• LIC’s New Money Back Plan - 25 years (Money Back plan)

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Money back plans are guaranteed income plans that pay back a certain amount of the invested money at specific intervals to the insured person as survival benefit. LIC’s New Money Back Plan - 25 Years is one such plan that offers a combination of regular income and insurance protection. This is also a participating, non-linked plan that offers vested bonuses to the company based on profit earned. In addition to the survival benefit offered at regular intervals, this policy also takes care of the policyholder’s liquidity needs through its loan facility.

    Eligibility for LIC’s New Money Back Plan - 25 Years

    Individuals who meet the following eligibility criteria can apply for LIC’s New Money Back Plan - 25 Years:

    • The minimum entry age for this policy is 13 years.
    • The maximum entry age for this policy is 45 years.
    • The maximum age at maturity for the policyholder is 70 years.

    Key features of LIC’s New Money Back Plan - 25 Years

    Some of the notable features of LIC’s New Money Back Plan - 25 years are listed as follows:

    • The minimum basic sum assured amount for this policy is Rs.1 lakh. There is no limit on the maximum sum assured amount that can be taken by policyholders.
    • As the name implies, the maximum tenure of this policy is 25 years.
    • The maximum premium paying term for this policy is set at 20 years.
    • The premium for this policy varies based on the age of the applicant. For instance, an individual entering the cover at 20 years of age has to shell out Rs.60 in premium for every Rs.1,000 of basic sum assured.
    • The premium can be paid in yearly, half-yearly, quarterly, or monthly intervals. If the monthly payment option is chosen, it can be paid only in ECS mode.
    • The company offers a grace period of 30 days for policyholders to pay their premiums after the date of expiry. For monthly premium payment option, this grace period is limited to 15 days.
    • If the premium amount is not paid within the grace period, the policy will lapse. A lapsed policy can be revived within two years as per the guidelines set forth by the LIC.
    • If three years of premiums are paid and the subsequent premiums are not paid, this policy shall become paid-up policy. Here, it will continue to remain active till the end of the policy term.
    • There is a free-look period of 15 days for policyholders to review the terms and conditions of this cover. If cancelled within this free-look period, the premium will be paid in full to the policyholder.
    • The premium amount paid for this policy is eligible for income tax relief as per Section 80C of the Income Tax Act. Tax relief is also available for the proceeds obtained from this policy.

    Benefits of LIC’s New Money Back Plan - 25 years

    The following benefits are available to policyholders under LIC’s New Money Back Plan - 25 Years:

    Benefits Extent of coverage
    Death benefit In case of the death of the policyholder within the policy term, the ‘sum assured on death’ mentioned in the policy schedule will be paid to the beneficiary along with vested reversionary bonus and final additional bonus. (The death benefit shall not be less than 105% of the total premiums paid.)
    Survival benefit Upon survival of a specific period, 15% of the basic sum assured will be paid to the policyholder. This benefit is applicable at the end of the 5th, 10th, 15th, and 20th years.
    Maturity benefit Upon survival of the full policy term, the ‘sum assured on maturity’ mentioned in the policy schedule will be paid to the policyholder along with vested reversionary bonus and final additional bonus.
    Accidental death and disability benefit rider (optional) In case of accidental death or permanent total disability, the sum assured mentioned in the rider cover will be paid to the policyholder. In case of permanent disability arising from an accident, the sum assured will be paid in equal monthly installments over a period of 10 years. The future premiums will be waived in this case.

    Exclusions of LIC’s New Money Back Plan - 25 Years

    The exclusions applicable to LIC’s New Money Back Plan - 25 Years are listed as follows:

    • This policy shall become void if the insured person commits suicide.
    • If the insured commits suicide within 12 months from the date of inception of this policy, there will not be any death or maturity benefits paid to the nominee. In this case, 80% of the premium paid by the policyholder will be returned to the nominee.
    • If the insured commits suicide within 12 months from the date of revival, 80% of the premium paid till the date of death will be paid to the nominee.
    • All rider policies will cease to exist in case of the suicide of the policyholder.

    Claim procedure

    Death claim: In case of the death of the policyholder, the nominee must intimate the company immediately. The claim must be submitted to the home branch where the policy was bought. All claims form can be downloaded from LIC’s official website. Along with the claim form, the following documents must be submitted to the company:

    • Original policy document
    • Death certificate
    • Medical reports (if applicable)
    • Police FIR (if applicable)
    • Post-mortem report (if applicable)

    Maturity claim: The company typically sends an intimation to policyholders two months before the date of its maturity. Policyholders must provide the discharge form along with other policy documents to file for claim settlement.

    Once these documents are submitted, the company will provide the settlement amount after the verification of documents.

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