The Life Insurance Corporation of India, LICI, is one of the largest life insurance companies in the Indian insurance market. It has the largest customer base and offers a range of insurance plans to its customers. Each insurance plan fulfils a particular financial need and, therefore, finds relevance among customers. Money back insurance plans are also a type of insurance plans which are offered by the company. Here is a look into money back plans and the variants of such plans offered by LIC –
A money back insurance plan is a traditional endowment assurance plan wherein the sum assured is paid at regular intervals during the term of the plan. Periodic payments are guaranteed under money back plans which are expressed as a percentage of the sum assured. Money back plans, therefore, provide liquidity during the policy tenure. They provide funds to the policyholder at specified intervals so that the policyholder can meet his financial requirements.
Money back insurance plans have the following features –
LIC offers a range of seven money back plans which are discussed below –
No, bonus declarations are added to LIC money back plans only if the due premiums have been paid and the policy is in force.
If, after buying LIC money back plan, you have doubts about the plan and want to cancel it, you can opt for such cancellation during the free-look period. A period of 15 days or 30 days is allowed as the free-look period after the policy issuance date.
No, in case of death, the full sum assured is paid under LIC Money back plans even if the money back benefits have been paid
You can choose any level of sum assured for the rider under LIC’s money back plans provided it is over the minimum level and within the maximum level.
Yes, premiums payable under LIC’s money back plans are allowed as a tax deduction under Section 80C up to INR 1.5 lakhs. The survival benefits received and the maturity or death benefit is also allowed as a tax-free income under Section 10 (10D).