Benefits of LIC Money Back Plan


The Money Back Plan by Life Insurance Corporation of India is a non-linked participating plan that ensures dual benefit of coverage against death while the policy term is going on and also regular payouts at predefined intervals in case of survival.

This feature of the LIC Money Back Policy is a unique combination that offers financial security of the policyholder’s family in case of his demise during the policy term and a lump sum amount at the time of maturity. This investment plan by LIC also ensures liquidity by offering the loan facility.

Life Insurance

Benefits of the LIC Money Back Plan

Death benefit: In case of the policyholder’s unfortunate demise during the policy term, the beneficiary of the nominee would be entitled to the sum assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus (if any). The sum assured in this case is defined as highest among 125 per cent of the Sum Assured or annualized premium multiplied by 10. The death benefit under this investment plan cannot be lower than 105 per cent of the sum of all the premiums paid till death.

The above mentioned premiums do not include any tax, extra premium, or any premium for the riders (if any).

Survival Benefit: In case the insured person survives the policy term, then he is eligible to receive 15 per cent of the Sum Assured by the end of 5th, 10th, 15th and 20th year of the policy term.

Maturity Benefit: If the insured person or the policyholder survives the set maturity date, then 40 per cent of the Sum Assured in addition to the vested Simple Reversionary Bonuses is paid to the insured. Also, he is eligible to receive Final Additional bonus (if any) as a part of the maturity benefit.

Participation in Profits: Being a participating investment plan, the money back plan by LIC   has a participation in the profits of the company. The policyholder under the LIC money back plan shall also be eligible to obtain Simple Reversionary Bonuses as declared by the experience of the Corporation. However, the applicable condition is that the investment policy is in complete force.
The policy might also accrue a Final Additional Bonus in the year when a claim for death or maturity in made by the means of the policy. However, the condition applicable to the benefit is that the policy has completed the specified term, which can vary.

Optional Benefit under LIC Money Back Plan

LIC’s Accidental Death and Disability Benefit Rider:  This rider under the LIC Money Back Plan can be anytime opted. However, the same can be done only when the premium paying term of the financial plan is on. The cover for this rider is available to the policyholder throughout the term of the policy. The policy should be in full force for the complete sum assured as on the day of accident.  In case of death due to an accident, the beneficiary with receive Accident Benefit Sum Assured in the form of a lump sum. In addition to the lump sum, the beneficiary will also receive the basic death benefit under this investment plan. In an event of accidental permanent disability caused because of an accident, the beneficial will be entitled to a lump sum which will be equal to the Sum Assured As per the Accidental Benefit Rider. Sum Assured in this case is paid in equal installments every month. These installments are spread across a term of 10 years. Future premiums for this rider under this investment plan along with the basic premiums of the LIC Money Back policy are waived off.

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