LIC's New Money Back Plan-25 years (921)

New Money Back Plan 25 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: 20 years

 Policy term (time until your policy matures): 25 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: 45 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: 15 percent of Basic Sum Assured at the end of 5th, 10th, 15th and 20th 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 25 years (921) Benefit Illustration
Policy Term 25 25 25
Premium Paying term 20 20 20
Sum Assured 300000 500000 1000000

Per Day Premium

(1st Year/after 1st year)

52/51 86/84 172/168

Monthly Premium

(1st Year/after 1st year)

1629/1594 2671/2614 5343/5228

Quarterly Premium

(1st Year/after 1st year)

4886/4781 8014/7842 16028/15683

Half Yearly Premium

(1st Year/after 1st year)

9675/9466 15863/15522 31725/31042

Yearly Premium

(1st Year/after 1st year)

19151/18738 31395/30709 62790/61438

Total Premium Paid

(Based on Yearly Mode)

375173 615056 1230112
Money back Amount 45000 75000 150000
Total Money Back 180000 300000 600000
Sum Assured 300000 500000 1000000
Bonus 307500 512500 1025000
Final Additional Bonus 67500 112500 225000
Total 675000 1125000 2250000

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.