LIC Money Back Plans

• 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 insurance plans provide policyholders the combined benefit of a comprehensive insurance cover and a smart savings option, thus making these policies an extremely attractive option to many. These policies guarantee survival benefits, which are paid on certain policy anniversaries, in addition to the regular policy benefits. The significant monetary benefits can help the policyholder plan for events in the future, whether it is a house renovation, a child’s wedding, or a new car. LIC provides customers a good selection of money-back life insurance solutions. Thus, policy buyers have the option of choosing a plan according to their requirements.

Benefits of Life Insurance Corporation of India (LIC) Money-Back Insurance Plans

• Dual Benefit: Money-back insurance plans from LIC offer members the dual benefit of regular monetary payouts and a life insurance cover. Many people forego purchasing a life insurance policy assuming that it is not a good investment option. While the primary purpose of a life insurance policy is to provide the policy buyer a risk cover, insurance solutions like money-back plans also provide survival benefits, which can help increase one’s financial security significantly.
• No Risk on Investments: While certain financial solutions do provide members regular returns on their investments, these options usually come with a certain level of risk. Money-back policies are completely safe in that aspect. There is no risk involved, and you are still guaranteed to receive payouts.
• Regular Payouts: During the course of your policy, you are entitled to receive payouts, also called survival benefits, at regular predefined intervals. The amount that you will receive as your survival benefit is also predetermined. Since, you know exactly how much you will receive, you can use this fixed source of income to plan for milestones in the future.
• Maturity benefit: Most money-back life insurance policies also provide the life assured member a maturity benefit at maturity of the policy. Thus, in addition to receiving your survival benefits, you will also receive a lump sum maturity benefit.
• Participation in Profits: Certain money-back life insurance policies offered by LIC are ‘with-profits’ life insurance plans. In addition to your regular policy benefits, you will also receive a vested Simple Reversionary Bonus and Final Additional Bonus, as declared by the company. This will increase the overall payout you receive.
• Death Benefit: All life insurance policies provide a death benefit to the nominee, if the life assured happens to pass away during the policy tenure. Thus, even if the policyholder meets with an untimely death, the policyholder’s family will be safeguarded financially. It is important to remember that once the death benefit is paid, the policy will cease to exist. No further benefits (survival or maturity benefits) will be payable.
• Riders: LIC also provides policyholders the option to increase their risk cover by purchase an additional, optional rider. In case of an eventuality, the nominee will be paid the rider sum assured in addition to the benefits paid by the base policy.
• Tax Benefits: Lastly, as a policyholder, you can also claim for tax rebates under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

List of Money-Back Life Insurance Plans provided by LIC

LIC’s New Money Back Plan – 20 Years

The New Money Back Plan – 20 Years from LIC is a non-linked, participating, life insurance policy. The policy provides members a comprehensive risk cover against death during the policy tenure. Policyholders are also provided periodic survival benefits, provided they survive the pre-defined policy anniversaries. The life assured’s family will also receive financial support by way of a death benefit, in case something unfortunate happens to the life assured, during the policy tenure.

Benefits and Features of LIC’s New Money Back Plan – 20 Years

• Death Benefit: If the policyholder passes away during the policy tenure, the nominee will receive a death benefit, which will include the Death Sum Assured, Final Additional Bonus, and the Simple Reversionary Bonus. The Sum Assured payable will be the highest of the following:

• 125% of the Sum Assured amount,
• 105% of the overall premiums paid during the policy term, or
• 10 x Annualised Premium

• Maturity Benefit: Provided the policyholder survives till maturity of the policy, he/she will be paid 40% of the Sum Assured amount with the inclusion of the Final Additional Bonus and the Simple Reversionary Bonus.
• Survival Benefit: At the completion of the 5th, 10th, and 15th policy year, the life assured will receive 20% of the sum assured. The survival benefit will not be paid if the death benefit has already been paid.
• Surrender Benefit: If you have paid premiums for 3 full policy years, you can surrender your policy and receive the Guaranteed Survival Benefit.
• Loan against Policy: In case the policyholder needs emergency liquidity, he/she can avail a loan against the insurance policy. You can only avail a loan if your policy has already attained a surrender value.
• Rider: You can also purchase LIC’s Accidental Death and Disability Benefit Rider by paying an additional premium.

LIC’s New Money Back Plan – 25 Years

The New Money Back Plan – 25 Years from LIC is a non-linked, participating, life insurance policy. This money-back plan provides an excellent risk coverage as well as a range of monetary payouts, such as the death benefit/maturity benefit, survival benefits, and bonuses. The key benefit of this plan is that it guarantees a sizable survival benefit on certain policy years, thus providing the life assured an additional source of income.

