LIC’s New Money Back Plan-20 years is a Non-Linked, Participating, Limited Premium, Individual Life Assurance plan. It offers a valuable blend of protection against death throughout the plan’s term and periodic payments on survival at specific intervals during the term. This combination ensures financial support for the deceased policyholder’s family before maturity and a lump sum amount for surviving policyholders upon maturity. The plan also provides a loan facility to address liquidity needs.

Benefits

Death Benefit:

In the event of the Life Assured’s demise during the policy term, provided that the policy is active (i.e., all due premiums have been paid), the Death benefit will include the “Sum Assured on Death” along with vested Simple Reversionary Bonuses and the Final Additional Bonus, if applicable. “Sum Assured on Death” is defined as the higher of 125% of the Basic Sum Assured or 7 times the annualized premium. This death benefit will not be less than 105% of the total premiums paid up to the date of death.

The premiums mentioned above do not include taxes, extra premiums, or rider premiums, if any.

Survival Benefits

If the Life Assured survives until the specified durations and has paid all due premiums, 20% of the Basic Sum Assured will be paid at the end of each of the 5th, 10th, and 15th policy year.

Maturity Benefits

If the Life Assured survives until the end of the policy term, provided that the policy is active, the “Sum Assured on Maturity” will be paid, along with vested Simple Reversionary Bonuses and the Final Additional Bonus, if applicable. “Sum Assured on Maturity” is equal to 40% of the Basic Sum Assured.

Participation in Profits

The policy is eligible to share in the profits of the Corporation and receive Simple Reversionary Bonuses, which are declared based on the Corporation’s experience, provided that the policy is active. Final Additional Bonus may also be declared under the policy in the year when the policy results in a claim, either due to death or maturity. However, Final Additional Bonus is not applicable to paid-up policies. The actual allocation to policyholders from the surplus determined through actuarial investigation will be approved by the Central Government, following the provisions under the LIC Act, 1956.

Eligibility Conditions

Minimum Basic Sum Assured Rs. 100,000
Maximum Basic Sum Assured No Limit
Minimum Age at entry 13 years (completed)
Maximum Age at entry 50 years (nearer birthday)
Maximum Maturity Age 70 years (nearer birthday)
Policy Term 20 years
Premium Paying Term 15 years

Payment Options Available

Mode of Instalment payment Minimum instalment amount
Monthly Rs 5,000/-
Quarterly Rs 15,000/-
Half-Yearly Rs 25,000/-
Yearly Rs 50,000/-

Exclusion:

Suicide Clause: i. The policy becomes void if the Life Assured, whether sane or insane, commits suicide within 12 months from the risk commencement date. In such cases, the Corporation will not entertain any claim under the policy, except for a refund of 80% of the total premiums paid, provided the policy is active. ii. If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of revival, the payout is the higher of 80% of the total premiums paid until the date of death or the surrender value as of the date of death. No other claims are entertained under the policy.

This clause does not apply to policies that have lapsed without acquiring paid-up value, for which no payout is made.

Please note that the mentioned premiums do not include any taxes, extra premiums, or rider premiums other than the Term Assurance rider, if applicable.

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