LIC New Money Back Plan 25 Years (Plan No. 721)

It provides survival benefits at regular intervals during the policy term, while ensuring continuous life cover. At maturity, the remaining Sum Assured along with accrued bonuses is paid to the policyholder.

LIC New Money Back Plan 25 Years- An Overview

The LIC Money Back policy 25 years (Plan 721) is a limited-premium insurance policy offered by LIC of India that combines life coverage with periodic survival benefits. It is a non-linked, participating, limited-premium-paying life insurance plan with a policy term of 25 years. It offers a balanced combination of protection and savings, with the policyholder receiving periodic payouts during the policy tenure and a lump sum on maturity. The LIC Money Back plan 25 years plan suits individuals seeking regular financial returns and insurance coverage. In case of death, the full Sum Assured plus accrued bonuses are payable. This LIC guaranteed return plan also offers maturity benefits and tax advantages under the Income Tax Act.

Key Features of LIC New Money Back Plan 25 Years

• LIC New Money Back Policy 721 (previously plan 821 & 921) offers savings and protection.

• Survival benefits are payable at specified policy terms.

• The LIC 921 plan offers benefits of attractive rebates on high sum assured

• Option to increase coverage by opting for rider benefits on additional premium payment for the rider benefits.

• It takes care of liquidity needs through a loan facility.

Eligibility Criteria of LIC New Money Back Plan 25 Years Plan 721

What are the Benefits of the LIC New Money Back Plan 25 Years (Plan no. 721)?

Survival Benefit: On survival, 15% of the Sum Assured is paid to the policyholder as a Survival Benefit, and the policy continues:

• Payable at the end of the 5th Policy Year

• Payable at the end of the 10th Policy Year

• Payable at the end of the 15th Policy Year

• Payable at the end of the 20th Policy Year

Maturity Benefit: If the Life Assured survives until the end of the policy term and the policy remains in force, the Maturity Benefit becomes payable. This benefit includes the Sum Assured on Maturity, along with any vested Simple Reversionary Bonuses and Final Additional Bonus, if applicable.

The Sum Assured on Maturity is equal to 40% of the Basic Sum Assured.

Death Benefit: If the Life Assured passes away during the policy term while the policy is in force (with all due premiums paid), the nominee will receive the Death Benefit, which includes the Sum Assured on Death, along with any vested Simple Reversionary Bonuses and Final Additional Bonus, if applicable.

The Sum Assured on Death is the higher of:

• 125% of the Basic Sum Assured, or

• 7 times the annualized premium.

Additionally, the death benefit will not be less than 105% of the total premiums paid up to the date of death.

Option to Receive Death Benefits in Instalments: This option allows the death benefit to be received in instalments over 5, 10, or 15 years instead of a lump-sum payout. It is available under both in-force and paid-up policies and can be chosen for the full or partial death benefit amount.

Premium Payment: Premiums can be paid throughout the policy term on a yearly, half-yearly, quarterly, or monthly basis (via NACH only). Policyholders may also choose to pay premiums through salary deduction, where applicable.

Participation in Profits: This plan participates in the Corporation profits and shall be entitled to get simple reversionary bonuses declared according to the corporation’s experience, provided the policy is active.

Tax Benefits: The LIC policyholder can save on taxes on the claim received and premium paid per section 10(10D) and 80C of the Income Tax Act.

Settlement Option: The Settlement Option allows the policyholder to receive the Maturity Benefit in regular instalments over 5, 10, or 15 years instead of a lump-sum payout. This option is available under both in-force and paid-up policies and can be chosen for the full or partial maturity proceeds.

Riders Available Under LIC Money Back 25 years

• LIC Accidental Death and Disability Benefit Rider - This rider can be added to an in-force policy during the premium-paying term, provided at least 5 years of premium payments remain.

Benefits:

• Accidental Death: The Accident Benefit Sum Assured is paid as a lump sum to the nominee.

• Accidental Disability: If permanent disability occurs within 180 days of the accident, an amount equal to the Accident Benefit Sum Assured is paid in monthly installments over 10 years.

• Future premiums for both the rider and the equivalent portion of the base policy sum assured are waived.

For policies issued on minors, the rider becomes available from the policy anniversary following the completion of 18 years of age, subject to a specific request.

• LIC Accident Benefit Rider

This rider can be added to an in-force policy during the premium-paying term, provided at least 5 years of premium payments remain. The coverage is available only during the premium-paying period.

