The features of the policy that one can experience are:

This plan is just like a normal insurance plan, but with survival benefits.
The premiums are exempted from tax and the benefits are tax-free.
The premiums are to be paid until the 20th year and the term will end after 25 years
A loan can be facilitated after reaching a certain value under the policy.

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    LIC’s 25 years money back plan is a highly profitable plan for everybody which can provide the policyholder with financial help and stability. The policy provides death benefits for the nominees of the insured and survival benefits throughout the term duration of 25 years. This way, a person can secure their future and their family’s future. The basic sum assured starts from 1,00,000 which means anybody can get this policy plan regardless of their income bracket. Under this plan, the death benefits and maturity benefits are also added with the additional bonuses and participation in profits are added as per the company’s rules and approval.

    Benefits

    The following are benefits that the policyholder can get after buying this policy:

    • Maturity benefit: Under this benefit, the policyholder gets the maturity sum assured after the term duration of 25 years. The sum that is paid after the term is completed is equivalent to the 40 percent of the total sum assured on maturity. Also, the reversionary benefits and additional bonuses are added along with the lump sum.
    • Death benefit: Under the policy, the death benefit is given out to the nominee of the policy. In the case of the death of the policyholder during the term of the policy, the nominee is entitled to get the death benefit plus the additional bonuses if applicable. The death benefit is equivalent to the assured sum which is calculated regardless of the premiums paid and the survival benefits paid earlier. Also, the benefit should be a minimum of 105 percent of the premiums paid and the highest should be either 10 times the premiums paid or 125 percent of the basic sum.
    • Survival benefits: In this policy type, the policyholder gets survival benefits throughout the policy term. There are four survival benefits that are paid in 5 years in the 25 years. The survival benefits are equal to 15 percent of the basic assured sum of the policy and are paid at 5, 10, 15 and 20 years. This, in total, covers the 60 percent of the basic maturity sum and the rest of the 40 percent is paid on maturity.
    • Accidental death and disability benefits: This is a rider benefit that comes with additional premiums. In the case of accidental death of the policyholder during the term of the policy, the sum assured is paid in a lump sum along with the death benefit of the policy to the nominee. In the case of permanent disability, the accident benefit is paid either in the form of monthly installments or in a lump sum. In both cases, the future premiums are waived off.

    Key points

    • Minimum age: 13 yrs
    • Maximum age: 45 yrs
    • Maximum age of maturity: 70 yrs
    • Basic sum: 1 lakh (multiples of 5000)
    • Premium mode: monthly, annually, quarterly and half-yearly
    • Term of premium payment: 20 years