LIC New Money Back Plan - 25 Years

LIC moneyback plans are another smart way to grow your funds over time and ensure the financial security of your family against any uncertain event in life. Life Insurance Corporation brings different types of insurance plans with unique features so customers can choose one that fits their financial and investment requirements.

LIC New Money Back Plan - 25 Years is another affordable life insurance policy that ensures the insured remains financially protected. Read further to learn more about the benefits and features of the 25 Years LIC New Money Back Plan in detail.

LIC New Money Back Plan - 25 Years is a life assurance savings plan with non-linked and participating benefits. It is a limited premium-paying plan offering the combined benefits of life risk cover and assured periodic payouts on surviving certain years during the policy term.

LIC New Money Back Plan - 25 Years ensures the financial protection of dependents in case the life assured demise before the policy maturity. Also, on surviving the policy term, the life assured receives a lump sum as the maturity benefit. In case of a financial emergency during the policy term, the policyholder can benefit from its loan facility.

Customers should match the below eligibility criteria and requirements to apply for LIC New Money Back Plan - 25 Years:

Date of Commencement of Risk: The risk under the LIC New Money Back Plan - 25 Years commences immediately upon risk acceptance.

Date of Vesting: If the policy is issued on the life of a minor, it automatically vests in the life assured on the policy anniversary, coinciding with or immediately following 18 years of age completion. The contract is between the Life Insurance Corporation and the life assured upon vesting.

The policyholders are eligible to gain the following benefits when all the premiums are duly paid under the LIC New Money Back Plan - 25 Years and the policy is in force:

Death Benefit

On the demise of the life assured during the policy term, the nominees receive ‘Sum Assured on Death’ along with the vested simple reversionary bonus and final additional bonus (as applicable). The sum assured on death is higher than below:

• 125% of the basic sum assured
• 7 times the annualized premium

The death benefit payable should not be less than 105% of the total premium paid until the date of death.

Survival Benefits

The life assured receives definite payouts as survival benefits upon surviving the specific policy years. Generally, 15% of the basic sum assured is paid at the end of the 5th, 10th, 15th, and 20th policy years.

Maturity Benefit

If the life assured survives the whole policy term, i.e., 25 years, they receive a sum assured on maturity as the maturity benefit. The maturity benefit is paid along with the vested simple reversionary bonuses and final additional bonus. The sum assured on maturity is an amount equal to 40% of the basic sum assured.

Participation in Profits

LIC New Money Back Plan - 25 Years is eligible to participate in the profits of the Life Insurance Corporation. Based on market experience, the life assured receives simple reversionary bonuses and a final additional bonus when the policy is claimed at the time of maturity or death. In the case of a paid-up policy, the final additional bonus is not payable.

Besides the above-mentioned benefits, the policyholder can take advantage of the optional benefits to enhance flexibility under the LIC New Money Back Plan - 25 Years. Look at the optional benefits below:

Rider Benefit

Depending on personal needs and requirements, the policyholder can select from the riders listed below and add them to the base policy by paying an additional premium:

LIC Accidental Death and Disability Benefit Rider: The policyholder can add this rider to the base policy on any policy anniversary, provided the remaining premium payment term is at least five years.

Suppose the rider is added to the policy,

• In case of the accidental death of the life assured, the beneficiaries receive the Accidental Death Benefit Sum Assured in a lump sum.
• In case of an accidental disability (within 180 days of the accident), the life assured receives the Accidental Death Benefit Sum Assured in equal monthly instalments for 10 years.

LIC Accident Benefit Rider: The benefit covered under LIC Accident Benefit Rider is available during the policy payment term. If the policyholder opts for the rider, upon accidental death of the life assured, the Accidental Death Benefit Sum Assured is paid in lump sum.

LIC New Term Assurance Rider: The policyholder can add this LIC rider only at the time of policy inception. If the policyholder opts for the rider, the beneficiaries receive the Term Rider Sum Assured upon the death of the life assured during the policy term.

LIC New Critical Illness Benefit Rider: Suppose the policyholder opts for the LIC New Critical Illness Benefit Rider. If the life assured is diagnosed with any of the specified 15 critical illnesses, they receive Critical Illness Sum Assured.

However, the policyholder can choose between the LIC Accidental Death and Disability Benefit Rider or the LIC Accident Benefit Rider. This way, a maximum of three riders can be added to the base policy.

