LIC’s New Money Back Plan – 25 Years
LIC’s New Money Back Plan-25 years is a Non-Linked Participating, Limited Premium, Individual, Life Assurance plan which 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. This unique combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.
Description
Features and Benefits of LIC’s New Money Back Plan – 25 Years:
Long Term Coverage:
- With premium payments due for 20 years and benefits payable for up to 25 years, the policy provides long-term coverage.
Death Benefit:
- Should the policyholder pass away, the death benefit will be paid. The amount of the death benefit is equivalent to the sum promised, which is equivalent to at least 105% of all premiums paid prior to the death date.
- Depending on their desire, policyholders can receive the death benefit in the form of a lump sum or as payments that are paid in advance at various periods.
Survival Benefit:
- The plan provides survival benefits where 15% of the sum assured is paid at the end of the 5th, 10th, 15th, and 20th policy years.
Maturity Benefits:
- Upon policy maturity, the policyholder receives the maturity benefit amount, which is equal to 40% of the basic sum assured, including any accrued bonus amounts.
- Policyholders have the flexibility to choose between receiving the maturity amount as a lump sum or in installments.
Additional Riders:
- The plan offers optional riders that allow policyholders to enhance their coverage:
- Accidental Death and Disability Benefit Rider
- New Term Assurance Rider
- Accident Benefit Rider
- New Critical Illness Benefit Rider
- Policyholders can choose a maximum of three riders, and they have the option to select either the Accidental Death and Disability Benefit Rider or the Accident Benefit Rider.
Loan Facility:
- Policyholders can avail a loan facility, provided they have paid at least two full years’ premiums. The maximum loan amount is a percentage of the Surrender Value:
- Up to 90% for in-force policies.
- Up to 80% for paid-up policies.
Tax Savings:
- Policyholders can reduce their premium payments by taking advantage of the tax savings provided by the policy under sections 10D and 80C of the Income Tax Act.
Eligibility Conditions:
| Eligibility condition | Minimum | Maximum |
| Sum Assured Amount | Rs. 100,000 | No limit |
| Entry age | 13 years | 45 years |
| Maturity Age | – | 70 years |
| Policy Term | 25 years | |
| Premium Paying Term | 20 years | |
| Premium payment modes | yearly, half-yearly, quarterly, or monthly | |
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