LIC's New Money Back Plan-20 years (920)


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New Money Back Plan 20 years is a life insurance product of LIC (Life Insurance Corporation of India). This is a money back endowment or traditional plan- which means it is not linked to stock market. The return on investment will be based on the profit of LIC and thereafter the declaration of bonus rate for the particular product. This is a limited premium endowment- which means you pay less in number of years than the term of policy. However, this policy has a feature of paying (Survival Benefit) a fixed amount (as a percentage of Sum Assured) to policy holder in regular interval of every five years.To know more about this policy let us start with its features:

 Premium paying term: 15 years

 Policy term (time until your policy matures): 20 years

 Minimum Sum Assured: 100000

 Maximum Sum Assured: unlimited (with special medical reports and income proof)

 Minimum Entry Level Age: 13 years (completed)

 Maximum Entry Level Age: 50 years in nearest birthday

 Maximum Maturity Age: 70 years

 Maximum Accidental Death and Disability benefit rider applicable up to age of 70 years

Survival Benefit: 20 percent of Basic Sum Assured at the end of 5th, 10th and 15th Policy Anniversary

 Maturity Benefit: Sum assured + Bonus  (for illustration keep on reading)

 Minimum years to pay premium: 2years (after paying premium for 2 years one can stop paying premium; your money will be safe to withdraw or for loan

 Loan and Surrender: after 2 years of policy period considering there is no unpaid premium in first 2 years of policy period.

 Revival: Policy can be revived within 5 years of lapsation.

 Benefit illustration:

Ajay Garg a Government servent has purchased New Money Back 20 years of Sum assured 1000000 INR at the age of 35 years after considering following benefit illustration:-

New Money Back 20 year (920) Benefit Illustration
Policy Term 20 20 20
Premium Paying term 15 15 15
Sum Assured 300000 500000 1000000

Per Day Premium

(1st Year/after 1st year)

67/65 110/107 220/215

Monthly Premium

(1st Year/after 1st year)

2083/2038 3427/3353 6853/6706

Quarterly Premium

(1st Year/after 1st year)

6247/6112 10281/10059 20560/20118

Half Yearly Premium

(1st Year/after 1st year)

12368/12101 20350/19912 40701/39824

Yearly Premium

(1st Year/after 1st year)

24481/23954 40280/39412 80559/78825

Total Premium Paid

(Based on Yearly Mode)

359837 592048 1184109
Money back Amount 60000 100000 200000
Total Money Back 180000 300000 600000
Sum Assured 300000 500000 1000000
Bonus 216000 360000 720000
Final Additional Bonus 12000 20000 40000
Total 528000 880000 1760000

All of these maturity is tax free under income tax act 10 (D)

*all maturity projection is based on current rate of bonus paid by LIC.