LIC products have become quite popular these days. You can see new LIC financial products being launched and sold every other day. Since the new IRDA guidelines were declared in February, 2013, new products have been overwhelming the market. If you look at the latest launches, you will find that LIC recently came up with three different versions of the LIC money back investment plans.
Let’s have look at the LIC Money Back Policy new version- An overview The 3 newly introduced plans are:
So, what are Money Back plans- This clearly suggests that these types of plans offer a fixed amount at regular intervals from the basic sum assured. Also, the biggest highlight is that these types of investment plans offer regular bonuses that vary as per the profitability of the organization. Death benefit- According to IRDA guidelines, the death benefit is equivalent to the Sum Assured on death plus bonuses. The total money aggravates to an amount higher of 10 times of the annual premium or 125% of the sum assured. Maturity benefit- This benefit includes the basic sum assured plus the bonus amount. Remember, the bonus amount is as per LIC’s experience and profitability. The insured can pay extra rider premium to avail disability benefit rider and Accidental death benefit. Survival benefit- In case of a policy with term of 20 years, 20% of the sum assured is paid at 5th or 15th or 15th policy year. On the other hand, if it is a policy with 25 years tenure, 15% of the sum assured is paid at 5th, 10th, 15th and 20th year. Invest in LIC Money Back Plan Should you invest in LIC Money Back Policy? Yes, because in these types of plan the surrender value factor is specifically mentioned in product features. Otherwise, in other types of policies, one has to suffer a great deal to learn about the paid up value or surrender value. However, LIC Money Back Policy offers transparent features that help the insured to understand how much to surrender or how much money would be required for continuation. The returns on this policy are determined by age, various rebates and service taxes. When buying the policy, ask for illustrations from clients. Also, ask your agent to calculate the IRR. The agent may tell the insurance company if it is making profit and whether the bonus amount will improve. Other expenses like distribution expenses and other costs are even associated with endowment plan. Other LIC Money Back Policies
Thus, an overall perception of LIC Money Back Policy gives you an idea of what it is, the features and benefits.
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Archana SinghFinance and Investment Blogger Archives
March 2017
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