LIC NEW MONEY BACK PLAN 20 YEARS

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 at any time before maturity, and a lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.

Eligibility conditions and other restrictions in LIC New Money Back Plan – 20 Years

Benefits under LIC NEW MONEY BACK PLAN 20 YEARS

Death Benefit

On death during the policy term provided the policy is in full force, death benefit, defined as the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as the higher of 125% of the Basic Sum Assured or 10 times of annualized premium. This death benefit shall not be less than 105% of the total premiums paid as of the date of death.

The premiums mentioned above exclude tax, extra premium, and rider premium if any.

Survival Benefit

In the case of Life Assured surviving to the end of the specified durations, 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year.

Maturity Benefit

In case of Life Assured surviving the stipulated date of maturity, 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

Participation in Profits

The policy shall participate in the 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. Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity, provided the policy has run for a certain minimum term.

Optional Benefit under LIC NEW MONEY BACK PLAN 20 YEARS

LIC’s Accidental Death and Disability Benefit Rider: LIC’s Accidental Death and Disability Benefit Rider can be opted for under an in-force policy at any time within the premium paying term by payment of additional premium and the cover will be available throughout the policy term provided the Policy is in force for the full Sum Assured as on date of the accident. In case of accidental death, the Accident Benefit Sum Assured will be payable as lump sum along with the death benefit under the basic plan. In case of accidental permanent disability arising due to an accident (within 180 days from the date of the accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.

However, on surrender of an inforce basic policy (which has acquired Surrender Value) to which this rider is attached, a proportion of the additional premium charged in respect of cover after the premium paying term shall be refunded.

Tax Savings under LIC NEW MONEY BACK PLAN 20 YEARS :

All premiums paid under this plan, are tax exempted under section 80c of the Income Tax Act as per their applicable tax slabs.

All returns from LIC of India like survival benefits, maturity, and death claims are also 100% Tax-free under (10D) of section 10 of the Income-tax Act, 1961

For more info, visit the LIC of India Official website.