Life Insurance Corporation of India, the country’s largest life insurance company, offers various life insurance products or life insurance policies.
LIC’s life insurance policies include term insurance plans, endowment insurance plans, pension plans and money back plans among others like unit linked insurance plans.
The new Money Back Plan-20 Years, is one of the plans being offered by the company which offers protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the policy term.
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 minimum sum assured of Rs. 1 lakh, according to LIC’s website.
The policy term of LIC New Money Back Plan is 20 years and the premium paying term is 15 years, LIC noted on its website.
Money back or the periodic payment on survival under the LIC New Money Back Plan-20 Years is 20 per cent of the basic sum assured at the end of fifth, tenth and fifteenth policy year.
On maturity of the LIC policy, if the individual is surviving, 40 per cent of the basic sum assured along with simple reversionary bonuses and final additional bonus, if any, shall be payable to the policy holder, LIC said.
In case the policy holder dies during the policy term and had paid all premiums, the nominee or legal heir of the policy holder will get 125 per cent of the basic sum assured or 10 times of annualized premium, LIC added.
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly basis over the term of policy, according to LIC.
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of two consecutive years from the date of first unpaid premium but before the date of maturity by paying all the arrears of premium together with interest, LIC added.