LIC New Money Back Plan - 20 Years
The LIC New Money Back Plan - 20 Years is a life insurance plan that gives both protection and savings. You pay premiums for a limited time, but the plan provides money in two ways. If the policyholder dies during the plan, the family gets financial support. If the policyholder is alive, they receive money at certain times during the plan. At the end of the plan, the surviving policyholder gets a lump sum amount. This plan also allows the policyholder to take a loan if they need money before the plan ends.
Eligibility Criteria for LIC Money Back Plan
| Parameter | Criteria |
|---|---|
| Sum Assured | Min: Rs. 1 lakh |
| Max: No Limit | Entry Age (Last Birthday) |
| Min: 13 years | Max: 50 years |
| Maturity Age (Last Birthday) | Up to 70 years |
| Policy Term (PT) | 20 years |
| Premium Paying Term (PPT) | 15 years |
| Premium Paying Frequency | Annual, Half-Yearly, Quarterly, Monthly |
Key Features of LIC Money Back Policy
- You can also take a loan against the policy if you need money.
- If the person insured dies during the policy, the full sum assured plus bonuses go to the nominee.
- You pay premiums for 15 years, but the policy lasts for 20 years.
- If you are alive after 5, 10, and 15 years, you get 20% of the basic sum assured each time. The policy still continues.
- At the end of 20 years, you get the remaining 40% of the basic sum assured plus any bonuses.
- You can increase coverage by choosing extra Rider Benefits for an extra premium.
- There is a rebate if you take a high sum assured.
- You can choose to get the death benefit as one payment or in instalments.
Benefits of LIC Money Back Policy - 20 Years
Survival Benefit
If you are alive, you get 20% of the sum assured at these times:
End of 5th yearEnd of 10th yearEnd of the 15th yearThe policy continues after each payment.
Death Benefit
If the person insured dies during the policy, the nominee will receive the sum assured on death plus any bonuses. This payment is made even if survival benefits were already paid. The sum assured on death is the higher of 125% of the basic sum assured chosen at the start or 10 times the annual premium paid. It will always be at least 105% of all premiums paid up to the date of death.
Rider Benefit for Extra Protection:
You can choose an optional Accidental Death and Disability Rider by paying an extra premium. If the insured dies due to an accident, the nominee will receive the rider sum assured. If the insured becomes permanently disabled due to an accident, an amount equal to the rider sum assured is given for 10 days, and the future premiums of the LIC Money Back policy are waived.
Maturity Benefit:
If you survive till the end of 20 years, you get the remaining 40% of the sum assured plus any bonuses, and the policy ends.
Policy Loan:
You can take a loan against your policy if at least 2 years of premiums are paid:Up to 90% for active policiesUp to 80% for paid-up policies
Bonuses:
The LIC Money Back Policy offers two types of bonuses. The Simple Reversionary Bonus is calculated each year based on the sum assured. It accumulates during the policy term and is paid at the end of the policy or on death. The Final Addition Bonus is paid at the end of the policy or on death, giving an extra benefit if the policy has been active for a minimum period.
Policy Details of LIC Money Back Policy - 20 Years
Grace Period
You get 30 days of extra time to pay your premium. If you do not pay within these 30 days, the policy will stop (lapse).
Policy Termination / Surrender
If the policy stops, you can restart it within 2 years from the date you missed the first payment. You can also surrender (close) the policy after paying premiums for at least 3 full years, and get some money as per the rules.
Free Look Period
If you are not happy with the policy, you can cancel it within 15 days after receiving the documents, as long as you have not made any claim.
How does the Money Back Policy work?
Below are the yearly premiums for a basic sum assured of Rs. 1 lakh for healthy people:
Age 20 Rs. 7644Age 30 Rs. 7752Age 40 Rs. 8129Age 50 Rs. 9021
Note: These premium amounts do not include taxes.
Exclusion (Suicide Rule):
If the insured person commits suicide within 12 months of the start of the policy, the policy becomes invalid. The company will only pay 80% of the total premiums paid if the policy is active.If the insured person commits suicide within 12 months after restarting (revival) of the policy, the company will pay either 80% of premiums paid or the surrender value, whichever is higher. No other claim will be paid.This rule does not apply if the policy had already lapsed without any value. In that case, no money will be paid.
Disclaimer: Squareinsurance.in does not endorse or recommend any specific insurance company or insurance plan. For more details about this plan, please check the plan brochure or the policy document.
FAQs
It is an insurance plan where you get money at regular intervals during the policy. It gives both insurance protection and savings. Some money is paid during the policy, and the rest is paid at the end.
The policy lasts for 20 years.
You will get money at the end of the 5th, 10th, and 15th years.
If you are alive after 20 years, you will get the remaining sum assured plus bonuses.
Yes, this policy may give bonuses if LIC declares them. The bonuses depend on how the policy performs. They can be a simple bonus (added every year) and a final bonus (given at the end).
Yes, you can close the policy early. The money you get will depend on how many premiums you paid and how long the policy ran.