The New Money Back Plan from LIC is great for individuals seeking life cover along with long duration savings. Here the Life Assured could get a life cover for 20 years duration. If during this 20 year period the policyholder expires then the family would be compensated with an adequate monetary value known as a death benefit. Moreover, if the Life Assured continues to live and pay up the premiums on time then he/she would be provided periodic payments at definite intervals. And once the policy successfully completes its twenty-year tenure then the Life Assured would be rewarded a big amount in the form of maturity benefits. The plan also gives the facility of the loan to take care of short-term financial needs of the policy purchaser.
For long-term money back policy, you can opt LIC Money Back Plan for 25 years.
Maturity Benefits in LIC Money Back Plan
Once the policy completes its 20-year tenure and the Life Assured has successfully paid all the premium amounts then the policyholder would be awarded a high monetary value in the form of maturity benefits. The maturity benefit would consist of 40 percent of the Basic Amount Guaranteed together with consigned Simple Reversionary Pluses along with any applicable Final Added Bonus.
Survival Benefits in LIC Money Back Plan
The plan provides monetary compensations at regular intervals all through the policy tenure in the form of survival benefits. The survival benefit would be equivalent to 20 percent of Basic Amount Guaranteed and would be paid at the conclusion of a fifth, tenth and fifteenth year of the plan.
Death Benefits in LIC Money Back Plan
If the Life Assured expires during the active tenure of the plan then the nominee would be provided death compensation in the form of death benefits. The death benefits would comprise a figure equal to “Amount Guaranteed on Death” added with conferred Simple Reversionary Pluses along with any applicable Final Added Bonus. In this case, “Amount Guaranteed on Death” is termed as greater of 125 percent of Basic Amount Guaranteed or 10 X annualized premium. In an instant, the death benefit would always be greater than or equal to 105 percent of entire premiums funded till the expiry date.
The above-stated premiums would not include a levy, added premium, and any provisional premiums.
Bonus (Loyalty Additions):
The Corporation would share its profits along with the active policy members in the form of Loyalty Additions. Here the Life Assured would be eligible to obtain Simple Reversionary Pluses stated according to the Corporation’s profit in that economic year.
The Corporation might even declare a Final Added Bonus for the plan that culminates in a claim either due to maturity or because of a premature demise of the Life Assured on a condition that the plan has been active for specific minimum tenure.
Tax Benefits in LIC Money Back Plan
The policyholder could file for annual tax redemption on the earnings for premium amounts up to 1 lakh INR. This tax redemption is under India’s income tax law section 80C. Besides, the tax law section 10(10)D provides tax immunity on the Maturity Benefit.
Policy Loan
If the plan has been active for certain duration and has acquired a minimum surrender value then the Life Assured could apply for a loan against the plan to take care of the short-term financial needs.
Surrender Value
There is a facility of policy surrender under this plan wherein the Life Assured would benefit from the monetary value by surrendering the policy. To benefit from this facility the Life Assured would have to pay the regular premium amount for a minimum of 3 year period. The Definite Surrender sum will be a ratio of entire premiums funded (after deduction of service taxes) not including additional premiums and any rider premiums, if elected for lesser value any survival benefits previously funded.
Policy Eligibility For in LIC Money Back Plan
| Premium paying tenure (PPT) | 15 years |
| Lowest Basic Amount Guaranteed | 1 lakh INR |
| Greatest Basic Amount Guaranteed | Boundless |
| Smallest Eligible Age | The candidate should have attained 13 years |
| Greatest Eligible Age | 50 years on the oncoming birth date |
| Greatest Maturity Age | 70 years or his/her oncoming birth date. |
| Tenure | 20 years |
Premium Payments
The policy provides the facility of premium payments on a monthly, trimonthly, six months and twelve months interims. The Life Assured could pay these premiums via ECS or opt for salary deduction over the plan tenure.
Revival
If the Life Assured is not regular with the premium payments and forgets to pay them on time then his/her plan would acquire elapsed state that would continue for 24 months after which it would be nullified with no hope for revival. Hence, if the Life Assured wants then he/she can take adequate steps to revive back the plan within this lapse duration by submitting a written request to the Corporation, paying entire overdue premiums and showing a proof of sustained insurability.
