Best LIC Money Back Policy to Invest in 2017

Lic money back policy

Life assurance or Life Insurance is an agreement between a life insurance company and policyholder wherein the insurance company promises to pay a definite amount to the beneficiary or the nominee in return of a premium in case of death of an insured person. The other cases such as terminal illness, critical illness will also be liable for the coverage depending on the terms mentioned in the contract. In such cases, the policyholder pays a definite amount to the insurer called as the premium either regularly or in a lump sum. Few other expenses such as funeral expenses can also get the coverage, but it depends on the individual company and their policies.

Life Insurance Policies are legal contracts and the terms of the contract explain the related terms and limitations. There would be some exclusion in the terms of liability. The insurer describes each and everything related to the terms and conditions in the document.

In our country, Life Insurance policies fall into two broad categories

Protection Policies: Designed to provide benefit, usually a lump sum payment in case of a specified event. A regular form of this policy is called term insurance.

Investment Policies: The objective of such policies is to facilitate the growth of capital by single or regular premiums.

Let us understand what Money Back Insurance is:

It is a policy ideal for those interested in gaining a reasonable rate of interest and at the same time save some amount. One has the option of receiving returns as a percentage of sum assured within the lifetime of the policy. LIC offers four types of money back policy to ensure that we get the money’s worth. The plan is allowed to participate in the profits of the corporation and also receive a reversionary bonus and the final addition bonus. The plan also offers optional riders.

LIC’s New Money Back Policy- 20 Years :

This is a participating non-linked plan that offers an attractive combination of protection against death. Throughout the plan, you also get periodic payment at specified durations.

Policy Benefits:

  • Death Benefit
  • Survival Benefit
  • Maturity Benefit
  • Participation in Profits
  • Optional Benefit like the LIC’s Accidental death and disability benefit Rider.

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LIC’s New Money Back Policy- 25 Years:

This is a participating non-linked plan that offering an attractive combination of protection against death. Throughout the plan, you also get periodic payment at specified duration. The plan also takes care of liquidity needs throughout the loan facility.

Policy Benefits:

  • Death Benefit
  • Survival Benefit
  • Maturity Benefit
  • Participation in Profits
  • Optional Benefit like the LIC’s Accidental death and disability benefit rider.

LIC’s New Bima Bachat Policy:

This plan is also a participating non linked savings cum protection plan. The premium is paid in lump sum at the outset of the policy. It is a money back policy that provides financial protection against death during the term of the policy. In addition to this on maturity, the single premium is returned along with Loyalty Addition.

Policy Benefits:

  • Death Benefit
  • Survival Benefit
  • Maturity Benefit
  • Loyalty Addition

LIC’s Jeevan Tarun Policy:

It is a participating non-linked plan that offers an attractive combination of protection and saving features especially for the children. It is designed to meet the education needs of growing children through annual survival benefit payments from the age 20 to 24 years and the maturity benefit at the age of 25.

Policy Benefits:

  • Death Benefit
  • Survival Benefit

 

While we have described the policies for you, in brief, a financial advisor would be able to guide you better. Buy a policy that best meets the needs and requirements of the family. After all, it is a valuable security asset for the household.

Read Also: What is an Endowment Policy and how it works

About Archana 30 Articles
Archana is an independent finance and investment advisor since 4 years and recently added with Investment Pedia. User are welcome to put questions on her contributions.

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