• LIC’s Money Back Plan 20 years: In case the insured survives by the end of the specified duration 20% of the basic sum assured at the end of each 5th, 10th and 15th policy year.
  • LIC’s Money Back Plan 25 years: In case the insured survives by the end of the specified duration 15% of the basic sum assured at the end of each 5th, 10th, 15th and 20th policy year.
  • LIC’s New Bachat Plan: A money bank plan that offers financial protection against death along with the provision of payment of survival benefits at specified durations during the policy term.

LIC Money Back Plans Info : LIC Money Back Plan 20 Years


LIC's New Money Back Plan-20 years is a participating non-linked 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.

Benefits:

Death benefit: On death during the policy term provided the policy is in full force, death benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of 125% of the Basic Sum Assured or 10 times of annualized premium. This death benefit shall not be less than 105% of the total premiums paid as on date of death.

 The premiums mentioned above exclude tax, extra premium and rider premium, if any.

Survival Benefits: In case of Life Assured surviving to the end of the specified durations 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year.

Maturity Benefit: In case of Life Assured surviving the stipulated date of maturity, 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

      Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
      Final Additional Bonus may also be declared under the policy in the year when the policy results  into a claim either by death or maturity, provided the policy has run for certain minimum term.


Optional Benefit:

LIC’s Accidental Death and Disability Benefit Rider: LIC’s Accidental Death and Disability Benefit Rider can be opted for under an inforce policy at any time within the premium paying term by payment of additional premium and the cover will be available throughout the policy term provided the Policy is inforce for the full Sum Assured as on date of accident. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.  In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.

However, on surrender of an inforce basic policy (which has acquired Surrender Value) to which this rider is attached, a proportion of additional premium charged in respect of cover after premium paying term shall be refunded. 


Eligibility conditions

  • Minimum Basic Sum Assured: Rs. 100,000
  • Maximum Basic Sum Assured: No Set Limit
  • Minimum Age: 13 years
  • Maximum Age: 50 years
  • Maximum Maturity Age for Life Assured: 70 years
  • Term: 20 years
  • Premium paying term: 15 years

Accidental Death and Disability Benefit Rider

  • Minimum Accident Benefit Sum Assured: Rs. 100,000
  • Maximum Accident Benefit Sum Assured: Amount equal to the Sum Assured under the Basic Plan (maximum of Rs.50 lakh) Accident Benefit Sum Assured.
  • Minimum Age: 18 years
  • Maximum Age: Can be opted at any time.
  • Maximum cover: 70 years

Payment of premiums

Premiums under the policy can be paid at a yearly, half-yearly, quarterly or monthly basis or via salary deductions. A grace period of one month will be given (for yearly, half-yearly, quarterly modes) and 15 days for monthly mode.

The table below shows the premiums per Rs. 1000 of basic sum assured

Age (in years) Premium (Rs.)
  • 20 78.00
  • 30 79.10
  • 40 82.95
  • 50 92.05

Exclusions

If the Life Assured ends life irrespective of whether sane or insane, in a year, from the date of risk commencement, LIC will not accept any claim except 80% of the premiums paid sans taxes, extra premium and rider premiums. If the Life Assured ends life from date of revival, 80% of the premiums paid till the date of death (excluding taxes, extra premium and rider premiums) or the surrender value, will be payable.

An Example

Subhash Chaturvedi, a 30-year-old IT professional opts for LIC Money back plan – 20 years for a sum assured of Rs. 2,00,000. Subhash pays an annual premium of around Rs. 15,000 for 15 years. If Subhash dies from an accident, his nominee will receive 125% of Sum assured besides additional accidental Sum assured and Accrued bonuses. Also, any survival benefit which has been already paid will not be deducted. If he survives, he gets 20% of the Sum Assured, i.e, Rs. 40,000 at the end of 5, 10 and 15 years. At the end of 20 years, Subhash will get Rs. 80,000 in addition to accrued bonuses.

Under the LIC money back policy, the survival benefits are paid periodically, which is one of the several reasons why Subhash opted for the policy. The payments can be done on a yearly, half yearly, quarterly or monthly basis. Policyholders can also avail of double tax benefit under section 80 C and 10 D of the IT Act. The large Sum Assured available under the LIC money back plan in addition to additional benefits such as accidental death and disability benefit rider ensures that Subhash’s family is not in doldrums in the event of his accidental death or disability. Also, while the minimum Sum Assured under the plan is Rs. 1,00,000, there is no limit for the maximum which is one of the highlights of the plan.

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