LIC Money Back Policy – 20 years is a very simple Money Back Plan or an endowment policy. This is certainly a non unit-linked insurance conventional plan in which the money back is paid as pre-decided intervals. It is actually a regular Plan with Bonus option. In this particular plan, premium is required to be paid till the end of the Insurance policy period. On the other hand, in case the policyholder dies within the policy tenure, the whole Sum Assured would be paid as death benefit together with accumulated Bonus, no matter what the amount previously paid.
- 20 years Money Back Plan with TAX FREE returns every 5 years as survival benefits.
- Limited payment for 15 years only
- LIFE COVER to the extent of 1.25 times of Sum Assured + Bonus + Final Additional Bonus (as applicable).
- Maturity : On completion of the term, full Sum Assured + Bonus + Final Additional Bonus (as applicable) will be paid.
- Optional Benefit: LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider for 20 years with payment for 15 years only
- Premium paid are Tax Exempted u/s 80 C & the Maturity amount is Tax Free u/s 10 (10) (D)
|Entry Age (Yrs)||13||50|
|Policy Term||20 years||15 years Premium Payment|
|Sum Assured||100000||No Limit|
|Illustration specially prepared for Mr. Sumit (age 24 years)|
|Benefits Illustration Summary|
|Sum Assured||Rs. 8,00,000|
|Term||20 years with premium term of 15 years only|
|Premium||Mr Sumit’s Yearly premium under this,policy is Rs. 62,080 for a period of 15 years only. In 15 years he will pay a total of Rs. 9,15,996.|
|Returns from LIC|
|Policy Year||Guaranteed Money Back||Bonus||Description|
|Total||8,00,000||6,56,000||Total : 14,56,000|
|Life cover||In this policy his life cover will start at Rs. 10,31,200. By virtue of bonus getting added every year, his risk cover will grow to Rs. 16,56,000 when his age will be 44.|
|Liquidity||He has an option to surrender the policy & receive the cash value after payment of premiums for 3 years. Alternately, he can even avail of loan on this policy once the policy has acquired cash value.|
|Tax Saving||Mr Sumit,can save a tax of Rs. 18,512 under Sec.80 CCE, against every premium paid. Tax Savings on premiums will be @ 30.90 % u/s 80C|
The leftover amount of Sum Assured together with bonus is paid as maturity benefit and paid to the insurance policy holder on surviving of the life insured till the end of the policy period.
Risk Coverage 125% of basic sum assured
In the event of death of the policyholder, the nominee gets the full Sum assured amount in spite of what money back has already been paid to the policy holder together with accumulated Bonus