What is LIC Money Back Policy
Updated On Jul 13, 2022
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The LIC Money Back Policies are a popular insurance product offered by the company. This type of plan provides the policyholder with a life cover during the policy term. In addition, maturity benefits are also paid out in the form of survival benefits every 5 years. LIC has two new money back plans – LIC Money Back Policy – 20 years and LIC Money Back Policy – 25 years for its customers to choose from.
The LIC Money Back Plans
LIC Money Back Policy – 20 Years
This is a non-linked participating plan that offers the policy owner a combination of death cover throughout the policy term and periodic payment in the form of survival benefit. These benefits provide financial support to the family of the policyholder in case of any unforeseen event.
Benefits of LIC Money Back Policy – 20 Years
This money back plan from LIC of India comes with the following benefits:
- Death Benefit: In case of untimely death of the policyholder during the policy term, their legally authorised nominee or beneficiary will receive 10 times the annual premium or 125% of the sum assured with simple vested reversionary and additional bonuses (if any).
- Survival Benefit: In case of policyholder’s surviving to the specified policy term, the insurance company will pay them 20% of the basic sum assured amount after 5th, 10th and 15th year of the policy.
- Maturity Benefit: 40% of the basic sum assured, simple reversionary and additional final bonuses will be paid by the company if the policy owner survives till the end of the policy term.
LIC Money Back Policy – 25 Years
This is a simple endowment plan with bonus and scheduled payment facilities. The tenure of this plan is 25 years and the premium term is 20 years.
Benefits of LIC Money Back Policy – 25 Years
Just like 20 years money back plan, this policy also offers the same benefits. And these benefits include:
- Death Benefits: If the insured meets with an accident and dies during the policy term, the beneficiary of the policy will receive the sum assured as well as the additional bonus i.e. simple reversionary bonus.
- Survival Benefits: The insurance company will pay a significant amount in the form of survival benefits to the policy owner after the completion of every 5 years i.e. 5th, 10th, 15th and 20th years of the policy. The amount will be 15% of the total basic sum assured. On maturity, the insured will get 40% of the basic sum assured.
- Additional or Supplementary Benefits: These are not mandatory benefits. However, they can be added to the basic insurance plan for more benefit and extra protection. To avail these benefits an addition amount (premium) is needed to be paid by the insured though.
Conclusion
For the payment of premium LIC of India has authorised some banks to collect LIC premiums through these modes. These banks include ICICI Bank, HDFC Bank, Citi Bank, UTI Bank, Corporation Bank, Federal Bank and Bank of Punjab.
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