Compare old Money Back 20 Years Plan 75 to New Money Back 20 Years Plan no 820

LIC launches New Money Back plan for 20 Years Table No. 820
As per the rule of IRDA most of the LIC plans are revised.

Below are the list of changes done in new Money Back plan 820 compared to old Money Back plan 75.
Money Back Plan -20 years (Table No. 75) New Money Back Plan – 20 years (Table No.820)
Maturity Benefit 40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. No Change
Death Benefit Basic Sum Assured(BSA) along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. ‘Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death .
Survival Benefit 20% of the sum assured in every 5th, 10th and 15th year No Change
Paid-up value Paid-up value per thousand Sum Assured Paid –up value shall be equal to [(Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy.
Age at entry 13 to 50 years 13 to 50 years
Age at Maturity Maximum  70 years Maximum  70 years
Policy Term 20 Years 15 years
Premium mode Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS) Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured 50,000 and above 1,00,000 and above ( In multiples of 5000)
Rebate
  • 3% of tabular Premium for Yearly premium
  • 1.5% of tabular premium for Half-Yearly premium
  • 2% of tabular premium for Yearly premium
  • 1% of tabular premium for Half-Yearly premium
Loan
  • Available after payment of 3 full years premiums.
  • Loan granted shall be 90% of the Surrender Value in case of inforce policies and 85% of the Surrender Value  in case of Paid-up policies.
  • Foreclosure action shall be  initiated on default of 2 or more half-yearly  loan interest installments.
  • Available after payment of 3 full years premiums
  • he maximum amount of loan that can be granted as a percentage of Surrender Value be  as under:
    For inforce and fully paid-up policies – upto  90%
    For paid-up policies – 80%
  • Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is default of loan interest.
Guaranteed Surrender Value (GSV)
  • Available after payment of 3 full years premiums
  • Before Payment of Survival Benefit: GSV shall be equal to 30% of the total premiums paid less First Year Premium and  extra premium, if any.
    After Payment of Survival Benefit: GSV shall be 30% of the premiums paid after the due date on which last SB was paid less extra premium, if any.
  • Available after payment of 3 full years premiums.
  • GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Less any survival Benefits already paid. Examples of GSV factors applicable for total  premiums paid
    Policy Year ~ GSV factor
             3   =   30%
             5   =   50%
           t -1  =   80% (t=Policy Term)
Special Surrender Value (SSV)
  • Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses.
  • The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
  • Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses.
  • The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
Main Changes
  • A  Policy may be revived within a period of 5 years from the date of first unpaid premium.
  • Taxes, if any , were borne by the Corporation.
  • A  Policy may be revived within a period of 2 years from the date of first unpaid premium.
  • Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
No Changes in
  • Back Dating
  • Grace Period
  • Assignment/Nomination
  • Back Dating
  • Grace Period
  • Assignment/Nomination

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