover.
1. Zero GST on Premiums
This is perhaps the biggest financial advantage of this plan. Unlike standard life insurance policies that charge a 4.5% GST in the first year and 2.25% in subsequent years, the Micro Bachat Plan is completely exempt from GST. Every single rupee you pay goes directly toward your premium.
2. The “Auto Cover” Facility
Life can be unpredictable, especially for daily wage earners or small business owners. If you face a financial crisis and cannot pay your premium, LIC provides an “Auto Cover” period:
- If you have paid premiums for at least 3 full years but less than 5 years: You get 6 months of Auto Cover.
- If you have paid premiums for 5 full years or more: You get 2 years of Auto Cover.
During this period, your life cover remains fully active even if you haven’t paid the premium.
3. Loan Facility for Emergencies
You don’t need to break your policy if you need urgent cash. Once you have paid premiums for just 1 full year, you are eligible to take a loan against your Micro Bachat policy at very nominal interest rates.
4. Loyalty Additions
If you pay your premiums regularly and survive for at least 5 years, your policy becomes eligible for Loyalty Additions (bonuses). This boosts your final maturity amount significantly.
5. Tax Benefits
Even though the target audience is low-income groups, if you fall into a taxable bracket, the premiums paid are tax-deductible under Section 80C, and the maturity/death payouts are 100% tax-free under Section 10(10D).
How to Use the LIC Micro Bachat Plan Premium Calculator
Calculating your premium manually using LIC’s tabular charts can be tedious. Using an online LIC Micro Bachat Plan premium calculator simplifies the process. Here is how the calculator figures out your premium:
Step 1: Enter Your Age & Term
The calculator takes your current age and the number of years you want the policy for (10 to 15 years).
Step 2: Choose Sum Assured
You select an amount between ₹50,000 and ₹2,00,000.
Step 3: Select Payment Mode (And Get Rebates!)
The calculator automatically applies LIC’s official rebates to save you money:
- Yearly Mode: 2% discount on the tabular premium.
- Half-Yearly Mode: 1% discount on the tabular premium.
- Quarterly/Monthly: No discount.
Example Calculation:
Suppose Ramesh (Age 35) wants a Sum Assured of ₹1,00,000 for a 15-year term.
- Using the calculator, his Annual Premium would come to approximately ₹5,100 to ₹5,300 (since there is no GST, this is the final amount).
- This means Ramesh is securing his family’s future for roughly ₹14 a day!
Understanding the LIC Micro Bachat Plan Maturity Calculator
People buy insurance to see their money grow. The LIC Micro Bachat plan maturity calculator helps you project exactly how much you will receive at the end of your policy term.
The Maturity Formula:
Maturity Benefit = Basic Sum Assured + Loyalty Additions (LA)
How does the calculator estimate this?
While the Sum Assured is guaranteed, the Loyalty Addition depends on LIC’s performance. However, calculators use historical LIC data to give you a highly accurate estimate.
Maturity Example:
Let’s continue with Ramesh’s example (Sum Assured: ₹1,00,000, Term: 15 Years).
- Guaranteed Return: ₹1,00,000
- Estimated Loyalty Addition: (Assuming LIC declares ₹150 per ₹1000 SA for a 15-year term) = ₹15,000.
- Total Expected Maturity: ₹1,15,000.
Note: Loyalty additions are declared upon maturity or death, provided the policy has run for at least 5 years.
LIC Micro Bachat Plan Surrender Value Calculator
We understand that sometimes financial hardships force people to cancel their policies. If you wish to exit the plan early, you need an LIC Micro Bachat Plan surrender value calculator.
Unlike older policies that required you to wait 3 years, Plan 751 allows you to surrender the policy and get money back after paying premiums for just 1 full year.
How the Surrender Value is Calculated:
When you surrender the policy, LIC pays you the higher of two amounts:
- Guaranteed Surrender Value (GSV): A fixed percentage of total premiums paid (excluding the first year’s premium and any rider premiums). This percentage increases as your policy gets older.
- Special Surrender Value (SSV): Calculated based on the paid-up value and LIC’s internal factors. Usually, the SSV is higher than the GSV.
