Why Go For Money Back Plans Offered By LIC?
Updated On Nov 10, 2021
Table of Contents
A money-back plan is a type of life insurance policy that pays out a portion of the specified value every few years. As a survivor benefit, the money invested is repaid to the policyholder. Money-back insurance, which is widely available and has modest premium rates, can be used to cover large future expenses. 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 plans offered by LIC.
The Life Insurance Corporation of India (LIC) offers a variety of insurance products to fulfill the demands of different types of insurance buyers.
Why Should You Purchase LIC's Money Back Plans?
Individuals who wish to invest in low-risk assets, who want both wealth building and life insurance coverage, who expect substantial investment returns, and who want to be paid throughout the policy period if particular conditions are satisfied are most suited for Lic's New Money-back plans. These plans are a great option for people that require money on a regular basis, such as for a child's education. A new money-back plan from a LIC is a smart investment and insurance alternative for a variety of reasons. Some of the characteristics and benefits that make it desirable to buy are listed below.
Lic Money-Back Plan Features
- Taking part in the standard strategy.
- A straightforward method with a bonus option.
- Premiums must be paid for 15 years in order for the coverage to last 20 years.
- A survival reward equivalent to 20% of the base sum covered is paid if the policyholder is still alive after the fifth, tenth, and fifteenth years. The policy remains in place.
- Surviving after the insurance period is rewarded with 40% of the base sum covered, in addition to accrued bonuses (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.
LIC Money Back Plan Advantages
Death Benefit - If the policyholder dies during the policy term, the nominee receives the "Sum Assured on Death" as a death benefit, together with any vested bonuses, and the policy is terminated.
Survival Benefit - If the policyholder survives the fifth, tenth, and fifteenth years, 20% of the total promised is paid out. The policy stays in place until the insurance's 20-year term ends in this situation.
Maturity Benefit - If the policyholder survives until the specified maturity date, they will receive 40% of the base cash guaranteed, plus any vested simple reversionary bonuses and final bonus.
While each financial instrument has its own set of advantages, it is critical to first have a thorough understanding of each one. 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, it's your hard-earned cash that you're taking from your paycheck to put into a specific plan. Now that you've learned the fundamentals of insurance, you can go ahead and get it. You can purchase LIC's Accidental Death and Disability Benefit Rider to complement your coverage.
Also read - All About Reliance Super Money Back 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.