LIC’s New Money Back Plan – 20 Years

Description

 

Features and Benefits of LIC New Money Back Plan – 20 Years:

Death Benefit:

• In addition to final extra bonuses and basic reversionary bonuses, the nominee will get the “Sum Assured on Death” in the event that the policyholder passes away during the policy period (as long as all premiums are paid).
• Taxes, rider premiums, and additional premiums will not be included in the death benefit, which will be at least 105% of the total premiums paid up until the date of death.

Maturity Benefit:

• The “Sum Assured on Maturity” and any relevant vested Simple Reversionary Bonuses and Final Additional Bonuses will be paid if the policyholder lives to the end of the policy period.
• The sum assured on maturity is equal to 40% of the basic sum assured.

Survival Benefits:

• At the conclusion of the fifth, tenth, and fifteenth policy years, the policyholder receives 20% of the Basic Sum Assured if they live to the end of the stipulated durations and have paid all premiums.

Participation in Profits:

• As long as the policy is in effect, it shares in the corporation’s profits and is qualified for Simple Reversionary Bonuses based on the records of the business.
• A Final Additional Bonus may be declared in the year when the policy matures or results in a claim (death).

Grace Period:

• From the date of the first unpaid premium, a grace period of 30 days is permitted for annual, half-yearly, or quarterly premiums, and 15 days for monthly premiums. The policy is still in effect at this time, and the risk protection is being provided in accordance with its conditions. If the premium is not paid by the conclusion of the grace period, the insurance will lapse.

Paid-up Policy:

• If premiums for less than two years have been paid and subsequent premiums are not paid, all benefits under the policy cease.
• If at least two full years’ premiums have been paid and future premiums are not paid, the policy continues as a paid-up insurance until the policy term ends.

Loan Against Policy:

• A loan can be obtained under the policy if at least two full years’ premiums have been paid and all conditions specified by the Corporation are met.
• The maximum loan amount allowed is up to 90% for policies in effect and up to 80% for fully paid-up plans.

Free Look Period:

• The policyholder has a free look period of 15 days from the date of receiving the policy bond to review the terms and conditions.
• If dissatisfied, the policy can be returned within this period, and the premium amount will be refunded after certain deductions.

 

Eligibility Conditions:

Minimum Age (In Years)	13 years (completed)
Maximum Age (In Years)	50 years (nearer birthday)
Policy Term	20 years
Premium Paying Term	15 years
Minimum Basic Sum Assured	Rs. 100,000
Maximum Basic Sum Assured	No Limit (The Basic Sum Assured shall be in multiples of Rs. 5000/-)
Maximum Maturity Age	70 years (nearer birthday)