LIC New Money Back Plan - 25 Years

Following are the key features and benefits of the LIC New Money Back Plan that promises to work for the betterment of its customers.

1. Long Term Coverage:

The plan comes with a special feature under which the policyholder is required to pay premiums for a period of 20 years and can avail of the plan’s benefits up to 25 years.

2. Death Benefit:

This policy offers a death benefit that is payable in case of death of the life assured. The amount of death benefit is equal to the sum assured which will not be less than 105% of the total premiums paid up to the date of death. The policyholders also have the flexibility to opt for the method in which they can receive the death benefit. They can either avail of the benefit amount in installments or lump sum amount. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments.

3. Survival benefit:

The plan also provides customers with survival benefits under which 15% of the sum assured amount is paid as the benefit amount at the end of each of the 5th, 10th, 15th & 20th policy years.

4. Maturity Benefits:

Upon maturity of this plan, the policyholder is provided with the maturity benefit amount which is equal to 40% of the basic sum assured amount and includes accrued bonus amount, if any. Customers also have the flexibility to receive their maturity amount either in the form of installments or lump sum amounts.

5. Additional Riders:

Another special feature of this plan is that it comes with a variety of add-on riders that allow customers to enhance their coverage. At present, there are four optional riders available with this plan. These riders are-

• Accidental Death and Disability Benefit Rider

• New Term Assurance Rider

• Accident Benefit Rider

• New Critical Illness Benefit Rider

Please note that the customer can opt between either of the LIC’s Accidental Death and Disability Rider or LIC’s Accident Benefit Rider. This means that a maximum of only three riders can be availed under this policy.

6. Loan Facility:

This plan also provides customers with a special benefit under which they can avail loan facility with this policy. Policyholders are required to pay at least two full years’ premiums in order to avail of this benefit. The maximum loan allowed under the policy, as a percentage of Surrender Value is given below:

• For in-force policies – upto 90%

• For paid-up policies – upto 80%

7. Tax savings:

One of the best parts of this insurance plan is that it allows customers to avail tax benefits on the premium amount as per sections 10D and 80C of the Income Tax Act.