Life Insurance Corporation or LIC, the country's largest life insurance company, which offers various life insurance products like term insurance plans, endowment plans, pension plans and unit-linked plans, also offers money back insurance plans. LIC's money back plans are a combination of insurance-cum- investment plans. One of the money back plan being offered by the state-run insurer is LIC's New Money Back Plan-20 years which is a participating non-linked plan that offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term.
LIC New Money Back Plan 20-Years can be purchased by any individual for minimum sum assured of Rs. 1 lakh and there is no upper limit for sum assured, LIC mentioned on its website https://www.licindia.in.
The insurance scheme comes with a policy term of 20 years while its premium-paying term - the term till which the policy holder has to pay the premium - is 15 years, according to LIC.
Minimum age at the entry for life assured is 13 years and maximum age at entry of life assured is 50 years.
In case the policy holder of LIC New Money Back Plan-20 Years survives during the period of policy term, with all insurances paid, the policy holder gets 20 per cent of the basic sum assured at the end of each of fifth, tenth and fifteenth policy years.
On maturity of the LIC New Money Back Plan-20 Years, 40 per cent of the basic sum assured along with vested simple reversionary bonuses and final additional bonus, will be payable to the LIC New Money Back Plan-20 Years policy holder, LIC noted on its website.
Following are the premium rates per Rs. 1,000 of basic sum assured for LIC New Money Back Plan 20 Years:
Age (in years) | LIC Premium (Rs.) |
|---|---|
| 20 | 78.00 |
| 30 | 79.10 |
| 40 | 82.95 |
| 50 | 92.05 |
| Source: licindia.in | |
Premiums paid towards LIC New Money Back Plan-20 Years qualify for income tax benefits under the Section 80C of the Income Tax Act.
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly basis or through salary deductions over the term of policy.
