New Money Back Plan 25 years - Life Insurance Policy
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New
Money Back Plan-25 years is
a participating non-linked plan which offers an attractive
combination of protection against death throughout the term of
the plan along with the periodic payment on survival at
specified durations during the term. This unique combination
provides financial support for the family of the deceased
policyholder any time before maturity and lump sum amount at the
time of maturity for the surviving policyholders. This plan also
takes care of liquidity needs through its loan facility.
Benefits:
Death benefit:
On death during the policy term provided the policy is in full
force, death benefit, defined as |
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sum of “Sum
Assured on Death” and
vested Simple Reversionary Bonuses and Final Additional Bonus,
if any, shall be payable. Where, “Sum
Assured on Death” is
defined as higher of 125% of the Basic Sum Assured or 10 times
of annualized premium. This death benefit shall not be less than
105% of the total premiums paid as on date of death.
The premiums mentioned above exclude tax, extra premium and
rider premium, if any.
Survival Benefits: In
case of Life Assured surviving to the end of the specified
durations 15% of the Basic Sum Assured at the end of each of
5th, 10th, 15th & 20th policy year.
Maturity Benefit: In
case of Life assured surviving the stipulated date of maturity,
40% of the Basic Sum Assured along with vested Simple
Reversionary Bonuses and Final Additional bonus, if any, shall
be payable.
Participation in Profits:
The policy shall participate in profits of the Corporation and
shall be entitled to receive Simple Reversionary Bonuses
declared as per the experience of the Corporation, provided the
policy is in full force.
Final Additional Bonus may also be declared under the policy in
the year when the policy results into a claim either by death or
maturity provided the policy has run for certain minimum term.
Optional Benefit:
LIC’s Accidental Death and
Disability Benefit Rider: LIC’s Accidental Death and
Disability Benefit Rider can be opted for under an inforce
policy at any time within the premium paying term by payment of
additional premium and the cover will be available throughout
the policy term provided the Policy is inforce for the full Sum
Assured as on date of accident. In case of accidental death, the
Accident Benefit Sum Assured will be payable as lumpsum along
with the death benefit under the basic plan. In case of
accidental permanent disability arising due to accident (within
180 days from the date of accident), an amount equal to the
Accident Benefit Sum Assured will be paid in equal monthly
instalments spread over 10 years and future premiums for
Accident Benefit Sum Assured as well as premiums for the portion
of Basic Sum Assured which is equal to Accident Benefit Sum
Assured under the policy, shall be waived.
However, on surrender of an inforce basic
policy (which has acquired Surrender Value) to which this rider
is attached, a proportion of additional premium charged in
respect of cover after premium paying term shall be refunded.
Eligibility Conditions and
Other Restrictions:
For Basic plan
Minimum Basic Sum
Assured : Rs. 100,000
Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of Rs. 5000/-)
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)
Term : 25
years
Premium paying term
: 20 years
For LIC’s Accidental
Death and Disability Benefit Rider
Minimum Accident Benefit Sum Assured
: Rs. 100,000
Maximum Accident Benefit Sum Assured
: An amount equal to the Sum Assured under the Basic Plan
subject to the maximum of Rs.50 lakh Accident Benefit Sum
Assured taking all existing policies of the Life Assured under
individual as well as group schemes including policies with
in-built accident benefit taken with Life Insurance Corporation
of India 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 during the
premium paying term.
Maximum cover ceasing
age : 70 years (nearest birthday)
2. Payment of
Premiums:
Premiums can be paid regularly at
yearly, half-yearly, quarterly or monthly mode (through ECS
only) or through salary deductions over the term of policy.
However, a grace period of one month but not less than 30 days
will be allowed for yearly, half-yearly, quarterly modes and 15
days for monthly mode of premium payment.
3. Sample Premium
Rates:
Following are some of the sample tabular
annual premium rates (exclusive of service tax) per Rs. 1000/-
Basic Sum Assured:
|
Age(in years) |
Premium (Rs.) |
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20 |
60.00 |
|
30 |
61.45 |
|
40 |
65.95 |
|
45 |
70.15 |
4. Mode and High
S.A. Rebates:
Mode Rebate:
Yearly mode - 2% of
Tabular Premium
Half-yearly mode -
1% of Tabular premium
Quarterly & Salary deduction - NIL
High Sum Assured Rebate:
Basic
Sum Assured (B.S.A) Rebate
(Rs.)
1, 00,000 to 1, 95,000 - Nil
2, 00,000 to 4, 95,000 - 2.00 %o B.S.A.
5, 00,000 and above - 3.00%o B.S.A.
5. Revival:
If premiums are not paid within the
grace period then the policy will lapse. A lapsed policy can be
revived within a period of 2 consecutive years from the date of
first unpaid premium but before the date of maturity by paying
all the arrears of premium together with interest (compounding
half-yearly) at such rate as fixed by the Corporation from time
to time subject to submission of satisfactory evidence of
continued insurability.
