LIC Money Back Plans: An Overview
Life Insurance Corporation of India offers life insurance policies that provide various financial assistance to customers. For those who seek both insurance coverage and wealth accumulation benefits, LIC money back policies serve as a beacon of financial prudence. Unlike traditional insurance plans that offer payouts only upon maturity or in the event of unfortunate circumstances, LIC money back plans provide periodic cash inflows during the policy term. Read on to understand how the LIC money back plan works.
Table of Content
What is LIC Money Back Policy?
LIC Money Back policy is a life insurance plan that provides assured life coverage and periodic payouts for surviving specified durations during the policy period. In simple terms, in case of the demise of the life assured during the policy term, the dependents receive a lump sum amount as the death benefit that they can utilize to fulfil the financial obligations. If the life assured survives the specified policy years during the term, they receive a lump sum amount, known as the survival benefits.
What are the Benefits of Buying a LIC Money Back Policy?
Purchasing an LIC money back policy offers multiple benefits to the policyholder, including the below:
Life Risk Cover
LIC's money-back policy offers life risk coverage to the life assured during the policy term. In case of the unfortunate demise of the life assured during the term, the nominee receives a lump sum amount that can replace future income and fulfil their financial obligations.
Survival Benefits
Money-back benefits are generally survival benefits payable only if the life assured survives the pre-determined policy years during the policy term. Upon surviving the specified years, the life assured receives a definite percentage of the sum assured.
Maturity Benefit
When the life assured survives the whole policy term, they receive a fixed percentage of the sum assured as the maturity benefits. This amount received can be utilized to fund various financial obligations. This way, your investment made towards the LIC money back plan provides you with savings benefit that you can ultimately use for multiple purposes.
Participation in Profits
Some of the money back policies are eligible to receive participation bonuses based on the company's market experience. Based on the money back policy you select, the policy can receive simple reversionary bonuses and a final additional bonus (if any).
List of Money Back Plans by LIC
Life Insurance Corporation offers several money back policies to fulfil the life cover and savings needs of the customers. The money back plans by LIC of India are listed below:
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LIC Dhan Rekha Plan |
Coverage Benefits
- Special benefits for women and third gender
- Guaranteed additions
- Full payout on maturity
- Regular income benefit
Eligibility Criteria
Entry Age: 90 days - 60 years
Basic Sum Assured: Rs. 2 Lakhs - No Limit
|
LIC New Bima Bachat Plan |
Coverage Benefits
- Single premium policy
- Loyalty additions
- Optional rider benefits
- Avail of loans
Eligibility Criteria
Entry Age: 15 years - 50 years
Sum Assured: Rs. 35,000 - No Limit
|
LIC New Money Back Plan - 20 Years |
Coverage Benefits
- Participation in profits
- Death benefit
- Survival benefits
- Maturity benefit
Eligibility Criteria
Entry Age: 13 years - 50 years
Basic Sum Assured: Rs. 1 Lakh - No Limit
|
LIC New Money Back Plan - 25 Years |
Coverage Benefits
- Rider benefits
- Participation in profits
- Rebates available
- Avail of loan
Eligibility Criteria
Entry Age: 13 years - 45 years Basic Sum Assured: Rs. 1 Lakh - No Limit
|
LIC Jeevan Umang Plan |
Coverage Benefits
- Life cover of 100 years
- Guaranteed income benefit
- Participation in profits
- Rider benefits
Eligibility Criteria
Entry Age: 90 days - 55 years
Basic Sum Assured: Rs. 2 Lakh - No Limit
|
LIC New Children Money Back Plan |
Coverage Benefits
- Provide child plan benefits
- Participation in profits
- Tax benefits
- Risk cover on child life
Eligibility Criteria
Entry Age: 0 Days - 12 Years
Basic Sum Assured: Rs. 1 Lakh - No Limit
|
LIC Jeevan Tarun Plan |
Coverage Benefits
- Survival benefits
- Participation in profits
- Policy discount
- Tax benefits
Eligibility Criteria
Entry Age: 90 Days - 12 Years
Basic Sum Assured: Rs. 75,000 - No Limit
|
LIC Jeevan Shiromani Plan |
Coverage Benefits
- Life cover and savings benefit
- 15 critical illnesses covered
- Guaranteed additions
- Participation in profits
Eligibility Criteria
Entry Age: 18 years - 55 years
Basic Sum Assured: Rs. 1 Cr. - No Limit
|
LIC Beema Shree Plan |
Coverage Benefits
- Rider benefits
- Survival benefits
- Participation in profits
- Guaranteed additions
Eligibility Criteria
Entry Age: 8 years - 55 years
Basic Sum Assured: Rs. 10 Lakhs - No Limit
How Does LIC Money Back Plan Work?
Money back plans provide a combination of insurance coverage and periodic payouts, making them suitable for individuals who want both protection and periodic income. However, it's essential to carefully review the terms and conditions, including premium payments, survival benefits, maturity benefits, and any associated charges or penalties. Here's how the LIC Money back policy typically works:
Premium Payments
The life assured pays regular premiums for a specified term, which could be 15, 20, or 25 years, depending on the policy you choose.
Policy Term
The LIC money back policy has a predefined term during which the life assured is covered for the sum assured.
Survival Benefits
At regular intervals (usually every few years), the life assured receives a percentage of the sum assured as survival benefits.
Maturity Benefit
At the end of the policy term, if the life assured survives till maturity, they receive the remaining sum assured along with any accrued bonuses or returns, if applicable.
Death Benefit
In the unfortunate event of the life assured's demise during the policy term, the nominee receives the full sum assured, regardless of the survival benefits already paid out.
