Life Insurance Corporation’s Money Back Plan: Premium, Eligibility And Other Key Details
Life Insurance Corporation (LIC), the country’s largest life insurance company, offers few money back insurance plans among its life insurance products. One such insurance plan offered by the state-run company is LIC New Money Back Plan-20 Years. The New Money Back Plan-20 Years, a participating non-linked plan, can be purchased for a minimum sum assured of Rs. 1 lakh, according to LIC’s website – www.licindia.in. There is no upper limit on the sum assured, according to the Life Insurance Corporation website. (Also read: All You Need To Know About LIC Pradhan Mantri Vaya Vandana Yojana)
Here are details about premiums, eligibility and money backs offered by LIC’s New Money Back Plan-20 years:
Sum Assured: LIC’s New Money Back Plan-20 years can be purchased with a minimum sum assured of Rs. 1 lakh and it has no limit on the maximum sum assured.
Who can buy: Any individual between age of 13 and 50 years can buy this insurance product with maximum maturity age of 70 years of the insured person.
Premium: Under LIC’s New Money Back Plan-20 years, the individual has to pay premium up to 15 years for a policy term of 20 years. Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through salary deductions over the term of policy. Below are premium rates (exclusive of service tax) per Rs. 1,000/- Basic Sum Assured:
|Age (in years)||Premium (Rs.)|
Money back benefit: The first money back of 20 per cent of the sum assured will be credited to the insured person on completion of the fifth year of policy term. Subsequently, 20 per cent of the sum assured would be credited to the insured person on completion of policy term of 10th year and 15th year. On the completion of 20th year the remaining 40 per cent will be returned to the insured person.
Income tax benefit: The subscriber is eligible to claim income tax benefit on the premium paid under Section 80C of the Income Tax Benefit, according to the LIC website.