LIC New Money Back Plan 20 Years- Benefits and Features
LIC, India's largest life insurance company not only offers life insurance products like term insurance plans, endowment plans, pension plans and unit-linked plans, it also offers a money back insurance plans.
What is LIC's money back plan?
LIC's money back plan is a combination of insurance-cum- investment plan. The state-run insurer offers one of the money back plan that is LIC's New Money Back Plan-20 years. It is a sharing of non-linked plan that offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term.
Find the details of premiums, money backs, the sum assured and eligibility criteria for buying LIC's New Money Back Plan-20 Years:
LIC Policy Sum Assured:
LIC mentioned on its website https://www.licindia.in. that any individual can purchase the LIC New Money Back Plan 20-Years for minimum sum assured of Rs. 1 lakh and there is no upper limit for sum assured.
As per LIC, the insurance scheme comes with a 20 years policy term while its premium-paying term - the term till which the policy holder has to pay the premium - is 15 years.
Eligible Age:
Thirteen years is the minimum age and fifty years is the maximum age at the entry for the life assured.
Benefits of LIC New Money Back Plan-20 Years:
If the policy holder of LIC New Money Back Plan-20 Years survives during the period of the policy term, with all insurances paid, the policy holder gets 20 per cent of the basic sum assured at the end of each of fifth, tenth and fifteenth policy years.
LIC noted on its website that on the maturity of this plan, 40 per cent of the basic sum assured along with vested simple reversionary bonuses and final additional bonus, will be payable to the LIC New Money Back Plan-20 Years policy holder.
In case the policy holder of LIC New Money Back Plan-20 Years dies during the policy term, the nominee of the policy holder will get a sum assured along with vested simple reversionary bonuses and final additional bonus, as per LIC. "Sum assured on death is defined as higher of 125 per cent of the basic sum assured or ten times of annualised premium," the insurer added.
LIC Premiums Details:
These are the premium rates per Rs. 1,000 of basic sum assured for LIC New Money Back Plan 20 Years:
Age (in years) | LIC Premium (Rs.) |
| 20 | 78.00 |
| 30 | 79.10 |
| 40 | 82.95 |
| 50 | 92.05 |
Source: licindia.in
The premiums paid for LIC New Money Back Plan-20 Years are eligible for income tax benefits under the Section 80C of the Income Tax Act.
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly basis or through salary deductions over the term of the policy; it is entirely the choice of the policy holder.