New Money Back – 20 yrs
Plan No. 820
PRESENTED BY: -
SUMEET PAWAR
( INSURANCE ADVISOR)
CONTAC TS: -
(+91) 7738546484
(+91) 9773757120

Features
LIC's New Money Back Plan-20 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.

Benefit
 Death Benefit: (deal with sudden financial crisis)
On death during the policy term provided the policy is in full
force, death benefit, defined as 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.
Where premiums exclude service tax, extra premium and rider
premiums, if any.

Benefit
 Survival Benefit: (near Term-End Benefit)
In case of Life Assured surviving to the end of the specified
durations 20% of the Basic Sum Assured at the end of each
of 5th, 10th & 15th policy year.

Benefit
 Maturity Benefit: (Term-End 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.

Accidental Death & Disability Rider
Benefit
 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 installments 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.

Benefit Illustration
Details Value
Age 15 years
Term 20 years
Premium Paying Term 15 years
Sum Assured Rs 1,00,000
Premium Paid (incl. ST) for 1st yr per month Rs 668 (Rs 648 + Rs 20)
Premium Paid (incl. ST) from 2nd yr per month Rs 658 (Rs 648 + Rs 10)
Rs 20,000 on 5th , 10th & 15th yr – Money Back @ 20% Rs 60,000
Simple Vested Reversionary Bonus Rs 78,000
Final Bonus Rs 3,000
TOTAL Maturity Amount Rs 1,21,000
Notes :
This illustration is applicable to a non-smoker male/female standard (from medical, life style and
occupation point of view) life.
In preparing this benefit illustration it is assumed that the Projected CAGR ie Compounded Annual Growth
Returns will be 6% p.a. to 10% p.a., as the case may be. The Projected CAGR is not guaranteed.

Benefit Illustration
 Simple Vested Reversionary Bonus Calculation:-
Bonus Rate Per 1,000 Sum Assured: Rs 39
Total No. of Years Bonus Paid: 20 years
Annual Bonus: Rs 39*(1,00,000/1,000)
: Rs 39*100 = Rs 3,900
TOTAL Bonus: Rs 3,900*20 years
: Rs 78,000/-

Benefit Illustration
 Final Bonus Calculation for Maturity:-
Bonus Rate Per 1,000 Sum Assured: Rs 30
Total No. of Years Bonus Paid: One Time
TOTAL Bonus: Rs 30*(1,00,000/1,000)
: Rs 30*100
: Rs 3,000/-

Eligibility Conditions & Other Restrictions
Details Value
Minimum Entry Age 13 years (completed)
Maximum Entry Age 50 years (nearest birthday)
Maximum Maturity Age 70 years (nearest birthday)
Policy Term 20 years
Premium Paying Term 15 years
Minimum Sum Assured Rs 1,00,000
Maximum Sum Assured No Limit
Sum Assured will be in multiple of Rs 5,000
Premium Payment Mode Regular

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.

Sample Premium Rates
Following are some of the sample tabular premium rates (exclusive of service tax)
per Rs. 1000/- Basic Sum Assured
Age (in yrs) Premium (in Rs)
20 78.00
30 79.10
40 82.95
50 92.05

Rebate for High Sum Assured & Payment
Mode
Sum Assured (in Rs) Rebate (in 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.
Premium Payment Mode Rebate (in Rs)
Yearly 2% of Tabular Premium
Half-Yearly 1% of Tabular premium
Quarterly & Monthly Nil

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.

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.

Surrender Value
The policy can 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.
In addition, the surrender value of any vested Simple
Reversionary Bonuses, if any, shall also be payable,
which is equal to vested bonuses multiplied by the
surrender value factor applicable to vested bonuses.
These factors will depend on the policy year in which the
policy is surrendered.

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.

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.

Claims Settlement Report of all Life
Insurance Companies in India (IRDA Annual Report 2012-13)

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