LIC New Money Back Plan 20 Years (plan no. 920) – Review, Benefits, Eligibility and more: At present, LIC (Life Insurance Corporation of India) has many such life insurance plans, in which people get good returns in less investment till the end of the policy. Some of these policies are long term and some are short term. In such a situation, if you want to invest a little and get a lot of returns, then LIC (Life Insurance Corporation of India) has life insurance LIC New Money Back Plan – 20 Years for this. This money back plan of LIC is a non-linked life insurance, in which you get guaranteed returns and bonus.
LIC New Money Back Plan 20 Years
LIC New Money Back Plan – 20 Years is a non-linked, participating, limited premium, individual life insurance policy. It is a traditional money-back plan with schedule payment and bonus facility. Being a 20-year plan, the plan has 20 years of survival benefit and maturity benefit to be paid. A Simple Reversionary Bonus is also available on maturity of the policy.
LIC New Money Back Plan 20 Years – Eligibility Criteria
| Name of Insurance: | LIC New Money Back Plan – 20 Years |
| Entry Age: | Minimum:- 13 days Maximum:- 50 years |
| Coverage (Basic Sum Assured): | Minimum:- Rs.1,00,000 Maximum:- No limit (Subject to Board approval) |
| Premium Paying Term: | 15 years |
| Policy Term: | 20 years |
| Maturity Age (Maximum): | 70 years |
| Official Website: | www.licindia.com |
LIC New Money Back Plan 20 Years – Features
Some of the salient features of LIC New Money Back Plan – 20 Years are as follows:
- In this plan, the premium has to be paid only for 15 years, while the policy continues for 20 years.
- This is a participating traditional plan.
- If the life assured dies within the policy term, the entire Sum Assured + accrued bonuses is paid as death benefit to the beneficiary of the life assured.
- If the life assured is alive at the end of 5th, 10th and 15th policy year, 20% of the Basic Sum Assured is paid as Survival Benefit, and the policy continues.
- The remaining 40% of the Basic Sum Assured is paid on survival along with accrued bonuses at the end of the policy term.
- You are eligible to apply for a loan against the policy after receiving the surrender value.
- LIC’s Accidental Death and Disability Benefit rider is available as an option.
LIC New Money Back Plan 20 Years – Benefits
Death Benefit
If the life assured dies within the policy term, the Sum Assured + accrued bonuses are paid to the beneficiary as death benefit. Where the Sum Assured on Death shall be as follows:
- Above 125% of the Basic Sum Assured chosen at the inception of the policy
- More than 10 times of annualized premium
- Subject to a minimum of 105% of the total premiums paid till the date of death
Maturity Benefit
If the life assured survives till the end of the policy term, then the remaining 40% of the Basic Sum Assured plus accrued bonuses is paid as maturity benefit to the life assured and the policy terminates.
Survival Benefits
20% of the Basic Sum Assured is paid as Survival Benefit at the end of 5th, 10th and 15th policy year to the insured, if the insured survives those specified periods.
Participation in Profits
The policy participates 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.
Tex Benefits
Income tax benefits are available on premiums paid as per section 80C of the Income Tax Act and claims received as per section 10(10D) of the Income Tax Act.
LIC New Money Back Plan 20 Years – Riders
LIC New Money Back Plan – 20 Years Additional Riders Available:
- LIC Accidental Death and Disability Benefit Rider
- LIC Accident Benefit Rider
- LIC New Term Assurance Rider
- LIC New Critical Illness Benefit Rider
Grace Period
A grace period of 30 days is available for quarterly, half-yearly, and annual premium payments. Same if you pay monthly premium then you get 15 days discount. If the premium is not paid before the end date of the grace period, the policy will lapse.
Surrender Benefit
In this insurance plan, an option to surrender the policy is provided at any time after the policy has been continued for two consecutive years. In such situations, the insurer pays the higher of the Special Surrender Value or a surrender value equal to the Guaranteed Surrender Value.
Revival
If the premium is not paid within the grace period, the policy lapses. LIC New Money Back Plan – 20 Years provides the option to revive the policy but within 5 consecutive years. It means from the date of your first unpaid premium and it can be revived only before the maturity date.
Free look period
This plan gives a period of 15 days to the insured to think whether they want to continue with the plan or not. It gives you the option to cancel the policy within this period if the policyholder has not made any claim. That is, in this policy you get a free look period of 15 days .
The Bottom Line:
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