Who Should Buy LIC Money Back Plan?
Updated On Sep 20, 2021
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The LIC's New Money Back Plan-20 Years is a non-linked, individual, limited premium life assurance plan with a 20-year term. This policy provides an excellent combination of life insurance coverage and monthly payments on survival at regular periods. LIC's New Money Back Plan-20 Years, which offers guaranteed returns and bonuses, is one of the finest financial supports a family can ask for. The LIC's new money return insurance may only be relinquished once it has accrued monetary value after three years of premium payments. If policyholders quit paying their premiums, the insurance becomes null and void.
Who Should Buy the LIC Money-Back Plan?
Lic's New Money-back plans are best suited for individuals who want to invest in low-risk assets, those who want both wealth building and life insurance coverage, those who expect high investment returns, and those who want to be paid during the policy period if specific requirements are met. These plans are a wonderful choice for individuals who need money regularly, such as for a child's education. There are numerous reasons why a new money-back plan from a LIC is a good investment and insurance option. The following are some of the features and benefits that make it worthwhile to purchase.
Features of Lic's New Money Back Plan
- Participating in the usual strategy.
- A simple strategy with an extra option.
- 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 benefit equal to 20% of
- the basic sum insured is given. The policy is still in effect.
- In addition to accumulated incentives, survival after the insurance period is rewarded with 40% of the basic sum insured (remaining).
- In the event of the policyholder's death during the policy term, the sum guaranteed plus accumulated bonus is paid as a death benefit.
- Grace period - 30 days (annual, semi-annual, or quarterly premiums), 15 days (monthly premium)
- 15-day free trial period
- According to the Income Tax Act, there are tax advantages.
Benefits of LIC's New Money Back Plan
1. Death Benefit - If the policyholder dies during the policy term, the nominee gets the "Sum Assured on Death" in addition to any vested bonuses as a death benefit, and the policy is canceled.
2. Survival Benefit - If the policyholder survives, 20 percent of the sum assured is paid out at the end of the fifth, tenth, and fifteenth years. In this scenario, the policy remains in effect until the policy's 20-year term expires.
3. Maturity Benefit - If the policyholder lives the designated maturity date, they are given 40% of the basic sum guaranteed, as well as any vested simple reversionary bonuses and final bonus.
While each financial instrument has unique benefits, it is important to first properly understand each product. When opting to buy a financial product, it is essential to understand what each one has to offer and how it will benefit you throughout the period you need. After all, it is your hard-earned money that you are deducting from your salary to invest in a specific plan.
Now that you understand the insurance's essential principles, go ahead and purchase the coverage. To supplement the coverage, you can purchase LIC's Accidental Death and Disability Benefit Rider.
Also read - What Is A Money Back plan? Why Should I Buy It?
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.