Bima Bachat is a life insurance plan offered by LIC of India, which is a unit linked insurance plan. It offers a guaranteed loyalty addition of around 5-7% of the sum assured per year. This loyalty addition is added every year from the sixth policy year onwards and will continue till the policy matures.
The loyalty addition is calculated on the basic Sum Assured, provided no loan or partial withdrawal is availed by you. The actual amount of Loyalty Addition varies based on your policy term and rate of interest declared by the LIC. Overall, the loyalty addition offered by Bima Bachat helps you to maximize the savings and get a decent return on your investments.
It is important to note that, the Loyalty addition is paid out only when the policy matures and if all premiums are paid. Therefore, if you wish to avail the maximum benefits, it is recommended that you pay all your premiums on time so that you are eligible to receive the full amount of Loyalty addition and your policy can be terminated without any liability.
In addition, if you surrender the policy before maturity, you will not be eligible to receive the Loyalty addition. Therefore, it is recommended that you continue to apply the policy till its maturity so that you can get the maximum benefit from the loyalty addition.
Further, you can also double your loyalty addition by investing in the Bima+ Double benefit plan. It is important to remember that, there are some specific eligibility criteria for this plan, so it is best to check them out with LIC before investing in it.
To sum up, the Loyalty Addition offered by Bima Bachat is a great way to maximize your savings and get a decent return on your investments. It is important to remember that all premiums should be paid on time and the policy should run its full term to avail the maximum Loyalty Addition.