LIC New Money Back Plan 20 years
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| Launch Date | Table No. | UIN | Status |
| 9/10/2013 | 75 | 512N280V01 | Active |
About LIC New Money Back Plan 20 years
- It is a simple money back plan that offers a periodic repayment after every 5th year
- This plan provides risk cover and bonus on maturity
- An investment plan with low risk returns
- The premium paying term is less than the policy term
How does this plan work?
Under LIC New Money Back Plan 20 years, an individual pays regular premium for 15 years if the policy term is 20 year. 20% of sum assured is paid after every 5th (i.e. 5th, 10thand 15th) year of policy term. After the policy term is over, on maturity he receives a lumpsum which comprises of 40% of the sum assured and accrued bonus. If in case on death of the insured, during the policy term his nominee receives the death benefit that is a lumpsum including the sum assured on death and accrued bonus. The sum assured on death is a value which is higher among;
- 125% of the Basic Sum assured
- 10 times of the yearly premium amount paid till death
Note that the value of death benefit should be >105% of the total premiums paid till death
Let’s understand this better with an example given below
Illustration:
Consider,
Person’s age: 32
Sum assured: Rs. 5 lakh
Premium Paying Term: 15 years
Policy term: 20 years
A 32 year old individual pays a regular monthly premium of Rs. 3190 for New money back plan of 20 years and premium paying term of 15 years. Every 5th year (i.e. 5th, 10th and 15th) he receives 20% of the sum assured (Rs. 1lakh) each year and at the end of 20th year, on maturity he receives approximately Rs 610000 as maturity benefit inclusive of accrued bonus and 40% the sum assured. On death of the individual before the end of policy term, his nominee will receive the death benefit amount as shown in the box above.
Why should you buy LIC New Money Back Plan 20 years?
- It is helpful in securing children’s future
- High Sum assured means higher bonus amounts.
- Premiums paid are tax exempt under section 80C and maturity amount is tax free under section 10(10D)
COMPARE & BUY SIMILAR PLANS
Bonus History
Company Name : Life Insurance Corporation of India
Plan Name : New Money Back Plans
| BonusYear | RevBonus | MinPT | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 3.90% | 20 | ||||||||
| 2014 | 4.40% | 25 | ||||||||
| 2015 | 3.90% | 20 | ||||||||
| 2015 | 4.40% | 25 | ||||||||
| 2016-17 | 3.9% | 20 | ||||||||
| 2016-17 | 4.4% | 25 |
Bonus explained: For a sum assured of Rs. 100000/-, if the bonus declared is 4.2% or Rs 42/- per thousand, then the amount of Rs 4200/- gets accumulated into the policy for that year.
Who should buy LIC LIC New Money plan 20 years?
- Minimum Basic Sum Assured is Rs. 100,000
- Maximum Basic Sum Assured (The Basic Sum Assured shall be in multiples of Rs. 5000/-) is No Limit
- Minimum Age at entry for Life Assured : 13 years (completed)
- Maximum Age at entry for Life Assured : 50 years (nearest birthday)
- Maximum Maturity Age for Life Assured : 70 years (nearest birthday)
- Premium paying term (PPT) : 15 years
- An individual who is looking out for a low risk investment
- Young parents who are looking to secure children’s educational expense
- Individuals who are planning for their specific life goals
Company Overview
Life Insurance Corporation is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of Rs.1560482 crore.
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