India’s largest life-insurance company LIC has now come up with a new money-back policy, branching into two types, with different maturity periods.
Tax and investment experts report that this money-back policy from LIC provides the investor with income tax benefits on the premium payments and maturity amount but with a simple catch.
In brevity, this policy mainly states that by investing only Rs 160 every day, you will get a return amount of over Rs 23 lakh at the time of maturity.
Let’s learn in detail about this.
LIC Money-Back Policy
LIC will be providing money back policies for 2 types of maturity periods:
- 20 years maturity plan, or
- 25 years maturity plan.
According to Chief Financial Planner Manikaran Singhal, those investing in this policy get back 15 to 20% of the amount every five years.
However, the catch here is that the amount will be received only when 10% of the total amount of premium has been deposited.
The investors will also get a money back of Rs 1.50 lakh in every 5 years. Additionally, they will also get Rs 11 lakh as a bonus and Rs 2,25,000 as an additional bonus.
This policy is completely tax-free according to income tax. Along with this, the amount received on interest, premium payment and maturity is completely tax-free.
Any policyholder will get Rs 23 lakh for investing Rs 160 a day for 25 years.
Here’s All You Need to Know About the Policy
How Much Can You Invest?
- Minimum Basic Sum Assured – One lakh rupees
- Maximum Basic Sum Assured – No Limit
- Minimum age limit – 13 years
- Maximum age limit – 50 years
- Term Plan – 20 years
Premium payable in the first year
The premium amount will include a GST fee of 4.5%.
- Annual premium: Rs 60,025 (Rs 57,440 + Rs 2585)
- Half Yearly Premium: Rs 30,329 (Rs 29,023 + Rs 1,306)
- Quarterly premium: Rs 15,323 (Rs 14,663 + Rs 660)
- Monthly Premium: Rs 5,108 (Rs 4,888 + Rs 220)
- Daily Due Premium: Rs 164
Second year premium
- Annual premium: Rs 58,732 (Rs 57,440 + Rs 1,229)
- Half Yearly Premium: Rs 29,676 (Rs 29,023 + Rs 653)
- Quarterly premium: Rs 14,993 (Rs 14,663 + Rs 330)
- Monthly Premium: Rs 4,998 (Rs 4,888 + Rs 110)
- Premium amount payable daily: Rs 160