What Are The Benefits Of Investing In A LIC Money Back Plan?

People who want to invest in low-risk assets, have both wealth building and life insurance coverage, expect high investment returns, and want to be paid during the policy duration if certain requirements are met are the best candidates for Lic's New Money-back plans. These plans are ideal for people who need money on a regular basis, such as for their children's education. For a variety of reasons, a new money-back plan from a LIC is a wise investment and insurance option. The following are some of the features and benefits that make it appealing to purchase.

Features of the LIC Money-Back Plan

Some of the most essential characteristics of are as follows:

Must Read: What Makes Money Back Plans A Good Choice For Investment?

• Participating in the traditional strategy.
• A simple technique that includes an extra option.
• In order for the coverage to last 20 years, premiums must be paid for 15 years.
• If the policyholder is still living after the fifth, tenth, and fifteenth years, a survival incentive equal to 20% of the base value insured is given. The policy is still in effect.
• Surviving after the insurance period is rewarded with 40% of the basic value paid out, plus any collected bonuses (remaining).
• If the policyholder dies during the policy period, the sum guaranteed plus a cumulative bonus is paid as a death benefit.
• According to the Income Tax Act, there are tax benefits.

Advantages of the LIC Money Back Plan

The following are the main advantages of LIC Money Back Plan:

• Death Benefit - If the policyholder dies during the policy term, the nominee gets the "Sum Assured on Death," plus any vested bonuses, as a death benefit, and the policy is canceled.
• Survival Benefit - If the policyholder lives to be five, ten, or fifteen years old, he or she will get 20% of the total amount guaranteed. In this case, the policy remains in effect until the insurance's 20-year term expires.
• Maturity Benefit - If the policyholder lives to the designated maturity date, they will receive 40% of the guaranteed base amount, plus any vested simple reversionary bonuses and the final bonus.

Conclusion

While each financial instrument has its own set of benefits, it is crucial to first have a complete grasp of them all. When purchasing a financial product, it is vital to understand what each one offers and how it will benefit you throughout the length of the time you require it. After all, it's your money that you're deducting from your salary to invest in a certain strategy. Now that you know the basics of insurance, you can go ahead and get it. To supplement your coverage, you may add the LIC Accidental Death and Disability Benefit Rider. This is a great choice for people who desire the security of insurance as well as a steady income. If you want to invest in a money-back programme, keep reading to learn about the best ones available.

Also Read: How To Choose A Good Money Back Policy?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.