What Are The Key Benefits Of the LIC Money Back Plan?
Updated On Mar 02, 2022
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People who wish to invest in low-risk assets, have both wealth building and life insurance coverage, expect strong investment returns, and want to be reimbursed if certain criteria are met are the greatest candidates for Lic's New Money-back plans. These plans are suitable for people who want funds on a consistent basis, such as for their children's education. A new money-back plan from a LIC is a sensible investment and insurance alternative for a multitude of reasons. The following are some of the characteristics and advantages that make it a desirable purchase.
Features of the LIC Money-Back Plan
The following are some of the most important characteristics:
- Taking part in the usual strategy.
- A basic procedure with an additional option.
- Premiums must be paid for 15 years in order for the coverage to last 20 years.
- If the policyholder is still alive after the fifth, tenth, and fifteenth years, he or she will get a survival bonus equivalent to 20% of the base value insured. The policy remains in effect.
- Surviving after the insurance period is rewarded with 40% of the base value paid out, plus any bonuses received (remaining).
- If the policyholder dies within the policy period, a death payment equal to the sum guaranteed plus a cumulative bonus is paid.
- 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:
1. Death Benefit-If the policyholder dies during the policy term, the nominee receives the "Sum Assured on Death," plus any vested bonuses, as a death benefit, and the policy is terminated.
2. Survival Benefit - If the policyholder lives to the age of five, ten, or fifteen, he or she will get 20% of the total sum promised. In this situation, the policy continues in effect until the 20-year term of the insurance expires.
3. Maturity Benefit - If the policyholder survives to the maturity date, they will get 40% of the guaranteed base value, plus any vested simple reversionary bonuses and the final bonus.
While each financial instrument has its own set of advantages, it is critical to first understand them all. When selecting a financial product, it is critical to understand what each one offers and how it will benefit you throughout the duration of your need for it. After all, it's the money you're withholding from your paycheck to invest in a particular strategy. Now that you understand the fundamentals of insurance, you can go ahead and get it. You can add the LIC Accidental Death and Disability Benefit Rider to your policy to supplement your coverage. This is an excellent option for those who want the security of insurance as well as a consistent income. If you want to invest in a money-back program, keep reading to find out which ones are the finest.
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.