LIC's New Money Back Plan 25 Years

Other Requirements:

• Policyholder has to do the following:
• Fill up an 'Application form/ proposal form'
• Accurate medical history
• Address proof
• Other KYC documents.
• Medical examination may be required depending on the sum assured and the age of the applicant.

Key Features of LIC's New Money Back Plan-25 years

Benefits and Advantages of LIC's New Money Back Plan-25 years

The following are the main features and benefits of the LIC's New Money Back Plan-25 years:

Death Benefits: In the unfortunate event of the policy holder's untimely demise during the policy tenure the Sum Assured on Death along with the accrued Bonuses would be payable to the claimant or nominee regardless of the amounts paid earlier as the survival benefit. Sum Assured on Death will be the higher amounts of of the following:

1. 125% of the Basic Sum Assured which was selected at the time of the policy initiation.
2. 10 x annualized premium that has already been paid

Note that the amounts have to be a minimum of 105% of the total premiums paid as on date of death.

Survival Benefits: This policy comes with great survival benefits which are paid in the following way:

1. 15% of the Sum Assured is paid at the end of the 5th Policy Year
2. 15% of the Sum Assured is paid at the end of the 10th Policy Year
3. 15% of the Sum Assured is paid at the end of the 15th Policy Year
4. 15% of the Sum Assured is paid at the end of the 20th Policy Year

A total of 60% of the maturity sum assured is paid out, as survival benefit.

Maturity Benefits: The policyholder will receive some maturity benefits as well. This will included the remaining amount which is 40% of the Basic Sum Assured as well as the accrued bonuses. Henceforth, the policy terminates.

Tax Benefits: The premium amounts are exempted under the Section 80C of the Income Tax Act. However, service tax is applicable.

Loan Under Policy: You can take a loan under the policy on the condition that the policy has acquired a specific surrender value and it is also subject to the terms and conditions which may change from time to time on this respect.

Bonuses: Since this is a participating plan the company as well as the policy accrues Simple Reversionary Bonuses as well as Final Additional Bonus.

How The LIC's New Money Back Plan-25 years Works

You get the death benefits amount under the circumstances that the policy holder's death occurs within the policy term. The paid amount to the nominee is given regardless the premiums paid. However, if start getting paid periodically after the 10 th year of the policy term. If you survive the whole term which is 25 years, you get the rest 40% of the maturity amount assured to you. So, this is a win win situation for the policyholder, financially. You also get other accrued bonuses since this is a participating non linked plan.

Premium Payable for LIC's New Money Back Plan-25 years

The following should give you the basic idea about the premiums payable for this policy:

The annual premium is mentioned in Rupees. Basic Premium is mentioned below (Tax (such as service taxes) amount is not included):

Riders Available for LIC's New Money Back Plan-25 years

LIC's Accidental Death and Disability Benefit Rider

1. Minimum Accident Benefit Sum Assured : Rs. 1 lakh
2. Maximum Accident Benefit Sum Assured : An amount equal to the Sum Assured under the Basic Plan subject to the maximum of Rs.50 lakh
3. (The Accident Benefit Sum Assured shall be in multiples of Rs. 5000/-)
   1. Minimum Age at entry for Life Assured : 18 years (completed)
   2. Maximum Age at entry for Life Assured : The cover can be opted for at any policy anniversary during the premium paying term.
   3. Maximum cover ceasing age : 70 years (nearest birthday)

GST of 18% is applicable on life insurance effective from the 1st of July, 2017