- About Coverfox
LIC’s New Money Back Plan - 25 Yearsis a participating non-linked life insurance cover. It offers a combination of protection against demise (of the life assured) throughout the policy period along with the periodic payment on survival on specified durations during the term. LIC’s New Money Back Plan - 25 Years provides financial support to the loved ones of the deceased insured any time prior to maturity and lump sum amount at maturity for the surviving policyholder. This insurance policy also provides for one’s liquidity needs via its loan facility.
About LIC: Life Insurance Corporation of India (LIC) is one of the public sector life insurance providers in India. The company, which started with an initial capital of Rs. 5 crores, now has assets of more than Rs. 31,11,847.28 crore and total life fund of Rs. 28,28,320.12 crores. LIC was founded in 1956 when the Parliament passed the Life Insurance of India Act that nationalised the insurance sector in the country. More than 245 insurers and provident societies were merged for creation of the state-owned Corporation.
(Note - All the information contained in this page has been sourced from the official website of LIC.)
The features of LIC’s New Money Back Plan - 25 Years are as under:
|On the demise of the life assured before the stipulated date of maturity, provided the insurance policy is in-force by payment of up to date premiums||Death benefit - defined as sum assured on death - and vested simple reversionary bonus and final additional bonus, if any, shall be payable. Sum assured on demise is the higher of 125% of the basic sum assured or 10 times of annualized premium. This benefit payable shall not be less than 105% of the overall premiums paid as on the date of death.|
|On the life assured surviving to the end of the specified durations provided the insurance policy is in full force||15% of the basic sum assured at the end of each of 5th, 10th, 15th and 20th policy year.|
|On the life assured surviving the stipulated date of maturity, provided the policy is active by paying premium to date||40% of the basic sum assured and vested simple reversionary bonuses as well as final additional bonus, if any, shall be paid.|
For Basic plan
|Minimum Basic Sum Assured||Rs. 1,00,000|
|Maximum Basic Sum Assured||No Limit|
|(The Basic Sum Assured will be in multiples of Rs. 5,000)||-|
|Minimum Age at entry for Life Assured||13 years (completed)|
|Maximum Age at entry for Life Assured||45 years (nearest birthday)|
|Maximum Maturity Age for Life Assured||70 years (nearest birthday)|
|Premium paying term||20 Years|
Source: Official website of LIC
For LIC’s Accidental Death and Disability Benefit Rider
|Minimum Accident Benefit Sum Assured||Rs. 1,00,000|
|Maximum Accident Benefit Sum Assured||An amount equal to the basic sum assured under the basic plan subject to the maximum of Rs.100 lakh overall limit taking all existing policies of the insured under individual and group schemes including policies with inbuilt accident benefit taken with LIC and the Accident Benefit Sum Assured under the new proposal into consideration. (The accident benefit sum assured shall be in multiples of Rs. 5000)|
|Minimum Age at entry for Life Assured||18 years (completed)|
|Maximum Age at entry for Life Assured||The cover can be opted for at any policy anniversary in the premium paying term.|
|Maximum cover ceasing age||70 years (nearest birthday)|
Participation in the Corporation’s profits:Simple reversionary bonuses shall be declared on an annual basis at the end of each financial year provided the policy is in full force. After the bonuses are declared, they become part of the plan’s guaranteed benefits. Simple reversionary bonuses will be added from the date of policy commencement until the selected policy period or till demise, if it occurs first.
Surrender value:The insurance policy can be surrendered for cash anytime during the policy period after at least premiums of three full years have been paid. The guaranteed surrender value (GSV) shall be a percentage of overall premiums paid, excluding any extra premiums and premiums for riders, if opted for, less any survival benefits already paid. This percentage shall depend on the policy year when the policy is surrendered.
Requirements for a claim:In the event of death of the life assured, the documents generally required for making a claim include - claim form, original policy document, proof of title, proof of death, proof of accident/disability, NEFT mandate from the claimant for direct credit of the claim amount to the bank account, medical treatment prior to death, employer’s certificate, whichever is applicable, to the satisfaction of LIC.
An individual will have to submit certain documents to avail LIC's New Money Back Plan - 25 Years. The documents include:
i) In case the life assured (sane or insane) commits suicide within 12 months from the date of commencement of risk, the corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid, excluding any taxes, extra premiums and rider premiums, if any, provided the policy is in force.
ii) In case the life assured (sane or insane) commits suicide within 12 months from the date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premiums and rider premiums, if any) or the surrender value shall be payable. LIC will not entertain any other claim under this plan.
LIC's New Money Back Plan - 25 Years offers a unique combination of regular income and insurance protection. The policy provides financial security against death (of the insured) throughout the term of the plan and periodic payment on survival at specified durations during the policy period. Individuals can also take care of their liquidity needs through the plan’s loan facility.
How long is the grace period provided by LIC's New Money Back Plan - 25 Years?
A one-month grace period, but not less than 30 days, shall be allowed for yearly, half-yearly and quarterly modes, and 15 days for monthly mode of premium payment.
How to find out the status of claim for LIC New Money Back Plan - 25 Years?
Individuals can find out the status of their claim either by logging into the registered account on the insurer’s portal or by getting in touch with one of the company’s representatives.
What is the duration of free look period?
The duration of the free-look period is 15 days (from the date of receiving the policy document.)
How to get a duplicate copy of your policy?
To receive a duplicate copy, individuals can place a request at the nearest branch office of LIC with all the required documents.