LIC’s New Money Back Plan 2024 Benefits, Features, Details, Review

LIC’s New Money Back Plan-20 years-Features

The New Money Back Plan-20 years offered by LIC has a holding period of twenty years, during which the insured receives a predetermined percentage of the assured sum on a regular basis.

The New Money Back Plan-20 Years of LIC is a participating conventional plan. Additional characteristics of this plan are outlined below.

• It’s a straightforward money-back plan with the bonus option.
• The plan lasts for 20 years, but the premium only has to be paid for 15 of those years.
• The Survival Benefit is 20 percent of the basic sum assured if the insured survives the policy until the fifth, tenth, or fifteenth year.
• If the insured lives beyond the term of the plan, the remaining forty percent is distributed at the plan’s termination, along with any benefits that have been accrued.
• In the event that the insured person passes away during the plan’s term, the nominee receives the Death Benefit, which consists of the basic amount assured and any bonus that has been accrued.

Details About Premium

LIC’s New Money Back Plan-20 years-Benefits

LIC’s New Money Back Plan-20 years enables the insured in giving his family financial support not just when he is around but also in his absence. Let us take a look at the benefits of this plan.

Death Benefits

The nominee would get the death benefit and the policy would end if the insured person died during the policy’s term.

Sum Assured on Death is the higher of:

• 10 times the Annualised Premium
• 125% of the Sum Assured which is chosen at the commencement of the policy

subject to a minimum of 105% of the paid-for premiums.

Things-to-know

• The accidental death and disability benefit rider offered by LIC is intended to enhance the policyholder’s existing coverage.
• A modal discount is available to policyholders who pay their premiums biannually or annually.
• The premium paid, as well as the maturity benefit and death benefit, are subject to tax benefits under Sections 80C and 10 (10D) of the Income Tax Act.

Be that as it may, in the circumstances given underneath, the arrangement might be invalid, regardless of whether it is in force. If the death or disability occurred as a result of one of the following:

• Self-inflicted intentional harm Injuries sustained while participating in riots,
• rebellions, wars, or adventure sports Employment in the military or police

Survival Benefits

Survival Benefits would be paid to the policyholder on survival on the pre-defined schedule.

Accidental Death and Disability Rider

Adding a rider to a policy can be done at the time of purchase or later, but it must be done while the policy is in effect. The insured can add the policy’s accidental death and disability benefit rider by paying an additional premium.

• The nominee will receive a lump sum that includes the death benefit and an additional benefit from the accidental death rider in the event that the insured person dies in an accident.
• The policyholder will receive a sum equal to the assured accidental benefit in monthly installments over a ten-year period if the insured is disabled permanently within six months of the accident.

Simple Reversionary Bonus

• The Simple Reversionary Bonus is calculated at the end of the policy year based on the policyholder’s choice of per thousand of the amount assured.
• Even though the bonus is earned during the policy’s term, it is either paid out at maturity or included in the death benefit.
• The rate of the bonus is determined by how long LIC has been using the New Money Back Plan.

Final Additional Bonus

• As the name suggests, this bonus is awarded in conjunction with claims for maturity or death.
• However, the policy must be in effect at least for this bonus.

Non-Forfeiture Regulations

Under LIC’s New Money Back Plan, after 20 years, the policy’s benefits will end if the insured pays less than three years’ worth of premiums but does not pay the subsequent installments. After that, the owner of the policy would not receive anything.

The plan would remain in effect as a paid-up policy even if the initial three years’ worth of premiums were paid in full.

Surrender Value

After three years of paying premiums, the policyholder can cancel the coverage. The percentage of the total premiums paid, including but not limited to the rider premium, is the guaranteed surrender value. The total number of years until the policy is surrendered would also play a role in determining the amount.

Suicide

Other than 80% of the premiums paid, excluding taxes, rider premiums, and other costs, LIC will not pursue any claims. In addition, the nominee receives the greater of 80% of the premiums paid up to the insured’s death or the surrender value if the insured commits suicide within one year of the policy’s renewal.

Cooling-off Period

Customers have a cooling-off period. If the policyholder isn’t sold on LIC’s New Money Back Plan-20 years, he can cancel it within 15 days of the policy’s beginning, provided that no claims have been filed.

LIC’s New Money Back Plan-20 years-Claim Needs

Death Claim

The beneficiary must first file the claim in order to make a death claim. He must then comply:

• Corporation prescribed Claim forms
• Original Policy Papers
• NEFT Mandate
• Proof of Title
• Proof of Detail
• Medical Treatment prior to death

Maturity Claim

If the policyholder is required to submit a maturity claim, he must:

• Discharged Form by Corporation
• Original Policy Papers
• NEFT Mandate from the Claimant
• Bank Details

Accidental Disability/Death Claim

On the off chance that the demise/inability of the guaranteed individual is because of a mishap then to make a case the accompanying records are to be introduced:

• Photocopy of the FIR
• Report of Post Mortem
• Panchnama Copy
• If the accident was reported in newspaper then the newspaper cuttings
• If it was vehicular accident, Driver’s Licence
• Report of the Police Inquest
• Final/Conclusion Report of Police
• Hospital Treatment Records

Sample Premium

Rebates and Discounts: For Annual and Semi-Annual modes, this policy offers a discount on premiums and a rebate for high sum assured.

Mode Rebate

High Sum Assured Discount

Documents Required

While filling out the application, the insured should keep a few handy documents. These are as per the following

• Proof of Identity
• Bank account details
• Address proof
• Copy of photograph
• KYC Documents

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