Introduction
LIC’s New Money Back Plan-20 years is a participating non-linked plan which offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term. This unique combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.
Table No.
820
Plan Type
Non-participating traditional life insurance plan with guaranteed benefits.
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
13 Years
Maximum :
50 Years
Maturity Age
Minimum
Maximum
70 Years
Basic Sum Assured
Maximum
Rs. 100000
Minimum
No Limit
Policy Term
20 Years
Policy Paying Term
15 Years
Premium Payment Frequency
- Yearly
- Half-Yearly
- Quarterly
- Monthly
Coverage
Death Benefit
- Death Benefit
- Survival Benefit
- Maturity Benefit
- Participation In Profit
- Simple Reversionary Bonus
- Final (Additional) Bonus (if any)
Key Features
- Money Back Plan for a tenure of 20 years
- 20% of Sum Assured is paid at the end of 5th, 10th and 15th Year as Survival Benefit. Simple Reversionary Bonus and Final Addition Bonus is also paid out
- Simple Reversionary Bonus is payable on maturity or earlier death
- LIC’s Accidental Death and Disability Benefit Rider is available as an option
You need to pay annual premiums for only 15 years
You are eligible to apply for a loan against the policy after it has acquired a Surrender Value
You can opt for additional Benefits such as Accidental Death and Disability
You can choose as high an amount as you wish for coverage as there is no upper limit to the Sum Assured
You are eligible for Income tax benefit on the paid premium under Section 80C and on the received claims as per Section 10 (10D) of the Income Tax Act
Paid up Survival Benefits are not deducted from the Death Benefit payout
Grace period of up to a maximum of 30 days in case of missed premiums
Policy Revival is possible for up to 2 years from the date of policy lapsing owing to missed premiums even after grace period gets over
Policy Benefits
Death Benefit
In case of death of the Life Insured within the Policy Tenure, the Nominee would be paid the “Sum Assured on Death” along with vested Bonuses as Death Benefit and the policy would be terminated.
The Sum Assured on Death is defined as higher of the following:
- 125% of Basic Sum Assured
- 10 times the Annualized Premium
The Sum Assured on Death will always be a minimum of 105% of all Premiums paid.
Survival Benefit
On survival, the Life Insured will get the following:
- 20% of Sum Assured at the end of every 5th year
- 20% of Sum Assured at the end of every 10th year
- 20% of Sum Assured at the end of every 15th year
Maturity Benefit
On survival till the end of the Policy Tenure of 20 years, the policyholder will get the following payouts:
Remaining 40% of the Sum Assured + accrued Reversionary Bonus + Final Addition Bonus (if any).
Rebate
Payment Mode & High Sum Assured
Profit Participation
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Ideal Plan
This Plan is ideal to the financial needs of the business and the salaried class of Indians.
Tax Benefits
Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C under current Income Tax Rules. The Maturity Benefit is also tax free under section 10(10)D subject to fulfilment of all terms and conditions.
Loans
- Loan is available in this plan after the policy acquires a surrender value after 3 policy years
- The Policy can be paid up after paying at least 3 years’ premiums but the Paid Up Sum Assured reduces proportionately
Other Benefits
- Online Premium Payment: Both registered and unregistered users can pay their premium online through the insurer’s website. You can pay through ‘Pay Direct’ without registering or through ‘e-Services’ if you are a registered user. You can pay through net banking, debit/credit card, BHIM, or UPI.
- Online Policy Purchase: Certain policies from LIC can also be purchased online, through LIC’s official website. This is a time-efficient and hassle-free way to purchase policies.
- View Plan-Based NAV: You can view the performance of various funds through the insurer’s website. This feature is especially beneficial for individuals investing in unit-linked policies.
- Policy Status: All information related to your policy can be viewed online, through the official website. In order to view your policy status, you will first have to register/login at the home page, enrol your policy and then add your policy.
Riders
Accidental Death and Disability Rider
Rider can be opted after payment of additional premium provided the policy is in force on the day of the accident. In case of accidental death, the Accident Benefit Sum Assured and the death benefit will be paid. In case of accidental permanent disability, a sum equal to the Accident Benefit Sum Assured will be paid over a period of 10 years. Consequently, future premiums for Accident Benefit Sum Assured will be waived.
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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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.
Guaranteed Surrender Value
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Special Surrender Value
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Paid-Up Value
f 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.
Rebates
Rebate on Premium Payment Mode
- % of the premium can be availed as rebate if you opt for the yearly mode of premium payment.
- 1% of the premium can be availed as rebate if you opt for the half-yearly mode of premium payment.
- No rebate can be availed on quarterly and monthly mode of payment.
Rebate on Sum Assured
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High Sum Assured and Mode Rebate
- 2% rebate can be availed upon opting for a sum assured between Rs.2 lakh and Rs.4,95,000.
- 3% rebate can be availed upon opting for a sum assured over Rs.5 lakh.
Other Details
Revival Period
One can revive a policy that has been lapsed within 2 consecutive years by paying all the due premiums with the applicable interest rate.
Free Look Period
If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.
Grace Period
- A 30-day grace period is applicable for annual, bi-annual, and quarterly mode of premium payments.
- A 15-day grace period is applicable for the monthly mode of premium payment.
Nomination
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Assignment
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Exclusions
Suicide
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.
Claim Process
Death Claim
Write down here
Maturity Claim
Write down here
Surrender Claim
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Examples
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FAQs
Q. What is the core meaning of a money back plan?
A.Money back plan essentially means that the policyholder will receive payments at regular intervals from the insurance company. The period of time within which the policyholder receives the amount of money is usually 4-5 years. The concept of a money back plan is very similar to that of an endowment plan. It provides 20% of the total sum assured after the initial four years have passed. Further, a 20% return is again offered after eight consecutive years. The 20% that remains out of the total is provided to the policyholder once the plan matures with an additional bonus amount.
Q.What are some of the vital benefits of LIC Money Back Plan?
A.This plan offers several benefits to the policyholder: Death Benefit: In case of sudden demise of the policyholder, 125% of the total sum assured is given out to the beneficiary. This percentage is also provided along with the additional bonus amount and reversionary bonuses. Survival Benefits: In case the policyholder makes it through the entire policy term, the beneficiary receives 20% of the basic sum assured at the termination of the 5th, 10th, and 15th year of the policy. Additionally, accrued bonuses coupled with 40% of the total sum assured are also provided to the nominee. Maturity Benefit: If the policyholder survives till the period of maturity of the policy, he/she will receive 40% of the basic sum assured coupled with reversionary bonuses and the additional bonus amount.
Q.What are the Conditions for Eligibility in this Plan?
A.Basic sum assured amount (minimum) : Rs.1 lakh Basic sum assured amount (maximum) : No limit set Age of the policyholder (minimum) : 13 years Age of the policyholder (maximum) : 50 years Maturity age for the life assured (maximum) : 70 years Policy term: 20 years Term for paying premiums: 15 years
Q.What are Some of the Exclusions in a Money Back Policy?
A.If the policyholder passes away in the middle of the policy, LIC will thereafter not accept any further claims barring 80% of the total premiums paid excluding taxes, rider premiums, and so on from the exact day that the risk was commenced. If the life assured passes away from the revival date, 80% of the total premiums that have been paid till date (date of death), also known as the surrender value, will be given out.