LIC Money Back Plan (25 Years) - Policy 721
This is a participating, non-linked money-back policy that provides financial support at regular intervals along with life cover. It is ideal for long-term savings with periodic returns.
Key Features
- Policy Term: 25 years
- Premium Payment Term: 25 years (regular premium payment)
- Survival Benefits: Money-back payouts at 15%, 15%, 15%, and 55% of Sum Assured at different intervals.
- Death Benefit: Full Sum Assured + Bonuses (regardless of earlier survival benefits).
- Bonus: Eligible for Simple Reversionary Bonuses (declared annually).
- Tax Benefits: Premiums under Section 80C, maturity benefits under Section 10(10D).
Survival Benefits (Money-Back Payouts)
| Policy Year | % of Sum Assured | Payout (Example for ₹10 Lakh SA) |
|---|---|---|
| 6th Year | 15% | ₹1,50,000 |
| 12th Year | 15% | ₹1,50,000 |
| 18th Year | 15% | ₹1,50,000 |
| 25th Year (Maturity) | 55% + Bonuses | ₹5,50,000 + Bonuses |
Death Benefit
In case of the policyholder’s death during the term, the nominee receives:
- Full Sum Assured + Bonuses (even if earlier survival benefits were paid).
- No further premiums are required.
Example Calculation (Sum Assured: ₹10 Lakhs)
Total Survival Benefits:
- 6th Year: ₹1,50,000
- 12th Year: ₹1,50,000
- 18th Year: ₹1,50,000
- 25th Year: ₹5,50,000 + Bonuses (approx. ₹5-7 Lakhs depending on bonus rates)
Total Payout (Excluding Bonus): ₹10,00,000
With Bonus (Estimate): ₹15-17 Lakhs
Eligibility
| Parameter | Details |
|---|---|
| Minimum Entry Age | 13 years |
| Maximum Entry Age | 50 years |
| Minimum Sum Assured | ₹1 Lakh (varies by LIC) |
Tax Benefits
- Section 80C: Premiums paid are deductible up to ₹1.5 Lakhs.
- Section 10(10D): Maturity benefits are tax-free.
Who Should Buy This Plan?
- Individuals looking for long-term savings with periodic returns.
- Those who want life cover + guaranteed payouts.
- Investors preferring low-risk, traditional insurance plans,for more detail and by this plan contact to Lic Agent.
0 Comments