LIC New Money Back Plan-20 Years: A Smart Blend of Savings and Protection

LIC New Money Back Plan-20 Years (UIN: 512N280V03) is a Non-Linked, Participating Life Insurance Plan designed for individuals seeking a balance of savings and financial protection. This plan offers periodic survival benefits, a lump sum maturity amount, and life cover, ensuring financial security for policyholders and their families. Its unique combination of features makes it ideal for those aiming to save while enjoying periodic payouts.

Table of Contents

Key Features of LIC New Money Back Plan-20 Years

Periodic Survival Benefits: Receive 20% of the Basic Sum Assured at regular intervals.
Death and Maturity Benefits: Provides a financial safety net for the policyholder’s family in case of unforeseen circumstances.
Participation in Profits: Policyholders benefit from annual bonuses declared by LIC.
High Sum Assured Rebates: Discounts on premiums for higher coverage amounts.
Loan Facility: Avail liquidity during emergencies.
Optional Riders: Enhance coverage with riders like Accidental Death and Disability Benefit.

Eligibility Criteria

Minimum Age at Entry: 13 years (completed).
Maximum Age at Entry: 50 years (nearest birthday).
Policy Term: 20 years.
Premium Paying Term: 15 years.
Minimum Basic Sum Assured: ₹2,00,000 (in multiples of ₹25,000).
Maximum Basic Sum Assured: No limit.

Benefits of LIC New Money Back Plan-20 Years

1. Death Benefit

If the policyholder passes away during the policy term, the nominee receives:

Sum Assured on Death: Higher of:
125% of Basic Sum Assured.
7 times the annualized premium.
The benefit will not be less than 105% of the total premiums paid.
Additional benefits include vested Simple Reversionary Bonuses and a Final Additional Bonus (if declared).

2. Survival Benefits

20% of the Basic Sum Assured is paid at the end of the 5th, 10th, and 15th policy years.

3. Maturity Benefit

At the end of the policy term, the policyholder receives 40% of the Basic Sum Assured along with accrued bonuses.

4. Participation in Profits

Simple Reversionary Bonuses are declared annually and added to the policy.
A Final Additional Bonus may also be declared at maturity or in the event of death.

Optional Riders

Accidental Death and Disability Benefit Rider:

Lump sum payout on accidental death.
Monthly installments for disability, along with a waiver of future premiums.

Accident Benefit Rider:

Provides additional financial support in case of accidental death.

New Term Assurance Rider:

Offers an extra layer of life cover during the policy term.

Loan Facility

Loans can be availed after the first policy year if one full year’s premium is paid.
Loan Amount:
Up to 50% of surrender value (before 2 years of premium payments).
Up to 75% of surrender value (after 2 years of premium payments).

Settlement Options

For Maturity Benefit:
Opt to receive maturity proceeds in installments over 5, 10, or 15 years.
For Death Benefit:
The nominee can choose installment payouts for 5, 10, or 15 years.

Rebates and Discounts

Mode Rebate:

Yearly: 2% of the premium.
Half-Yearly: 1% of the premium.

High Sum Assured Rebate:

₹5,00,000 and above: ₹3 per ₹1,000 of Basic Sum Assured.

Official Link-LIC

FAQs

1. What is the minimum Sum Assured under LIC New Money Back Plan-20 Years?
The minimum Basic Sum Assured is ₹2,00,000.

2. Can I enhance my coverage?
Yes, you can opt for riders like Accidental Death and Disability Benefit for additional coverage.

3. Are there tax benefits under LIC New Money Back Plan-20 Years?
Yes, premiums paid and benefits received are eligible for tax exemptions as per prevailing laws.

4. What happens if I miss a premium payment?
A grace period of 30 days is provided for yearly, half-yearly, and quarterly payments, and 15 days for monthly payments. Policies can be revived within five years of lapsing.

5. Is there a loan facility available in LIC New Money Back Plan-20 Years?
Yes, loans can be availed based on the surrender value of the policy.

Conclusion

LIC New Money Back Plan-20 Years is a versatile insurance-cum-savings plan designed for individuals looking to secure their future with periodic payouts and robust financial protection. Its unique features, such as survival benefits, profit participation, and optional riders, make it an attractive choice for long-term planning.

Disclaimer-For more details, visit the nearest LIC branch or consult an authorized LIC agent.