LIC policy: New Money Back Plan-20-year plan: Know what it is, benefits and other details
LIC New Money Back Plan: Policy also looks after liquidity needs through its loan facility.
Life Insurance Corporation of India or LIC has several products under its hat, which includes term and endowment insurance products as well as pension plans and whole life plans for the people to choose from. One of them is LIC New Money Back Plan-20 years plan that benefits the policy holder in many ways. Additionally, the policy also looks after liquidity needs through its loan facility.
Who can buy LIC's New Money Back Plan-20 year Plan?
The LIC's New Money Back Plan-20 years Plan can be purchased by any individual who is between the age group of 13 years to 50 years. The minimum sum assured with the plan is Rs 1 lakh whereas there is no limit to the maximum sum assured.
What is the premium paying terms available with the LIC's New Money Back Plan-20 years Plan?
The LIC's New Money Back Plan-20 years Plan comes with a premium paying term of 15 years with 20 years as the term duration for the policy. The LIC's New Money Back Plan-20 years Plan has a maximum maturity age of 75 years.
Given below is the sample premium rates per Rs. 1,000 for the basic sum assured, according to LIC
What is the frequency of payment of premiums available under the LIC's New Money Back Plan-20 years Plan?
The policy holder can pay premiums on a regular basis at yearly, half-yearly, quarterly or monthly intervals. The applicant can get a grace period of one calendar month in case of payments of yearly or half-yearly or quarterly premiums. The grace period is 15 days for monthly premiums.
If all the premiums are duly paid, then the Sum Assured on Death is as high as 125% of the Basic Sum Assured or 10 times of annualized premium. Moreover, the benefit will not be less than 105% of the total premiums paid.
However, the premiums exclude service tax, extra premium and rider premiums.
One can get 20% of the Basic Sum Assured at the end of each of 5th, 10th and 15th policy year, in the case of Life Assured survival benefit.
The policy holder can benefit from 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus on maturity.
With LIC, one can avail the LIC's Accidental Death and Disability Benefit Rider as an optional rider plan, with additional payment of premium. In case of death of the policy holder, one will get not only the death benefit under the basic plan but also Accident Benefit Sum Assured will also be payable.
In the case of disability due to an accident, amount equal to the Accident Benefit Sum Assured will be payable in installments for a span of 10 years.
If the policy holder fails to pay the premium on time, even with the grave period, the policy will lapse. The policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but should be before the end of policy term on payment of all the arrears of premium together with interest.
The policy holder has the choice of returning the policy within a span of 15 days from the date of receipt if not satisfied with the terms and conditions. The policy holder needs to state the reason for the same as well.
In case of suicide, the policy will remain void.