Request received - loud & clear!
Returning you to where you were...
The New Money Back Plan – 20 Years from Life Insurance Corporation of India (LIC) is a ‘with profits’, non-linked, participating, life insurance policy. The policy provides attractive survival benefits on certain pre-defined policy anniversaries. In addition, the policy also provides a substantial death benefit if the life assured passes away when the policy is active and a maturity benefit if the life assured survives till the completion of the policy tenure.
Premium rates may vary from individual to individual since the insurer will take several specific factors, such as the policy tenure, sum assured, age at entry, etc., into account. One can also choose to purchase LIC’s Accidental Death and Disability Benefit Rider to raise the level of protection offered by the New Money Back Plan – 20 Years. Policyholders can also claim tax benefits as per prevailing Income Tax laws.
In order to be eligible to purchase the policy, you will first have to ensure that you meet the insurer’s pre-defined eligibility criteria.
|Parameters||Criteria for eligibility|
|Minimum age at entry||13 Years|
|Maximum age at entry||50 Years|
|Maximum age at maturity||70 Years|
You will have to opt for your Sum Assured amount at the commencement of the policy. Your premium amount will be tied to this amount. Upon certain eventualities, this is the basic amount that will be paid to you or your nominee.
|Minimum Sum Assured||Rs. 1 lakh|
|Maximum Sum Assured||No limit|
The premium is a certain sum of money that you will have to pay before the completion of the grace period in order to avail the protection accorded by your plan. A few details about your premium payments and the policy is listed in the table below.
|Policy Tenure||20 Years|
|Premium Payment Term (PPT)||15 Years|
|Premium Payment Mode||
* Premiums vary based on age, location, plan term, GST, and other factors
|Death Benefit||If the policyholder succumbs to death during the policy term, the insurer will pay the Death Sum Assured, the Final Additional Bonus, and the Simple Reversionary Bonus, to the nominee.|
|Maturity Benefit||If the policyholder survives till completion of the policy tenure, the insurer will pay 40% of the Sum Assured, the Final Additional Bonus, and the Simple Reversionary Bonus to the life assured.|
|Survival Benefit||Upon the completion of the 5th, 10, and 15th policy year, 20% of the sum assured will be paid as the survival benefit.|
If one wishes to increase the coverage offered by the base plan, one can purchase LIC’s Accidental Death and Disability Benefit Rider. In order to purchase the rider, one has to pay an additional premium. If the life assured passes away due to an accident, the entire Rider Sum Assured will be paid. If the life assured suffers from permanent disability due to the accident, the Rider/Accident Benefit Sum Assured will be paid as monthly instalments for 10 years. This can in-turn serve as an income replacement.
The New Money Back Plan – 20 Years from LIC comes with a suicide exclusion. If the life assured commits suicide within 12 months of purchasing the policy, the insurer is not liable to pay any death benefit. In this case, 80% of the premium amount paid will be returned to the nominee. If the life assured commits suicide within 12 months of reviving the policy, the insurer will pay 80% of the premium amount or the policy’s surrender value, based on whichever is the higher of the two.
|Free-Look/Cooling-Off Period||The insurer provides policy buyers a free-look period of 15 days, during which time they can review the policy terms and conditions and return the policy if they are not satisfied with it.|
|Loan||Once the insurance policy has acquired a surrender value, you can take a loan against the policy.|
|Surrender Value||The policy can be surrendered only if the premiums have been paid for at least 3 full policy years. The higher of the Guaranteed Surrender Value or the Special Surrender Value will be paid as the Surrender Benefit.|
|Paid-Up Value||If one has paid all due premiums for 3 years, but not the premium following the third year, the policy shall not lapse. It will be converted into a paid-up policy, and the benefits will change accordingly.|
|Revival||One can revive a policy that has been lapsed within 2 consecutive years by paying all the due premiums with the applicable interest rate.|
You can claim tax benefits for the premiums you pay and benefits you receive through your policy under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Keep in mind that tax laws can change without prior notice. Hence, you should always consult with a tax advisor to ensure that you make the most of your tax benefits.
We often forget that we might have expenses in the future that we don’t account for today – a child’s wedding, higher education, paying the down payment for a new house, etc. While these events bring us a great deal of joy, they can also cause us to shell out a significant amount of money. In order to meet these expenses without any hassles, it is vital that we start planning for them right away.
The New Money Back Plan- 20 years is a smart insurance plan that provides members the dual benefit of a risk cover and a savings option. In addition to the death/maturity benefit, the policy also guarantees fixed survival benefits, which can be used to pay for important milestones. Further, the insurer also pays bonuses along with the benefits, thus increasing your payout amount.
The insurer, Life Insurance Corporation of India (LIC), is one of the most preferred life insurance providers in the country. The company has a range of insurance products on offer for both retail consumers and groups, in order to meet the varying needs of the diverse Indian population. The insurer’s claim settlement ratio for FY15-16 was 98.33%. A high claim settlement ratio ensures that your loved ones are not likely to face any hassles if they have to raise a claim.
The content on this website is meant only for general information purpose and does not and shall not be construed as any solicitation, procurement, display, aggregation, marketing or advertisement of insurance products. BankBazaarInsurance is not an insurance intermediary and hence does not endorse or solicit any such products. The information on this website is derived from publicly available sources and BankBazaarInsurance cannot verify or confirm the genuineness, truth, veracity or authenticity of this information.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.