Lic Money Back Policy 25 Years (Plan no 821) Review
Lic Money Back Policy 25 Years is a non-linked life insurance policy which offers guaranteed returns and bonus. In New Money Back Policy – 25 years, Premium needs to be paid for a period of 20 years while the policy continues for 25 years. Policy can be taken by anyone between the age of 13 to 45 years for a fixed tenure of 25 years.
In lic new money back plan 25 years (Plan no 821) 15% of the Sum Assured is paid to the Life Insured on survival at the end of every 5 years and the remaining 40% of the Sum Assured along with Vested Simple Reversionary Bonus + Final Addition Bonus would be paid to the Life Insured on survival till the end of the Policy Tenure as Maturity Benefit.
New Money Back Policy – 25 years Features
- LIC released “Lic Money Back Policy 25 Years (T821)” on 6thJanuary, 2014 as per new guidelines of IRDA.
- In New Money Back Plan 25 years Service taxis added which is 09%.
- New Money Back Plan 25 years is a type of Endowment Plan where some percentage of Sum Assured will be paid back to the policyholder in the form of survival benefit
- New Money Back Plan 25 years participate in Profits and non-linked.
- In New Money Back Plan 25 year’s policyholder receives survival benefits at 5th, 10th, 15th, 20th At the end of 25thyear, Policyholder receives Maturity Benefit which is SUM ASSURED – Survival Benefits paid + BONUS +FAB, etc.
- If he dies within the term of the Policy, Death Benefitpaid to Nominee i.e. SUM ASSURED + BONUS acquired till that Year.
- We can opt for Accident Benefit Rider and Critical Illness Rider by paying small Amount with the Premium.
- In New Money Back Policy – 25 yearsthere is High Bonus and High liquidity and saving point.
Lic New Money Back Plan 25 years Parameters
Eligibility conditions under Lic Money Back Policy 25 Years are,
| Age | · Minimum age: 13 years.
· Maximum age: 45 years. |
| Policy Term | · 25 years. |
| Sum Assured | · Minimum SUM ASSURED: Rs. 1,00,000/-.
· Maximum SUM ASSURED: No Limit. |
| Premium Paying Term | · 20 years. |
| Premium Paying Mode | · Monthly (SSS, ECS), Quarterly, Half yearly, Yearly. |
Accident Death and Disability Benefit Rider:
Minimum Age at entry: 18 years(Completed).
Maximum Age at entry: The cover can opt for any policy anniversary during the premium paying term.
Maximum Cover Ceasing Age: 70 years (nearest birthday).
Minimum Accident Benefit Sum Assured: Rs. 1,00,000/-.
Maximum Accident Benefit Sum Assured: An amount equal to Basic Sum Assured subjected to the maximum of Rs. 50,00,000 /- overall limit by taking all existing policies of the Life Assured under individual Policies as well as Group policies.
New Money Back Policy 25 years Benefits
· Survival Benefit:
Policy Holder will be payable 15% of Basic Sum Assured at the end of each specific duration of 5th 10th 15th 20th years.
· Maturity Benefit:
Sum Assured – Survival Benefits + Simple Reversionary Bonus + FAB(final additional bonus) if any.
· Death Benefit:
If the Insured person dies within the Policy Term, then Nominee of the Policy will be given Death Benefit (Sum Assured on Death) + Simple Reversionary Bonus + FAB (final additional bonus) if any.
Sum Assured on Death means 125% of Basic Sum Assured (1.25 x BSA) or 10 times Annual Premium (10 x AP) whichever is higher that amount will be paid to the nominee. Death benefit paid should be more than 105% of total premiums paid as on the date of death.
Lic 25 years Money Back Policy Benefit Illustration
Suppose if Naveen took Lic Money Back Policy 25 Years for 10,00,000 Rs./-. The Policy Holder survives 25 years then if he dies then he will be paid 125% of Basic Sum Assured or 10 times of annual Premium whichever is higher i.e.
Basic Sum Assured is Rs. 10,00,000/-.
125% of BSA 10,00,000 X 125/100 = 12,50,000
Suppose Naveen Paid Premium for 5 Years and died.
Let Annual Premium be 50,000 then, 10 times of 50,000 is Rs. 5,00,000/-.
As 12,50,000 is higher than 5,00,000 Nominee will get 12,50,000 as Death Benefit.
If he survives,
At the end of the 5th year, he gets 1,50,000 /-.
At the end of the 10th year, he gets 1,50,000 /-.
At the end of the 15th year, he gets 1,50,000 /-.
At the end of the 20th year, he gets 1,50,000 /-.
At Maturity age i.e., he get 4,00,000 +Vested Bonus + FAB.
Lic’s New Money Back Plan-25 years Additional Information
Risk Coverage: – Till end of Term of the Policy.
Date of Commencement of Risk: – In the case of children whose age is less than 8 years risk commencement starts either from 2 years of taking the policy or from achieving 8 years old which is earlier.
Locking period: – 3 years.
Loan Facility: – Available.
Income Tax Reduction: Available under Section 80C for premiums paid and Section 10 (10D) for Maturity returns. For information about Tax on Insurance Policies refer www.taxqueries.in.
Housing Loan Surety: Available.
Riders available: Yes.
Policy Revival: Policy can be revived before 2 years from the date of First Unpaid Premium (FUP).
Suicide Clause: If insured commit suicide before 12 months he will be returned 80% of premium what he paid.
Proposal Forms: Proposal Form no. 300 or 340 will be used to this lic money back policy 25 years.
Service Tax: 3.09% service tax is applicable.
Cooling-off Period: If a policyholder is not satisfied with the ‘Terms and Conditions” of the policy, he/she may return the policy within 15 days from the date of receipt of the policy.
Back-dating interest: The policies can be dated back within the same financial year.
Assignments/Nominations: Assignment and nominations are possible under Lic Money Back Policy 25 Years.