LIC’s New Money Back Plan-20 years is a Non-Linked, Participating, Limited Premium, Individual, Life Assurance Savings Plan. This plan offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term.¹ This unique combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum² amount at the time of maturity for the surviving policyholders.³ This plan also takes care of liquidity needs through its loan facility.

Key features:

• Eligibility:

  • Minimum Basic Sum Assured: ₹1,00,000

  • Maximum Basic Sum Assured: No Limit (The Basic Sum Assured shall be in multiples of 5,000/-)

  • Policy Term: 20 years

  • Premium Paying Term: 15 years

  • Minimum Age at entry: 13 years (completed)

  • Maximum Age at entry: 50 years (nearer birthday)

  • Maximum Age at Maturity: 70 years (nearer birthday)

• Benefits:

  • Death benefit: Death benefit payable in case of death of the Life Assured during the policy term provided the policy is in-force⁴ (i.e. all due premiums have been paid) shall be “Sum Assured on Death” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.⁵ Where “Sum Assured on Death” is defined as higher of 125% of the Basic Sum Assured or 7 times of annualized premium. This death benefit shall not be less than 105% of the total premiums paid upto the date of death. The premiums mentioned above exclude taxes, extra premium and rider premium, if any.

  • Survival Benefits: In case of Life Assured surviving to the end of the specified durations provided all due premiums have been paid, 20% of the Basic Sum Assured shall be payable at the end of each of 5th, 10th & 15th policy year.⁶

  • Maturity Benefit: On Life Assured surviving to the end of the policy term, provided the policy is in-force, “Sum Assured on Maturity” along with⁷ vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.⁸ Where “Sum Assured on Maturity” is equal to 40% of the Basic Sum Assured.

  • Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary⁹ Bonuses declared as per the experience of the Corporation, provided the policy is¹⁰ in-force. Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.¹¹ Final Additional Bonus shall not be payable under paid-up policies. The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with provisions in this regard under LIC Act, 1956.¹²

• Options:

  • Rider Benefits: The following four optional riders are available under this plan by payment of additional premium. However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit¹³ Rider. Therefore, a maximum of three riders can be availed under a policy.

    • LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02): This Rider can be opted for under an in-force policy at any time within the premium paying term of the Base plan¹⁴ provided the outstanding premium paying term of the base plan¹⁵ is atleast 5 years.

    • LIC’s Accident Benefit Rider (UIN:512B203V03): This rider can be opted for at any time under an in-force policy within the premium paying term of the Base plan¹⁶ provided the outstanding premium paying term of the base plan¹⁷ is atleast 5 years.

    • LIC’s New Term Assurance Rider (UIN: 512B210V01): This rider is available at inception of the policy only.

    • LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01): This rider is available at the inception of the policy only.

  • Settlement Option for Maturity Benefit: Settlement Option is an option to receive Maturity Benefit in instalments over the chosen period of¹⁸ 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as paid-up¹⁹ policy.

  • Option to take Death Benefit in instalments: This is an option to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount under an in-force as well as paid-up²⁰ policy.

• Additional features:

  • Payment of Premiums: Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deductions during the premium paying term of the policy.²¹

  • Grace Period: A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium.²² During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy.²³ If the premium is not paid before the expiry of the days of grace, the Policy lapses. The above grace period will also apply to rider premiums which are payable along with premium for base policy.

  • Revival: If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the Date of Maturity.²⁴

  • Paid-up Policy: If less than two years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits under the policy shall cease²⁵ after the expiry of grace period from the date of first unpaid premium and nothing shall be payable.²⁶ If at least two full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy shall not be wholly void, but shall continue as a paid-up policy²⁷ till the end of the policy term.²⁸

  • Surrender: The policy can be surrendered at any time provided two full years’ premiums have been paid.

  • Policy Loan: Loan can be availed under the policy provided atleast two full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.²⁹