LIC’s New Money Back Plan-25 years in chandigarh. It is a Non-Linked Participating, Limited Premium, Individual,
Life Assurance 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.
1. Benefits:
A. Death benefit:
Death benefit payable in case of death of the Life Assured during the policy term provided the
policy is in-force shall be (i.e. all due premiums have been paid), “Sum Assured on Death” along
with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where “Sum
Assured on Death” is defined as higher of 125% of the Basic Sum Assured or 7 times of
annualized premium. This death benefit shall not be less than 105% of the total premiums paid
upto the date of death. The premiums mentioned above exclude taxes, extra premium and rider
premium, if any.
B. Survival Benefits:
In case of Life Assured surviving to the end of the specified durations provided all due premiums
have been paid, 15% of the Basic Sum Assured shall be payable at the end of each of 5th, 10th, 15th
& 20th policy year.
C. Maturity Benefit:
On Life Assured surviving to the end of the policy term, provided the policy is in-force, “Sum
Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional
Bonus, if any, shall be payable. Where “Sum Assured on Maturity” is equal to 40% of the Basic
Sum Assured..
D. 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- 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.Final Additional Bonus shall not be payable under paidup policies.
The actual allocation to policyholders, out of the surplus emerging from the actuarial
investigation, shall be as approved by Central Government in accordance with provisions in this
regard under LIC Act, 1956.
2. Eligibility Conditions and Other Restrictions :
a) Minimum Basic Sum Assured : Rs. 100,000
b) Maximum Basic Sum Assured : No Limit
(The Basic Sum Assured shall be in multiples of Rs. 5000/-)
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c) Minimum Age at entry : 13 years (completed)
d) Maximum Age at entry : 45 years (nearer birthday)
e) Maximum Maturity Age : 70 years (nearer birthday)
f) Policy Term : 25 years
g) Premium Paying Term : 20 years
Date of commencement of risk under the plan:
Risk will commence immediately on acceptance of the risk.
Date of vesting under the plan:
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 and shall on such vesting be deemed to be a contract between the Corporation and the Life
Assured.
3. Options available:
I. Rider Benefits:
The following four optional riders are available under this plan by payment of additional
premium. However, the policyholder can opt between either of the LIC’s Accidental Death and
Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of three riders
can be availed under a policy.
a) LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
This Rider can be opted for under an in-force policy at any time within the premium paying
term of the Base plan provided the outstanding premium paying term of the base plan is
atleast 5 years. The benefit cover under this rider shall be available during the policy term. If
this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be
payable in lumpsum. In case of accidental 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 instalments spread over 10 years and future premiums for
Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured
under the base policy which is equal to Accident Benefit Sum Assured under the policy,
shall be waived.
b) LIC’s Accident Benefit Rider (UIN:512B203V03)
This rider can be opted for at any time under an in-force policy within the premium paying
term of the Base plan provided the outstanding premium paying term of the base plan is
atleast 5 years. The benefit cover under this rider shall be available only during the premium
paying term. If this rider is opted for, in case of accidental death, the Accident Benefit Sum
Assured will be payable in lumpsum.
c) LIC’s New Term Assurance Rider (UIN: 512B210V01)
This rider is available at inception of the policy only. The benefit cover under this rider shall be
available during the policy term. If this rider is opted for, an amount equal to Term Assurance
Rider Sum Assured shall be payable on death of the Life Assured during the policy term.
d) LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
This rider is available at the inception of the policy only. The cover under this rider shall be
available during the policy term. If this rider is opted for, on first diagnosis of any one of the
specified 15 Critical Illnesses covered under this rider, the Critical Illness Sum Assured shall
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be payable.
The premium for LIC’s Accident Benefit Rider /LIC’s Accidental Death and Disability Benefit
Rider and LIC’s New Critical Illness Benefit Rider shall not exceed 100% of premium under the
base plan and the premiums under all other life insurance riders put together shall not exceed
30% of premiums under the base plan.
Each of above Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.
For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch
Office.
II. Settlement Option for Maturity Benefit:
Settlement Option is an option to receive Maturity Benefit in instalments over the chosen
period of 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as paid-up
policy. This option can be exercised by the Policyholder during minority of the Life Assured or
by Life Assured aged 18 years and above, for full or part of Maturity proceeds payable under
the policy. The amount opted for by the Policyholder/Life Assured (ie. Net Claim Amount)
can be either in absolute value or as a percentage of the total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly
intervals, as opted for, subject to minimum instalment amount for different modes of payments
being as under:
Mode of Instalment payment Minimum instalment amount
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-
If the Net Claim Amount is less than the required amount to provide the minimum instalment
amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall
be paid in lumpsum only.