Expert Advice: Surrendering an insurance policy almost always leads to a financial loss. Instead of using the surrender value calculator, we highly recommend using the policy loan facility to meet your urgent cash needs while keeping your life cover intact.
Information for LIC Agents: Commission Structure
This policy is heavily promoted by LIC agents, Point of Sales Persons (POSP), and Common Service Centers (CSC). If you are an insurance advisor, knowing the lic micro bachat plan commission rate is vital for your business.
Because this is a micro-insurance plan designed to penetrate rural and low-income demographics, LIC rewards its agents well for bringing in this business.
LIC Micro Bachat Plan Agent Commission Breakdown:
While exact commission slabs can occasionally be updated by LIC circulars, the standard LIC Micro Bachat plan agent commission generally follows this structure:
- First Year Commission (FYC): Agents typically earn a handsome 10% to 20% commission on the first-year premium (depending on the agent’s club membership and specific LIC circulars for micro-insurance).
- Renewal Commission: For the 2nd and 3rd years, agents earn around 7.5% of the premium paid.
- Subsequent Years: From the 4th year onwards, the renewal commission stands at 5% for the rest of the premium paying term.
Selling this plan allows agents to build a massive client base quickly due to the low premium amount and the high trust factor associated with LIC in rural areas.
Honest LIC Micro Bachat Plan Review
With so many insurance plans in the market, is Plan 751 right for you? Let’s do a quick, unbiased LIC Micro Bachat plan review.
The Pros (What we love):
- Affordability: Premiums can be paid monthly, making it easy for daily wage earners to participate.
- No Tax/GST Burden: The 0% GST feature makes it cheaper than standard endowment plans.
- Financial Safety Net: The Auto Cover feature is a lifesaver. No other standard plan gives you 6 months of free life cover if you miss a premium.
- Quick Liquidity: Loan facility available after just 1 year.
The Cons (What you should know):
- Low Maximum Cover: The maximum life cover you can get is ₹2,00,000. If you are a corporate employee or a high-income earner looking for ₹50 Lakhs or ₹1 Crore cover, this plan is not for you. You should look at LIC term plans instead.
- Moderate Returns: Since it is a safe, traditional plan, the returns will not beat the stock market or mutual funds. It is meant for capital protection, not aggressive wealth creation.
Verdict:
The LIC Micro Bachat Plan 751 is an absolute masterstroke for domestic helpers, drivers, farmers, small shop owners, and daily wage laborers. It forces a saving habit and guarantees that a family will not be left destitute in case of the breadwinner’s death.
Frequently Asked Questions (FAQs)
Q.1: Can I buy multiple Micro Bachat policies?
Yes, you can buy multiple policies, but the total combined Basic Sum Assured across all your LIC Micro Bachat (Plan 751) policies cannot exceed the maximum limit of ₹2,00,000.
Q.2: Is medical test required to buy LIC Micro Bachat Plan 751?
No! One of the best features of this plan is that it is a “non-medical” plan. Standard healthy individuals do not need to undergo strict medical tests to buy this policy, making the buying process incredibly fast and hassle-free.
Q.3: Can I add riders to this plan?
Yes. For a very small extra premium, you can add the LIC Accidental Death and Disability Benefit Rider. This means if the death occurs due to an accident, the family receives double the sum assured.
5. How accurate is the online calculator?
The online calculators are highly accurate for calculating your exact premium outflow. For maturity values, they provide a very close estimate based on current bonus rates, though the final maturity payout may vary slightly depending on LIC’s actual profit declarations in the future.
Conclusion
Securing your family’s financial future does not require a massive bank balance; it simply requires the right intent and the right plan. The LIC Micro Bachat Plan 751 is a testament to LIC’s commitment to insuring every Indian.
By utilizing an LIC Micro Bachat Plan 751 calculator, you take the guesswork out of your financial planning. You can see your exact premium, calculate your expected maturity, and even check your surrender value if needed. If you fall into the eligible income bracket, there is no better, safer, and more affordable way to guarantee your family’s peace of mind.
Disclaimer: Insurance is a subject matter of solicitation. The maturity values provided by calculators are illustrative. Please read the sales brochure carefully or consult an authorized LIC agent before concluding a sale.
