LIC's New Money Back Plan for 20 & 25 Years

LIC Launches new Money Back Plan for 20 Years (Table No 820).

Service Tax shall be applicable at the prevailing rates and borne by the policyholder as per rules.

Maturity Benefit - 40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any

Death Benefit -‘Sum Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

The death benefit as defined above shall not be less than 105% of total premiums* paid as on the date of death .

What is Sum Assured on Death?

Sum Assured on Death shall be Higher of ~ 125% of Basic Sum Assured (1.25 x BSA)

OR 10 times Annualised Premium.(10 x AP).

[Premiums - excluding taxes, extra premiums and premiums for riders, if any]

SURVIVAL BENEFIT (as a percentage of Sum Assured )

Policy Year	5th	10th	15th
Survival Benefit Payable	20%	20%	20%

Eligibility Conditions and RestrictionsPaid –up value shall be equal to (Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy.

· Age at entry - 13 to 50 years

· Age at Maturity - Maximum 70 Years

· Policy Term - 20 years

· Premium Paying Term – 15 Years

· Premium mode – Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)

· Basic Sum Assured - 1,00,000 and above ( In multiples of 5000)

Loan – Available after payment of 3 full years premiums

The maximum amount of loan that can be granted as a percentage of Surrender Value be as under:

· For inforce and fully paid-up policies – upto 90%

· For paid-up policies – 80%

· Foreclosure action shall not be taken under fully paid-up and inforce policies even if there is default of loan interest

Surrender Value-

Guaranteed Surrender Value (GSV) -

· Available after payment of 3 full years premiums.

· GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Less any survival Benefits already paid.

· Examples of GSV factors applicable for total premiums paid

Policy Year ~ GSV factor

3 = 30%

5 = 50%

t -1 = 80% (t=Policy Term)

GSV factor applicable to vested bonus, if any. Examples of Vested bonus factors –

Year of SV – Factor

3 16.21%

10 18.16%

19 30%

Special Surrender Value (SSV) - Surrender Value shall be the discounted value of the Paid-up Sum Assured and vested simple reversionary bonuses.

The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.

The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.

LIC Launches new Money Back Plan for 25 Years (Table No 821).

A Policy may be revived within a period of 2 years from the date of first unpaid premium.

Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.

Maturity Benefit - 40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if Any

Death Benefit -Sum Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

The death benefit as defined above shall not be less than 105% of total premiums* paid as on the date of death .

What is Sum Assured on Death?

Sum Assured on Death shall be Higher of ~ 125% of Basic Sum Assured (1.25 x BSA)

OR 10 times Annualised Premium.(10 x AP).

[*Premiums - excluding taxes, extra premiums and premiums for riders, if any]

SURVIVAL BENEFIT (as a percentage of Sum Assured )

Policy Year	5th	10th	15th	20th
Survival Benefit Payable	15%	15%	15%	15%

Paid –up value shall be equal to (Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy.

Eligibility Conditions and Restrictions

· Age at entry - 13 to 45 years

· Age at Maturity - Maximum 70 Years

· Policy Term - 25 years

· Premium Paying Term – 20 Years

· Premium mode – Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)

· Basic Sum Assured - 1,00,000 and above ( In multiples of 5000)

Loan – Available after payment of 3 full years premiums.

The maximum amount of loan that can be granted as a percentage of Surrender Value be as under:

· For inforce and fully paid-up policies – upto 90%

· For paid-up policies – 80%

· Foreclosure action shall not be taken under fully paid-up and inforce policies even if there is default of loan interest.

Surrender Value-

Guaranteed Surrender Value (GSV) - Available after payment of 3 full years premiums.

GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Less any Survival Benefits already paid.

Examples of GSV factors applicable for total premiums paid