Formula
P = (T − R) × (1 − m) × S / 1000
I = P / f
T = A / (ä × (1 − λ))
M = G
P × Σt=0k−1 (1 + r)−t = M (1 + r)−n
where
- P
- annual premium
- T
- tabular premium per ₹1,000 of sum assured, for your age, term and premium paying term
- R
- high sum assured rebate, ₹ per ₹1,000, from this plan's table (nil on smaller policies)
- m
- mode rebate: 2% yearly, 1% half-yearly, nil quarterly and monthly
- S
- Basic Sum Assured
- I
- each instalment
- f
- instalments a year: 1, 2, 4 or 12
- A
- present value, per ₹1,000 of sum assured, of everything the policy pays: death cover, survival benefits and maturity
- ä
- present value of ₹1 a year, paid at the start of each year of the premium paying term while you are alive
- λ
- expense loading, 11%
- M
- maturity amount
- G
- guaranteed maturity sum, equal to S
- r
- annualised return: the rate that makes both sides equal
- n
- policy term, in years
- k
- premium paying term, in years
*Source LIC Micro Bachat brochure (PDF)
In short (tl;dr)
Micro Bachat is LIC's micro insurance endowment: ₹1 lakh to ₹2 lakh of cover over 10 to 15 years, premiums for the whole term, and the sum assured back at maturity.
Worked example: at 25, ₹1,00,000 of cover over 15 years costs ₹5,385 a year for 15 years and is projected to pay ₹1,00,000 at maturity, a return of 2.62% a year.
What is LIC Micro Bachat?
Micro Bachat (Plan 751) is a participating endowment in LIC's micro insurance range. You choose a Basic Sum Assured between ₹1 lakh and ₹2 lakh and a term of 10 to 15 years, and pay premiums for the whole term. At maturity LIC pays the Basic Sum Assured. If you die during the term, your nominee receives the Sum Assured on Death.
It is sold without a medical examination, to standard healthy lives aged 18 to 55. That is the reason for the ₹2 lakh ceiling, which applies to everything one person holds under any version of the plan. It can be bought through an agent, a Point of Sales Person, a Common Public Service Centre, or online on LIC's website.
There is no annual bonus. The plan's share in profits comes as a Loyalty Addition that LIC may declare once five policy years are complete and at least five full years' premiums have been paid. LIC has not published a rate for it, so this calculator shows the guaranteed sum assured only. In the brochure's own illustration, a 25-year-old with ₹1 lakh over 15 years pays ₹5,385 a year, ₹80,775 in all, and receives ₹1,00,000 at maturity, plus ₹500 of Loyalty Addition in the scenario that assumes an 8% return.
If premiums stop after three full years, the policy keeps full death cover for six months from the first unpaid premium; after five full years, for two years. LIC calls this the Auto Cover Period.
Key features
- Basic Sum Assured from ₹1 lakh to ₹2 lakh
- Policy terms of 10 to 15 years, premiums for the whole term
- No medical examination, for standard healthy lives aged 18 to 55
- Auto cover for six months to two years if premiums stop after three or five years
- Loan available after the first policy year
Micro Bachat at a glance
- Plan number
- 751
- Category
- Micro Insurance
- Entry age
- 18 to 55 years
- Policy term
- 10 to 15 years
- Premium paying term
- Same as policy term
- Sum assured
- ₹1 Lakh to ₹2 Lakh
- Maximum maturity age
- 70 years
- UIN
- 512N329V03
We checked the plan number and UIN above against LIC's own page for this plan on 2026-10-02. Check it on licindia.in
Is it 751, 951 or 851?
LIC's own page gives this plan as 751 with UIN 512N329V03, and the sales brochure cover prints both. The V03 is a version marker, so this is the third version. LIC's withdrawn plans page lists Plan 851 (UIN 512N329V01) as withdrawn in financial year 2019-20 and Plan 951 (UIN 512N329V02) as withdrawn in financial year 2024-25. If 951 or 851 is what your policy document says, that document governs your policy; a later version does not change the terms yours was sold on.
What are the benefits of LIC Micro Bachat?
What does LIC Micro Bachat pay on death?
Sum Assured on Death, the higher of the Basic Sum Assured and 7 times the annualised premium, never less than 105% of premiums paid. After five policy years any Loyalty Addition is added. Cover starts on the date the risk is accepted.
What do you get at maturity?
The Basic Sum Assured, plus any Loyalty Addition LIC declares, at the end of the policy term.
Who is LIC Micro Bachat for?
Someone who wants a small amount of cover with forced savings, and who would rather not go through a medical examination.
What should you watch out for?
