Best LIC Money Back Plan in Chandigarh
Ensuring Financial Stability
In the dynamic and bustling city of Chandigarh, having a solid financial plan is essential. Life Insurance Corporation of India (LIC) offers a range of money back plans that provide both insurance coverage and regular payouts. In this guide, we’ll explore the best LIC money back plan options available in Chandigarh, helping you make an informed decision for your financial future.
Understanding Money Back Plans
LIC’s money back plans are a unique blend of insurance and investment. These plans offer periodic payouts during the policy term, ensuring that policyholders receive a portion of the sum assured at regular intervals. Additionally, these plans provide life insurance coverage, making them a versatile choice for individuals seeking financial security and savings.
Benefits of LIC Money Back Plans
- Regular Payouts: One of the primary benefits of LIC money back plans is the regular payouts they offer. These payouts can be helpful in meeting various financial goals, such as funding education expenses, marriage, or purchasing a home.
- Life Insurance Coverage: Along with providing payouts, these plans offer life insurance coverage, ensuring that your loved ones are financially protected in case of an unfortunate event.
- Savings Component: LIC money back plans have a savings component, making them a disciplined way to save for the future while also enjoying insurance benefits.
- Liquidity: The regular payouts provide liquidity, allowing you to address short-term financial needs without disturbing your long-term investments.
The Best LIC Money Back Plan in Chandigarh
Among the various LIC money back plans, the LIC New Money Back Plan – 25 Years stands out as an excellent choice for individuals in Chandigarh. This plan offers a balanced combination of features that cater to both insurance coverage and financial goals.
LIC New Money Back Plan – 25 Years
- Policy Term: The policy term for this plan is 25 years, providing long-term financial security and coverage.
- Survival Benefits: The plan offers survival benefits at regular intervals of 5 years during the policy term. These survival benefits are a percentage of the sum assured and can be immensely useful in meeting important life milestones.
- Maturity Benefit: In case the policyholder survives the entire policy term, they receive the remaining sum assured as a maturity benefit, along with any applicable bonuses.
- Death Benefit: If an unfortunate event occurs during the policy term, the nominee receives the full sum assured as a death benefit, ensuring the financial well-being of the family.
- Bonuses: This plan is eligible for bonuses declared by LIC, which enhance the overall returns over time.
- Loan Facility: Policyholders can avail of a loan against the policy after a certain period, providing additional liquidity when needed.
- Optional Riders: For enhanced coverage, policyholders can opt for riders such as accidental death benefit and critical illness cover.
Eligibility Criteria for LIC New Money Back Plan – 25 Years
To be eligible for this plan, individuals should meet the following criteria:
- Entry Age: 13 to 50 years
- Maximum Maturity Age: 70 years
- Minimum Sum Assured: ₹1,00,000
- Maximum Sum Assured: No limit (subject to underwriting)
How to Apply for LIC New Money Back Plan – 25 Years
Applying for the LIC New Money Back Plan – 25 Years is a straightforward process:
- Research: Understand the plan details, benefits, and premium payment options.
- Documentation: Gather the necessary documents, including identity proof, address proof, and age proof.
- Visit LIC Office: Visit the nearest LIC branch or contact an LIC agent to get more information and assistance.
- Application Form: Fill out the application form, providing accurate and complete information.
- Medical Examination: Depending on the sum assured and age, a medical examination might be required.
- Premium Payment: Pay the premium amount as per the selected frequency (monthly, quarterly, half-yearly, or annually).
- Policy Issuance: After completing the formalities and verification, LIC will issue the policy.
1. What are LIC money back plans?
LIC money back plans are insurance policies that provide both life insurance coverage and periodic payouts at specified intervals during the policy term. These plans offer financial protection along with the advantage of receiving regular sums to meet various financial needs.
2. How do LIC money back plans work?
LIC money back plans work by combining insurance coverage with savings. Policyholders pay premiums throughout the policy term, and in return, they receive a portion of the sum assured at regular intervals known as survival benefits. These payouts continue even if the policyholder survives the entire term.
