LIC’s 20-Year-New Money Back Plan:
LIC’s 20-Year-New Money Back Plan is a non-linked participatory plan that offers attractive periodic payouts over a specified period of time on survival during the term, along with protection in case of death throughout the term of the plan. Provides adjustment. This unique combination provides financial assistance to the family of the policyholder in case of death at any time before maturity and a lump sum amount to the surviving policyholder at the time of maturity. The plan also takes care of the liquidity requirements through its loan facility.
1.Death Benefit
On death during the policy term, provided the policy is in full force, the death benefit, determined as “Sum Assured on Death” plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any Will be payable. Where, “Sum Assured on Death” is defined as 125% of the Basic Sum Assured or 10 times the annualized premium. The amount of death benefit shall not be less than 105% of all premiums paid till the date of death.
The premium mentioned above does not include taxes, additional premium and rider premium, if any.
Survival Benefit: 20% of Basic Sum Assured will be payable at the end of 5th, 10th and 15th policy year on survival of the Life Assured till the end of the specified time period.
Maturity Sum Assured: On survival of the Life Assured till the stipulated date of maturity, 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, will be payable.
Participation in Profit: The Policy shall participate in the profits of the Corporation and shall be eligible to receive Simple Reversionary Bonus to be declared as per the experience of the Corporation, provided the Policy is in full force.
When a claim arises in the policy due to death or maturity, the final additional bonus can also be declared under the policy in that year, provided the policy has been in operation for a specified minimum period.
2. Optional Benefits:
LIC’s Accidental Death and Disability Benefit Rider: LIC’s Accidental Death and Disability Benefit Rider can be opted for in an in force at any point of time within the premium paying-period by paying additional premium and this cover is for the entire policy term Provided the policy is in force for the entire sum assured till the date of accident. In case of accidental death, the Accident Benefit Sum Assured will be paid as a lump sum amount along with the Death Benefit under the Basic Plan. In case of accidental permanent disability due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments for 10 years plus the Accident Benefit Sum Assured along with the future premium -Plus premium shall not be charged on the part of the Basic Sum Assured which is equal to the Accident Benefit Sum Assured under the policy.
However, on surrender of an in force basic policy (which has acquired the surrender value) to which this rider is attached, a proportionate amount of the additional premium charged in respect of the cover shall be refunded after the premium paying period .
