A Life insurance policy provides dual
benefits of security and savings. The below points explain why one must plan
their finances and make an integral part of their investment tool.
•
Life is full of uncertainties, and in this scenario life, Insurance
comes as a saving grace for your family.
•
It is not only a financial support in case of uncertainty but also an
investment plan. It helps in meeting many future goals according to the stage
in life and the priorities.
•
It protects against the rising health expenses. It offers protection
against critical diseases and hospitalization costs.
•
It contract.
•
It is safe and highly recommended. The money that you invest is the
primary responsibility of the stakeholders
•
It offers protection as well as savings over a long term.
•
It also provides tax benefits for both at the time of entry and exit in
most of the plans.
•
Money back policy also acts as a useful tool to cover mortgages and
loans taken by the policyholders.
The NewMoney Back Plan is one such plan that provides periodical returns of
survival benefits during the term of the policy. Under this scheme, 20% of the
sum assured is payable by at the end of the fifth, tenth and fifteenth year of
the policy term. The balance amount of 40% is due by the 20th year.
In the event of a death of the
policyholder, the death claim covers the full sum assured without deducting any
survival benefit amount, which was already paid. The bonus is also calculated
on the full sum assured.
Features of the LIC Money Back Policy:
•
The survival benefits are paid periodically
•
There is a double tax benefit under section 80C and section 10D.
•
Death risk cover is 125 percent of the basic sum assured
•
Comes with an additional accidental sum assured
•
Loan can be availed against the plan
•
Premium payment term is 15 years only
Eligibility Criteria:
Minimum and Maximum age 13 Years and 50 Years
|
Policy Term 20
Years
|
Term of Premium Payment 15 years
|
Maximum age of policyholder at
maturity 70 Years
|
Minimum sum assured 100000
|
Maximum sum assured No maximum limit.
|
In Case of a possible event during the
policy term:
On Survival:
5th Year 20%
of the sum assured
|
10th Year 20% of the sum assured
|
15th Year 20% of the sum assured
|
20th Year 40% of the sum assured plus the accrued
bonus.
|
On Death:
If the policyholder happens to die
during the term of the policy her/his nominee will receive:
1.
Either 125% of the basic sum assured or 10 times of the annual premium
whichever is higher
2.
Revisionary bonus
3.
Final Additional bonus if there is any.
4.
The benefits or amount that is already paid would not be deducted.
Let us understand the policy better
with the help of an example:
Mrs. Basu was a 30-Year-old working
woman. She invested in an LIC money
back policy
20 Years of the sum assured- INR 100000
The Survival Benefits are as follows:
5th Year INR 20000 (20% of 100000)
|
10th Year INR 20000 (20% of 100000)
|
15th Year INR 20000 (20% of 100000)
|
20th Year INR 40000 (40% of 100000)
|
In case of death her nominee with receive
125% of the sum assured along with the accrued bonus. Additionally, any
survival benefit that has already been paid would not be deducted.
In the case of an accidental death
during the policy term the nominee with receive 125% of the sum assured+ accrued
bonus+ accidental sum assured.
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