Review of LIC New Money Back Policy-20 Years

LIC Money Back policy-20 years is a limited premium plan that is designed to offer life protection cum investment benefits throughout the term of the policy. In addition to this, the New Money Back Plan offered by the Life Insurance Corporation of India provides periodic payment on survival at specified durations during the term.

Let us explore more about the LIC New Money Back Plan-20 years and understand more about it.

What is the Eligibility Criteria of the LIC New Money Back Plan-20 Years?

What are the Benefits of the LIC New Money Back Plan-20 Years?

• Death Benefit

  Death Benefit is paid to the nominee in case the policyholder dies during the policy term. The benefit paid is equal to the “Sum Assured on Death” along with Final Additional Bonus and vested Simple Reversionary Bonuses, if any. The sum assured on death is the higher of 125% of the Basic Sum Assured or 7 times of annualized premium.

• Survival Benefit

  In case the policyholder survives till the predetermined tenure, 20% of the Sum Assured will be paid to them as a Survival Benefit, and their policy will remain in effect. The survival benefit will be paid at the end of each of the 5th, 10th & 15th policy years.

• Maturity Benefit

  If the policyholder lives till the end of the policy's term, 40% of the Basic Sum Assured plus Final Additional Bonuses are given to the policyholder as Maturity Benefit, and the policy expires. 

• Flexibility in Fund Selection

  The plan allows the policyholder to invest in the type of funds as per their needs and risk appetite. The plan offers 4 fund options such as: Bond Fund, Secured Fund, Balanced Fund and Growth Fund.

• Policy Loan

  The plan allows the policyholders to avail loans against their policy, provided at least two year’s premiums have been fully paid. The maximum loans provided under the policy is

• For in-force policies – up to 90% 

• For paid-up policies – up to 80%

• Tax Benefits

  One can also avail tax benefits on the premiums paid under the LIC New Money Back Policy.

• Free-Look Period

  If the policyholder is not satisfied with the terms and conditions of their plan, he/she can cancel their policy within the first 15 days of the policy inception. This period of 15 days is called the free-look period.

• Riders for Enhanced Protection

  Additional riders are available under the plan that provides protection to the policyholder against the life’s uncertainties. The plan provides protection against death, disability, and critical illnesses. The riders available are:

  • LIC’s Accidental Death and Disability Benefit Rider

  • LIC’s Accident Benefit Rider

  • LIC’s New Term Assurance Rider

  • LIC’s New Critical Illness Benefit Rider 

To Sum it up

The LIC New Money Back plan for 20 years is one of the best life insurance policies if you are looking for a plan with life protection and savings. With its several benefits the plan was designed to look after the financial needs of the policyholder.