What is the Benefit of LIC Plan 75?

Unlike basic endowment insurance plans where the survival benefits are paid only after the endowment period, LIC Plan 75 provides periodic payments of partial benefits upon survival as per the policy term.

LIC, Policybazaar join hands to
accelerate insurance growth
LIC investment
  • Buy LIC policy online
    hassle free

  • Guaranteed maturity with life
    cover for securing family's future

  • Tax saving under Sec 80C &

  • Sovereign guarantee as per
    Sec 37 of LIC Act

Now Available on Policybazaar
Grow wealth through
100% Guaranteed Returns with LIC
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

Let’s understand the benefits of LIC Plan 75 in detail for your smooth understanding: 

LIC Plan 75 - New Money Back Plan 20 Years 

LIC’s Money Back Plan 20 years is a participating and non-linked plan which includes periodic payments on the survival at certain times during the policy term. In the case of a 20-year Money Back Policy, 20 percent of the SA amount becomes payable after every 5,10 &15 years. The rest 40 percent plus the accrued bonus is payable in the 20th year. Moreover, a simple bonus (reversionary) is also payable at the time of maturity. 

One of the important features of this scheme is that during the demise at any time within the LIC policy term, the death claim including the total sum assured without any deduction from the survival benefit amounts is paid. Similarly, the bonus amount is computed on the total sum assured. 

What's more? There are several benefits offered by LIC Plan 75. It offers accidental disability and death rider benefits and a loan facility. 

The plan can only be surrendered after the accruement of the cash value post-paying premiums of three years. If the life assured fails or stops paying a premium, the plan will cease. Nonetheless, if for 3 years’ premium amounts have been paid, a paid-up cost is accumulated for a decreased sum assured. Though, the life assured cannot avail any additions in future. 

Salient Features of LIC Plan 75: 

Death Benefit: In case if the life assured dies during the policy tenure, the nominee/beneficiary will receive 10 times the annual premium amount or 125 percent of the basic SA plus the vested reversionary bonus and the additional bonus (final). Moreover, the periodic survival paybacks which have already been paid will not be abstracted. The death benefit should be below 105 percent of the full premium paid as of the death date. 

Survival Benefit: If the life assured lives the policy tenure, the nominee will get 20 percent of the basic SA after the 5, 10, and 15th years of policy along with the 40 percent of the basic SA with the accumulated bonuses. 

Maturity Benefit: If the policyholder survives till the maturity period, 40 percent of the basic SA amount along with the simple bonuses (reversionary) and the additional bonuses (final) will be paid. 

Profit Participation – The plan shall contribute to the corporation's profits and shall be eligible to get simple reversionary bonuses announced according to the Corporation's experience, provided the plan is in full force. 

Benefits of LIC Plan 75 

Accidental Death and Disability Benefit Rider: A policyholder can opt for this rider under the scheme after paying an additional premium amount provided the plan is in the active phase. In case of the accidental demise, the accident benefit SA and the death payout will be payable. In case of accidental permanent disability, an amount equivalent to the sum assured amount of accident benefit will be payable over a time of ten years. Therefore, future premiums for accident benefits SA will be renounced. 

Simple Reversionary Bonus: This bonus is announced per thousand SA after each year, following that, they form a section of guaranteed benefits. This bonus accumulates at the time of the PPT i.e., premium paying term, and is paid at the last of tenure or death along with the bonus (final). It is announced as per the LIC’s performance. 

Final Additional Bonus: This bonus is paid if the policy has run for the minimum time. It might be announced when a claim is made as a result of maturity or death, provided the plan has been in force for a minimum tenure. 

Eligibility Criteria of LIC Money Back 20 Years Policy:

Basic SA (Minimum): 1 Lakh

Basic SA (Maximum): No limit 

Entry Age (Minimum): 13 years 

Entry Age (Maximum): 50 years 

Maturity Age (Maximum): 70 years 

Policy Tenure: 20 years 

Premium Paying Term: 15 Years 

What are the Exclusions Under the Plan? 

If the policyholder commits suicide regardless of sanity or insanity, annually, from the commencement of the risk date, LIC is not liable to receive any claim except 80 percent of the paid premiums minus taxes plus additional and premium amounts of rider. If the policyholder ends his/her life from the revival date, 80 percent of the paid premium till the death date or the surrender value will be paid. 

Wrapping It Up! 

LIC Plan 75 is a simple money-back plan that provides a repayment periodically after every fifth year. This plan offers risk coverage and bonus at the time of maturity. The plan is quite helpful in securing the children’s future as it provides a high sum assured amount. A policyholder can also avail of tax benefits u/s 80C and the maturity amount is also free of taxes u/s 10(10D). We have discussed the benefits of LIC Plan 75 in detail. Go through it and choose your plan carefully.

LIC of India articles

Recent Articles
Popular Articles
LIC New Pension Plus Plan

21 Sep 2022

LIC New Pension Plus Plan The LIC New Pension Plus Plan is the...
Read more
LIC Linked Accidental Death Benefit Rider

06 Sep 2022

LIC Linked Accidental Death Benefit Rider LIC riders are an...
Read more
Is LIC Maturity Amount Taxable?

30 Aug 2022

Is LIC Maturity Amount Taxable? The maturity amount is the sum LIC...
Read more
LIC New Endowment Plan 914 Bonus Rate

26 Aug 2022

This is one of LIC’s insurance cum savings plans that offer...
Read more
What Is Survival Benefit in LIC?

22 Aug 2022

LIC survival benefits come with money-back plans. As the name...
Read more
Surrendering LIC Policy Before Maturity Time: Your Guide!
The Life Insurance Corporation of India is one of the most prominent insurance companies. It has an unparalleled...
Read more
12,000 Monthly Pension On One-Time Investment: Buy LIC Saral Pension Scheme
LIC Saral Pension Yojana make sure that investors get 12,000 monthly by paying a single premium. Life Insurance...
Read more
How to Check the Maturity Amount of LIC Policies?
Life Insurance Corporation of India is one of the leading public companies in the service of insurance plans. And...
Read more
LIC Jeevan Saral (With-Profit) Maturity Calculator
LIC Jeevan Saral has been withdrawn by LIC and is therefore not available for sale anymore. It is an endowment...
Read more
LIC Policy for Girl Child in India
A child insurance plan is a plan that acts as a blend of investment and savings while also providing the child...
Read more

Download the Policybazaar app
to manage all your insurance needs.