LIC New Money Back Plan 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)

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 unfortunate event of the policyholder’s passing during the policy duration, the nominee will receive the Sum Assured on Death, in addition to any accrued Bonuses, irrespective of the previous survival benefits received. The death benefit amount will be the higher amounts of the following:

• Policy initiation selection: 125% Basic Sum Assured
• Premium-based death benefit: 10x annual payment.
• Minimum 105% premium payout.

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

Survival Benefits

Survival benefits include fixed percentages of the sum assured awarded to the policyholder at specific intervals (5th, 10th, 15th, and 20th years), totaling 60% of the sum assured .i.e 15% each interval.

• 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

Upon the life assured’s survival throughout the 25-year Policy Term, the maturity benefit will be paid, consisting of the remaining 40% of the sum assured, accrued simple reversionary bonuses, and final additional bonus. The policy will then terminate.

Surrender

In LIC’s New Money Back Plan (25 Years) Buy LIC Money Back Plan (25 Years) there is a Surrender Value provision. If the policyholder chooses to surrender the policy after completing 3 policy years, a certain percentage of the Premium Amount will be returned to the insured.

Loan

Once the policyholder has paid the full premium amount for 3 years and the policy has acquired a surrender value, they become eligible for a loan.

Profit Participation

Policyholders entitled to company profits: Reversionary and Additional Bonuses paid at maturity or as death benefit.

Income Tax Benefit

Premiums paid for LIC New Money Back Plan LIC Money Back Policy Online Purchase qualify for tax-free deduction under Section 80C of the Income Tax Act, up to a maximum of INR 1.5 lakhs. Section 10(10D) allows for tax exemption on all benefits received, including death and maturity benefits.

Life Cover

In case of the policyholder’s death during the policy term, the nominee will receive the Sum Assured on Death, which is 125% of the Basic Sum Assured, along with vested and final bonuses declared.

Additional Benefits of LIC Money Back Plan (25 years)

Riders

Accidental death and disability rider benefit

In the event of the insured person’s accidental death, the accidental death and disability rider benefit provides an additional payout. In addition to the death benefit provided by the base plan, a lump sum is paid to the beneficiary. In case of unintentional handicap, regularly scheduled installments are made for a long time, and all charges, both paid and future, are deferred 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.

Frequently Asked Questions