New Bima Bachat 916
LIC New Bima Bachat 916 (Table No 916) is a single premium guaranteed returns money back Policy. LIC of India New Bima Bachat Plan 916 is a traditional insurance plan where 15% of the Sum Assured is paid at the end of every 3 years. On survival till the end of the policy term, the single premium paid along with loyalty additions (if any) would be paid to the policyholder. However, if the policyholder dies within the policy term, the entire sum assured is paid irrespective of the amount of money paid to the nominee. You can now buy online LIC New Bima bachat plan 916 through credit card/debit card, net banking, upi and wallets on our LIC’s New Business Platform.
Introduction – The Indian Mindset of Security & Savings
In India, people love investments that give:
✔ Security of life cover
✔ Guaranteed returns
✔ Periodic liquidity
That’s why LIC’s New Bima Bachat Plan 916 is one of the most trusted money-back insurance plans. It allows you to make a one-time investment (single premium) and enjoy:
- Life cover throughout the term
- Survival benefits at regular intervals
- Maturity benefits at the end of the term
It’s like planting a tree once and enjoying both shade (protection) and fruits (returns) for years to come.
What is LIC New Bima Bachat 916?
- Type: Participating, non-linked, single premium, money-back policy.
- Nature: Offers risk cover + periodic survival benefits + maturity payout.
- Launch: Modified version of the old LIC Bima Bachat.
- Target Audience: Ideal for individuals who can invest a lump sum once and want protection + periodic cash inflow + maturity corpus.
Key Features of LIC New Bima Bachat Plan 916
- Single Premium Plan: Pay only once and get benefits throughout the term.
- Money-Back Benefits: Receive a percentage of the Sum Assured at regular intervals.
- Maturity Benefit: Final lump sum with Loyalty Addition (if declared).
- Death Cover: Family protection throughout the policy term.
- Loan Facility: Available after one year of commencement.
- Tax Benefits: Premiums under 80C, maturity under 10(10D).
- Flexible Term Choices: 9 years, 12 years, or 15 years.
Eligibility Criteria – LIC New Bima Bachat 916
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age | 15 years | 50 years (9-year term) |
| 45 years (12-year term) | ||
| 40 years (15-year term) | ||
| Maximum Maturity Age | – | 59 years |
| Basic Sum Assured (BSA) | ₹35,000 (9-year term) | ₹1,50,000 (15-year term) |
| Premium Payment | Single Premium Only | – |
| Policy Terms Available | 9, 12, 15 years | – |
Benefits of LIC New Bima Bachat 916
1. Death Benefit
- Before commencement of risk: Return of single premium (excluding taxes).
- After commencement of risk:
- Sum Assured on Death (1.25 × Single Premium or Basic Sum Assured, whichever is higher)
- Loyalty Addition (if applicable).
- Sum Assured on Death (1.25 × Single Premium or Basic Sum Assured, whichever is higher)
2. Survival Benefit
- For 9-year term: 15% of Sum Assured at end of 3rd & 6th years.
- For 12-year term: 15% of Sum Assured at end of 3rd, 6th, & 9th years.
- For 15-year term: 15% of Sum Assured at end of 3rd, 6th, 9th & 12th years.
3. Maturity Benefit
- Balance Sum Assured (BSA – survival benefits already paid) + Loyalty Addition (if declared).
4. Loan Facility
- Loan available after 1 year of purchase.
5. Tax Benefits
- Premium paid eligible under 80C.
- Maturity & death benefit eligible for 10(10D) exemptions.