Settlement Option for Maturity Benefit

LIC New Money Back Plan - 25 Years allows you to receive the full or part of the maturity benefit in instalments over a chosen period of 5, 10, or 15 years instead of a lump sum amount. The instalments are paid in advance at the selected instalment payment mode in the minimum amount as mentioned below:

Option to Take Death Benefit in Instalments

The policyholder can opt to receive the full or part of the death benefit in instalments spread over the period of 5, 10, or 15 years instead of a lump sum amount. The minimum instalment amount for selected payment modes will be as follows:

Let’s understand the workings of the LIC New Money Back Plan - 25 Years with an example below:

Say Ronit, at the age of 30, purchases the 25 Years New Money Back Plan for a basic sum assured of Rs. 1 Lakh. The further details on the plan are as follows:

The benefits are disbursed in the following way:

* The above benefits apply to the standard life where no riders are added to the base policy.

** Here, Scenario 1: Projected investment rate of return assumption of 4% per annum (assumed) and Scenario 2: Projected investment rate of return assumption of 8% per annum (assumed).

*** The benefits are just an illustration and are taken from the sources available on the official website of LIC of India. You can use the LIC New Money Back Plan - 25 Years maturity calculator to calculate the maturity benefits according to your personalized financial needs.

The policyholder can benefit from the below features of 25 Year Money Back Plan LIC:

Payment of Premiums

Depending on financial suitability, the policyholder can pay the premium regularly on an annual, half-yearly, quarterly, or monthly basis.

Grace Period

If the policyholder misses the premium payment date, they can pay the outstanding premium within the allotted grace period. A 30-day grace period is allowed for annual, half-yearly, or quarterly premium payments and a 15-day grace period for monthly premium payments from the date of the first unpaid premium.

During the grace period, all the benefits under the policy are considered in force without interruption. The LIC policy lapses if the premiums remain unpaid during the grace period.

Policy Revival

The policyholder can revive a lapsed LIC 25-Year Money Back Plan within five consecutive years from the date of the first unpaid premium but before the date of maturity. The policyholder must pay all the outstanding premiums and interest to revive the lapsed LIC policy. Life Insurance Corporation reserves all the rights to accept, modify, or reject the premiums.

Policy Rebate

LIC Money Back Plan - 25 Years offers two types of rebates to the policyholder, including the following:

Rebate on Premium Payment Mode:

Rebate on High Sum Assured:

Paid Up Policy

If the policyholder duly pays the premiums for at least two full years and any subsequent premiums are not paid, the policy does not stand void. It continues as a paid-up policy until the end of the policy term. Under such a policy, the benefits are reduced to Death Paid-up Sum Assured and Maturity Paid-up Sum Assured. In addition, the simple reversionary benefits are also payable with the released benefits (if applicable).

Policy Surrender

If the policyholder has paid the premiums for at least two full policy years, they can surrender the policy anytime during the policy years. The surrender value is higher of the below:

• Guaranteed surrender value
• Special surrender value

Avail of Policy Loan

If the policyholder has paid the premiums for at least two full policy years, they can avail of the loan under the LIC New Money Back Plan - 25 Years. The maximum loan allowed is as follows:

For in-force policies: Up to 90% of the surrender value

For paid-up policies: Up to 80% of the surrender value

Tax Benefits

The policyholder can gain tax benefits according to the prevailing tax laws and rates. Premiums paid towards the policy can be rewarded under Section 80C of the Income Tax Act, while benefits received are exempted from tax under Section 10 (10D).

Free Look Period

If the policyholder is not satisfied with the terms and conditions of the LIC New Money Back Plan - 25 Years, they can return it to the Life Insurance Corporation within 15 days from the date of receipt of the policy. The policyholder needs to state the reasons for objections. Upon receiving the request, LIC India shall cancel the policy and return the premium deposited after deducting the applicable charges.

LIC New Money Back Plan - 25 Years is considered void and is restrained from gaining the agreed benefits under the following scenario:

Suicide

• Say the life assured commits suicide within 12 months from the date of commencement of risk; the nominee receives 80% of the total premium paid till the date of death.
• If the life assured commits suicide within 12 months from the date of revival, the nominee receives an amount higher of:

• 80% of the total premium paid till the date of death
• Surrender value available as of the date of death

Once the benefits are released to the nominee, the Life Insurance Corporation doesn’t entertain any further claims under the policy.

Below is the premium chart for the LIC New Money Back Plan - 25 Years annually. The basic sum assured selected is Rs. 1 Lakh for standard life:

To purchase LIC New Money Back Plan - 25 Years, the customer needs to keep the following documents in hand:

• Proof of identity
• Proof of address
• Bank account details
• Copy of latest photograph
• KYC documents
• Proof of income
• Medical examination (if required)

After reading the above information, you can decide whether to buy LIC New Money Back—25 Years or look for other LIC policies. You can buy the plan by reaching the nearest LIC branch or connecting with an LIC agent.

Using the LIC e-services platform, you can list the LIC policy on the customer portal and manage different activities online from the comfort of your place, like paying LIC premium, tracking the claim process, changing the LIC address, updating contact details, etc.

If you are looking for a life insurance agent nearby, get it on RenewBuy Advisor Connect.