LIC Money Back Policy

You would always want a stable source of income for your family through which you will be able to meet the necessary expenses at different stages of life. And what if you get this benefit with a life insurance coverage which will give you a steady return by way of investment as well. Money-Back Policies are designed keeping in mind these aspects thereby giving complete protection with a regular income. Money-Back plans provide a definite return on investment with periodic payments and insurance cover, making it a perfect plan for you when you are looking for both financial protection and an income. LIC, as we all know, is the largest and most popular player in the insurance industry in India. LIC Money Back Policy is extremely popular amongst people, being the most cost-efficient and inexpensive money-back insurance plans. Also, you can get an exemption from tax under section 80(C) and 10(10D) is applicable with further consultation from tax advisor under LIC Money Back Policy.

LIC Money Back Policy can be classified into the following plans namely:

1. LIC Money Back Policy- 20 years
2. LIC Money Back Policy- 25 years
3. LIC Money Back Policy for Children

Let us have a detailed view on the above plans one by one.

LIC Money Back Policy- 20 years

LIC Money Back Policy -20 years is a participating traditional non-linked plan that offers a perfect balance of guard against the death of the policyholder during the term of the policy together with a staggered payment upon survival at a definite period during the policy term. This exclusive blend gives a great deal of monetary support to the family in your absence any time before the maturity and a lump sum amount during the maturity in case where the policyholders survive.

Features and benefits of LIC Money Back Policy -20 years

1. Death Benefit- Sum Insured on Death will be paid to the selected nominee together with the simple revisionary bonus and with an additional bonus if appropriate. The Death Benefit under this plan will not be lesser than 105% of the total premiums paid as on the date of death. Sum Insured on Death will be the greater of:
   • 125% of the Basic Sum Insured OR
   • Multiple of 10 of the annualized premiums
2. Survival Benefit- The plan gives a survival benefit of 20% of the Basic Sum Insured at end of 5th year, 10th year and 15th year respectively if the policyholder survives
3. Maturity Benefit- If the policyholder has paid all the premiums and the policy is running, then the company pays 40% of the Basic Sum Insured with bonuses as appropriate as a maturity benefit to the policyholder
4. Profit Participation- LIC Money Back Policy -20 years is a participant in the profits of the company and hence you are entitled to receive Simple Revisionary Bonus and other bonus, if applicable
5. Rider Benefit- Facility of enhancement of the plan by adding LIC’s Accidental Death and Disability rider upon paying an extra premium

Eligibility

LIC Money Back Policy- 25 years

LIC’s Money Back Policy – 25 Years is a simple non-linked participating endowment plan. It protects against the death of the life insured for the entire policy term with a periodical payment upon survival, at a certain interval during the policy term.

1. Death Benefit- Sum Insured on Death is payable to the nominee with the simple revisionary bonus and with a bonus as appropriate. The Death Benefit under this plan will not be lesser than 105% of the total premiums paid as on the date of death. Sum Insured on Death will be the greater of:
   • 125% of the Basic Sum Insured OR
   • Multiple of 10 of the annualized premiums
2. Survival Benefit- The plan gives a survival benefit of 15% of the Basic Sum Insured at end of 5th year, 10th year, 15th year and 20th year respectively if the policyholder survives
3. Maturity Benefit- This come as 40% of the Basic Sum Insured with bonuses as appropriate as a maturity benefit to the policyholder If the policyholder has paid all the premiums and the policy is running
4. Profit Participation- LIC Money Back Policy -25 years is a participant in the profits of the company and hence you are entitled to receive Simple Revisionary Bonus and other bonus, if applicable
5. Rider Benefit- Facility of enhancement of the plan by adding LIC’s Accidental Death and Disability rider upon paying an extra premium

Eligibility

LIC Money Back Policy for Children

This is a traditional plan which is specially designed to safeguard the child’s future requirements in absence of the earning parent, in terms of securing the finance as well as the life of the child, be it education, marriage and many more.

Features and benefits of LIC Money Back Policy for Children

1. Death Benefit –
   • • • Upon Death and after the commencement date of risk

     Death benefits with the vested simple reversionary bonus and the bonus, if any, will be payable in a situation where the policyholder expires within the policy term and, before the maturity and if the policy is running. The sum insured will be greater than 7 times the annual premium or equivalent to the basic sum insured payable on demise. The death benefit will not be lesser than 105% of the total premiums paid as on the date of the death of the life insured. The premiums mentioned will be excluded from the rider premium, additional premium, and taxes.

   • • Upon Death and before the commencement date of risk

   Death Benefit under this situation will be the amount equivalent to the entire premiums paid

2. Survival Benefit- If the life insured lives as on the anniversary of the policy and attains 18 years, 20 years and 22 years, in that case, 20% of the basic sum insured is being paid every time if the policy is in running condition
3. Maturity Benefit- This benefit comes as 40% of the Basic Sum Insured with bonuses as appropriate as a maturity benefit to the policyholder If the policyholder has paid all the premiums and the policy is running
4. Profit Participation- This is a participant in the profits of the company and is entitled to receive Simple Revisionary Bonus and other bonus, if applicable
5. Rider Benefit- Facility of enhancement of the plan by adding LIC’s Premium Waiver Benefit rider upon paying an extra premium

Eligibility

With LIC Money Back Policy you can provide a strong financial corpus for the family and they can have a peaceful life, even in your absence.