Bonuses
Some money back plans may offer bonuses, which are additional payouts the Life Insurance Corporation provides based on market financial performance.
Why Should You Buy LIC Money Back Policy?
Buying a money back policy from LIC of India comes with attractive benefits of life risk cover and savings. When it comes to the credibility of the life insurance company, Life Insurance Corporation of India serves as a strong pillar in the insurance industry with a prevailing claim settlement ratio of 92.65% Claim Settlement Ratio (instant claim). Below are the reasons why you should buy money back plans from LIC of India:
Financial Assistance
In case of the death of the life assured during the policy term, the LIC Money Back Plans provide assured financial assistance to the dependents. Additionally, when the life assured survives the policy term; they receive a certain percentage of the sum assured as the survival benefit.
Versatile Product Range
When it comes to providing insurance product options, LIC of India always offers a variety of insurance and investment plans to suit different customer requirements. Customers can choose from a long list of money-back plans that fit their future financial goals.
Efficient Claim Settlement
LIC of India has been a prominent name in the insurance industry since its inception. To file a claim, beneficiaries can contact the nearest LIC branch or agent or connect with the LIC customer support team. They can provide the required guidance through the claim settlement process, from filing the claim to processing the amount. After the claim verification, the claim amount is processed to the nominee account within the stipulated time.
Online Policy Management
LIC of India has enabled the online platform to simplify customer policy management. Customers can register on the LIC customer portal and link their policies. At the same time, they can keep track of their money-back policy status, pay LIC premiums, check claim status, and complete other important activities.
Tax Benefits
The LIC money back policy is eligible to gain tax benefits per the prevailing tax laws and implications. The LIC money back policy can gain tax benefits under Section 80C of the Income Tax Act, 1961 and the benefits payouts are exempted from tax under Section 10 (10D).
What to Consider While Purchasing a LIC Money Back Plan?
When considering purchasing LIC money back policy, evaluate the below key points to ensure that the policy aligns with your financial goals and needs:
Financial Goals
Clarify your financial objectives and determine how a money back policy that you select fits into your overall financial plan. Critically evaluate whether you're looking for long-term savings, periodic income, or a combination of insurance protection and investment returns.
Policy Features
Read and understand the features of the LIC money back policy, including the sum assured, policy term, premium payment frequency, survival benefit payouts, maturity benefit, bonuses, and loan facility. Review and compare the different policy documents carefully to grasp all the terms and conditions.
Premium Payments
Evaluate the premium amount and frequency required for the money back policy. Ensure the premium payments don’t strain your overall budget throughout the policy term. Consider whether the premium payments are fixed or subject to change over time.
Assured Benefits
Whether it is about survival, maturity, or death benefits, assess if the payouts you receive match your and your family’s financial expectations. You can also look for the frequency and percentage of the survival benefit. Evaluate whether the maturity benefit aligns with your long-term financial objectives and provides adequate financial security.
Bonuses and Returns
Review the previous performance of the Life Insurance Corporation in terms of bonuses and investment returns. Consider the policy with a track record of providing attractive bonuses and stable returns over time. Assess the conditions when the guaranteed additions are payable and when not.
Riders and Add-ons
Explore any optional riders or add-on benefits available with the LIC money-back policy, such as accidental death benefit, critical illness coverage, disability rider, etc. Evaluate whether these additional benefits enhance the base policy coverage and meet your specific needs.
By carefully considering these important points, you can make an informed decision when purchasing a money back policy that aligns with your financial goals and provides adequate protection and benefits. However, we also suggest you seek advice from a qualified financial advisor or insurance consultant before purchasing a money-back policy.
How to Buy LIC Money Back Plan?
Customers can purchase the LIC Money Back Plan online and offline depending on the plan availability. They can visit the official website of the Life Insurance Corporation of India or connect with intermediaries like agents, brokers, etc. Similarly, they can buy it from RenewBuy Partners.
Below are the easy-to-follow steps you can refer to buy money back plan from LIC of India:
Log in to the official website of LIC of India.
Click the ‘Buy Online’ button available on the home page.
Select the required category and plan and click ‘Learn More’.
Follow the instructions and proceed with the plan purchase.
Once you select the required sum assured and make essential customizations (as preferred), you can proceed with the payment.
The LIC of India will send the policy confirmation documents to the registered email upon successful payment completion.
Offline Purchase
To purchase the LIC money back plan offline, customers can contact intermediaries such as LIC agents or brokers. They will thoroughly explain the plan features and benefits in detail and guide them through the buying process.
From RenewBuy
With RenewBuy, you can buy a money back plan from Life Insurance Corporation in the simple steps mentioned below:
Visit our website and click on the ‘Life’ tab.
Go to the Life Insurance Corporation company page.
Click on the ‘Get Expert Advice’ tab.
Provide the required information.
One of the RenewBuy experts will connect with you as soon as possible.
They will explain the LIC money back plan in detail and help you through the buying process.
Final Words
Life Insurance Corporation of India provides a list of money back policies for customers according to their suitability and financial expectations. Purchasing a plan can help you gain periodic income benefits and a lump sum amount at the policy's maturity. Also, you and your family remain protected against any life risk. Also, the policyholder can avail of a loan under the policy, depending on availability.
Once the customers purchase the policy, they can log in to the LIC customer portal and list it. Thereafter, all the policy-related activities are possible in a few clicks, including premium payment, checking claim status, track policy details, bonus applicable, etc.
Do you want to compare different life insurance policy options and make an informed decision? Immediately connect with one of the RenewBuy Advisors now!