The interest rates applicable for arriving at the instalment payments under Settlement Option
shall be as fixed by the Corporation from time to time.
For exercising the Settlement Option against Maturity Benefit, the Policyholder/Life Assured
shall be required to exercise option for payment of net claim amount in instalments at least 3
months before the due date of maturity.
The first payment will be made on the date of maturity and thereafter, based on the mode of
instalment payment opted for by the policyholder, every month or three months or six months
or annually from the date of maturity, as the case may be.
After the commencement of Instalment payments under Settlement Option:
a. If a Life Assured, who has exercised Settlement Option against Maturity Benefit, desires to
withdraw this option and commute the outstanding instalments, the same shall be allowed
on receipt of written request from the Life Assured. In such case, the lump sum amount
which is higher of the following shall be paid and policy shall terminate,
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• discounted value of all the future instalments due; or
• (the original amount for which settlement option was exercised) less (sum of total
instalments already paid).
b. The interest rates applicable for discounting the future instalment payments shall be as
fixed by the Corporation from time to time.
c. After the Date of Maturity, in case of death of the Life Assured, who has exercised
Settlement Option, the outstanding instalments will continue to be paid to the nominee as
per the option exercised by the Life Assured and no alteration, whatsoever, shall be
allowed to be made by the nominee.
III. Option to take Death Benefit in instalments:
This is an option to receive death benefit in instalments over the chosen period of 5 or 10 or 15
years instead of lump sum amount under an in-force as well as paid-up policy. This option can
be exercised by the Policyholder during minority of the Life Assured or by Life Assured aged
18 years and above, during his/her life time; for full or part of Death benefits payable under
the policy. The amount opted for by the Policyholder/Life Assured (ie. Net Claim Amount)
can be either in absolute value or as a percentage of the total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly
intervals, as opted for, subject to minimum instalment amount for different modes of payments
being as under:
Mode of Instalment payment Minimum instalment amount
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-
If the Net Claim Amount is less than the required amount to provide the minimum instalment
amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall
be paid in lumpsum only.
The interest rates applicable for arriving at the instalment payments under this option shall be as
fixed by the Corporation from time to time.
For exercising option to take Death Benefit in instalments, the Policyholder during minority of the
Life Assured or the Life Assured, if major, can exercise this option during his/her lifetime while
in currency of the policy, specifying the period of Instalment payment and net claim amount for
which the option is to be exercised. The death claim amount shall then be paid to the nominee as
per the option exercised by the Policyholder/Life Assured and no alteration, whatsoever, shall be
allowed to be made by the nominee
4. Payment of Premiums:
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.
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5. 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 as per
the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy
lapses.

The above grace period will also apply to rider premiums which are payable along with premium
for base policy.

6. Sample Illustrative Premium
The sample illustrative annual premiums for Basic Sum Assured of Rs 1 lakh for Standard lives
are as under
Age(in years) Premium (in
Rs.)
20 5880
30 6022
40 6463
45 6875
The above premium is exclusive of taxes.
7. Rebates:
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly Monthly (NACH) & – NIL
Salary deduction
High Sum Assured Rebate (on Premium):
Basic Sum Assured (B.S.A) Rebate (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.
8. 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 5 consecutive years from the date of first unpaid premium but before the
Date of Maturity. The revival shall be effected on payment of all the arrears of premium(s) together
with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time
to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information,
documents and reports that are already available and any additional information in this regard if
and as may be required in accordance with the Underwriting Policy of the Corporation at the time
of revival, being furnished by the Policyholder/Life Assured/Proposer.
The Corporation reserves the right to accept at original terms, accept with modified terms or
decline the revival of a discontinued policy. The revival of discontinued policy shall take
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effect only after the same is approved, accepted and revival receipt is issued by the Corporation.
Revival of rider(s), if opted for, will be considered along with revival of the Base Policy and not in
isolation.
9. Paid-up Policy :
If less than two years’ premiums have been paid and any subsequent premium be not duly paid ,
all the benefits under the policy shall cease after the expiry of grace period from the date of first
unpaid premium and nothing shall be payable.
If at least two full years’ premiums have been paid and any subsequent premiums be not duly
paid, the policy shall not be wholly void, but shall continue as a paid-up policy till the end of the
policy term.
