LIC’s Micro Bachat Plan is a regular‑premium, savings‑cum‑protection micro‑insurance policy designed specifically for low‑income earners, rural households, and informal‑sector workers. It allows individuals to build a long‑term corpus through small, manageable instalments, while ensuring their families receive basic life cover throughout the policy term.
For workers who want disciplined savings without complexity, Micro Bachat acts as a simple, reliable long term savings plan for workers who may not have access to formal financial tools.
Why LIC’s Micro Bachat Plan Works as a Long Term Savings Plan for Workers
LIC’s Micro Bachat Plan is a traditional, non‑linked, participating policy, which means it combines:
- Insurance protection, and
- Savings that may earn loyalty additions (as per LIC’s current rules)
Policyholders pay regular premiums for a fixed term.
- If they survive to maturity, they receive a lump sum (basic sum assured + any applicable loyalty additions).
- If the policyholder passes away during the term (with due premiums paid), the nominee receives the death benefit as per the plan’s conditions.
This structure makes Micro Bachat ideal for workers who want their small “micro” savings to grow into a meaningful corpus over 10–15 years, while keeping their families financially protected.
Key Features of LIC’s Micro Bachat Plan for Low‑Income Workers
1. Designed for modest incomes
The plan is tailored for rural and informal‑sector workers, allowing them to start with low basic sum assured amounts that fit their income levels.
2. Policy terms of 10–15 years
The premium‑paying term is usually the same as the policy term, encouraging disciplined long‑term savings.
3. Flexible premium payment modes
Workers can pay premiums:
- Annually
- Half‑yearly
- Quarterly
- Monthly
This helps them align payments with their wage cycles.
4. Loan availability and loyalty additions
After a minimum period, policyholders may be eligible for:
- Policy loans, and
- Loyalty additions (as per LIC’s current rules)
These features make the plan useful both as protection and as a small savings instrument.
5. Optional accident‑related riders
Workers in physically demanding jobs can enhance their protection with accident benefit riders, available under the current version of the plan.
6. Always check the latest LIC rules
Features, eligibility, and benefits may change. Workers and employers should always refer to the latest LIC brochure before purchasing.
How Employers Can Use Micro Bachat as a Long Term Savings Plan for Workers
Forward‑thinking employers can use LIC’s Micro Bachat Plan to strengthen employee welfare by:
1. Educating workers about long‑term savings
Show workers how small monthly premiums over 10–15 years can build a useful corpus while providing life cover.
2. Helping workers choose affordable premiums
Encourage workers to select a sum assured and premium that fits their income, especially using monthly mode for easier budgeting.
3. Organising awareness sessions
Invite a Life Insurance Advisor to explain the plan’s features, benefits, and limitations in simple language.
4. Avoiding unrealistic promises
Employers should not quote fixed maturity values or guaranteed returns.
Loyalty additions and bonuses depend on LIC’s current rules and performance.
Instead, highlight that Micro Bachat is a small‑savings, long‑term, protection‑plus‑savings plan that supports workers’ financial security.
Role of a Life Insurance Advisor
Setting up LIC’s Micro Bachat Plan in a worker‑friendly way often requires guidance from a Life Insurance Advisor who can:
- Estimate suitable sum assured and policy terms for workers of different ages and income levels
- Explain current features, eligibility, riders, and premium modes in simple terms
- Help workers complete proposal forms correctly
- Assist in tracking premium payments so policies do not lapse
A Life Insurance Advisor ensures workers understand what they are signing up for and helps employers design a practical, sustainable welfare initiative.
Get Personalised Guidance
For one‑to‑one help in using LIC’s Micro Bachat Plan as a long term savings plan for workers, or to set up a structured employee welfare program, contact:
📞 +91‑7832933580
Life Insurance Advisor – Helping workers and employers make informed insurance decisions