New Money Back plan for 20 Years Plan no 820

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%

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 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.

Compare old Money Back 20 Years Plan 75 to New Money Back 20 Years Plan no 820