Money Back Policy
Money back policy is a popular insurance policy offered by Life Insurance Corporation of India. Lic Money back policy provides coverage during the policy term. Here in Money back plans the maturity benefits are paid in installments. Unlike endowment plans, these money back plans provides partial survival benefits as periodic payments during the policy term. These benefits will be provided under Lic Money back plans so long as the policy holder is alive.
Lic Money Back Plan Features
- Money back plans combine the dual benefits of savings and insurance.
- These Lic money back plans are somewhat similar to endowment plans in terms of features.
- The difference is, in endowment plan, the policy holder receives the maturity benefit at the end of the policy term.
- But, in money back plans ‘partial survival benefits’ are paid to the policy holder at specific intervals during the policy term.
- The policy holder may receive the survival benefits in fixed proportions or variable proportions during the policy term as per the terms and conditions of the policy.
- The benefits received by the policyholder at specific intervals are tax free according to prevailing tax laws. For information about Tax on Insurance Policies refer www.taxqueries.in.
Money Back Plan Benefits
In Lic Money Back Plan, policy holder will get lump sum amount as Maturity Benefit on the payment of all the due premiums until the completion of policy period.
If the policyholder dies during the policy period, the nominee or beneficiary receives the entire sum assured along with the accrued bonus (if any) without the deduction of survival benefits that had already been paid to the insured.
MONEY BACK PLAN EXAMPLE
|Tenure of policy: 20 years.|
|Sum Assured : Rs. 10,00,000.|
|Premium : Rs. 75,000 / year.|
|Total paid : 75,000 x 15 years (premium paying term 15 years only).|
|Survival benefits : 20% for every 5 years : 2,00,000 5th year : 2,00,000 10th year : 2,00,000 15th year|
|Money received in case of Death : Rs. 10,00,000.|
|Money received in case of survival: Rs. 4,00,000 + Bonus +FAB.|
|*All figures / information are approximate and actual amount / information is subject to availability and current market trends of LIC.|
Lic Money Back Plans