LIC’s new plans 2014-New Bima Bachat (No.816)

Today LIC launched it’s one more revamped plan of old Bima Bachat (No.175). By looking at start of offering to now, it seems that there is not much difference to the old plans. But whether they are cheaper or not is the question, which we will come to know soon. Below is the feature of the plan.

New Bima Bachat (No.816)

What are the changes?

  • Maximum age at entry depends on the term of the policy.
  • Minimum Basic Sum Assured depends on the term of the policy.
  • Rebate on higher SA depends on term of the policy.
  • Change in maturity benefit (excluding the taxes you paid at entry).
  • The death benefit slab is introduced.
  • Change in loan availability feature.
  • Change in GSV and SV.


45 Responses

  1. Hi Basavaraj,

    I read your blog post and its quite interesting.

    I want your help to invest around of money for my little kid in any one of the good options(LIC, NSC. POST kishan vikas patra etc…) for at around 10 years.

    Can you please help me to find out the better options with max return and tax benefits, you can please also suggest plan without tax benefits.

    Waiting for your response.


  2. I invested in a few Bima Nivesh policies. One of them matured in March 2015. Single premium was 491038, sum assured was 500000, maturity amount was 673141. LIC deducted a 2% tax on the final proceeds and I am told that I will be taxed for the entire proceeds. So the tax at 30% slab comes to 201942. If I deduct the tax from the final proceeds, I really got back Rs.472199 after 5 years on a premium of Rs.491038. I made overall a loss of Rs. 18839. Is this right? Not sure why I finally ended up like this. Can you explain.

    Does Bima Bachat also falls under the same tax treatment?

  3. sir, is it lic new bhima bhachat plan A single premium full amoun is eligeble for income tax saving und 80C

  4. Can you tell me what is the IT rebate (available for AY14-15) for a single premium paid under Bima Bachat,Jeevan Shagun policy of LIC, invested after 2014 Sept ?.

  5. Does bima-bachat-816 provides Tax rebate under 80c? Full amount of single premium or Partly?

  6. Dear Basavraj,

    This is regarding my LIC Jeevan saral Policy.

    Sum Assured: Rs. 5 Lacs
    Premium for Annum : 24500/-
    Policy Term : 26 Years

    I have completed three years for above policy. From past 7-10 years I have invested so much in LIC and other private insurance and now I come to know, all traditional plans not give good returns and decided to surrender above policy. In three years premium paid amount is Rs. 73,500/- If now I surrendered the policy, I will get approximately Rs. 44,000/- I feel if I invest 23 more years I will be in huge loss. To get loyalty additions in Jeevan Saral we have to invest at least for 10 years. Again paying for another 7 years premium is good or now only I can surrender this policy ??
    Please advice.


  7. I wish to invest some money, about 50,000,for my son. I am not sure of every year investment in future, so one time investment. I also do not want along lock-in period. Please tell:
    1. Is NSC a better choice than New Beema Bachat Plan ?( If I am ready for 9 yr Beema Bacat Plan).
    2. Do I get tax rebate on – money invested as well as the amount I receive from NSC and New Beema Bachat Plan ?
    My son is eligible for both.

  8. i am a widow of 47 years of age. i have 2 sons age 19 and 21 yrs. i want to secure the future of my children in case i die early. my income is approx 6 lakh p.a. should i go for LIC or any other private insurance company so that my money is safe.i also want to know should i go for term plan or endowment plan?
    kindly advise.

    1. Rachna-Please stay away from any endowment plans. First you need to buy online term insurance to the tune of around 15-20 times of your yearly income (better to include current values of future education cost of both kids). Then invest or choose a product based on time horizon and risk appetite.

  9. Hi Basu,

    Can you suggest me good single premium plan (Up to 50k) of LIC & other company for Insurance \ Investing planning ?


      1. Hi,

        just to save spare money but not possible for every time to spare money and invest. Also heard about single premium plans but not sure as don’t have much knowledge in it..

        But you can suggest me other way or plans where i can invest money..


          1. Hi Basu,

            I want to invest this money for 10 to 15 years slab which help me out for my child or any other purpose.

            I am very confuse after went through many plans and can’t judge which is suitable for me.

            Pl guide.

            1. Parthiv-If your only concern is to earn around 8% to 9% and investing lumpsum then why can’t you opt for any tax free bonds? Also at the same time don’t forget to first buying term insurance of around 15 times of your yearly income first. Then invest. But not in this plan friend.

                  1. Hi Basu,
                    Canyou tell me what is the IT rebate(availablefor AY14-15) for a single premium paid under Bima Bachat policy of LIC, invested in 2014 Jan ?.

  10. I want all the new policy details of LIC with illustration like with some example that if we pay this amount for this many year then how much one will be getting including Sum assured, additional bonus and other bonus. It will help us to give the correct picture

  11. I want to know about LIC branch offices in Bangalore. I stay near to Electronic city and new to Bangalore. help me out

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