Money Back plans
Definition of ‘Money Back Plans’
In a money-back plan, the insured individual receives a percent of the sum confident at ordinary intervals, rather than having the lump sum quantity on the cease of the time period. It is an endowment plan with the gain of liquidity. This coverage is appropriate for threat-averse folks that desire to store thru a coverage plan and additionally keep liquidity throughout. In case of demise of the insured individual, the nominee receives the complete sum confident and the survival blessings aren’t deducted.
In easy words, a money-back plan is a safety plan wherein the insured man or woman as opposed to receiving a lump sum quantity at the adulthood of the time period coverage, gets a positive percent of the primary sum confident at uniform time intervals. The plan is like an endowment coverage that gives the policyholder a bonus of liquidity. If in case the insured man or woman dies with inside the path of the time period, the nominee gets the complete sum confident, without the survival blessings being deducted. Money-Back Plans is deemed to be best for folks that are looking for a minimum-threat plan that still offers liquidity.
Futures of LIC Money Back Plan:
- You need to pay annual premiums for only 15 or 20 years.
- You are eligible to apply for a loan against the policy after it has acquired a Surrender Value.
- You can opt for additional Benefits such as Accidental Death and Disability.
- You can choose as high an amount as you wish for coverage as there is no upper limit to the Sum Assured.
- You are eligible for Income tax benefit on the paid premium under Section 80C and on the received claims as per Section 10 (10D) of the Income Tax Act.
- Paid up Survival Benefits are not deducted from the Death Benefit payout.
- Grace period of up to a maximum of 30 days in case of missed premiums.
- Policy Revival is possible for up to 2 years from the date of policy lapsing owing to missed premiums even after grace period gets over.