LIC Bachat Plus Plan 861 – Don’t Invest

LIC Bachat Plus Plan 861 is the newly launched plan by LIC. It is a dual plan of insurance protection and saving. It is a non-linked, participating, individual & life assurance savings plan. It provides financial support to the family of the deceased any time before the maturity of the surviving policyholder.

The policyholder can avail of the facility of loan against the sum assured. There are two premium payment options, 1-time lump sum or for a limited period of 5 years. The plan can be purchased offline through the designated distributors/insurance agents or through online at the LIC website. This plan is the closed-ended plan and is available for 180 days from the date of launch.

The launch date for this plan is 15/03/2021 and the UIN of LIC’s Bachat Plus is 512N340V01.


“Tabular Premium” shall be the premium as applicable for Single Premium or Limited Premium for the chosen option and Basic Sum Assured based on the age of the Life Assured before allowing for any rebate or extra loadings. It does not include any taxes and Rider Premium if any.

Premium Details

Single Premium

Details of the single premium is as below.

Limited Premium Option

Limited premium option with the sum assured of ₹ 1 lakh is as below.

Benefits of LIC Bachat Plus Plan 861

Maturity Benefits

If the policyholder survives through the policy period, the sum assured amount will be given n maturity. Also, the loyalty addition (if any shall be payable), the condition is where the “sum assured on maturity” is equal to the basic sum assured.

The policy holder can claim the maturity benefits as one time lumpsum or in an instalment.

Death Benefits

On death during the first five years: Under this scheme, the risk cover starts after the 5th year of the policy period. So in case, the death of the policyholder occurs before that period, the premium paid to date will be refunded without any interest amount.

If the death of the policyholder occurs after the commencement of risk cover, then the entire sum assured will be paid to the family of the policyholder.

Sum assured on death with the loyalty amount will be given to the family of the policy holder.

LIC Bachat Plus Plan 861 vs Term Insurance Plan

Let’s compared this plan with the traditional term insurance plan. Why this comparison is to make an informed decision that whether you should go for this plan or not.

LIC Bachat Plus Plan 861Term Insurance Plan
It is a flexible plan in which you can select the policy time and payment optionIn term of insurance plan, you can choose the policy time
Offers liquidity optionNo. such liquidity option
Has riddersDoesn’t have any riders
The philosophy of this plan is ‘Life assurance saving plan’It is a pure insurance plan
The return on the policy will be 5% to 6%No. such return on the policy

LIC Bachat Plus Plan 861 – Should You Buy?

As I mentioned in the title itself, don’t invest in this policy. It is just for making you fool. Again LIC has come up with the endowment and investment clubbed plan.

You should never mix insurance and investment, they both never go hand in hand. Under this plan, if the policyholder survives, he/she will get around a 6% return on the investment. Why would you go for only a 6% return when there are many options like mutual funds, PPF, Liquid funds available in the market.

Rather, go for a plain vanilla term insurance plan for life cover and invest in mutual funds or stocks if you have guts and patience.

FAQs – LIC Bachat Plus Plan 861

What is the premium payment term for this policy?

The premium payment term for this plan is 5 years.

What is the loan amount can I avail?

The loan of up to 90% of the sum assured amount will be given as a loan.

What is the minimum age entry for this plan?

The minimum age entry for option 1 is 90 days.

Are there any policy riders?

Yes, there are policy riders. Please read the offer document for details.

Are there any free look period for this policy?

There is a 15 days free look period for this policy.

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