LIC's New Money Back Plan-20 Years Explained
Published On Aug 07, 2021 12:00 PM By Yamini Sharma
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A money back plan is a life insurance policy type that provides a guaranteed percentage of sum assured every few years. The money invested is given back to the policyholder in the form of a survival benefit. Easily available at affordable premium rates, money back policies can be used for bearing large expenses in the future. When it comes to the insurance companies that provide money back policies, the name of LIC comes at the topmost position. Let us shed light on one of the most popular money back policies by LIC.
LIC's New Money Back Plan-20 Years
LIC's New Money Back Plan-20 Years is a non-linked, participating, individual, limited premium life assurance plan. This policy is a superior combination of life insurance cover along with the periodic payment on survival at regular intervals. Offering guaranteed returns and bonus, LIC's New Money Back Plan-20 Years is one of the best financial supports one can ask for the family.
Eligibility of LIC's New Money Back Plan-20 Years
The eligibility criteria is as follows:
- Entry age - 13 years (minimum); 50 years (maximum)
- Age at maturity - 33 years (minimum); 70 years (maximum)
- Basic sum assured - Rs. 1 Lakh (minimum); no limit on maximum
- Policy term - 20 years
- Premium payment term - 15 years
LIC's New Money Back Plan-20 Years Features
Some of the key features are:
- Participating traditional plan.
- Simple plan with bonus option.
- Premium needs to be paid for 15 years for the policy to continue for 20 years.
- 20% of the basic sum assured is paid as survival benefit if the policyholder is alive at the end of 5th, 10th, and 15th years. The policy continues.
- 40% of basic sum assured (remaining) is given on survival at the end of the policy term in addition to accrued bonuses.
- Sum assured plus accrued bonus is paid as death benefit in case of policyholder’s death during the policy tenure.
- Grace period - 30 days (yearly or half-yearly or quarterly premiums), 15 days (monthly premium)
- Free look period - 15 days
- Tax benefits as per Income Tax Act.
LIC's New Money Back Plan-20 Years Benefits
Prime benefits of the plan are:
1. Death Benefit - If the policyholder dies within the policy tenure, the nominee receives “Sum Assured on Death” in addition to vested bonuses in the form of death benefit and the policy terminates.
2. Survival Benefit - In case of policyholder’s survival, 20% of the sum assured is given at the end of every 5th, 10th and 15th year. In this case, the policy continues till the end of the policy tenure of 20 years.
3. Maturity Benefit - If the policyholder survives the specified date of maturity, they are paid 40% of the basic sum assured as well as vested simple reversionary bonuses and final additional bonus, if any.
Now that you are aware of the key concepts of the policy, go ahead and buy the plan. You can even buy LIC’s Accidental Death and Disability Benefit Rider to enhance the coverage.
Also read - Difference between Money Back Plan and Endowment Plan
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.