Facts You Must Know About LIC Money Back Plan
Updated On Sep 18, 2023
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A money-back plan is a type of life insurance policy that pays out a portion of the agreed-upon amount every few years. As a survivor benefit, the money invested is repaid to the policyholder. Money-back insurance is a type of insurance that may be used to cover large future expenses and has low premium rates. LIC is at the top of the list when it comes to insurance companies that provide money-back guarantees. Take a look at one of the most popular money-back schemes offered by LIC. The Life Insurance Corporation of India (LIC) offers a diverse variety of insurance products to fulfil the demands of a diverse group of customers.
Features of the LIC Money-Back Plan
The following are some of the most important qualities of:
- Taking part in the conventional strategy.
- A basic procedure with an additional option.
- Premiums must be paid for 15 years in order for the coverage to last 20 years.
- A survival incentive equivalent to 20% of the base amount covered is granted if the policyholder is still alive after the fifth, tenth, and fifteenth years.
- Surviving after the insurance period is rewarded with 40% of the standard payout plus any bonuses acquired (remaining).
- The sum guaranteed plus a cumulative bonus is paid as a death benefit if the policyholder dies during the policy period.
- There are tax advantages, according to the Income Tax Act.
Advantages of the LIC Money Back Plan
The key benefits of the LIC Money Back Plan are as follows:
- Death Benefit - The nominee receives the "Sum Assured on Death," plus any vested bonuses, as a death benefit if the policyholder dies during the policy term, and the policy is cancelled.
- Survival Benefit - The policyholder will get 20% of the entire amount guaranteed if he or she survives to reach five, ten, or fifteen years old. In this situation, the policy will stay in force until the 20-year term of the insurance ends.
- Maturity Benefit - The policyholder will get 40% of the guaranteed base amount, plus any vested simple reversionary bonuses and the final bonus, if they survive to the maturity date.
While each financial instrument has its own set of advantages, it is critical to have a thorough understanding of all of them. When buying a financial product, it's critical to know what each one has to offer and how it will benefit you throughout the course of the time you need it. After all, you're deducting money from your paycheck to invest in a certain strategy. Now that you've learned the fundamentals of insurance, you can go ahead and get it. You may add the LIC Accidental Death and Disability Benefit Rider to your policy to augment your coverage. This is an excellent option for those who want the assurance of insurance as well as a consistent income. If you want to put money into a money-back programme, keep reading to find out which ones are the finest.
You may also like to read - Common Exclusions in Money Back Plans
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.