Example – LIC New Bima Bachat 916 Premium & Benefits
Case Study:
- Age: 30 years
- Policy Term: 15 years
- Sum Assured: ₹3,00,000
- Premium Paid: ~₹2,00,000 (single premium)
Survival Benefit Payouts
| Year | Benefit (₹) |
|---|---|
| 3rd Year | 45,000 |
| 6th Year | 45,000 |
| 9th Year | 45,000 |
| 12th Year | 45,000 |
Total Survival Benefit = ₹1,80,000
Maturity Value
- Remaining Sum Assured = ₹1,20,000
- Loyalty Addition (say ₹30,000 – ₹40,000)
👉 Final Maturity = ₹1.5 – ₹1.6 lakh
Death Benefit Example
If death occurs in the 8th year:
- Death Sum Assured = ₹3,00,000 (or 1.25× premium)
- Loyalty Addition (if declared)
👉 Family receives approx. ₹3.3–₹3.4 lakh.
Analyst Opinions – Strengths & Weaknesses
Strengths:
- One-time payment, no premium burden.
- Regular cash inflow.
- Good for middle-class investors seeking safety.
- Loan facility adds liquidity.
Weaknesses:
- Returns are moderate (~5–6%).
- Loyalty Addition is not guaranteed.
- Not suitable for aggressive investors.
Verdict:
LIC New Bima Bachat 916 is a safe, conservative savings tool with life cover. It’s ideal for risk-averse Indian investors who prefer LIC’s reliability over high-risk returns.
Investor Scenarios
Scenario 1 – Salaried Professional (Age 28, SA ₹2 lakh, 12-year term)
- Premium paid: ₹1.35 lakh (single).
- Survival benefits: ₹90,000.
- Maturity: ₹80,000 + loyalty addition (~₹25,000).
- Total returns: ₹1.95 lakh approx.
Scenario 2 – Homemaker (Age 40, SA ₹1 lakh, 9-year term)
- Premium paid: ₹70,000.
- Survival benefits: ₹30,000.
- Maturity: ₹70,000 + bonus (~₹10,000).
- Provides both insurance & future corpus.
Scenario 3 – Retired Person (Age 55, SA ₹50,000, 9-year term)
- Premium paid: ~₹35,000.
- Gets periodic money-back for expenses.
- Ensures security & liquidity.
Real Investor Examples
- Ramesh (Mumbai): “I invested once and don’t worry about premiums. I get cash at regular intervals for my children’s education.”
- Seema (Delhi): “As a homemaker, I liked the single payment system. It feels like a fixed deposit but with insurance cover.”
- Arjun (Bangalore): “Returns are safe, though slightly lower. But LIC gives peace of mind.”
Expert Insights – Where It Fits
- Vs. FD/PPF: Bima Bachat offers insurance + liquidity, unlike FDs.
- Vs. Term Insurance: Term plan gives high cover, but no returns.
- Vs. ULIPs/Mutual Funds: ULIPs may give higher returns but are risky.
👉 New Bima Bachat is for conservative investors who prefer LIC’s brand trust over market-linked risks.
FAQs – LIC New Bima Bachat 916
Q1. What is the minimum premium for New Bima Bachat 916?
👉 Depends on age, term, and sum assured; generally starts around ₹30,000–₹35,000.
Q2. Is survival benefit deducted from maturity?
👉 Yes, survival benefits are paid in advance, maturity includes the balance sum assured.
Q3. Is Loyalty Addition guaranteed?
👉 No, it depends on LIC’s performance.
Q4. Can I take a loan against this plan?
👉 Yes, after one year.
Q5. Who should buy this plan?
👉 Risk-averse investors, salaried individuals, homemakers, and retirees.
Final Thoughts – Should You Invest in LIC New Bima Bachat 916?
✔ Best for conservative investors who want insurance + assured cash flow.
✔ Suitable for middle-class families, homemakers, and people nearing retirement.
✔ Ideal for those who prefer a one-time investment without yearly premium obligations.
✔ Provides peace of mind, liquidity, and life cover.
⚠️ Not for investors seeking high growth or market-linked returns.
Conclusion:
LIC New Bima Bachat Plan 916 is like a fixed deposit with insurance benefits – safe, trusted, and reliable. For Indians who value security, discipline, and LIC’s legacy, this plan is a smart addition to their financial portfolio.
