LIC New Money Back Plan(720) (20 Years) – Comprehensive Guide
The LIC New Money Back Plan (20 Years) is an insurance product designed to meet the financial needs of individuals aged 13 to 50 years. With a focus on providing both protection and savings, this plan offers a unique combination of life insurance and periodic payouts that can be particularly beneficial in meeting medium-term financial goals.
Plan Overview
Type: New Money Back Plan
Policy Term: 20 Years
Minimum Sum Assured: ₹2 Lakhs
Premium Payment Term: Same as policy term (20 years)
Riders: Optional (Accidental Death Benefit, Term Rider, Critical Illness Rider)
Key Features
1. Money Back Benefits:
- Periodic payouts in the form of money back at regular intervals (20%, 20%, 60% of the sum assured) after a specific duration (e.g., after completion of every 5 years).
2. Lump-Sum Benefit:
- On maturity, the policyholder receives the final amount, which includes the remaining sum assured along with bonuses (if any).
3. Death Benefit:
- In case of the policyholder's demise, the nominee receives the sum assured along with bonuses, ensuring financial security for the family.
4. Riders for Enhanced Protection:
- Accidental Death Benefit Rider: Provides an additional sum assured in the event of accidental death.
- Critical Illness Rider: Offers financial aid for specific critical conditions. This ensures that the policyholder is financially protected even during serious health issues.
- Term Rider: Adds additional life cover for a certain period, enhancing the basic sum assured.
Usage of the LIC New Money Back Plan
The LIC New Money Back Plan is suitable for individuals looking for a balanced approach between savings and insurance. Here are a few use cases:
1. Education Expenses: Parents can use the periodic payouts for their children's education, ensuring financial support during critical years.
2. Wedding Expenses: The money back feature can help in budgeting for significant life events such as weddings.
3. House Purchase: The periodic payouts can be invested to save for a down payment on a home or to cover other substantial expenses.
4. Emergency Fund: The assurance of receiving money at regular intervals can serve as a safety net for unforeseen circumstances.
Benefits of the LIC New Money Back Plan
- Financial Security: Provides a safety net for your family through life coverage, ensuring financial independence in case of unforeseen events.
- Guaranteed Returns: The payouts ensure that you receive a portion of the sum assured, which can be reinvested or used based on personal needs.
- Flexibility in Riders: Customize your plan by adding riders to enhance coverage — particularly beneficial if you have health concerns or a risky lifestyle.
- Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act, providing additional financial advantages.
Examples
Example 1: Family Protection
If a 30-year-old takes a LIC New Money Back Plan with a sum assured of ₹5 Lakhs for 20 years, they will receive:
- 20% after the first 5 years: ₹1 lakh
- 20% after the subsequent 5 years: ₹1 lakh
- 60% and bonuses at maturity: ₹3 lakhs + bonuses
In case of the unfortunate demise of the policyholder, the nominee will receive ₹5 Lakhs, ensuring family security.
Example 2: Education Funding
A 25-year-old parent takes a plan for a sum assured of ₹4 Lakhs. The periodic cash inflows of ₹80,000 at 5-year intervals can be directed toward financing their child’s education.
Conclusion
The LIC New Money Back Plan (20 Years) offers a comprehensive blend of savings and protection that caters specifically to individuals aged 13 to 50 years. Its money back feature, alongside customizable riders, make it an attractive option for those looking to secure their future while meeting current financial commitments.
Advantages
- Regular payouts that can be used for any purpose.
- Strong safety net for your family's financial future.
- The ability to add riders for enhanced coverage.
Focused Keywords
- LIC New Money Back Plan
- 20 Years
- Sum Assured
- Financial Security
- Insurance Benefits
- Riders
- Education Funding
- Family Protection
In summary, if you're seeking a product that combines life insurance and savings with the flexibility of cash flows, the LIC New Money Back Plan (20 Years) is a highly recommended option. It is designed to support your financial goals while ensuring security for your loved ones.
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