In summary

LIC’s Bhagya Lakshmi Plan was a micro insurance term plan with a maturity payout, but it is no longer available for new purchases because LIC withdrew Plan No. 939 on 1 January 2025.

• The plan offered a sum assured from Rs. 50,000 to Rs. 2 lakh per life.
• The minimum entry age was 8 years, while the maximum was 42 or 55 years depending on the premium paying term.
• The maximum maturity age was 65 years.
• Maturity benefit was 110% of the total premiums payable, excluding taxes and extra premiums, subject to the plan conditions.
• Premiums were payable regularly over the selected premium paying term.

If you are looking for current life insurance with protection and savings features, you can compare available life insurance plans based on your financial needs and preferred policy structure.

The plan combined life cover with a maturity benefit. It had a limited premium-paying structure, and premiums could be paid yearly, half-yearly, quarterly or monthly during the premium-paying term.

Because the plan has been withdrawn, the historical features below should be read as information about the product when it was available, rather than as current purchase options.

The maturity calculation excluded taxes and extra premiums, if any. The death cover was also subject to the policy being in force and the applicable policy conditions.

The plan also included surrender and paid-up provisions. A policy could acquire surrender value after at least one full policy year of premium payments.

Its product structure included:

• Life cover during the policy term.
• A maturity payout linked to the total premiums payable.
• Sum assured options from Rs. 50,000 to Rs. 2 lakh per life.
• Premium paying terms from 5 to 13 years.
• A policy term equal to the premium-paying term plus 2 years.

The product therefore addressed a specific micro insurance need rather than providing the larger coverage amounts commonly associated with conventional term insurance.

The plan also required the sum assured to be in multiples of Rs. 1,000. The total sum assured under all policies issued to one individual under the plan and its earlier versions could not exceed Rs. 2 lakh.

The Karnataka Government also states that up to 50% can be withdrawn for education under the scheme.

Note: Older Karnataka Government pages list figures such as Rs. 34,751 maturity, Rs. 1 lakh accident cover and Rs. 42,500 natural death cover. These relate to the earlier scheme structure and should not be presented as current benefits.

This scheme should not be confused with LIC’s Bhagya Lakshmi Plan, which was a separate life insurance product and was withdrawn on 1 January 2025.

For historical reference, the policy document specifically contains provisions relating to proof of age, which was used to verify the age declared in the proposal.

As stated in the V04 brochure, premiums could be paid yearly, half yearly, quarterly or monthly during the selected premium paying term. However, LIC withdrew the plan on 1 January 2025, so it is not currently available for online purchase.

The plan's maturity benefit was linked to 110% of the total premiums payable during the policy term, subject to the applicable policy conditions. Premiums could be paid yearly, half yearly, quarterly or monthly during the premium paying term.

Current life insurance options can vary in terms of life cover, premium payment period, policy term and benefits. The choice of a policy can therefore depend on the level of financial protection, savings goals and policy duration required.