LIC New Money Back Plan 720

The Ultimate Guide to LIC's New Money Back Plan - 20 Years (Plan 720): Guaranteed Returns and Security in Bhadra

When planning for your family's financial future in Bhadra, finding a balance between long-term savings and short-term liquidity is often the biggest challenge. Businessmen, farmers, and salaried professionals alike need a plan that doesn't just lock their money away for decades. This is exactly where LIC's New Money Back Plan-20 Years (UIN: 512N280V03) steps in.

As the premier Insurance Advisor in Bhadra, Ashuram Insurance Expert brings you this highly detailed, transparent, and comprehensive guide. We will explore how this policy works, its guaranteed cash-flow benefits, and why it remains a cornerstone of Financial Planning in Bhadra.

1. What is LIC's New Money Back Plan - 20 Years?

LIC's New Money Back Plan-20 years is a Par, Non-Linked, Life, Individual Savings plan. Because it is non-linked, it means your hard-earned money is completely shielded from stock market volatility.

This Plan can be securely purchased Offline through Licensed agents, Corporate agents, Brokers and Insurance Marketing Firms. For residents spanning pin codes 335501 to 335511, Ashuram Insurance Expert is your authorized local representative.

2. Eligibility Conditions and Restrictions

Before you initiate your Saving and Investment Planning, it is crucial to understand if you meet the entry requirements. LIC has structured the eligibility criteria to ensure that teenagers and middle-aged individuals can equally benefit from this plan.

Important Note on Coverage Amounts: The Basic Sum Assured shall be strictly in multiples of Rs. 25,000/-.

Risk Commencement: Risk will commence immediately on acceptance of the risk. If the policy is issued on the life of a minor, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age.

3. Comprehensive Benefit Breakdown: How You Profit

For anyone seeking robust Life Insurance in Bhadra, the payout structure is the most important factor. Plan 720 guarantees a dynamic cash flow through three distinct channels:

4. Supercharge Your Policy with Optional Riders

To maximize your Family Financial Security, Ashuram Insurance Expert highly recommends attaching riders. The following three optional riders (or their amended versions) shall be available under this plan by payment of additional premium:

• LIC's Accidental Death and Disability Benefit Rider: In case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum. In case of accidental disability arising due to an 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 the affected portion shall be waived.
• LIC's Accident Benefit Rider: In case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum. (Note: You can opt for either the Accidental Death and Disability Rider OR this Accident Benefit Rider).
• LIC's New Term Assurance Rider: Available at inception of the policy only. It provides that an amount equal to Term Rider Sum Assured on Death shall be payable on death of the Life Assured during the policy term.

The premiums under all the life insurance riders put together shall not exceed 30% of premiums under the Base plan.

5. Settlement Options: Securing a Regular Income Stream

Modern Financial Planning in Bhadra demands flexibility. The Settlement Option is an option to receive Maturity Benefit in instalments over the chosen period of 5 or 10 or 15 years instead of a lump sum amount. Similarly, there is an Option to take Death Benefit in instalments over the chosen period of 5 or 10 or 15 years.

Minimum Instalment Amounts

For all instalment payment options commencing during the 12 months' period from 1st May 2024 to 30th April 2025, the applicable interest rate for the calculation of the instalment amount shall be 5.07% p.a. effective.

6. Premium Payments, Grace Period, and Rebates

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deductions during the premium paying term of the policy.

Grace Period: A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. During this period, the policy shall be considered in-force with the risk cover without any interruption.

Maximize Your ROI with Rebates

7. Managing Liquidity: Policy Loans, Surrender, and Revival

Ashuram Insurance Expert understands that emergencies arise. This plan also takes care of liquidity needs through its loan facility.

• Policy Loan Facility: Loan can be availed after completion of first policy year provided one full year's premium(s) has been paid. For in-force policies, the maximum loan allowed is 50% before payment of two full year's premiums, and 75% after. Interest rate for May 2024-Apr 2025 is 9.5% p.a. compounding half-yearly.
• Policy Revival: A lapsed policy can be revived within a period of 5 consecutive complete years from the date of first unpaid premium but before the Date of Maturity. Interest rate for May 2024-Apr 2025 is 9.50% p.a. compounding half-yearly.
• Surrender Rules: The policy can be surrendered after completion of first policy year provided one full year's premium(s) has been paid. The policy shall acquire Guaranteed Surrender Value on payment of atleast two full years' premiums.
• Suicide Exclusion: If the Life Assured commits suicide within 12 months, the Nominee gets 80% of total premiums paid till date, provided the policy is in-force.