LIC Money Back Plan 20 Years

LIC New Money Back Plan 20 years Terms and Condition

Minimum age	13 years (Completed)
Maximum age	50 years
Maximum maturity age	70 years
Minimum Sum Assured	Rs.1,00,000
Maximum Sum Assured	No limit
Policy Term	20 years
Premium paying term	15 years
Premium payment	Yearly / Half yearly / Quarterly / Monthly (ECS)
Loan	Eligible after 2nd year
Surrender	Eligible after 2nd year
Money Back is paid	End of 5th year - 20% of Sum Assured End of 10th year - 20% of Sum Assured End of 15th year - 20% of Sum Assured
On Maturity	40% of Sum Assured + Bonus
On Death	125% of Sum Assured + Bonus (Money back already paid will not be recovered)
Income Tax Benefits	(i) Premiums paid are eligible for Tax rebate u/s 80c (ii) Maturity amount / Death claim is non-taxable u/s 10(10d)

LIC Money Back Policy 20 years Benefits

Death Benefit

In the event of the policy holder’s demise within the policy tenure the Sum Assured on Death along with the accrued Bonuses would be payable to the nominee regardless of the amounts paid earlier as the survival benefit.

The Sum Assured on Death is higher of the following:

• 125% of the Basic Sum Assured
• 10 times the annual premium
• A minimum of 105% of the entire premiums deposited is paid out to the beneficiary.

Survival Benefits

The survival benefits in this plan wherein if the policyholder survives the policy tenure and if all premiums have been accordingly paid, then a fixed percentage of the overall sum assured amount will be awarded to the policyholder as follows:

• 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

A total amount equivalent to 60% of the sum assured is paid as survival benefits.

Maturity Benefit

Maturity benefit is payable on survival of the life assured through the entire Policy Term of 20 years, then the balance of 40% of the sum assured along with accrued simple reversionary bonuses and final additional bonus will be paid as the maturity benefit and the policy terminates.

Surrender

LIC’s New Money Back Plan (20 Years) LIC Best Money Back Plan also comes with a Surrender Value feature under which a particular percentage of the Premium Amount is given back to the insured in case the policy holder decides to surrender the policy after completion of 3 policy years.

Loan

A policyholder is eligible for a loan if 3 years the full premium amount is paid, followed by the policy acquiring a surrender value.

Profit Participation

As a policyholder the participant, you are entitled to the profits of the insurance company by way of eligible for Simple Reversionary Bonus and Final Additional Bonus as declared by LIC and will be paid at the time of Maturity of the policy or as the death benefit.

Income Tax Benefit

The premiums paid towards buying LIC New Money Back Plan (20 Years) is considered as a tax-free deduction under Section 80C of the Income Tax Act. One can claim a maximum deduction of INR 1.5 lakhs on this amount. The section 10 (10D) of the Income Tax Act allows us to put all the benefits received including death and maturity benefits

Life Cover

Life cover during the policy term: If the death of policyholder occurs during the policy term, the nominee will receive the Sum Assured on Death plus simple reversionary bonuses and final additional bonus declared.

The Sum assured on death is 125% of the Basic Sum Assured or 10 times the annual premium paid as on date of the death of the policy holder; whichever is higher.

Additional Benefits of LIC Money Back Plan (20 years)

Riders

Accidental death and disability rider benefit

With the accidental death and disability rider benefit, in case of accidental demise of the insured person, an accidental rider benefit sum assured is payable as a lump-sum amount to the beneficiary of the policy along with the death benefit under the base plan.

Bonus

i. Simple Reversionary Bonus: An amount per thousand Sum Assured is declared by LIC at the end of each year and this forms part of the guaranteed benefits. This is provided as a Simple Reversionary Bonus that accrues during the premium paying term and is paid to the policyholder or nominee at the end of the term or death in addition to the final additional bonus.

ii. Final Addition Bonus: Paid if the policy has run for a minimum period. Final Additional Bonus may be declared when a claim is made either as a result of death or maturity, provided the policy has been in effect for a minimum term.

Frequently Asked Questions