LIC money back plans are one of the most popular life insurance policies in India. They offer a guaranteed sum of money upon the policyholder’s survival to the end of the policy term, as well as regular payments throughout the policy term. LIC money back plans are a great way to ensure financial security for yourself and your family in the event of your untimely death. In this blog post, we will explore the features and benefits of LIC money back plans, as well as their eligibility requirements.
What is a LIC Money Back Plan?
A LIC money back plan is a life insurance policy that pays out periodic payments (usually every five years) to the policyholder while they are alive, and a lump sum payment upon death. The policyholder can use these payments to cover living expenses, invest in other financial products, or save for retirement.
LIC money back plans are an attractive option for those who want the security of a life insurance policy but also want the flexibility to use the money while they are alive. The periodic payments can help cover unexpected expenses or provide extra income during retirement.
To be eligible for a LIC money back plan, you must be between the ages of 18 and 55 and have a life insurance policy with LIC. You will also need to pay premiums for at least five years before you can start receiving money back from the policy.
If you are looking for an insurance policy that provides both security and flexibility, then a LIC money back plan may be right for you.
Benefits of LIC Money Back Plans
LIC’s money back plans are one of the most popular life insurance policies in India. They offer a combination of features that make them an attractive proposition for policyholders. Some of the key benefits of LIC money back plans are:
1. Guaranteed returns: One of the biggest advantages of LIC money back plans is that they offer guaranteed returns. This means that you will get your original investment amount back, along with the interest accrued, even if you live to a ripe old age.
2. Flexibility: Another big plus point of these plans is their flexibility. You can choose the policy term and premium payment frequency as per your convenience and requirements.
3. Life cover: While most people invest in these plans for their guaranteed returns, it must be noted that they also provide a life cover. In case of your untimely death, your nominees will receive the death benefit which can help them meet their financial goals.
4. Tax benefits: LIC money back plans offer tax benefits under section 80C of the Income Tax Act 1961. The premium paid towards the policy is exempt from taxes, and so are the maturity proceeds. This makes them an ideal investment option for those looking to save on taxes
Eligibility for LIC Money Back Plans
To be eligible for a LIC money back policy, the following criteria must be met:
- You must be between the ages of 18 and 55.
- You must have a regular source of income.
- You must be a resident of India.
- You must not have any pre-existing medical conditions.
List of Active LIC’s Money Back Plan
1. LIC’s Dhan Rekha
Dhan Rekha is a money back plan from Life Insurance Corporation of India (LIC) that offers features and benefits like death benefit, maturity benefit, and policy loan facility. This plan is eligible for people between the ages of 18 and 55 years. The policy term ranges from 5 to 20 years, and the sum assured starts from Rs.1 lakh and goes up to Rs.10 lakhs. The premium payment frequency options are yearly, half-yearly, quarterly, or monthly.
Some key features of Dhan Rekha are:
- Death Benefit: In case of death during the policy term, the nominee will receive the sum assured as death benefit plus accrued bonuses.
- Maturity Benefit: On survival till the end of policy term, the insured will get sum assured along with accrued bonuses as maturity benefit.
- Policy Loan Facility: LIC provides loan facility against this policy after it has acquired a surrender value. The maximum loan that can be availed is 90% of the surrender value.
Thus, Dhan Rekha is a beneficial money back plan from LIC which provides financial security in case of unfortunate events like death or sickness, as well as regular income during the policy term in form of survival benefits. It is an ideal choice for people who are looking for long term financial security for their loved ones
2. LIC’s New Bima Bachat
LIC of India has come up with a new money back plan called the Bima Bachat. This is a whole life insurance policy that offers guaranteed cashbacks at regular intervals. The key features and benefits of this policy are as follows:
- Guaranteed cashback of 20% of the sum assured every 5 years, from the end of the policy term.
- Maturity benefit equal to 125% of the sum assured.
- Death benefit equal to 150% of the sum assured, in case the policyholder dies before the maturity date.
- Loan facility available against the policy after 3 years.
- Tax benefits under Section 80C and 10(10D) of the Income Tax Act.
3. LIC’s NEW MONEY BACK PLAN – 20 YEARS
LIC’s New Money Back Plan – 20 Years is a policy that offers guaranteed returns with a bonus, as well as the option to receive payouts in lump sum or through annuity. The policy also offers death and maturity benefits.
The plan gives the policyholder the option to choose between two investment terms – 10 years or 20 years. The minimum sum assured under this plan is Rs.1,00,000 and there is no maximum limit. This makes the plan suitable for individuals with different income levels and financial goals.
The key features of this plan are:
- Guaranteed returns: The policyholder is guaranteed to receive a return of at least 105% of their premium paid, irrespective of market conditions.
- Flexible investment options: Policyholders can choose to invest their premium in either equity or debt instruments, or a mix of both, depending on their risk appetite and financial goals.
