The New Money Back Plan- 25 years provides two-way securities in the form of life cover and maturity benefit. Therefore with the help of this plan, a policyholder could supply financial protection to the chosen beneficiary while creating a great retirement cover for himself/herself. The policyholder would also be supplied periodic lump payments at fixed time interims. So, if the Life Assured dies prematurely at any instant of the plan tenure then the beneficiary would be provided an instant high figure monetary amount as a financial cover to take care of all the forthcoming financial needs. Moreover, if the Life Assured lives through the plan tenure and his/her policy attain the maturity stage then he/she would be provided a high lump amount to take care of the future monetary requirements. The plan also has the provision of loan facility for liquidity requirements of the Life Assured.
Apart from this Money Back policy, LIC has another Money Back Plan with 20 years of the term.
Maturity Benefits in LIC Money Back
If the Life Assured lives through the entire plan period and the policy attains its maturity state then he/she would be provided a high maturity amount. This maturity benefit would be 40 percent of Basic Amount Guaranteed combined with Simple Reversionary Plus besides any applicable Final Added Bonus.
Survival Benefits in LIC Money Back
LIC Money Back Policy has attractive survival benefits for policyholders living through the completion of the stated policy duration. Under this Money Back Policy, the Life Assured would receive 15 percent of the Basic Amount Guaranteed at five-year interims at the completion of every fifth, tenth, fifteenth and twentieth year of the plan.
Death Benefits in LIC Money Back
In the instant of a premature demise during the active plan tenure, the beneficiary would be supplied compensation in the manner of Death Benefits. This death benefit would comprise the Amount Guaranteed on Death. Besides this basic amount, the beneficiary could also receive any applicable Final Added Bonus besides the conferred Simply Reversionary Pluses. Here Amount Guaranteed on Death is termed as a value that is greater of either 125 percent of Basic Amount Guaranteed or 10 X Annualized Premium. In all instances, the death benefit would always remain equal to or greater than 105 percent of entire premiums funded as per the demise date. For lifetime risk cover, you can go for Jeevan Anand Policy.
The overhead stated premiums would be exclusive of the levy, added premium besides any provisional premium.
Bonus (Loyalty Additions)
Besides the stated reimbursements of the plan, the policy would also have a share in the profits experienced by the Corporation in accordance with its existing financial returns. This Bonus or Loyalty Addition would comprise of the Simple Revisionary Pluses and would only be shared with policies that are in fully active states.
At the time of the policy claim (either due to maturity of the plan or due to a premature death of the Life Assured), the Corporation may even provide a Final Added Bonus as an extra monetary amount. However, the policy would be entitled to this bonus only if it has completed a specific minimum tenure requirement.
Tax Benefits in LIC Money Back
Under section 80C, the policyholder might receive a yearly relief on his/her income tax on premium sum payable up to 1 lakh INR. The Maturity Benefit is also exempted from taxes under section 10(10)D.
Policy Loan
The Life Assured could apply for a loan if the plan has been active for a specific minimum tenure and has achieved a surrender amount. This policy loan is subjected under the Corporate’s rubrics and may alter during the plan tenure.
Surrender Value
The Life Assured could surrender the plan in exchange for the monetary amount if he/she has funded the premiums for a minimum of 3-year tenure. The Guaranteed Surrender Amount would be proportionate to the entire premiums funded (exclusive of duties and levies) not counting any added or rider premiums.
Policy Eligibility for LIC Money Back
| Smallest Basic Amount Guaranteed | 1 lakh INR |
| Highest Basic Amount Guaranteed | Boundless |
| Lowest Eligible Age of Life Assured: | 13 Years |
| Highest Eligible Age of Life Assured | 45 Years |
| Highest Maturity Age of Life Assured | 70 Years |
| Policy Tenure | 25 Years |
| Tenure for Premium Payments | 20 Years |
Premium Payments
If the Life Assured chooses the ECS method of payments then he/she can fund the premiums on any of the 4 modes- monthly, three monthly, six monthly or twelve-monthly. However, if the Life Assured chooses salary deduction method of payments then he/she can fund the premiums continuously on a monthly basis throughout the plan tenure.
For an ease of payment grace duration of 30 days is permitted for three monthly, six months and twelve months modes of payment while 15-day grace duration is permitted for monthly modes.
Revival
If the Life Assured fails to pay up the premium amounts on time then the plan would assume a lapse condition and could be revived only within a time span of 2 years from the initial date of lapse failing which the plan would acquire a permanent nullified state. Hence, the Life Assured would have to take certain steps to revive back the plan and enjoy the long-term advantages.
Firstly, the Life Assured would have to pay the entire arrears of premium along with their interest rates that compound on a six monthly basis. These rates of interests are subjected to alter as directed by the Corporation. Secondly, the Life Assured would have to supply a proof of his/her continual insurability.
