LIC Money Back Plan Policy

The LIC new money back policy can be surrendered only after it accrues cash value after payment of 3 years of premiums. If policyholders stop paying the premium, the policy ceases to exist. Nevertheless, if premiums have been paid for three years, a paid up value is accrued for a reduced sum assured. However, the policyholder cannot avail of additions in the future.

The LIC new money back policy can be revived under two years from the day of the unpaid premium. The revival of the policy will be effective after it is duly approved by LIC, which informs the policyholder. What’s more, policyholders can also take loan against the policy provided it has acquired a surrender value.

Key Features and Highlights of LIC Moneyback 20 years Policy

Death benefit: If the policyholder dies during the policy term, the nominee will get 10 times of annualized premium or 125% of the Basic Sum Assured, vested simple reversionary bonuses and final additional bonus. Also, the periodical survival benefits which have been paid will not be deducted.

Survival Benefits: If the policyholder survives the policy term, the nominee will receive 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year and 40% of Sum Assured in addition to accrued bonuses.

Maturity Benefit: If the Life Assured survives till maturity, 40% of the Basic Sum Assured in addition to simple reversionary bonuses and final additional bonus will be paid.

Benefits of LIC Moneyback Plan for 20years

LIC’s Accidental Death and Disability Benefit Rider: Rider can be opted after payment of additional premium provided the policy is in force on the day of the accident. In case of accidental death, the Accident Benefit Sum Assured and the death benefit will be paid. In case of accidental permanent disability, a sum equal to the Accident Benefit Sum Assured will be paid over a period of 10 years. Consequently, future premiums for Accident Benefit Sum Assured will be waived.

Simple Reversionary Bonus: It is declared per thousand Sum Assured at the end of each a year, following which, they form part of the guaranteed benefits. Simple Reversionary Bonus, therefore, accrues during the premium paying term but is paid at the end of the term or death in addition to the final additional bonus. Simple Reversionary Bonuses is declared as per the performance of the Life Insurance Corporation.

Final Addition Bonus: Paid if the policy has run for a minimum period. Final Additional Bonus may be declared when a claim is made either as a result of death or maturity, provided the policy has been in effect for a minimum term.

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