LIC's New Money Back Plan-20 Years

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 the 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. What’s more, LIC’s new money back policy provides accidental death and disability benefit riders. Policyholders can also avail of loan facility under the policy.

Key Features and Highlights of LIC Money Back 20 years Policy

• 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. This death benefit shall not be less than 105% of the total premiums paid as on date of death.

• 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 final additional bonus will be paid.

• Participation in Profits

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.

Benefits of LIC Moneyback Plan for 20 Years

• LIC’s Accidental Death and Disability Benefit Rider

Rider can be opted after payment of additional premium provided the policy is in force on the day of the accident. In case of accidental death, the Accident Benefit Sum Assured and the death benefit will be paid. In case of accidental permanent disability, a sum equal to the Accident Benefit Sum Assured will be paid over a period of 10 years. Consequently, future premiums for Accident Benefit Sum Assured will be waived.

• Simple Reversionary Bonus

It is declared per thousand Sum Assured at the end of each a year, following which, they form part of the guaranteed benefits. Simple Reversionary Bonus, therefore, accrues during the premium paying term but is paid at the end of the term or death in addition to the final additional bonus. Simple Reversionary Bonuses is declared as per the performance of the Life Insurance Corporation.

• Final Addition Bonus

Paid if the policy has run for a minimum period. Final Additional Bonus may be declared when a claim is made either as a result of death or maturity, provided the policy has been in effect for a minimum term.

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

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 be opted at any time.
Maximum cover: 70 years

Conclusion

If the Life Assured ends life irrespective of whether sane or insane, in a year, from the date of risk commencement, LIC will not accept any claim except 80% of the premiums paid sans taxes, extra premium and rider premiums. If the Life Assured ends life from the date of revival, 80% of the premiums paid till the date of death (excluding taxes, extra premium and rider premiums) or the surrender value, will be payable.

Also Read: The Importance Of Retirement Planning In One's Life

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