LIC Money Back Policy is a unique insurance scheme that offer periodic payments of partial survival benefits, as long as the holder of this policy is alive. There are two types of LIC money Back Policy. The first one is the 20-year Money-Back Policy and the second one is the 25-year Money-Back Policy.
20-year Money-Back Policy
In this case, 20% of the sum assured becomes payable after 5, 10, 15 years and the remaining become payable at the end of the term.
25-year Money-Back Policy
In this case 15 percent of the sum assured would be paid after 5, 10, 15 and 20 years and the remaining sum of money would be paid would be paid at 25th year.
These two LIC Money Back Policies has a common unique feature and that if the holder of this policy expires at the before the maturity of the policy then the death claim comprises full sum assured can be claimed without the deduction of any survival benefit amount. In this case bonus is also offered to the family of the policy holder that is basically calculated on the full sum assured.
For LIC Money Back Policy, the premiums can be paid either yearly, half-yearly, quarterly or monthly. Deduction from salary can also be opted by the applicant in which the premium would be deducted fro his or her salary. For this purpose the applicant must present his or her salary slip as well as the documents regarding his employment.
In this case, the bonuses declared are basically Simple Reversionary Bonuses. It is basically declared on every thousand money, that are assures annually at the end of each financial year. Once the bonus is declared it forms a part of the guaranteed benefits of the plan. Additional bonus is also payable in certain cases provided policy has been maintained for certain period of time.
Some optional benefits are also present, which can be added to the basic plan for extra protection. For such services, additional premium is required.