New Money Back Plan for 20 Years (Table No 820) Launching on 6 January 2014
LIC Launches new Money Back Plan for 20 Years (Table No 820).
Service Tax shall be applicable at the prevailing rates and borne by the policyholder as per rules.
Maturity Benefit - 40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any
Death Benefit -‘Sum Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
The death benefit as defined above shall not be less than 105% of total premiums* paid as on the date of death .
What is Sum Assured on Death?
Sum Assured on Death shall be Higher of ~ 125% of Basic Sum Assured (1.25 x BSA)
OR 10 times Annualised Premium.(10 x AP).
[Premiums - excluding taxes, extra premiums and premiums for riders, if any]
SURVIVAL BENEFIT (as a percentage of Sum Assured )
Paid –up value shall be equal to (Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy.
Eligibility Conditions and Restrictions
Loan – Available after payment of 3 full years premiums
The maximum amount of loan that can be granted as a percentage of Surrender Value be as under:
Guaranteed Surrender Value (GSV) -
Policy Year ~ GSV factor
3 = 30%
5 = 50%
t -1 = 80% (t=Policy Term)
GSV factor applicable to vested bonus, if any. Examples of Vested bonus factors –
Year of SV – Factor
Special Surrender Value (SSV) - Surrender Value shall be the discounted value of the Paid-up Sum Assured and vested simple reversionary bonuses.
The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable