Launched by the Life Insurance Corporation of India, the Bhagya Lakshmi Yojana is a micro-insurance product aimed at providing life insurance to the economically weaker sections of society. This scheme ensures that even those with limited financial means can access insurance coverage, promoting financial inclusion and security. The plan is structured to offer life cover and a savings component, making it a comprehensive financial solution for low-income families. In this article, we delve into the key aspects of LIC’s Bhagya Lakshmi Yojana, including its purpose, benefits, and application process.
What is Bhagya Lakshmi Scheme?
LIC’s Bhagya Lakshmi Yojana is a term insurance plan with a unique combination of protection and savings. Unlike typical insurance policies that require regular premium payments, this scheme requires a single premium payment, making it convenient for those with irregular incomes. The plan offers a sum assured in case of the policyholder's demise during the term, along with a maturity benefit if the policyholder survives the policy term.
Key advantages of LIC’s Bhagya Lakshmi Yojana – coverage and maturity benefits
The Bhagya Lakshmi Yojana offers several benefits to policyholders:
- Death cover: In the unfortunate event of the policyholder's death, the beneficiaries will receive a payout equal to the sum assured chosen at the policy's inception.
- Maturity benefit: If the policyholder survives until the end of the policy term, a maturity benefit will be paid, amounting to 110% of the total premiums paid during the policy term, excluding taxes and any extra premiums.
- Surrender value: The LIC Bhagya Lakshmi Plan acquires a paid-up or surrender value based on the policy's premium paying term. For policies with a premium paying term of less than 10 years, the policy will accrue a surrender value after the policyholder has paid premiums for two full years. Conversely, for policies with a premium paying term of more than 10 years, the surrender value is accrued after three full years of premium payments. This feature ensures that the policyholder retains some value from the policy even if they need to discontinue it before the end of the term.
- Easy access: Simple documentation and eligibility criteria ensure easy access to insurance coverage.
- Financial security: Ensures that the policyholder's family is financially protected in case of the policyholder's untimely demise.
Objective of LIC’s Bhagya Lakshmi Yojana - Promoting financial inclusion and savings
The primary objectives of LIC’s Bhagya Lakshmi Yojana include:
- Financial inclusion: To extend life insurance coverage to the economically weaker sections of society.
- Affordable insurance: To provide an insurance plan with a single premium payment, making it accessible for individuals with limited financial resources.
- Savings component: To encourage savings among low-income families through a policy that offers both protection and a maturity benefit.
Who is eligible to apply for Bhagya Lakshmi Yojana?
To be eligible for the LIC Bhagya Lakshmi Yojana, the following criteria must be met:
- Age: The applicant must be between 18 and 55 years old at the time of applying for the policy.
- Income level: The scheme is primarily targeted at individuals from low-income groups.
- Residency: The applicant must be a resident of India.
What are the essential documents required for Bhagya Lakshmi Yojana application?
The following documents are typically required to apply for the Bhagya Lakshmi Yojana:
- Identity proof: Aadhaar card, Voter ID, Passport, or any government-issued ID.
- Address proof: Utility bills, Aadhaar card, Voter ID, or any official document indicating residence.
- Age proof: Birth certificate, Aadhaar card, Passport, or any document that verifies the applicant’s age.
- Income proof: Documents or certificates indicating the applicant’s income level, if applicable.
How to apply for LIC’s Bhagya Lakshmi Yojana?
The process to apply for LIC’s Bhagya Lakshmi Yojana is straightforward:
- Visit LIC office or agent: Approach the nearest LIC office or an authorised LIC agent to obtain information and the application form.
- Fill application form: Complete the application form with accurate personal and financial details.
- Submit documents: Provide the necessary documents such as identity proof, address proof, age proof, and income proof.
- Pay premium: Make the single premium payment as required by the policy.
- Receive policy documents: After verification and processing, receive the policy documents, which include the terms and conditions of the policy.
Conclusion
LIC’s Bhagya Lakshmi Yojana is an innovative scheme designed to bring the benefits of life insurance to the underprivileged sections of society. By combining the elements of protection and savings in a single premium policy, LIC has ensured that even those with limited financial means can secure their future and that of their families. The scheme's simplicity, affordability, and comprehensive benefits make it an attractive option for low-income individuals seeking financial security. As the scheme continues to reach more people, it plays a crucial role in promoting financial inclusion and stability across India.
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