Life Insurance Corporation (LIC) of India, the country’s largest life insurance company, offers various life insurance products or life insurance policies (LIC Policy). LIC’s life insurance policies include term insurance plans, endowment insurance plans, pension plans, and money back plans among others like unit-linked insurance plans. LIC New Money Back Plan 20 Years is one of the money back plan being offered by the company which offers protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the policy term, according to LIC‘s website.
LIC’s New Money Back Plan 20 years is a non-linked participating policy which in addition to periodic payment on survival at specific periods during the term. As part of the policy, 20% of Sum Assured is paid as survival benefit at the end of 5, 10 and 15 years. Also, a simple reversionary bonus is payable on maturity. LIC’s new money back policy provides accidental death and disability benefit riders. Policyholders can also avail of loan facility under the policy.
The LIC new money back policy can be surrendered only after it accrues cash value after payment of 3 years of premiums. If policyholders stop paying the premium, the policy ceases to exist. Nevertheless, if premiums have been paid for three years, a paid-up value is accrued for a reduced sum assured. However, the policyholder cannot avail of additions in the future.
The LIC new money back policy can be revived under two years from the day of the unpaid premium. The revival of the policy will be effective after it is duly approved by LIC, which informs the policyholder. Policyholders can also take a loan against the policy provided it has acquired a surrender value.
LIC Money Back Plan 20 Years: Highlights & Benefits
- Death benefit: If the policyholder dies during the policy term, the nominee will get 10 times of annualized premium or 125% of the Basic Sum Assured, vested simple reversionary bonuses, and final additional bonus. Also, the periodical survival benefits which have been paid will not be deducted.
- Survival Benefits: If the policyholder survives the policy term, the nominee will receive 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year and 40% of Sum Assured in addition to accrued bonuses.
- Maturity Benefit: If the Life Assured survives till maturity, 40% of the Basic Sum Assured in addition to simple reversionary bonuses and the final additional bonus will be paid.
LIC Money Back Plan 20 Years: Eligibility Conditions
- Minimum Basic Sum Assured: Rs 1 lakh
- Maximum Basic Sum Assured: No Set Limit
- Minimum Age: 13 years
- Maximum Age: 50 years
- Maximum Maturity Age for Life Assured: 70 years
- Term: 20 years
- Premium paying term: 15 years
LIC Money Back Plan 20 Years: Accidental Death and Disability Benefit Rider
- Minimum Accident Benefit Sum Assured: Rs 1 lakh
- Maximum Accident Benefit Sum Assured: Amount equal to the Sum Assured under the Basic Plan (maximum of Rs 50 lakh) Accident Benefit Sum Assured.
- Minimum Age: 18 years
- Maximum Age: Can opt at any time.
- Maximum cover: 70 years
Payment of premiums: Here are the premiums per Rs 1000 of basic sum assured.
- For people of age 20, Premium- Rs 78
- For people of age 30, Premium- Rs 79.10
- For people of age 40, Premium- Rs 82.95
- For people of age 50, Premium- Rs 92.05
Also Read: LIC Jeevan Lakshya Plan