Only the sum assured is guaranteed. In the brochure's 15-year illustration the premiums total ₹80,775 against a ₹1,00,000 maturity, so the return before any Loyalty Addition is modest. Check the total premium payable against the maturity figure before buying.
What does LIC Micro Bachat cost?
Worked out on a 15-year term with premiums paid for 15 years. Change any of these in the calculator above for your own figures.
By sum assured, at age 25
| Sum assured | Premium a year | Total paid in | Projected maturity |
|---|---|---|---|
| ₹1,00,000 | ₹5,385 | ₹80,775 | ₹1,00,000 |
| ₹2,00,000 | ₹10,182 | ₹1,52,730 | ₹2,00,000 |
Premiums are modelled on this plan's own tabular rates. The additions on this plan are contractual rather than declared, so unlike a with-profits plan the figure does not rest on a bonus declaration.
By age, on ₹1,00,000 of cover
Sum assured moves the premium almost in a straight line, so the table above is easy to read across. Age does not, and it is the input people most often want to test before filling anything in.
| Age at entry | Premium a year | Total paid in | Projected maturity | Age when it pays |
|---|---|---|---|---|
| 25 years | ₹5,385 | ₹80,775 | ₹1,00,000 | 40 |
| 30 years | ₹5,389 | ₹80,828 | ₹1,00,000 | 45 |
| 40 years | ₹5,426 | ₹81,391 | ₹1,00,000 | 55 |
| 50 years | ₹5,582 | ₹83,728 | ₹1,00,000 | 65 |
The premium barely moves across the rows. Mortality is a small part of a savings premium and the savings part is the same at any age. What age changes is the last column: when the money arrives, and how old you are when it does.
LIC's own sample premium, from the brochure
From the sourceNot modelled: this is the table LIC prints in its own brochure (Sales brochure, section 7 Sample Illustrative Premium), at ₹1,00,000 of cover, the sum assured LIC chose to illustrate. Everywhere else on this page the premium is worked out for the sum assured you enter; here it is fixed at that figure, because that is what LIC published.
These figures are taken from the document linked below. Check them there.
| Age at entry | 10 years | 12 years | 15 years |
|---|---|---|---|
| 18 | ₹8,722 | ₹7,012 | ₹5,380 |
| 25 | ₹8,727 | ₹7,017 | ₹5,385 |
| 35 | ₹8,761 | ₹7,061 | ₹5,439 |
| 45 | ₹8,923 | ₹7,247 | ₹5,664 |
| 55 | ₹9,388 | ₹7,752 | ₹6,233 |
Priced on ₹1,00,000 of cover, exclusive of taxes, standard lives. Our own model is anchored on the age 25, 15-year term cell in this table; the other cells are the real test of the model, and the editorial and methodology policy publishes how far off they run.editorial and methodology policy publishes how far off they run.
Where the maturity figure comes from
Taken apart, on the ₹1,00,000 policy in the first table. Every line is contractual on this plan: the additions are written into the policy at a stated rate rather than declared each year, so none of this depends on how LIC's investments do.
- Basic sum assured (guaranteed)
- ₹1,00,000
- Paid at maturity
- ₹1,00,000
- Return a year on the premiums
- 2.62%
When does LIC Micro Bachat pay for itself?
The grey line is what you have paid in by each policy year. The yellow line is what the policy has paid back by then. They cross in year 15, which is the point the policy has returned everything it cost.
That return counts everything the policy pays back, income included, against everything you put in, after the cost of the life cover it carried for 15 years. It is not a market return. On this plan the figures behind it are contractual, so it moves only with the age and term you enter.
Who can take LIC Micro Bachat?
Age to start
- Minimum
- 18 years
- Maximum
- 55 years
Policy term
- Minimum
- 10 years
- Maximum
- 15 years
Age when the policy matures
- Maximum
- 70 years
Your age at entry plus the policy term cannot come to more than 70.
Years you pay for
- Premium paying term
- Same as the policy term
Sum assured
- Minimum
- ₹1,00,000
- Maximum
- ₹2,00,000
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 2 of the Micro Bachat sales brochure, linked in the form above.
Tax on LIC Micro Bachat
Two provisions do the work, and both turn on the size of the premium rather than on the plan. The Income-tax Act, 2025 renumbered both from 1 April 2026 without changing the rules, so each is given here under its old number and its new one.
Section 80C, now Section 123, on what you pay in
Premiums count towards the ₹1.5 lakh limit, in the year they are paid, if you are on the old regime. The deduction is restricted where the annual premium is more than 10% of the sum assured.
Section 10(10D), now Schedule II, on what comes back
Maturity proceeds are exempt where the premium in every year stays inside 10% of the sum assured, and, for a policy issued on or after 1 April 2023, where the premiums on all such policies together stay inside ₹5 lakh a year. Death proceeds are exempt either way.