3. What is the purpose LIC money back plans?
Survival benefits in LIC money back plans serve as a way to provide policyholders with periodic payouts to meet their financial requirements. These benefits can be used for education expenses, marriage, purchasing assets, or any other significant life event.
4. Are LIC money back plans suitable for long-term financial goals?
Yes, LIC money back plans are designed to cater to long-term financial goals. With a policy term that can extend up to several decades, these plans ensure consistent financial support at various stages of life.
5. Can I avail a loan against my LIC money back plan?
Yes, LIC money back plans often offer the option to avail a loan against the policy. This can provide policyholders with access to liquidity during times of need, without surrendering the policy.
6. What is the maturity benefit in LIC money back plans?
The maturity benefit is the sum assured that a policyholder receives at the end of the policy term if they have survived the entire duration of the policy. This amount includes any applicable bonuses.
7. What happens if the policyholder passes away during the policy term?
In the unfortunate event of the policyholder’s demise during the policy term, the nominee receives the full sum assured as a death benefit, ensuring the financial security of the family.
8. Can I enhance my LIC money back plan with additional coverage?
Yes, LIC money back plans often offer optional riders that can be added to the base policy for enhanced coverage. Riders such as accidental death benefit, critical illness cover, and disability benefit can provide extra security.
9. How do I choose the right LIC money back plan for my needs?
Choosing the right LIC money back plan involves assessing your financial goals, premium paying capacity, and coverage requirements. It’s advisable to consult with LIC agents or financial advisors to make an informed decision.
10. What is the eligibility criteria for LIC money back plans in Chandigarh?
The eligibility criteria for LIC money back plans, including age limits, sum assured limits, and medical requirements, vary based on the specific plan and policy term. It’s recommended to check with LIC representatives for accurate information.
11. Can I surrender my LIC money back plan before the maturity date?
Yes, you can surrender your LIC money back plan before the maturity date. However, surrendering a policy may result in the loss of some benefits and a lower payout compared to waiting until maturity.
12. Are LIC money back plans taxable?
The payout received under LIC money back plans is usually tax-free under Section 10(10D) of the Income Tax Act, 1961. However, tax laws and regulations may change, so it’s advisable to consult a tax professional.
13. How can I calculate the premium for an LIC money back plan?
The premium for an LIC money back plan is calculated based on factors such as the policyholder’s age, chosen sum assured, policy term, and additional riders. LIC representatives or online calculators can assist in estimating the premium amount.
14. Can I change my premium payment frequency after purchasing ?
Some LIC money back plans may offer the flexibility to change the premium payment frequency. It’s recommended to review the policy terms and contact LIC representatives for information on such changes.
15. What documents are required to apply for an LIC money back plan in Chandigarh?
The documents required to apply for an LIC money back plan include identity proof, address proof, age proof, and other relevant documents. Consult with LIC representatives to get a comprehensive list of required documents.
16. Can I switch between different LIC money back plans?
Switching between different LIC money back plans may not be possible once the policy is purchased. It’s essential to carefully choose the plan that aligns with your financial goals and requirements.
17. How do I keep track of my LIC money back plan?
LIC provides policyholders with access to an online portal where they can track policy details, premium payments, and other relevant information. Additionally, LIC representatives can assist with any queries related to the policy.
18. Is medical examination required to apply for an LIC money back plan?
Medical examination requirements vary based on factors such as the age of the applicant and the sum assured. LIC representatives can provide guidance on whether a medical examination is necessary for your chosen plan.
19. Can I nominate more than one person for the policy benefits?
Yes, you can nominate more than one person to receive the policy benefits. The nomination can be updated during the policy term as well.
20. Can I convert my LIC money back plan into a paid-up policy?
Yes, some LIC money back plans offer the option to convert the policy into a paid-up policy if premium payments are discontinued after a specific period. This option allows for reduced coverage and benefits.
In a city as vibrant as Chandigarh, having a reliable financial plan is essential to navigate life’s uncertainties. LIC’s New Money Back Plan – 25 Years offers a balanced approach by combining insurance coverage with periodic payouts, ensuring that your financial goals are met while also providing protection to your loved ones. By understanding the plan’s features, benefits, and eligibility criteria, you can make a well-informed decision and embark on a journey towards financial stability.