The Money Back with Profit Plan from Life Insurance Corporation of India (LIC) comes in two variants a 20-year variant (Plan 75) and a 25-year variant (Plan 93). For both variants of this policy, the survival benefits are paid in 5-year intervals. The policy also pays out an accrued bonus at maturity of the policy tenure.
The minimum premium payable for this policy will vary on the basis of the sum assured amount opted for at the time purchasing the policy, age at entry, and the policy tenure. Policyholders or their beneficiaries can claim tax benefits under the prevailing laws of Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Insurance companies usually set an eligibility criteria, which is specific to each policy. The person purchasing the policy will have to make sure that he/she meets this criteria set by the insurer.
|Parameters||Criteria for eligibility|
|Minimum age at entry||13 years|
|Maximum age at entry||50 years|
|Maximum age at maturity||70 years|
|Plan options to choose from||
The sum assured is the minimum amount of money that one is guaranteed to receive from the policy. In addition to the minimum sum assured, the policyholder/nominee may also be eligible to receive other payouts as declared by the policy.
|Minimum Sum Assured||Rs.50,000|
|Maximum Sum Assured||No limit specified by the insurer|
The premium is a certain sum of money that the policyholder pays to the insurance firm, in order to enjoy the risk cover of the policy and to keep the policy from lapsing.
|Premium Payment Mode||
*Premiums vary based on age, location, plan term, and other factors.
|Death Benefit||The sum assured with the addition of bonuses will be paid as a one-time, lump sum amount to the nominee, if the policyholder passes away during the policy tenure.|
Policy buyers can purchase certain optional add-ons that can be attached to one’s basic policy for an increased level of protection. However, purchasing add-ons will cause premiums to increase.
Exclusions that are mentioned in the product brochure will be applicable for this policy.
|Policy Loan||There is no provision to apply for a loan against this policy.|
|Surrender Value||If one’s policy has been active for a minimum of 3 consecutive years, it can be surrendered. Upon surrendering the policy, the insurer will pay the guaranteed surrender value or the special surrender value, provided it is equal or higher than the guaranteed surrender value.|
|Bonuses||This policy is eligible to participate in all profits that are declared by the insurer. Profits will be paid in the form of a Simple Reversionary Bonus and the Final Additional Bonus.|
Since life insurance policies offer tax deductions, policyholders can claim tax rebates on premiums that are paid during a given financial year and benefits received under the policy, as per the Income Tax Act, 1961.
The frequent survival benefits payable by way of this policy will help you meet important milestones in your life. Thus, in addition to providing a risk cover, this policy also serves as a sound savings instrument. LIC, the insurer, is also one of the most preferred insurance providers in India. The company has a claim settlement ratio of 98.31% for FY16-17 and a grievances solved ratio of 100% during the same fiscal year. The insurer also offers a host of insurance plans, which policy buyers can purchase to meet their other insurance needs.
Note: This plan has been withdrawn by LIC.