The Corporation reserves the right to
accept at original terms, accept at revised terms or decline the
revival of a discontinued policy. The revival of discontinued
policy shall take effect only after the same is approved by the
Corporation and is specifically communicated to the Policyholder
Revival of rider(s), if opted for, will
be considered along with revival of the Basic Policy and not in
isolation.
6. Paid-up Value
If at least three full years’ premiums
have been paid and any subsequent premiums be not duly paid,
this policy shall not be wholly void, but shall continue as a
paid-up policy. The Basic Sum Assured under the policy shall be
reduced to such a sum, called Paid-up Sum Assured and shall be
equal to [(Number of premiums paid / Total Number of premiums
payable) x Basic Sum Assured] less Total amount of survival
benefits already paid under the policy.
The policy so reduced shall thereafter
be free from all liabilities for payment of the premiums, but
shall not be entitled to participate in future profits. However,
the vested Simple Reversionary Bonuses shall remain attached to
the reduced paid-up policy.
Notwithstanding the benefits available
under a fully inforce policy, in the case of a reduced paid up
policy, no survival benefits shall be payable and the paid-up
value along with the vested Simple Reversionary Bonuses, if any,
shall be payable only in lump-sum on the expiry of policy term
or death of life assured, if earlier.
Rider(s) shall not acquire any paid-up
value and the rider benefits cease to apply, if policy is in
lapsed condition.
7. Surrender
Value:
The policy can be surrendered for cash
provided atleast three full years’ premiums have been paid. The
Guaranteed Surrender value shall be percentage of total premiums
paid (net of service tax) excluding extra premiums and premiums
for riders, if opted for less any survival benefits already
paid. This percentage will depend on the policy year in which
the policy is surrendered and specified as below:
Policy Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
%
applicable to total premiums paid |
0.00 |
0.00 |
30.00 |
50.00 |
50.00 |
50.00 |
50.00 |
51.76 |
53.53 |
55.29 |
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Policy Year |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
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%
applicable to total premiums paid |
57.06 |
58.82 |
60.59 |
62.35 |
64.12 |
65.88 |
67.65 |
69.41 |
71.18 |
72.94 |
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Policy Year |
21 |
22 |
23 |
24 |
25 |
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%
applicable to total premiums paid |
74.71 |
76.47 |
78.24 |
80.00 |
80.00 |
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In addition, the surrender value of any
vested Simple Reversionary Bonuses, if any, shall also be
payable, which is equal to accrued bonuses multiplied by the
surrender value factor applicable to accrued bonuses. These
factors will depend on the policy year in which the policy is
surrendered and specified as below:
Policy Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
%
applicable to vested bonuses |
0.00 |
0.00 |
15.28 |
15.42 |
15.55 |
15.72 |
15.93 |
16.22 |
16.58 |
17.03 |
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Policy Year |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
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%
applicable to vested bonuses |
18.58 |
17.58 |
17.66 |
17.85 |
18.16 |
18.60 |
19.18 |
19.93 |
20.85 |
21.99 |
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Policy Year |
21 |
22 |
23 |
24 |
25 |
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%
applicable to vested bonuses |
23.38 |
25.05 |
27.06 |
30.00 |
35.00 |
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Corporation may, however, pay Special
Surrender value, if it is more favorable to the Policyholder.
8. Policy Loan:
Loan can be availed under the policy
provided the policy has acquired a surrender value and subject
to the terms and conditions as the Corporation may specify from
time to time.
9. Taxes:
Taxes including Service Tax, if any,
shall be as per the Tax laws and the rate of tax shall be as
applicable from time to time.
The amount of tax as per the prevailing rates shall be
payable by the Policyholder on premiums including extra
premiums, if any. The amount of tax paid shall not be considered
for the calculation of benefits payable under the plan.
10. Cooling-off
period:
If the Policyholder is not satisfied
with the “Terms and Conditions”, policy may be returned to us
within 15 days from the date of receipt of the policy bond
stating the reasons of objections. On receipt of the same the
Corporation shall cancel the policy and return the amount of
premium deposited after deducting proportionate risk premium
(for basic plan and rider(s) if any) for the period on cover,
expenses incurred on medical examination, special reports, if
any and stamp duty charges.
11. Exclusion:
Suicide: - This policy shall be void
If the Life Assured (whether sane or
insane) commits suicide at any time within 12 months from the
date of commencement of risk and the Corporation will not
entertain any claim under this policy except to the extent of
80% of the premiums paid excluding any taxes, extra premium and
rider premiums, if any, provided the policy is inforce.
If the Life Assured (whether sane or
insane) commits suicide within 12 months from date of revival,
an amount which is higher of 80% of the premiums paid till the
date of death (excluding any taxes, extra premium and rider
premiums, if any,) or the surrender value, provided the policy
is inforce, shall be payable. The Corporation will not entertain
any other claim under this policy.
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