LIC Money Back Policy 25 Years Plan

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.

Eligibility - Who is the LIC Money Back with Profit Plan for?

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	Plan 75 – 20 Years Plan 93 – 25 Years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured

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

Premiums*

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.

Policy Tenure	Plan 75: 20 years Plan 93: 25 years
Premium Payment Mode	Annual Bi-Annual Quarterly Monthly Salary Saving Scheme

*Premiums vary based on age, location, plan term, and other factors.

Plan Coverage - What the LIC Money Back with Profit Plan covers?

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.

Survival Benefit

Plan 75: 20% of the sum assured amount will be paid as survival benefits to the policyholder on the 5th, 10th, and 15th policy year anniversaries. The remaining 40% will be paid on the 20th year. Along with the final payout, the insurer will also include all payable bonuses. Plan 93: 15% of the sum assured will be paid as survival benefits to the life assured on the 5th, 10th, 15th, and 20th policy years. 40% of the sum assured will be paid on the final policy year, i.e., the 25th year. Bonuses will be included with the final payout.

Riders/Add-On Plans – Additional coverage under the LIC Money Back with Profit Plan

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 - What the LIC Money Back with Profit Plan doesn’t cover?

Exclusions that are mentioned in the product brochure will be applicable for this policy.

Other Key Features – Free-Look Period, Surrender Value, Grace Period, etc.

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.

Tax Benefits – How you can save with the LIC Money Back with Profit Plan?

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.

Other Benefits – How you can save with the LIC Money Back with Profit Plan?

• Online Applications: Individuals who wish to purchase a policy can start the application process online. Thus, by submitting an online application request, an insurance agent appointed by LIC will contact the interested party to take the process further.
• Customer Service: If you require assistance from the insurer, you can contact them through the telephone number listed on the website. Customers can also choose to contact the insurer via email or SMS.
• Branch Locator: Customers can locate the nearest branch on the basis of the city/state, zonal office, branch code, or pin code, through the insurer’s official website.
• Premium Payment: Premium payments can be done through online or offline channels. Thus, the policyholder can pay the premium through the LIC official website or at the insurer’s branch, authorised banks, etc.

Why you should buy the LIC Money Back with Profit Plan from LIC?

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.