Life Insurance Corporation (LIC) of India which offers term insurance policies, endowment plans and pension schemes also offers money back insurance policies. LIC New Money Back Policy-20 years is one of the money back plans being sold by the country’s largest life insurer which offers protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term, LIC noted on its website licindia.in. Premiums paid towards LIC’s New Money Back Policy-20 years qualify for income tax benefits under Section 80C of Income Tax Act.
LIC Policy: Here are details of premiums, sum assured, money backs and other benefits being offered by LIC under New Money Back Policy-20 years:
Any individual in the age group of 13 years and 50 years can buy the LIC New Money Back Plan-20 Years for minimum sum assured of Rs. 1 lakh. There is no maximum limit for the sum assured, according to LIC.
An individual opting to buy LIC New Money Back Plan-20 Years has to pay premium for 15 years while the policy’s maturing term is 20 years with maximum age of maturity at 70 years, LIC added.
Money back or the periodic payment on survival under the LIC policy is 20 per cent of the basic sum assured at the end of fifth, tenth and fifteenth policy year.
On maturity of the LIC policy, if the individual is surviving, 40 per cent of the basic sum assured along with simple reversionary bonuses and final additional bonus, if any, shall be payable to the policy holder, LIC said.
In case the policy holder dies during the policy term and had paid all premiums, the nominee or legal heir of the policy holder will get 125 per cent of the basic sum assured or 10 times of annualized premium, LIC added.
Below are the sample premium rates per Rs. 1,000 of basic sum assured for LIC New Money Back Plan-20 Years:
|Age (in years)||Premium (Rs.)|
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals. If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but before the date of maturity by paying all the arrears of premium together with interest, LIC said.