Investment Plans 14073 views March 25, 2020

LIC Money Back Plan 821 is a fixed 25 years tenure plan which provides money back benefits at regular interval during the term of the plan. This plan provides dual benefits by creating savings and providing liquidity. The premium payments of the plan are limited.

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Additional discounts on the premium payments are also available to save the premiums outgo. The plan also offers to choose the sum assured under the insurance plan and you can also increase the coverage of the plan through available add on rider under the plan. The annual premium amount of the plan is calculated as per the age of the insured individual and other relevant factors. The plans pay 15% of basic sum assured under the plan after every five policy years and at maturity of the plan, the last money back installment is paid to the insured along with accumulated and accrued bonuses, if any.

Features of LIC Money Back Plan 821

LIC Money Back Plan 821 is issued for a fixed tenure of 25 years. The key features of the plan are as follows:

  1. Survival benefits are paid every five policy years which is a fixed portion or percentage of the sum assured under the plan.
  2. The plan offers a bonus throughout the tenure of the plan and also pay an additional bonus on the death of the insured or maturity of the plan
  3. The death benefit is not deducted from already paid money-back benefits under the plan
  4. You are free to choose the frequency of payment of premium of the policy and the sum assured under the policy.
  5. You can also reduce the premium amounts to be paid through availing different discounts that are offered.
  6. The premiums are to be paid only for a limited tenure.
  7. Coverage can be enhanced through the add-on accidental death rider and disability rider.

Eligibility Conditions of LIC Back Plan 821

  1. Age at entry- Minimum is 13 years (completed) and the maximum is 45 years ( completed)
  2. Maturity age-Maximum is 70 years.
  3. The allowed duration of the plan is 25 years
  4. The option of premium payment- Limited pay
  5. Premium paying tenure of the plan is 20 years.
  6. Minimum sum assured required under the plan is Rs 1 lakh and there is no maximum limit
  7. Premium amount to be paid depends on the age of the insured individual and sum assured under the plan

Benefits of LIC Money Back Plan 821

Survival Benefit

The survival benefits under the plan are paid from the end of the 5th year of commencement of the plan and thereafter in every five years. The benefit is equal to 15% of the sum assured under the plan. However, it must be noted that the survival benefits are paid at the end of each interval only if the insured survives till such interval. If the insured dies before the end of the interval the survival benefit for that interval will not be paid.

Maturity Benefit

If the insured survives the term of 25 years of the plan then the maturity benefit which is 40% of the sum assured under the plan is paid to the insured along with accrued simple reversionary bonuses and additional bonus if any.

Death Benefit

On the death of the insured individual during the term of the plan full amount of sum assured will be paid as death benefit irrespective of survival or money back benefits already paid under the plan. The death benefit will include the basic sum assured under the plan, final additional bonuses if any and accrued simple reversionary bonus declared by the company during the term of the plan. The maturity benefit shall not be less than 105% of the premiums which are paid on the plan until the death of the insured. The sum assured under the plan on death will be higher of the two: 125% of the sum assured under the plan or 10% of the premium amount paid annually.

Rebates on High Sum Assured

For higher sum assured under the plan which is Rs.2 lakhs and above, premiums rebates are also offered under the plan. You can claim a premium rebate if you choose a higher sum assured under the policy. The premium rebate is a percentage of the sum assured under the plan which is 2%  if the sum assured is the range of Rs 2,00,000 to Rs 4, 95,000 and for sum assured of Rs 5,00,000 and more the rebate is 3% of the sum assured under the plan.

Conclusion

The plan offers money-back benefits in every five policy years and the remaining at the maturity of the plan as LIC Money Back Plan 821 is a guaranteed money back policy. The policy is suitable for those individuals who are looking for regular and steady liquidity from an insurance policy. The policy for 25 years is also a good choice for individuals who want to create wealth in the long run over a longer-term as this plan pays bonuses along with death benefit or maturity benefit. However, it must be noted that LIC has withdrawn the LIC Money Back Plan 821. Hence if you want the same features and benefits as that of LIC Money Back Plan 821 then you can buy LIC Money Back Plan 820 which is for a fixed term of 20 years

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