We always invest in such a way that whenever the requirement comes, money should be withdrawable. No one wants to keep his investments locked for a long time. The customer should get some returns in between the policy term. This would help him to feel some kind of flexibility. LIC Money back policy is one of the best plans to invest and get periodic benefits.
LIC Money Back Plan for 25 years is a non-linked plan which gives periodical benefits every 5 years.
This policy can be revived within a period of 2 years from the date of first unpaid premium. After the grace period, the late fee would be levied.
SURVIVAL BENEFIT (Cash benefit - a percentage of Sum Assured)
5th year - 15%
10th year - 15%
15th year - 15%
20th year - 15%
Maturity Benefit
40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus if Any
Death Benefit
Sum Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus if any.
The death benefit as defined above shall not be less than 105% of total premiums* paid as on the date of death.
Paid-up value shall be equal to (Number of premiums paid/ Total Number of premiums payable) x Basic Sum Assured less total amount of Survival Benefits paid under the policy.
Eligibility Conditions and Restrictions
- Age at entry - 13 to 45 years
- Age at Maturity - Maximum 70 Years
- Policy Term - 25 years
- Premium Paying Term – 20 Years
- Premium mode – Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
- Basic Sum Assured - 1,00,000 and above ( In multiples of 5000)
Loan available to Money Back plan - 821/25
The loan is available from 3rd year, after paying 2 years full premium,
Interest on the loan paid by LIC of India is 9.5%
Income Tax Benefit
Premiums paid for Money Back policy can be used to get TAX exemption under section 80C of Income Tax Act 1961.
Returns like Survival Benefit every 5 years, maturity and claim are 100% tax-free.