Benefits and Features of LIC’s New Money Back Plan – 25 Years

• Death Benefit: If the life assured succumbs to an untimely death while the policy is in force, the insurer will provide the nominee a death benefit, which will be the sum of the Death Sum Assured, Final Additional Bonus, and the vested Simple Reversionary Bonus. The Death Sum Assured will be the higher of:

• 105% of the premiums paid by the policyholder,
• 125% of the Sum Assured, or
• Annualised Premium x 10

• Survival Benefits: This policy will pay a guaranteed sum of money (15% of the Sum Assured amount) to the policyholder on certain policy years, i.e., the 5th, 10th, 15th, and 20th year.
• Maturity Benefit: If the policy is in full force and has attained maturity, the life assured can claim the maturity benefit, i.e., 40% of the sum assured and the bonuses (Final Additional Bonus and vested Simple Reversionary Bonus).
• Rider: You can also enhance your policy’s coverage by purchasing LIC’s Accidental Death and Disability Benefit Rider, by paying an extra premium. If the life assured meets with an accidental death, the Accident Benefit Sum Assured will be paid in whole. If the policyholder meets with an accident that causes permanent disability, the insured member can claim the Accident Benefit Sum Assured as monthly payouts, for a period of 10 years.
• Premium Payment Mode: The life assured can choose to pay his/her premiums on an annual, bi-annual, quarterly, or monthly basis, along with a grace period of 30 days. The grace period for the monthly mode of payment is 15 days.
• Rebate on High Sum Assured and Premium Payment Mode: If the policy buyer opts for a sum assured over Rs.2 lakh, he/she is eligible to receive a rebate. Similarly, if you choose to pay your premiums on a yearly or half-yearly basis, you can claim a rebate.
• Loan: The life assured can also take a loan against the policy, once the policy has acquired a surrender value.

LIC’s New Bima Bachat Plan

The Bima Bachat Plan from LIC is a savings cum protection, non-linked, participating, life insurance policy. In order to purchase this policy, one must pay the premium as a one-time, lump sum amount before the commencement of the risk cover. This plan provides a survival benefit at the end of certain policy years and a maturity benefit at the end of the policy tenure. The policy also provides a risk cover against death.

Benefits and Features of LIC’s New Bima Bachat Plan

• Death Benefit: If the life assured passes away during the first 5 policy years, the insurer will pay the nominee the entire sum assured amount. If the life assured succumbs to death after 5 years, the nominee will be paid the full sum assured amount with the inclusion of Loyalty Additions.
• Survival Benefits: Survival benefits payable will vary as per the policy tenure.

• 9-Year Policy Tenure: 15% of the sum assured amount will be paid at the completion of the 3rd and 6th policy year.
• 12-Year Policy Tenure:15% of the sum assured amount will be paid at the completion of the 3rd, 6th and, 9th policy year.
• 15-Year Policy Tenure: 15% of the sum assured will be paid post the completion of the 3rd, 6th, 9th, and 12th year.

• Maturity Benefit: If the policyholder survives till maturity of the policy, the insurer will return the single premium paid at the inception of the policy along with the Loyalty Additions.
• Loyalty Additions: Loyalty Additions will be paid as declared by the company, either along with the death benefit or with the maturity benefit.
• Policy Tenures: This policy is quite flexible in terms of the policy tenure. One can choose a policy tenure of 9 years, 12 years, or 15 years with a minimum sum assured of Rs.35,000, Rs.50,000, and Rs.70,000, respectively.
• Loan against Policy: Policyholders can also avail a loan against this policy, after at least 1 policy year has completed. The maximum loan amount permissible is 60% of the policy’s surrender value.
• Surrender Value: If you surrender your policy on the first policy year, the insurer will return 70% of the premium that was paid. If the policy is surrendered any time after the first year, the insurer will return 90% of the premium. However, if the Special Surrender Value is higher that the Guaranteed Surrender Value, the insurer may choose to pay the life assured the Special Surrender Value, instead.

LIC’s New Children’s Money Back Plan

The New Children’s Money Back Plan from LIC is a non-linked, participating, money-back, life insurance policy. In addition to a substantial death benefit/maturity benefit, this policy also guarantees survival benefits on certain policy anniversaries. The benefits provided by this plan are especially designed to meet the future needs of one’s children. One of the key features of this plan is that it provides a risk cover against death on the child’s life, during the policy tenure.