- Bonus: Policyholders are entitled to receive a bonus on their maturity benefit if they have completed at least 5 years under the policy. This bonus will be equal to 10% of their sum assured.
- Death benefit: In case of the policyholder’s death during the policy term, their nominee will receive an amount equal to the sum assured plus accrued bonuses. If death occurs after the completion of the policy term, then no benefit is payable.
- Maturity benefit: On completion of the policy term, the policyholder will receive their sum assured plus
4.LIC’s NEW MONEY BACK PLAN – 25 YEARS
LIC of India has recently introduced a new money back plan – 25 years. This is a non-participating individual life insurance plan which offers financial protection in case of death of the policyholder during the policy term. The policy also provides for periodic payments of survival benefits at specified durations during the policy term, in case the policyholder survives the policy term.
The salient features of this LIC money back plan are as follows:
- Policy term: 25 years
- Premium payment term: 15 years or 20 years (as chosen by the policyholder at inception)
- Sum assured: Minimum Rs.1,00,000; no maximum limit
- Survival benefit: A percentage of sum assured, as specified in the schedule of benefits, will be paid on survival at specific durations during the policy term
- Death benefit: Sum assured + accrued survival benefits will be paid in case of death of the policyholder during the policy term
- Loan facility: Available after 3 policy years
- Policy revival: Possible within 2 consecutive years from date of first unpaid premium
This LIC money back plan is ideal for those who are looking for a long-term investment option with periodic payouts. The loan facility and revival option make it a very attractive proposition.
4.LICs Jeevan Umang
LIC’s Jeevan Umang Plan is a money back life insurance policy which offers financial protection to the policyholder’s family in the event of his/her untimely death. The plan also provides for regular income payments to the policyholder in the form of survival benefits, thereby ensuring that the family’s financial needs are taken care of even in his/her absence.
The plan offers a host of features and benefits which make it an ideal choice for those looking for comprehensive life insurance coverage. Some of these features and benefits are listed below:
- Offers financial protection to the policyholder’s family in the event of death
- Provides for regular income payments to the policyholder in the form of survival benefits
- Death benefit is payable on premature death as well as natural death
- Maturity benefit is payable on Survival to end of policy term
- Policy term can be chosen from 5 years to 30 years
- Premiums can be paid on a yearly, half-yearly or quarterly basis
5. LIC’s NEW CHILDREN’S MONEY BACK PLAN
LIC’s new children’s money back plan is a great way to ensure that your child has the financial security they need in their future. This policy provides for 20 years of coverage and pays out a lump sum benefit if the policyholder dies during the policy term. The death benefit can be used to help cover the costs of education or any other expenses your family may have.
6. LIC’s Jeevan Shiromani
LIC’s Jeevan Shiromani is a traditional money back plan that offers financial security and peace of mind. This plan provides a death benefit as well as periodic payments during the policy term. The policy term can be chosen from 10, 15, 20 or 25 years.
This plan offers many features and benefits, including:
- Financial security for your family in the event of your death
- Regular income payments during the policy term to help with expenses
- A lump sum payout at the end of the policy term if you are still alive
- Flexibility to choose your policy term and premium payment options
To be eligible for this plan, you must be between the ages of 18 and 55 and have a valid life insurance policy with LIC.
7. LIC’s Jeevan Tarun
LIC’s Jeevan Tarun is a non-Linked, with-profits, participating life insurance plan which offers financial protection to children between the ages of 0 and 12 years. The Plan has been designed keeping in mind the need for a life insurance cum investment plan for children.
The Plan offers following benefits:
(i) Death Benefit: On death of the child during the policy term, sum assured on death plus vested simple reversionary bonuses and terminal bonus, if any, shall be payable.
(ii) Maturity Benefit: On survival of the child till maturity, sum assured on maturity plus vested simple reversionary bonuses and terminal bonus, if any, shall be payable.
(iii) Survival Benefits: Vested Simple Reversionary Bonuses will be payable during the policy term at the end of each policy year provided the policy is in full force.
(iv) Tax Benefit: Life Insurance proceeds are exempt from income tax under section 10(10D) of Income Tax Act 1961
8. LIC’s Bima Shree
LIC’s Bima Shree is a Non-Linked, Non-Participating, Traditional Life Insurance Plan. It offers financial protection in the event of death of the policyholder. The plan also provides for maturity benefits in case the policyholder survives the policy term.
The key features of LIC’s Bima Shree are as follows:
- Death benefit: In case of death during the policy term, the nominees will receive an amount equal to the sum assured plus accrued guaranteed additions, if any.
- Maturity benefit: On survival of the policy term, the policyholder will receive an amount equal to the sum assured plus accrued guaranteed additions, if any.
- Tax benefits: The premiums paid under this policy qualify for deduction from taxable income under Section 80C of the Income Tax Act, 1961. In addition, the death and maturity benefits are exempt from tax under Section 10(10D) of the Income Tax Act, 1961.