LIC Money Back Policy for Periodic Returns
We required good SUM of money at certain intervals in our life. Saving in regular saving accounts for such need is really not feasible practically. We have limited options to invest for such needs. There are many money back schemes designed by insurance companies which will pay you back on certain intervals.
That requirement can be buying a new car, higher education of your loved one, marriage of your child or any other occasion. LIC offers money back policies which assist your planning with periodic returns with a provision of final maturity at the end of the policy period. Â New Bima Gold and Bima Bachat are such money back policies from LIC of India. Here I will illustrate benefits of money back policy with New Bima Gold policy. This policy has three basic options to choose periodic returns depending upon the term chosen of policy.
For 12 Years Plan: First option to invest in for the shortest term of 12 years. In this term, life insured will get 15% of SUM assured on policy year end of 4th and 8th.
For 16 years Plan: In 16 years of policy term, life insured will get same 15% of SUM assured back at the end of each 4th, 8th and 12th policy year.
For 20 years Plan: Maximum term of policy is set to 20 years in which life insured will be given 10% of SUM assured in certain intervals of end of the 4th, 8th, 12th and 16th policy years.
On expiry of policy term: After paying the above benefits, rest of the total premium along with loyalty additions will be paid excluding the amount of survival benefits paid earlier.
Death Benefits: Death benefits in this policy will be equal to one SUM assured if happened during the premium paying term / policy term.
If death occurred during the extended period, 50% of SUM assured will be given as a death cover. The extended term shall be half of the policy term after the expiry of the policy term. Accidental death benefits are available in this policy but riders need to pay for at least 10 years to avail this facility.
Policy has guaranteed surrender value facility for premature surrender. 30% of total premium paid excluding first year premium will be given a surrender value. This policy can be taken by the people age starting from 14 years to 57, 51, 45 Years for 12, 16, 20 years term respectively. Extended term expires max at 75 years. Minimum SUM assured is 50,000 for investment. Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals or through salary deductions over the policy term.
That requirement can be buying a new car, higher education of your loved one, marriage of your child or any other occasion. LIC offers money back policies which assist your planning with periodic returns with a provision of final maturity at the end of the policy period. Â New Bima Gold and Bima Bachat are such money back policies from LIC of India. Here I will illustrate benefits of money back policy with New Bima Gold policy. This policy has three basic options to choose periodic returns depending upon the term chosen of policy.
For 12 Years Plan: First option to invest in for the shortest term of 12 years. In this term, life insured will get 15% of SUM assured on policy year end of 4th and 8th.
For 16 years Plan: In 16 years of policy term, life insured will get same 15% of SUM assured back at the end of each 4th, 8th and 12th policy year.
For 20 years Plan: Maximum term of policy is set to 20 years in which life insured will be given 10% of SUM assured in certain intervals of end of the 4th, 8th, 12th and 16th policy years.
On expiry of policy term: After paying the above benefits, rest of the total premium along with loyalty additions will be paid excluding the amount of survival benefits paid earlier.
Death Benefits: Death benefits in this policy will be equal to one SUM assured if happened during the premium paying term / policy term.
If death occurred during the extended period, 50% of SUM assured will be given as a death cover. The extended term shall be half of the policy term after the expiry of the policy term. Accidental death benefits are available in this policy but riders need to pay for at least 10 years to avail this facility.
Policy has guaranteed surrender value facility for premature surrender. 30% of total premium paid excluding first year premium will be given a surrender value. This policy can be taken by the people age starting from 14 years to 57, 51, 45 Years for 12, 16, 20 years term respectively. Extended term expires max at 75 years. Minimum SUM assured is 50,000 for investment. Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals or through salary deductions over the policy term.
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