Benefits and Features of LIC’s New Children’s Money Back Plan

• Death Benefit: If the life assured member passes away before the risk cover has commenced, the premium paid while purchasing the policy will be returned. If the life assured succumbs to death after the risk cover has commenced, a death benefit, which will include the Death Sum Assured, Final Additional Bonus, and the Simple Reversionary Bonus will be paid. In this case, the Death Sum Assured will be the higher of the following:

• Annualised Premium times 10,
• Guaranteed Sum Assured that will be paid on death of the life assured, or
• 105% of the Aggregate Premiums paid

• Survival Benefit: If the life assured survives the policy anniversaries on or immediately post the end of ages 18, 20, and 22 years, the insurer will pay 20% of the Sum Assured on each interval.
• Maturity Benefit: At maturity of the policy, the life assured will be eligible to receive a maturity benefit, which will amount to 40% of the sum assured along with the bonuses (Final Additional Bonus and Simple Reversionary Bonus).
• Deferment of Survival Benefit: As a policyholder, you can claim your due survival benefit on or after the actual due date of the benefit, provided it happens during the policy tenure.
• Rider: In addition, you can also opt to purchase LIC’s Premium Waiver Benefit Rider on payment of an additional premium. Through this rider, even if the policyholder passes away during the tenure of the base policy, all future premiums that are payable towards the base policy will be waived off. This rider can be purchased by any individual between 18 to 55 years of age.
• High Sum Assured and Mode Rebate: If the life assured chooses a high sum assured (over Rs.2 lakh) or chooses to pay premiums via the yearly or half-yearly mode, he/she is eligible to receive a rebate.
• Surrender Value: The plan can be surrendered any time during the policy term, provided one has paid the due premiums for at least three years. The Guaranteed Surrender Value, i.e., an amount equal to the overall premiums paid minus the survival benefits, will be paid to the policyholder.

LIC’s Jeevan Tarun Plan

The Jeevan Tarun Plan from LIC is a limited premium payment, participating, non-linked, life insurance policy. This plan provides a range of benefits, and is a smart savings cum protection option for children. Since this plan especially caters to children, the benefits provided by this plan are designed to meet any needs that one’s children might have in the future. This plan provides the proposer the flexibility to opt for the percentage of survival benefits and maturity benefit that the life assured will receive during the policy tenure.

Features and Benefits of LIC’s Jeevan Tarun Plan

• Death Benefit: If the life assured succumbs to an untimely death before the commencement of risk, the premium paid initially will be returned. If the life assured happens to pass away after the risk cover has commenced, the death benefit will be paid to the nominee. The death benefit payable will include the following components – Death Sum Assured, Final Additional Bonus, and Simple Reversionary Bonus.
• Survival Benefit: A certain pre-defined percentage of the Sum Assured amount will be paid to the life assured once he/she attains 20 years of age, and on the following four policy anniversaries. Survival benefits payable will vary based on what option was chosen by the proposer, at the proposal stage.
• Maturity Benefit: If the policyholder survives till the completion of the policy tenure, the insurer will pay a pre-defined maturity benefit to the life assured. The maturity benefit payable will be a certain percentage of the sum assured amount, Final Additional Bonus, and the vested Simple Reversionary Bonus.
• Riders: The proposer can also opt for LIC’s Premium Waiver Benefit Rider while purchasing the policy, by paying an additional premium.
• Rebates: You are eligible for a rebate if you choose a High Sum Assured, i.e., over Rs.2 lakh. Likewise, if you opt to pay your premiums on an annual or bi-annual mode, you will receive a 2% or 1% rebate on your tabular premium.
• Surrender Value: If the Premium Payment Term is lesser than 10 years, one can surrender the policy at any time, if premiums for at least 2 policy years have been paid. If the Premium Payment Term is over 10 years, the policy can be surrendered if you have paid the premiums for at least 3 years. You will be paid either the Guaranteed Surrender Value or the Special Surrender Value, based on whichever is the higher of the two. You will also be paid the surrender value of vested Simple Reversionary Bonuses.
• Policy Loan: Post your policy acquiring a surrender value, you can avail a loan against your insurance policy.

Why should one opt for an LIC Money-Back Insurance Plan?

Money-back life insurance policies from LIC provide individuals a comprehensive risk cover and a long-term, fixed, savings option. Thus, in addition to the regular death/maturity benefit payable by most life insurance policies, you are also eligible for pre-defined survival benefits on certain policy years. These guaranteed survival benefits can help you secure your future and can also help you meet significant milestones in the future.

In addition, both the premiums you pay and the payouts you receive are eligible for tax exemption under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Certain money-back insurance plans from LIC are especially catered for children. These plan can be purchased by a proposer for a child. Thus the payout received can be useful to meet their educational needs, wedding expenses, etc. Money-back insurance policies from LIC are a smart way to increase your savings with minimum risk.