The Sum Assured on Death under the paid-up policy shall be reduced to such a sum, called
Death Paid-up Sum Assured and shall be equal to Sum Assured on Death multiplied by the ratio
of the total period for which premiums have already been paid bears to the maximum period for
which the premiums were originally payable. In addition to the Death Paid-Up Sum Assured,
vested Simple Reversionary Bonuses, if any, is payable on Life Assured’s death.
The Sum Assured on Maturity under the paid-up policy shall be reduced to such a sum, called
Maturity Paid-up Sum Assured and shall be equal to [(Sum Assured on Maturity plus total
amount of Survival Benefits payable under the policy) multiplied by the ratio of the total period for
which premiums have already been paid bears to the maximum period for which the premiums
were originally payable] less total amount of survival benefits already paid under the policy. In
addition to the Maturity Paid-Up Sum Assured vested Simple Reversionary Bonuses , if any, shall
also be payable on the expiry of the policy term.
The Survival Benefits having already been incorporated in the calculation of Maturity Paid-up
Sum Assured, future Survival Benefits shall not be payable separately.
A paid-up policy shall not be entitled to participate in future profits. However, the vested Simple
Reversionary Bonuses shall remain attached to the paid up policy.
Rider(s) shall not acquire any paid-up value and the rider benefits cease to apply, if policy is in
lapsed condition.
10. Surrender :
The policy can be surrendered at any time provided two full years’ premiums have been paid. On
surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of
Guaranteed Surrender Value or Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation from time
to time subject to prior approval of IRDAI.
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Guaranteed Surrender value payable during the policy term shall be equal to the total
premiums paid (excluding extra premiums, taxes and premiums for riders, if opted for)
multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid and then
reduced by any survival benefits already paid. These Guaranteed Surrender Value factors
expressed as percentages will depend on the policy year in which the policy is surrendered and
are as specified below:
Policy Year 1 2 3 4 5 6 7 8 9 10
Guaranteed
Surrender
Value factors
applicable to
total premiums
paid in % terms 0.00 30.00 35.00 50.00 50.00 50.00 50.00 51.76 53.53 55.29
Policy Year 11 12 13 14 15 16 17 18 19 20
Guaranteed
Surrender
Value factors
applicable to
total premiums
paid in % terms 57.06 58.82 60.59 62.35 64.12 65.88 67.65 69.41 71.18 72.94
Policy Year 21 22 23 24 25
Guaranteed
Surrender
Value factors
applicable to
total premiums
paid in % terms 74.71 76.47 78.24 90.00 90.00
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 Guaranteed Surrender Value factor
applicable to vested bonuses. These factors will depend on the policy year in which the policy is
surrendered and are as specified as below:
Policy Year 1 2 3 4 5 6 7 8 9 10
Guaranteed
Surrender Value
factors applicable
to vested bonuses
in % terms 0.00 0.00 15.28 15.42 15.55 15.72 15.93 16.22 16.58 17.03
Policy Year 11 12 13 14 15 16 17 18 19 20
Guaranteed
Surrender Value
factors applicable
to vested bonuses
in % terms 17.58 17.58 17.66 17.85 18.16 18.60 19.18 19.93 20.85 21.99
Policy Year 21 22 23 24 25
Guaranteed
Surrender Value
factors applicable 23.38 25.05 27.06 30.00 35.00
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to vested bonuses
in % terms
11. Policy Loan:
Loan can be availed under the policy provided atleast two full years’ premiums have been paid
and subject to the terms and conditions as the Corporation may specify from time to time.
The maximum loan allowed under the policy, as a percentage of Surrender Value, shall be as
under:
• For in-force policies – upto 90%
• For paid-up policies – upto 80%
The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be
determined at periodic intervals. The applicable interest rate shall be as declared by the
Corporation based on the method approved by the IRDAI.
Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of
exit.
12. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other
constitutional Tax Authority of India, shall be as per the Tax laws and the rate of tax shall be as
applicable from time to time.
The amount of applicable taxes, as per the prevailing rates shall be payable by the Policyholder on
premium(s) (for base policy and rider(s), if any), including extra premiums, if any, which shall be
collected separately over and above to the premium(s) payable by the policyholder. The amount of
Tax paid shall not be considered for the calculation of benefits payable under the plan.
Regarding Income tax benefits/implications on premium(s) paid and benefits payable under this
plan, please consult your tax advisor for details.
