LIC New Money Back Plan 20 Years (820): Features, Benefits and Premium Calculator
LIC New Money Back Plan (820): Features, Benefits and Premium Calculator:
LIC New Money Back Plan (820) 20 years is a participating, non-linked. This plan is also one of the most popular plan of LIC.
The LIC New Money Back Plan (820) offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified duration during the term. This Plan provide financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the the time of maturity for the surviving policyholder.
This Plan also takes care of the liquidity needs through its loan facility.
Key Features of LIC New Money Back Plan (820):
- Premium needs to be paid for less number of years than the policy term.
- Money is paid back to policyholder at specified interval.
- This is a participating plan.
- Accidental death and disability riders makes this plan more beneficial.
- Rebate is also offered to policy holder if he opt for higher sum assured.
- Premium Paid are exempted from income tax under section 80C.
- Amount received on maturity or on death is exempted under section 10 (10D).
- This Plan is ideal for children education and marriage planning.
Benefits of LIC New Money Back Plan (820):
On the death during policy term, the policyholder’s nominee will get Sum Assured on death, vested Simple Reversionary Bonuses and Final Additional Bonus if any.
Maximum Sum Assured on Death can be 125% of basic sum assured or 10 times of annualized premium which ever is higher. The death benefit shall not be less than 105% of all the premium paid till the date of death.
If the policy holder survive till the end of policy term he will be paid 20% of Basic Sum Assured at the end of 5th, 10th and 15th policy year.
Maturity Benefits: In case the Policyholder surviving the stipulated date of maturity, 40% of the Basic Sum Assured along with the vested Simple Reversionary Bonuses and final additional bonus, if any, shall be payable.
Participation in Profit:
The policy also participate in the profit of the corporation. The policy holder is entitled to receive bonuses declared by LIC from time to time provided the policy is in full force.
Accidental Death and Disability Benefits Rider is also available on the payment of additional premium during the policy term. However Rider sum assured can not exceed the basic sum assured.
Premium paid is exempted u/c 80C and the amount received on death or maturity is also exempted u/s 10 (10D).
Loan Facility: Loan facility is also available after the completion of 3 years.
Eligibility and other restrictions:
- Minimum age of entry : 13 years
- Maximum age of entry : 50 years
- Maximum Age of Maturity: 70 years
- Basic Sum Assured : Minimum Rs. 100000 and Maximum no limit (in multiple of Rs.5000).
- Policy Term 20 years
- Premium Paying Term 15 years
Mode of Payment of Premium:
Premium can be paid monthly, quarterly, half yearly and yearly.
Rebate on mode and high sum assured:
- Quarterly and monthly mode nil
- Half yearly mode 1%
- Yearly mode 2%
Basis sum assured rebate:
- 100000 to 195000 Nil
- 200000 to 495000 2.0% of Basic Sum Assured
- 500000 and above 3.0% of Basic Sum Assured1
Lapse, Revival and paid up value: If the premium is not paid within the grace period the policy will lapse. Lapsed Policy can be revived within a period of two consecutive years from the date of first unpaid premium on the payment of all the arrears of premium with interest. However if at least three full years premium have been paid and any subsequent premium be not duly paid, this policy shall continue as a paid up policy.
The policy can be surrendered for cash provided at least three full years premiums have been paid. The surrender value percentage will depend on the policy term and the policy year in which surrendered.
Premium Calculator: For the calculation of premium of LIC New Money Back Plan (820), LIC Premium Calculator can be used. To calculate premium click on Premium Calculator
For more details of the Plan visit: LIC New Money Back Plan
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