LIC New Money Back Plan – 20 Years is a Money Back Plan non-linked life insurance policy Guaranteed returns SB.. and bonus. Premium paid in this plan needs to be paid
15 years while the policy continues for 20 years. Policy can be taken by anyone between 13 to 40 years of age for a fixed tenure of 20 years.
Every 5 years 20% of the Sum Assured is paid to the Life Insured on SB(Survival Benifite) 5th Years 20%, 10th Years-20% 15th Years-20% and the remaining 40% of the Sum Assured is paid to the Life insured along with Vested Simple Reversionary Bonus + Final Addition Bonus
General Conditions of the policy
|Minimum Age entry||13 Years (complited)|
|Maximum Age entry||50 Years (near birth day)|
|Maximum Maturity Age||70 Years|
|Policy Term||20 Years|
|Premium paying Term||15 Years|
|Min.Basic Sum Assured||1,00,000|
|Max.Basic Sum Assured||No limit|
|Mode||Yearly, half year, quartyl ,monthly, Ecs|
|High Sum Assured Rebats||
Features of LIC New Money Back Plan – 20 Years
Money Back Plan for a tenure of 20 years
20% of Sum Assured is paid at the end of 5th, 10th and 15th Year as Survival Benefit. Simple Reversionary Bonus and Final Addition Bonus is also paid out
Simple Reversionary Bonus is payable on maturity or earlier death
LIC’s Accidental Death and Disability Benefit Rider is available as an option
Death Benefit – In case of death of the Life Insured within the Policy Tenure
The Nominee would be paid the “Sum Assured on Death” along with vested Bonuses as Death Benefit and the policy would be terminated.
The Sum Assured on Death is defined as higher of the following:
125% of Basic Sum Assured
10 times the Annualized Premium
The Sum Assured on Death will always be a minimum of 105% of all Premiums paid.
Survival Benefit in the money back plan
20% of Sum Assured at the end of every 5th year
20% of Sum Assured at the end of every 10th year
20% of Sum Assured at the end of every 15th year
Loan shall be granted after policy acquires paid-up value. The maximum loan granted as a percentage of Survival Benefits is for inforce /fully paid up policies –upto 90% & for paid –up policies -80%.
Maturity Benefit survival till the end of the Policy Tenure of 20 years, the policyholder will get the following payouts:
Remaining 40% of the Sum Assured + accrued Reversionary Bonus + Final Addition Bonus (if any).
Income Tax The Maturity Benefit is also tax free under section 10(10)D subject to fulfilment of all terms and conditions.
Lic new money back 20 year plan explain
Mr.Anand Age 30 years takes a policy under Table-821 for Basic Sum Assured 5 Lac
|Premium Paying Term||15 Years|
|Basic Sum Assured||5,00,000|
This policy Premium Calculator
1st Year Premium with Tax 4.5%
After 1st Year Premium with Tax 2.25%
He received Money Back
|Approximate Return at Maturity
Time 20th Year
|40% + SA + Bonus + F.A.B|
But Mr Anand dies due to accident in the 18th policy year, his nominee wil get additional Rs. 5 Lac as + Bonus and The S.B.already paid during the 5th ,10th ,15th year will not be deducted.