Country’s largest life insurance company, Life Insurance Corporation (LIC) of India offers various life insurance term plans and LIC policies for citizens. Now, the corporation has come up with the new plan with the term of 20 years namely, LIC New Money Back Plan-20 Years. In which it offers a combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term.
This LIC New Money Back Plan-20 Years can be purchased by any individual between the age of 13 years and maximum age of 50 years for a minimum sum assured of Rs. 1 lakh. An individual can pay the premiums regularly at yearly, half-yearly, quarterly or monthly basis over the term of the policy.
Talking about the policy term then this plan has the term of 20 years and the individual needs to pay the premium for 15 years. The individual will get periodic payment at the end of the fifth, tenth and fifteenth policy year. The periodic payment amount is calculated as 20 per cent of the basic sum assured at the end of the fifth, tenth and fifteenth policy year
If the individual survived on the maturity of LIC policy then the sum assured will be 40 per cent of the basic sum assured along with simple reversionary bonuses and final additional bonus, if any, shall be payable to the policyholder.
In case of death of the policyholder during the policy term and the individual had paid all of its premiums, then the nominee or legal heir of the policyholder will get 125 per cent of the basic sum assured or 10 times of annualized premium as per LIC’s official website.
The website also says that If an individual fails to pay the premiums within the grace period then the policy will lapse, and a lapsed policy can also be revived within a period of two consecutive years from the date of first unpaid premium. But the individual needs to pay all the arrears of premium together with interest before the date of maturity, LIC added. For more information, you can also visit the LIC’s official website www.licindia.in.
There are two optional benefits available in this plan as well such as accidental death and disability benefit riders. These optional benefits can opt at any time within the premium paying term by payment of additional premium and the cover will be available throughout the policy term provided the Policy is in force for the full Sum Assured as on date of the accident.
Thereby, in case of accidental death, the sum assured paid to the applicant will be in lump sum along with the death benefit under the basic plan.
As for permanent disability arising due to an accident (within 180 days from the date of accident), a sum which is equivalent to the Accident Benefit Sum Assured will be paid by LIC. The payment will be made in equal monthly instalments spread over 10 years. Also, future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.