LIC Money Back Plan is a simple non-linked participating money back plan that provides life coverage to the insured. The Money Back Policy provides periodic payment at regular interval of time in case of survival of the insured. If the policyholder survives the entire tenure of the policy then he/she will receive 20% of the sum assured as survival benefit at the end of 5, 10 and 15 years. The rest 40% of the sum assured along with bonus is paid at the end of 20 years as maturity benefit.
Money Back Policy LIC is most beneficial for those who want to have continues flow of income and secures the future of their loved ones. Moreover, LIC Money Back Plan also offers rider benefit as accidental death and disability benefit riders. To help you know more about LIC money back policy, here we have briefly discussed about some of the key features and benefits offered by the policy.
Salient Features Offered by the Policy
1. This is a simple non-linked participating money back plan that provides survival benefit and death benefit.
2. In case of early death or maturity of the policy simple reversionary bonus is payable to the insured.
3. 20% of sum assured as survival benefit is paid to the insured at the end of 5, 10 and 15 years and the remaining 40% of sum assured is payable after the completion of 20 years as maturity benefit.
4. The policy offers add-on benefit as accidental death and disability benefit rider.
Eligibility Criteria of the Policy
The policy offers some simple eligibility criteria.
1. The minimum sum assured of the policy is 50,000 whereas the maximum sum assured has no upper limit.
2. The tenure of the policy is 20 years.
3. The premium payment tenure of the policy is equal to the policy term.
4. The minimum entry age of the policy is 13 years and the maximum entry age of the policy is 50 years.
5. The maturity age of the policy is 70 years.
6. The insured can pay premiums in yearly, half-yearly, quarterly, monthly and SSS mode.
Benefits offered by Money Back Policy LIC
Death Benefit- In case of demise of the insured during the tenure of the policy, the beneficiary of the policy will receive 125% of the basic sum assured or 10 times of the annualized premium along with vested simple reversionary bonus and final additional bonus. Moreover, the periodical survival benefit which has been paid by the insured will not been deducted.
Survival Benefit- If the policy holder survives the entire term of the policy, the beneficiary of the policy will receive 20% of the basic sum assured as survival benefit in the end of 5, 10 and 15 years and rest 40% of sum assured on top of accrued bonuses.
Maturity benefit- In case of survival of the policy holder during the entire tenure of the policy, 40% of the basic sum assured along with the final additional bonus and simple reversionary bonus will be paid to the insured after the maturity of the policy.
Accidental Death and Disability Benefit Rider- The money back policy LIC offers add-on coverage as rider benefit which can be purchased along with the basic policy coverage. Under this rider benefit an add-on benefit is offered to the beneficiary of the policy along with the basic sum assured amount in case of accidental demise of the insured person.
Tax Benefit- The premium paid up to Rs1 lakh and the maturity proceeds are eligible for tax exemption under section 80C and 10(10D) of Income Tax Act.
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