Where this policy sits
The ₹1,00,000 policy priced above costs ₹5,385 a year, which is 5.4% of the sum assured. That is inside the 10% test, on both provisions. A larger sum assured moves the ratio down.
GST
Nil. Individual life insurance premiums have been exempt since 22 September 2025, so the instalment the calculator shows is the amount that leaves your account.
None of this is tax advice. Which regime you are on, what else you hold and when the policy was issued all change the answer, so confirm your own position with a tax adviser before you rely on it.
How this calculator works
Micro Bachat is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule, meaning the death benefit in each policy year, every survival payout and the maturity value, then discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- ₹54.95 per ₹1,000 at age 25, 15-year term, 15-year premium term
- Discount basis
- 3.91% a year, on LIC (2012-14) Ultimate mortality
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:Micro Bachat on licindia.inLIC valuation and bonus declarationsIRDAI regulations
How LIC Micro Bachat compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| Micro BachatNo. 751 · this page | 10 to 15 years | The full term | ₹1 Lakh | A small endowment for ₹1 lakh to ₹2 lakh of cover, sold without a medical examination. |
| New Endowment PlanNo. 714 | 12 to 35 years | The full term | ₹2 Lakh | LIC's plainest savings-and-cover contract: the sum assured plus bonus at maturity, and nothing paid out before it. |
| Jeevan AzadNo. 768 | 15 to 20 years | Term minus 8 years | ₹2 Lakh | Short premium term, guaranteed maturity equal to the sum assured. |
| Bima JyotiNo. 760 | 15 to 20 years | Term minus 5 years | ₹1 Lakh | Non-participating endowment with a guaranteed addition of ₹50 per ₹1000 every year. |
| Saral Jeevan BimaNo. 859 | 5 to 40 years | The full term | ₹5 Lakh | The standard term plan every insurer must offer, with identical terms across the market. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
LIC Micro Bachat: frequently asked questions
What is the premium for LIC Micro Bachat?
LIC's brochure prints yearly premiums, before tax, for ₹1 lakh of Basic Sum Assured. At age 18 they are ₹8,722, ₹7,012 and ₹5,380 for 10, 12 and 15 years. At age 35, ₹8,761, ₹7,061 and ₹5,439. At age 55, ₹9,388, ₹7,752 and ₹6,233. The calculator above prices other combinations on a model calibrated to that table.
What do I get at maturity?
The Basic Sum Assured, plus a Loyalty Addition if LIC declares one. The Loyalty Addition is not guaranteed and LIC has not published a rate for it.
What is the maximum sum assured in Micro Bachat?
₹2,00,000, and that is the total across every Micro Bachat policy on one life, including earlier versions. The minimum is ₹1,00,000. Amounts go up in steps of ₹10,000 to ₹1,80,000, and the next step is ₹2,00,000.
Who can buy Micro Bachat?
Standard healthy lives aged 18 (completed) to 55 (nearer birthday). There is no medical examination. The policy has to mature by age 70.
What is the Loyalty Addition?
A share in profits that LIC may declare from its experience on this plan. It is paid at maturity, or on death after five policy years, provided at least five full years' premiums have been paid. On a surrender it counts only towards the special surrender value.
What happens if I stop paying?
After one full year's premium the policy becomes paid-up, with the sum assured cut in proportion to the premiums paid. After three full years you also keep full death cover for six months from the first unpaid premium, and after five full years for two years, with the unpaid premiums and interest deducted from a claim.
Can I take a loan on Micro Bachat?
Yes, after the first policy year once a full year's premium is paid. The loan can be up to 70% of the surrender value on an in-force policy and 60% on a paid-up one.
Is this plan 751, 951 or 851?
All three are versions of Micro Bachat. Plan 851 (UIN 512N329V01) was withdrawn in 2019-20 and Plan 951 (UIN 512N329V02) in 2024-25, according to LIC's withdrawn plans page. The current version is Plan 751 (UIN 512N329V03). If your policy document says 851 or 951, that document governs your policy.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against Micro Bachat before deciding.
New Endowment Plan
No. 714LIC's plainest savings-and-cover contract: the sum assured plus bonus at maturity, and nothing paid out before it.
Open calculatorJeevan Azad
No. 768Short premium term, guaranteed maturity equal to the sum assured.
Open calculatorBima Jyoti
No. 760Non-participating endowment with a guaranteed addition of ₹50 per ₹1000 every year.
Open calculatorSaral Jeevan Bima
No. 859The standard term plan every insurer must offer, with identical terms across the market.
Open calculator