Lic Money Back policy 20 years – Plan 820 Review

By | April 26, 2016
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LIC-Money-Back-Plan.pngLIC Money Back 20 years Policy

An Introduction to the LIC Money Back 20 years Policy :

LIC Money Back policy 20 years is a non – linked life insurance policy which provides a smart mixture of protection against demise, guaranteed returns & bonus. LIC Money Back Policy 20 years is moreover recognized as LIC New Money Back policy 20 years. It offers a financial support for the family of the deceased policy holder any time before maturity & lump sum amount will be provided to the policy holder at the time of maturity on existence of the policy holders. LIC Money Back policy 20 years also keeps in mind the liquidity requirements via its loan service & there is High Bonus & High liquidity & saving point.

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Also, You can very easily compute the LIC Money Back Policy 20 years Maturity amount & Premium that has to be paid to acquire all the advantages obtainable under this policy by using LIC Money Back Policy 20 years Premium & Maturity calculator. You can also obtain extra Bonuses together with the Advantages & Riders obtainable under this plan.

Eligibility & Conditions under the Lic Money Back Policy 20 years

Lic Money Back policy 20 years Eligibility :

Entry Age Maximum Age : 30 years Minimum Age : 15 years

Lic New Money Back 20 years policy Sum Assured:

Minimum Maximum
Sum Assured Rs. 1, 00, 000 /- No Limit

 Lic New Money Policy 20 years Policy Tenure :

Policy Tenure 20 years
Maximum Maturity Age 70 Years(nearest birthday)

LIC Money Back Policy 20 years Premium Paying Mode :

A grace period of 1 month but not less than 30 days will be allowed for annually, half – annually, quarterly modes & 15 days for monthly mode of premium payment.

Monthly (SSS, ECS) Quarterly Half – annually Annually

Lic Money Back policy 20 years Conditions :

The necessary documents needed to get the Lic Money Back Policy 20 years are mentioned as under:

  • Application form / proposal form with photo :
  • Address proof :
  • Age Proof :
  • Medical reports (if required) :

Accident Demise & Disability Advantage Rider :

  • Minimum Age at entry : 18 years(Completed)
  • Maximum Age at entry : The cover can be selected at any policy anniversary during the premium paying tenure.
  • Maximum Cover Ceasing Age : 70  years (nearest birthday)
  • Minimum Accident Advantage Sum Assured :  1, 00, 000
  • Maximum Accident Advantage Sum Assured :  An amount equivalent to Basic Sum Assured subjected to the maximum of RS. 50, 00, 000  / – overall limit by taking all existing policies of the Life Assured under individual Policies as well as Group policies.

Rebates under the Lic Money Back policy 20 years Sum Assured

Sum Assured Rebate
From Rs. 1, 00, 000 / –  to Rs. 1, 95,000 / – NIL
From Rs. 2, 00, 000 / – to Rs.  4, 95, 000 / – For every Rs. 1, 000  / – Sum Assured  Rs . 2.00  / – rebate
From Rs. 5, 00, 000 / –  & above For every  Rs. 1, 000 / – Sum Assured Rs. 3.00  / – rebate

 Premium & Maturity Calculator for the Lic Money Back Policy 20 years

You can very easily compute your policy premium with premium calculator :

To compute you must have to to enter your Name, Email – ID, Mobile number, Age, Tenure, Sum Assured.

Key Features & advantages Of the Lic Money Back policy 20 years

  • Lic Money Back Plan for a tenure of 20 years.
  • 20 percent of Sum Assured is paid at the end of fifth, tenth & fifteenth Year as Survival Advantage
  • Lic Money Back Policy has a unusual feature that Simple Reversionary Bonus is payable on maturity or earlier demise
  • Large Sum Assured is obtainable in Lic Money Back policy
  • Accidental Demise & Disability Advantage Rider are obtainable.

Advantages of the Lic New Money Back Policy :

  1. Survival Advantage : Policy Holder will be payable 20 percent of Basic Sum assured
  • Fifth year – 20 percent of Sum Assured
  • Tenth year – 20 percent of Sum Assured
  • Fifteenth year – 20 percent of Sum Assured
  • Twentieth year – 40 percent of Sum Assured  + Accrued Bonuses
  1. Demise Advantage : 

If the Insured person dies within the Policy Tenure then Nominee  of the Policy will be given  Demise Advantage.

  • 125 percent (Sum Assured on Demise) + Simple Reversionary Bonus + FAB (final additional bonus) if any.
  1. Accidental demise Advantage : If during the policy tenure, the policy holder expires due to an accident, his / her nominee will get following as Accidental demise advantage.
  • 125 percent of the Basic Sum Assured or 10 times the annual premium (whichever is higher)
  • Additional Accidental Sum Assured
  • Simple Reversionary Bonus
  • Final Additional Bonus (if any)

Claims under the Lic Money Back Policy 20 years

Lic New Money Back policy 20 years has 2 kinds of claims, namely Maturity Claim & Demise Claim.

  1. Maturity Claim :
  • SumAssured – Survival Advantages +  Simple Reversionary Bonus + FAB (final additional bonus) if any.

For instance:

Mr. Viren is a 25 years old working man. He obtains LIC Money back plan – 20 years for the sum assured of Rs 25, 00, 000 /-.Premium paying tenure is 15 years then he get Maturity Advantage 30, 50, 000 & Survival advantages 15, 00, 000. Total he can obtain 45, 50, 000 as Maturity advantage.

2.Demise claim :

  • Sum Assured on Demise means 125 percent of Basic sum assured (1.25 x BSA) or 10 times Annual Premium (10 x AP) whichever is higher that amount will be paid to nominee.  Demise advantage paid should be more than 105 percent of total premiums paid as on the date of demise.

