New Money Back Plan – 20 Years – UIN 512N280VO1

lic new money back plan - 20 yearsNew Money Back Policy – 20 years is a fixed tenure non-linked life insurance policy. It was introduced on 6th January, 2014 and offers a combination of life insurance along with investment. As the name suggests it provides money back after a fixed interval for up to 20 years.

 The policy ensures decent periodic returns on survival and a preset maturity sum to the policyholder if he/she survives till the end of policy term.

 

Plan Features

Min/Max Age at Entry  13 to 50 Years
Premium Paying Term  15 Years
Policy Term  20 Years
Maximum Maturity Age  70 Years
Min/Max Sum Assured  1 Lac to No Limit (Incremental Sum Assured in multiples of 5000)
Tax Rebate  Yes, both premium payments & death/maturity under section 80(c) and 10(10d) of I.T Act
Loan Facility  Yes, after 3 years from date of policy inception, house loan surety on the basis of the Policy.
Premium Payment  Monthly ECS*, Quarterly*, Half-Yearly & Yearly
Riders  Accidental Death and Disability Riders available

*There are no rebates in these payment modes since a 1% & 2% rebate is provided in half-yearly & yearly modes respectively.

 

Benefits of New Money Back Plan – 20 Years

 

  • Maturity Benefits – If the policyholder survives till the end of the policy term, then he/she will be eligible for the maturity benefits.
Includes 40% of Basic Sum Assured + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)

 

  • Survival Benefits – A total of 60% of the Basic sum assured is payable to the policyholder in the interval of every 5 years as survival benefits which is deducted from the maturity benefits received in the end of the term.

5th  year of the policy term – 20 % of the Basic Sum Assured is payable to the policyholder.

10th  year of the policy term – 20% of the Basic Sum Assured is payable to the policyholder.

15th  year of the policy term – 20% of the Basic Sum Assured is payable to the policyholder.

 

  • Death Benefits – If the policyholder happens to die before the policy term gets over then the nominee would be paid the death benefits of the policyholder.
Includes 125% Basic Sum Assured or 10 Times Annualized Premium (whichever is higher) + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)

 

 

Accidental Death and Disability Benefit Riders

  • This is an optional benefit which can be added to the policy by the payment of additional premium.
  • In case of accidental death of the policyholder an additional sum equal to the “Sum Assured” (Max 50 Lac.) is payable.
  • In case of permanent disability after an accident, within the time period of 180 days from the precise date of accident, the policyholder would be paid the Accident sum assured in equal monthly instalments spread out over a period of 10 years.
  • In such cases all future premiums of the New Money Back Plan – 20 Years are waived off.
  • Minimum age to opt for accidental death rider is 18 years & maximum age for cover is 70 years.
  • The minimum Accident Benefit Sum Assured is Rupees 1,00,000.

 

Grace Period & Revival of Policy

Grace Period – For Monthly mode of premium payment a grace period of 15 days are given to make the payment. For Yearly, Half-yearly and Quarterly mode of payment a grace period of 30 days are allowed in case the policyholder has been unable to pay the premium on the due date.

Revival – If the premium is not paid within grace period then the policy is lapsed. However, the policy can be revived at any time during the policy term within a period of 2 years from the last premium paid.

 

Surrender & Suicide Cases

Surrender of New Money Back Plan – 20 Years – The policyholder of the New Money Back Plan is free to surrender the policy at any given time of the policy term, provided that the payment of the premiums of three full years have been successfully made. (Check for penalties)

If the policyholder happens to commit suicide before a year from the commencement of the policy then 80% of the premiums would be returned with the exclusion of tax and extra premiums.

 

Documents Required

  • Plan application form with a photograph
  • Residence proof
  • ID & Age proof
  • Medical reports if necessary

 



Disclaimer – Though we try our best but we do not guarantee correctness of information hence you are advised to be cautious & do thorough research before reaching to a conclusion. If you find any discrepancies you’re welcome to contact us.