Insurance Plans 6140 views March 24, 2020

LIC Money Back Plan 820 is a participating and traditional insurance plan. It is a 20 years money back plan that provides liquidity to the policyholder and creates wealth. The plan pays the money back benefits to the policyholder at regular intervals during the tenure of the plan. The term of the plan is 20 years in which liquidity is provided through survival benefits. The plan also helps to create wealth through its participation benefit in which the policyholder can participate in the profits of the company and receive bonus declared by it.

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Features of LIC Money Back Plan 820

LIC Money Back Plan 820 is a fixed term plan of 20 years. This plan fulfils the liquidity needs of the policyholder. The key features of the plan are stated below.

  1. The plan offers accrued simple reversionary bonus every year and also an additional bonus if any to be paid on termination of the plan.
  2. The plan pays money-back benefits in every five years that provides liquidity to the policyholder.
  3. Loan facility is also provided under the insurance plan when the policyholder is in requirement of funds.
  4. An option to increase the coverage level is also provided under the plan through the benefit of adding a rider or an additional add-on cover with the insurance policy.
  5. It is a limited premium payment insurance plan in which the premiums of the plan are payable for a limited term.
  6. The plan also offers premium rebates under the plan thereby making the premiums lower and affordable

Eligibility Conditions of LIC Money Back Plan 820

Before buying a plan, it is necessary to check if you are eligible to buy it or not. The eligibility conditions of LIC Money-Back Plan- 20 years are stated below:

  1. Age of Entry- Minimum is 13 years (completed) and maximum is 50 years (completed)
  2. Age at Maturity of the plan- Maximum is 70 years (completed)
  3. Sum assured in the policy- Minimum is INR 1 Lakh and there is no maximum limit
  4. Plan term- Fixed term of 20 years.
  5. Premium payment option- Limited pay
  6. Tenure of the payment of premiums- 15 years
  7. Premium amount to be paid depending on the age of the policyholder and sum assured in the policy.

Benefits of LIC Money Back Plan 820

The basic benefit of the plan is that is offers guaranteed money back benefit. The plan also offers other attractive benefits which are discussed below.

Survival Benefit

Survival benefits under the plan is paid at regular intervals during the tenure of the insurance plan as it is a money-back insurance plan. The survival benefit will be 20% of the sum assured in the policy which will be paid at the end of every 5 years i.e. at the end of 5th policy year, 10th policy year and 15th policy year.

Maturity Benefit

On the Maturity of the insurance plan, the last installment under the money-back benefit is paid to the policyholder. The last installment is 40% of the sum assured in the policy as the 60% of the sum assured is paid in the 5th, 10th and 15th policy years equally. The simple reversionary bonuses as accumulated during the term of the plan and additional bonus, if any shall be paid at the end of the term of the plan along with maturity benefit.

Death Benefit

On the death of the insured of the policy during the tenure of the policy, the sum assured under the policy on death along with vested reversionary and final additional bonus will be paid to the beneficiary/ nominee of the policy. The death benefit to be paid is a minimum of 105% of the premiums paid by the policyholder until the death. The death benefit will be paid in full and will not be deducted by the survival benefits which are already paid earlier under the policy. The death benefit or the sum assured to be paid on the death of the insured will be higher of the two- 125 % of the sum assured under the plan or 105% of the premium amount paid.

Conclusion

LIC Money Back Plan 820 is the best-suited plan for you if you want to receive the money-back benefits at regular intervals during the tenure of the insurance plan. The plan also ensures liquidity by paying survival benefits every 5 policy years. Moreover, the benefit of additional bonus additions also increase the savings and make the insurance policy suitable for the creation of wealth as well.

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