Life Insurance Corporation (LIC), the country’s largest life insurance company, which offers term insurance plans, pension plans and endowment insurance policies also offers money back policies. LIC New Money Back Policy 20 years is one such insurance policy which offers combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term, LIC said on its website https://www.licindia.in. 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, LIC added.
Here are details of premiums, sum assured, money backs and other benefits being offered by LIC under New Money Back Policy-20 years:
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.
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.
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.