Money Back Policy - 20 Years by LIC India - Life Insurance Plan
This scheme provides for periodic payments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive.
In the case of a 20-year Money-Back Policy 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year.
For a Money-Back Policy of 25 years 15% of the sum assured becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued bonus become payable at the 25th year.
The death claim comprises full sum assured without deducting any of the survival benefit amounts, which have already been paid.
Benefits of Money Back Policy – 20 years:
Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers.
Premiums: Premiums can be paid yearly, monthly, quarterly throughout the premium paying term.
Bonuses: Simple Reversionary bonuses will be payable per thousand Sum Assured at the end of each financial year.
Death Benefit: Sum Assured along with vested bonuses will be allocated in lump sum during the policy term.
Survival Benefit: The percentage of Sum Assured as mentioned below:
|
% of Sum Assured paid at the end of specified duration
|
|
Duration
|
Plan
|
|
75
|
93
|
|
5
|
20%
|
15%
|
|
10
|
20%
|
15%
|
|
15
|
20%
|
15%
|
|
20
|
40%
|
15%
|
|
25
|
-
|
40%
|
Supplementary or Extra Benefit: These optional benefits are added to your basic plan and an additional premium is needed to be paid for these benefits.
Surrender Value: On early termination of the LIC contract surrender values are allocated. These values will be greater of the guaranteed surrender value and special surrender. The plan also allows for partial surrenders.
Guaranteed Surrender Value: if policy has been in force for at least three full years then the policy can be surrendered. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.
Corporation’s policy on surrenders: In practice, the Corporation will pay a Special Surrender Value – which is available after completion of at least 3 years from the date of commencement of your policy. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances especially in case of early termination of the policy, the surrender value payable may be less than the total premium paid.
|
