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LIC’s New Money Back Plan-20 years: Review

By   /   January 7, 2014  /   No Comments

Review Lic New Money Back Plan 20 years

It is an Insurance + Investment plan offered by LIC in 2014. Here you need to pay premiums up to 15th year.

Benefits:

Survival Benefits: Here you will get 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year. At the end of 20th year 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

Let me explain how it works with the help of an example given in the LIC website. To download the full brochure, click here: Download

 

Age at Entry

30

Policy Term

20

Premium Paying Term

15

Mode of Premium Payment

Yearly

Sum Assured

100000

Annual Premium

7752

 

Here a 30 year old needs to pay a premium amount of Rs.7,752 per annum for 15 years. The premium mentioned above exclude tax.

Year Cash Outflow Cash Inflow Total Cash Flow

1

-7752

0

-7752

2

-7752

0

-7752

3

-7752

0

-7752

4

-7752

0

-7752

5

-7752

20000

12248

6

-7752

0

-7752

7

-7752

0

-7752

8

-7752

0

-7752

9

-7752

0

-7752

10

-7752

20000

12248

11

-7752

0

-7752

12

-7752

0

-7752

13

-7752

0

-7752

14

-7752

0

-7752

15

-7752

20000

12248

16

0

0

0

17

0

0

0

18

0

0

0

19

0

0

0

20

0

98500

98500

Rate of Interest

3.97%

(1130)

Pages: 1 2

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About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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