Bonus under the Lic Money back policy 20 years :

There are two kinds of Bonuses obtainable in this plan: 

  • Simple Reversionary Bonus is declared per thousand Sum Assured annually towards the end of each financial year.  Once affirmed, they form part of the guaranteed advantages of the plan. Bonuses will be additional through the selected tenure or till demise, if it occurs earlier. No bonus is paid on demise after the premium paying tenure.
  • Final Addition Bonus may also be payable given that the policy has run for certain minimum period.

Risk Cover under the Lic Money Back Policy :

  • Minimum Sum Assured = Rs. 1, 00, 000.
  • Maximum Sum Assured = No Limit.

Lic Money Back Policy Loan Facility :         

  • In Lic Money Back policy 20 years  loan facility is obtainable after the policy acquires paid up value.                   

Added Information :

  • Housing Loan Surety :  obtainable
  • Riders obtainable :  Yes
  • Policy Renewal : Policy can be renewed before 2 years from date of First Unpaid Premium (FUP).
  • Suicide Clause : if insured commit suicide before 12 months he will be returned back 80 percent of premium what he paid.

Status  of the Lic Money Back Policy 20 years

To be acquainted with the Lic Money Back Policy status you can now also check online & get more data about Lic Money Back policy 20 years will be obtainable in below given link :

Lic Policy Status Check

An illustration of the Lic Money Back Policy 20 years

Mr. Viren is a 25 years old working man. He obtains LIC Money back plan – 20 years for the sum assured of Rs 2, 00, 000/- (Rupees Two Lakhs only). He is obligatory to pay annual premium of Rs 15, 667.00 (Rupees Fifteen Thousand Six Hundred & Sixty Seven only) for 15 years.

Survival Advantages :
5th year   – Rs 40, 000.00 (20 percent of 2, 00, 000 / -)
10th year  – Rs 40, 000.00 (20 percent of 2, 00, 000 /-)
15th year  – Rs 40, 000.00 (20 percent of 2, 00, 000 /-)
20th year  – Rs 80, 000.00 (40 percent of 2, 00, 000 /-) + Accrued Bonuses.

On Demise :
If Mr. Viren expires during the policy tenure, her nominee will take delivery of 125 percent of sum assured together with the accrued bonuses. Any survival advantage which has been already paid will not be deducted.

On Accidental Demise :

If Mr. Virren expires due to an accident, during the policy tenure, his nominee will take delivery of the 125 percent of Sum assured + Additional accidental Sum assured + accrued bonuses.
Any survival advantage which has been already paid will not be deducted.

Advantage example:

Suppose if Viren obtains New Money Back Plan for Rs. 10, 00,  000 /-  for 20 years then if he expires then he will be paid  125 percent of Basic Sum Assured or 10 times of annual Premium whichever is higher means.

Basic Sum Assured is Rs. 10, 00, 000

125 percent of BSA                10, 00, 000  X 125 / 100  = 12, 50, 000

Suppose Viren Paid Premium for 5 Years & expires. Let Annual Premium  be 50, 000 then

10 times of 50, 000 is Rs. 5, 00, 000 /-

As 12, 50, 000  is higher than 5, 00, 000  Nominee get 12, 50, 000 as Demise Advantage.

 IF he continues to exist :

  • At end of 5thyear he obtains 2, 00, 000  /-
  • At end of 10thyear he obtains 2, 00, 000 /-
  • At end of 15thyear he obtains 2, 00, 000  /-
  • At Maturity age i.e., he obtains 4, 00, 000 + Vested Bonus + FAB

LIC Money Back Policy Tabular Premium

13 years of age 77. 60
14 years of age 77. 65
15 years of age 77. 75
16 years of age 77. 80
17 years of age 77. 85
18 years of age 77. 90
19 years of age 77.95
20 years of age 78. 00
21 years of age 78. 05
22 years of age 78. 10
23 years of age 78. 20
24 years of age 78. 25
25 years of age 78. 35
26 years of age 78. 45
27 years of age 78. 60
28 years of age 78. 70
29 years of age 78. 90
30 years of age 79. 10
31 years of age 79. 30
32 years of age 79. 55
33 years of age 79. 85
34 years of age 80. 15
35 years of age 80. 50
36 years of age 80. 90
37 years of age 81. 35
38 years of age 81. 85
39 years of age 82. 35
40 years of age 82. 95
41 years of age 83. 55
42 years of age 84. 25
43 years of age 85. 00
44 years of age 85. 80
45 years of age 86. 65
46 years of age 87. 60
47 years of age 88. 60
48 years of age 89. 65
49 years of age 90. 80
50 years of age 92. 05

 Frequently asked questions under the Lic Money Back Policy 20 years

Q1. What happens if a policy holder discontinues paying the premium?

A1. In case the premiums are not paid within Grace Period, the policy lapses & all advantages cease. Though, if at least 3 years’ premiums have been duly paid, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be entitled for any future regular additions.

Reduced Sum Assured = Basic Sum Assured *(Number of Premiums Paid  / Total Number of Premiums Payable)

The policy can be renewed within 2 successive years from the date of first unpaid premium.

Q2. How to surrender the policy?

A2. The policy can be surrendered only after it accrues Cash Value after at least 3 years’ premiums have been duly paid. This percentage will depend on the policy tenure & policy year in which the policy is surrendered & as per the table specified.

2 thoughts on “Lic Money Back policy 20 years – Plan 820 Review

  1. namrata panchal

    I have paid 8 premiums, and i want to suurender my policy, will I get the paid amount back after deducting the penalty amount?

    Reply

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