Benefit:

• In case of accidental death, the Accident Benefit Sum Assured is paid as a lump sum to the nominee.

For policies issued on minors, the rider can be availed from the policy anniversary after the Life Assured attains 18 years of age, subject to a specific request.

• LIC New Term Assurance Rider

This rider can be added only at the time of policy purchase and provides additional life cover during the policy term. If the Life Assured passes away during the policy term, the Term Rider Sum Assured is paid to the nominee.

Key Conditions:

• The total premium for all life insurance riders cannot exceed 30% of the base policy premium.

• The Accident Benefit Rider Sum Assured cannot exceed three times the Basic Sum Assured of the base policy.

• The benefit under any other rider cannot exceed the Basic Sum Assured of the base policy.

Sample Premium Illustration of LIC New Money Back Plan-25 Years

The sample illustrative annual premiums for Basic Sum Assured of Rs 1 lakh for Standard lives are as under:

LIC New Money Back Plan 25 Years - Policy Details

Grace Period: A particular grace period, i.e., 30 days, is provided to the insured during which he/she can pay off all the due premiums. In case of failure, the policy will lapse.

Policy Termination or Surrender Benefit: The LIC New Money Back plan 25 years lapses after the end of the Grace Period, but it can be revived within 2 years from the first unpaid premium due date. According to a table, the Surrender Benefit is available after premium payment of 3 full years.

Free Look Period: During the initial 15 days of the policy's coming into effect, the policyholder gets a free look at its various features. If the policy does not live up to the purchaser's expectations during this period, the procedure may be cancelled at zero cost. In the event of cancellation, the first premium payout made by the insured is refunded, at minimum, an appropriate charge as determined by the insurance provider.

Loan Facility: With this scheme, policyholders can avail a loan after completing the payment of at least two full years' premiums. The maximum loan amount (as a percentage of the Surrender Value) is:

• For in-force policies – upto 90%

• For paid-up policies – upto 80%

Rebates:

Revival:

If a policy has been cancelled, it can be restored within 5 consecutive complete years beginning from the date when the first unpaid premium was due, but before the Date of Maturity. The revival has to be done by the payment of all the unpaid premiums (including those of the Life Insured) together with interest half-yearly compounded at a rate which may be fixed at different times.

Paid-up Policy:

If less than one full year's premiums have been paid and subsequent premium(s) not paid in full, the benefits under the policy will be terminated as and when the grace period expires from the date that the first premium becomes unpaid, and the policyholder will not have to be paid off for any claims.

Surrender:

The plan can be surrendered at the end of the first year only if one entire year's premium has been paid. The policy should have paid two full annual premiums at least to be entitled to Guaranteed Surrender Value and the policy can claim Special Surrender Value also at the same time after payment of one full year's premium(s). In case the Corporation decides to surrender the active policy or a policy that is paid-up, the Surrender Value shall be equivalent to whichever is higher between the Guaranteed Surrender Value and the Special Surrender Value.

What Is Not Covered In LIC New Money Back Policy-25 Years?

If the insured commits suicide within 12 months of the policy enforcement, then only 80% of the premium is paid back to the policy's beneficiary. An acquired Surrender Value or a higher of 80% of premiums paid is provided to the nominee if the insurance holder commits suicide within 12 months of policy revival.

How To Buy LIC New Money Back Plan-25 years?

The LIC New Money Back Plan-25 Years is only available in offline mode. You can't buy it online from the LIC website or mobile app. Rather than going the online way, you may purchase the policy at the nearest LIC branch or contact an authorised LIC agent, corporate agent, broker, or insurance marketing Firm for doing the same.

Here are the steps to buy the LIC Money Back plan 25 years:

• Consult an LIC representative to understand the plan's features, eligibility, premium amount, and benefits.

• Choose your Basic Sum Assured based on your financial goals and protection needs.

• Submit the required documents, such as identity proof, address proof, age proof, income proof (if applicable), and passport-sized photographs.

• Complete the proposal form and undergo a medical examination if required by LIC.

• Pay the first premium to activate the policy after LIC approves your application.

Documents Required To Buy LIC New Money Back Plan-25 years

The insured should keep certain handy documents while filling the application form. These are as follows

• Proof of Identity

• Bank account details

• Address proof

• Copy of photograph

• KYC Documents

In some instances, medical examination and income proof may also be required for LIC schemes.

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