LIC New Money Back Plan 25 Years

Life is all about comfort, happiness and creating moments of joy with your loved ones at regular intervals.To live these moments to the fullest you need to have assurance of a life cover to protect your loved ones in case of any uncertainties and also plan for various life goals like marriage, parenthood, children’s education and any unforeseen emergencies for which you would need a financial plan that gives you the reassurance of a guarantee. Keeping this in mind, LIC introduces “ LIC’s NEW MONEY BACK PLAN 25 YEARS LIC New Money Back Plan 25 years Benefits” a protection and savings oriented life insurance plan with guaranteed money back every 5 years to help you achieve your life goals. LIC’s Money Back Policy 25 years is a great way to get life insurance coverage and save for your future. This policy offers guaranteed returns and bonuses, and it gives you the peace of mind of knowing that your loved ones will be taken care of financially if something happens to you.

“If a Child, a Spouse or a Parent depends on you and your income, you need Life insurance”

read more >

This is a traditional, conventional with profits Money back policy with Limited premium payment and not linked to any share market. This policy has all the benefits like Investment, Insurance cover, Savings, Tax-benefits, Loan, Surrender.

read less

  • Income at regular intervals, Money back is paid every 5 years
  • Assured money back returns, 15% of Sum assured every 5 years
  • A lump sum amount at the end of the policy term as Maturity benefit
  • Limited premium payment, Get a premium holiday for last 5 years
  • Enjoy triple tax benefits on: Premiums paid, Money back amount & Maturity returns
  • Enhance risk cover by way of accidental coverage
  • Easy liquidity through loans and Surrender of policy

Key Features of LIC New Money Back Plan (25 years)

  • Plan with guaranteed returns and bonus
  • Simple Reversionary Bonus is payable on maturity or earlier death
  • Large Sum Assured Rebate is available
  • LIC’s Accidental Death and Disability Benefit Rider can be taken
LIC Money Back Policy 25 years

LIC Money Back Plan 25 years Terms and Conditions

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 25 years
Premium paying term 20 years
Premium payment Yearly / Half yearly / Quarterly / Monthly (through Bank)
Loan Eligible after 2nd year
Surrender Eligible after 2nd year
Money Back is paid On 5th year - 20% of Sum Assured
On 10th year - 20% of Sum Assured
On 15th year - 20% of Sum Assured
On 20th year – 20% of Sum Assured
On Maturity 40% of Sum Assured + Bonus + Final 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)

How does LIC Money Back Plan (25 years) work for you

LIC New Money Back Plan 25 Years Illustraion

LIC New Money Back Policy 25 Years Benefits

If the policy holder of the LIC New Money Back plan LIC’s New Money Back Plan (20 years) expires during the plan duration, the death benefits will include; the Sum Assured on Death plus accrued Bonuses would be payable to the beneficiary regardless of the sum paid earlier as a life cover.

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.

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. Sum Assured on Death will be the higher amounts of the following:

  • 125% of the Basic Sum Assured which was selected at the time of the policy initiation
  • 10 times the annual premium paid by the policyholder on date

The Sum Assured on Death will always be a minimum of 105% of the total premiums paid as on date of death.

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:

  • 15% of Sum Assured at the end of the 5th year
  • 15% of Sum Assured at the end of the 10th year
  • 15% of Sum Assured at the end of the 15th year
  • 15% of Sum Assured at the end of the 20th 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 25 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 (25 Years) Buy LIC Money Back Plan (25 Years) 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 LIC Money Back Policy Online Purchase 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 vested bonuses and final bonuses declared.

The Sum assured on death is 125% of the Basic Sum Assured.

Additional Benefits of LIC Money Back Plan (25 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. Similarly, in the case of accidental disability, the accidental rider benefit sum assured is paid in equal monthly instalments for 10 years. Furthermore, all premiums paid or future premium payments are waived off.

Bonus

The policyholder receives a particular share of the benefits in bonuses earned by the company as Final Additional Bonus and Simple Reversionary Bonus.

Documents required for LIC policy - Online vs Offline
Buying LIC Policy Online with LICNewPolicyOnline.com Buying A Policy Offline visiting LIC branch or through an agent
Address Proof Aadhar Zip File Address Proof Aadhar
ID Proof ID Proof Pan Card or Aadhar
Age Proof Age Proof Aadhar / Driving License
Income Proof IT Returns of last 2 years
Photo Passport Photo
Buying Online Policy with LICNewPolicyOnline.com
Address Proof Aadhar
ID Proof
Age Proof
Buying A Policy Offline visiting LIC branch or through an agent
Address Proof Aadhar
ID Proof Pan Card or Aadhar
Age Proof Aadhar / Driving License
Income Proof IT Returns of last 2 years
Photo Passport Photo
Frequently Asked Questions

1. What is new money-back plan 25 years plan 821?

LIC Money Back Plan 821 is a fixed 25 years tenure plan which provides money back benefits at regular interval during the term of the plan.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

LIC Policy holders enjoy sovereign guarantee by Govt. of India

LIC policyholders enjoy a sovereign guarantee on the sum assured and the bonus declared as per section 37 of LIC Act, 1956 which clearly states that "Policies to be guaranteed by Central Government - The sum assured by all policies issued by the corporation including any bonuses declared in respect thereof and, subject to the provisions contained in section 14 the amounts assured by all policies issued by any insurer the liabilities under which have vested in the corporation under this act, and all bonuses declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the Central Government."