My husband bought the LIC Money Back policy many years ago. Recently, the policy matured and we received the maturity benefit. The amount we received from the plan helped us to plan for our children’s higher education without taking any additional loans. By Devika Sharma
LIC Money Back policy is a unit-linked Endowment plan that is designed to offer investment cum life protection benefits throughout the term of the policy. The plan is no longer available for sale as it was withdrawn by the Life Insurance Corporation of India. However, those policyholders who had bought the plan before its withdrawal will be able to enjoy the benefits available under the plan.
LIC Money Back policy allows the policyholder to choose the level of cover within the limits. These limits will depend on whether the policy is a Single premium or a Regular premium. Let us explore more about LIC Money Back Plan and understand more about it.
Money-back plans increase the benefits payable through additional bonuses and loyalty additions.
Over the period of the policy, the sum assured is paid in installments at predetermined intervals.
Even if the money-back benefits have already been paid, the sum assured is also paid in the event of the insured's death.
To enhance the coverage provided, the policyholder can select riders by paying additional premiums. The riders available are Critical Illness Benefit Rider and Accident Benefit Option.
What is the Eligibility Criteria of the LIC Money Back Plan?
Parameters
Minimum
Maximum
Entry Age
0 years
65 years
Maturity Age
18 years
75 years
Policy Term
5 years
20 years
Sum Assured
For Regular premium: Higher of 5 times the annualized premium or half of the policy term times the annualized premium. For Single Premium: 1.25 times the single premium.
For Regular premium: 20 times the annualized premium if age at entry is up to 55 yrs. 10 times the annualized premium if age at entry is 56 yrs and above. For Single Premium: 5 times the Single premium if age at maturity is up to 65 years.
Lic Hub
The LIC of India offers an array of insurance and investment products to cater to the needs of a diverse range of customers. Let us take a look at the various types of plans offered by Life Insurance Corporation of India:
Tax Saving
Investment Plans
Senior Citizens
Kids Plan
Women
LIC for TAX Saving:
Enjoy the dual benefit of tax deductions under Section 80C and comprehensive insurance coverage with LIC’s tax-saving policies.
Explore LIC's top-performing plans, which provide the perfect blend of investment growth and insurance protection to achieve your financial aspirations.
LIC offers plans tailored for women, focusing on their unique needs. These plans include savings, life cover, and financial independence to secure a brighter future.
Death Benefit is paid to the nominee in case the policyholder dies during the policy term. The benefit paid is equal to the
Higher of Sum Assured or the Fund Value of the units held in the Policyholder’s Fund Value*
**For the Life Assured of age less than 12 years before the commencement of risk, the Fund Value of units held in the Policyholder’s Fund Value shall be paid in case of death.
Maturity Benefit
Maturity Benefit is paid to the policyholder if he/she survives the maturity date of the policy. An amount equal to the Fund value of the units held by the Policyholder’s Fund Value is paid.
Flexibility in Fund Selection
The plan allows the policyholder to invest in the type of funds as per their needs and risk appetite. The plan offers 4 fund options such as: Bond Fund, Secured Fund, Balanced Fund and Growth Fund .
Partial Withdrawals
The policyholder has the option to partially withdraw the unit funds to meet your financial needs. The partial withdrawals are available after the third policy anniversary.
Tax Benefits
One can also avail tax benefits on the premiums paid under the LIC Money Back Policy.
The LIC Money Back plan offered by the LIC of India is one of the best life insurance policies if you are looking for a plan with life protection and savings. With its several benefits the plan was designed to look after the financial needs of the policyholder. However, this plan cannot be bought now as the plan is no longer available for sales.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in