13. Free Look 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 the proportionate risk premium (for Base Plan and rider(s) if any) for
the period of cover, expenses incurred on medical examination, special reports, if any and stamp
duty charges.
14. Exclusion:
Suicide: – A policy shall be void:
i. If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from
the date of commencement of risk, Corporation will not entertain any claim under the policy
except for 80% of the total premiums paid, provided the policy is in-force.
ii. If the Life Assured (whether sane or insane) commits suicide within 12 months from date of
revival, an amount which is higher of 80% of the total premiums paid till the date of death or
the surrender value available as on date of death shall be payable. The Corporation will not
entertain any other claim under the policy.
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This clause shall not be applicable for a policy lapsed without acquiring paid-up value and
nothing shall be payable under such policies.
Note: Premiums referred above shall not include any taxes, extra premiums and any rider premium,
other than Term Assurance rider, if any.
BENEFIT ILLUSTRATION:
Benefits available under different scenarios
Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and occupation point of view) life wherein any
riders are not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed benefits with returns based on the future
performance are shown for two different rates of assumed future investment returns.
iii) The Non Guaranteed benefits in above illustration are calculated so that they are consistent with the Projected
Investment Rate of Return assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2). In other words, in preparing
this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn
throughout the term of the policy will be 4% p.a. or 8% p.a., as the case may be. The Projected Investment Rate of
Return is not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your
policy is dependent on a number of factors including actual future investment performance.
iv) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of
benefits in different circumstances with some level of quantification.
v) The amount shown under Survival Benefit / Sum Assured on Maturity are payable on survival at the end of the
specified year.
SECTION 45 OF THE INSURANCE ACT, 1938:
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The provision of Section 45 of the Insurance Act, 1938 shall be as amended from time to time. The
simplified version of this provision is as under:
Provisions regarding policy not being called into question in terms of Section 45 of the Insurance Act,
1938 are as follows:
1. No Policy of Life Insurance shall be called in question on any ground whatsoever after expiry of 3
yrs from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to the insured or legal representative or
nominee or assignees of insured, as applicable, mentioning the ground and materials on which such
decision is based.
3. Fraud means any of the following acts committed by insured or by his agent, with the intent to
deceive the insurer or to induce the insurer to issue a life insurance policy:
a. The suggestion, as a fact of that which is not true and which the insured does not believe to be
true;
b. The active concealment of a fact by the insured having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically declares to be fraudulent.
4. Mere silence is not fraud unless, depending on circumstances of the case, it is the duty of the
insured or his agent keeping silence to speak or silence is in itself equivalent to speak.
5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the Insured /
beneficiary can prove that the misstatement was true to the best of his knowledge and there was no
deliberate intention to suppress the fact or that such mis-statement of or suppression of material fact
are within the knowledge of the insurer. Onus of disproving is upon the policyholder, if alive, or
beneficiaries.
6. Life insurance Policy can be called in question within 3 years on the ground that any statement of or
suppression of a fact material to expectancy of life of the insured was incorrectly made in the
proposal or other document basis which policy was issued or revived or rider issued. For this, the
insurer should communicate in writing to the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the ground and materials on which decision to
repudiate the policy of life insurance is based.
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7. In case repudiation is on ground of mis-statement and not on fraud, the premium collected on
policy till the date of repudiation shall be paid to the insured or legal representative or nominee or
assignees of insured, within a period of 90 days from the date of repudiation.
8. Fact shall not be considered material unless it has a direct bearing on the risk undertaken by the
insurer. The onus is on insurer to show that if the insurer had been aware of the said fact, no life
insurance policy would have been issued to the insured.
9. The insurer can call for proof of age at any time if he is entitled to do so and no policy shall be
deemed to be called in question merely because the terms of the policy are adjusted on subsequent
proof of age of life insured. So, this Section will not be applicable for questioning age or adjustment
based on proof of age submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45 of the Insurance Act, 1938 and only a simplified
version prepared for general information. Policy Holders are advised to refer to Section 45 of Insurance Act,
1938, for complete and accurate details.]
PROHIBITION OF REBATES (SECTION 41 OF THE INSURANCE ACT, 1938)
1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance in respect of any kind of risk relating to lives
or property in India, any rebate of the whole or part of the commission payable or any rebate of
the premium shown on the policy, nor shall any person taking out or renewing or continuing a
policy accept any rebate, except such rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall be liable for a
penalty which may extend to ten lakh rupees.