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Insurance is a concept that got a fillip during the uncertain times of the pandemic. More and more people have come to appreciate the significance of life insurance. If you are planning to buy a policy at low premium, micro insurance plans may be an appropriate instrument. The Insurance Regulatory and Development Authority of India (IRDAI) has created this special category of insurance policies to promote coverage among economically vulnerable sections of the society. The premiums of these policies are comparatively low. LIC, the country’s largest insurer, offers two micro insurance plans: New Jeevan Mangal and Micro Bachat. Both plans were launched on February 1 last year.

“LIC’s micro insurance plans are very popular. Due to high premiums, people from the economically weaker sections of society are often unable to opt for conventional life insurance plans. Micro insurance plans are mainly designed for those low-income groups, so that they can also cover their lives. The premiums under these categories are comparatively low,” said Debasish Dutta, LIC agent.

New Jeevan Mangal

LIC’s New Jeevan Mangal plan is a non-linked, non-participating, individual, life, protection plan with return of premiums on maturity.  You can pay the premiums either in lump sum or regularly over the term of the policy.

This plan has an in-built accident benefit which provides for double risk cover in case of accidental death.

Eligibility

Any individual between 18 years and 55 years is eligible to buy it. The maximum maturity age is 65 years.

Sum assured

The minimum and maximum sum assured is Rs 10,000 and Rs 50,000 respectively.

Policy term & premium

For regular premium the policy term is 10 to 15 years and it can be paid regularly at yearly, half yearly, quarterly or monthly mode during the policy term.

Alternatively, a single premium policy can also be bought for a 5 to 10-year term.

Benefits

In the event of the death of the person insured due to any reason other than accident, a death benefit equivalent to the sum assured will be paid to the nominee of a policyholder. This amount depends on the type of policy and premiums paid.

In the case of accidental death an additional sum equal to sum assured will be paid to the nominee.

Micro Bachat

Micro Bachat is a regular premium, non-linked, participating, individual, life assurance plan. It offers a combination of protection and savings.

This plan also has an option of liquidity needs through its loan facility.

Eligibility

Any individual between 18 years and 55 years is eligible to buy it. The maximum maturity age is 70 years.

Sum assured

The minimum and maximum sum assured is Rs 50,000 and Rs 200,000 respectively.

Policy & premium

The policy term is 10 to 15 years. Premium can be paid yearly, half yearly, quarterly or monthly depending on policy term.

If an individual at the age of 20 buys the policy for a 15-year term and chose Rs 2 lakh as the basic assured sum, he or she has to pay Rs 9,904 as yearly premium, which is around only Rs 27 per day.

Benefits

By the time the policy is ready for payment, he would get around Rs 2.30 lakh.

In the event of the death of the person insured within five years of the commencement of the policy, the sum assured will be paid. In case the death is after five years, sum assured and loyalty bonus both will be paid to the survivor(s).