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Life Insurance Company (LIC) International is a subsidiary of LIC India, the largest insurance provider in India, and offers numerous insurance schemes, investment options, and more in the UAE and the Middle East.
LIC International has various money-back policy schemes in the UAE that can pay set amounts to you, the insured individual, at regular intervals. In this article, we will have a detailed LIC money back policy review and the top features and other aspects of the plans under the same.
LIC (International) has different insurance schemes that can be classified under the LIC Money Back Policy Plan category. To reiterate, LIC money back plans are not endowment plans that return the sum assured at the end of the term period. These plans which return only a percentage of the insured amount at regular intervals can be termed money-back policies.
With that clear, let’s have a look at some of the top insurance plans that fall under LIC money-back plan schemes –
Let’s now take a detailed look at the top LIC money back policy plans and their key features –
LIC (International) offers the New Professional Education (Plan No. 257) as an education insurance plan in the UAE. It is designed to provide beneficiaries with a guaranteed sum of money to ensure the availability of sufficient funds at vital stages of their child’s higher education.
In this LIC money back plan, the sum assured is paid out at regular intervals to the beneficiary (children). From the beneficiary’s 18th to 22nd birthday, the insurance provider will pay 20% of the sum assured on the policy anniversary every year. Thus, by the time the beneficiary reaches the age of 23, LIC will have paid the entire sum assured.
For this plan, the premium amount to be paid by the policyholder (parents and relatives) ranges from USD 10,000 to a maximum of USD 500,000. As a policyholder, you can avail of different premium paying options –
Note: With respect to yearly premium payments, the policyholder can pay the annualised premiums on an annual, half-yearly, monthly, or quarterly basis.
In case of the death of the child after the coverage of the plan comes into effect, LIC will pay back all the premiums and guaranteed additions without any deductions. However, if the proposer passes away during the tenure, the policy will continue without requiring further premiums only if the optional Premium Waiver Benefit Rider has been availed of.
It must be noted that the beneficiary would also receive a Guaranteed Addition at the end of the policy. This benefit amount is calculated at a rate of (USD 25) per thousand of the sum assured every year.
This LIC money back plan is a one-of-a-kind plan in which the single premium is paid back to the holder in annual payments after a buffer/deferment period is completed. Please note that the deferment period for this plan ranges from 3 to 10 years, with the minimum investment requirement being USD 15,000.
Notably, this LIC plan allows the policyholder to select a deferred annuity with a return of premium price for either joint or single lives for the annuity package. Furthermore, the annuity rates are related to the purchase amount, as the rates increase with an increase in the latter.
The New Future Bright Plan is a single-premium LIC money back policy with a term period of 9 years. This is another great option if you are looking for investment and insurance cover in one place. With a minimum sum assured of USD 20,000, you can receive 10% of the sum assured at the end of the 3rd and the 6th year of the plan.
On completion of the policy period of 9 years, you would be paid an amount equivalent to 102% of the single premium paid at the onset of the policy. LIC will also pay the insured individual any applicable loyalty bonuses. Irrespective of the survival benefits paid in the third and sixth year, the beneficiary will be delivered the entire sum assured if the policyholder dies within the policy term.
It must be noted that this policy will attain the surrender value (of at least 95% of the paid premiums) only after the completion of one year of the policy. However, if the policy is terminated after the third year, the survival benefits will be deducted from the surrender value.
Unlike the previous plans which are more suitable for long-term planning, this single premium pension plan is curated to make you receive your annuity payments immediately. With a minimum premium of USD 15,000, the policy offers different survival and death benefits for people looking for a stable source of guaranteed money once they retire.
The company currently offers various annuity options as discussed below –
It’s worth noting that no maturity benefits are available with this LIC money-back policy plan.
Discussed below are the eligibility criteria for the mentioned LIC money back plans –
Check out some more details related to the LIC money back policies below –
Ans: While New Professional Education and New Future Bright plans offer loans based on the fulfilment of certain conditions, no such option is available for the New Immediate Future Secure Pension Plan.
Ans: The amount that the policyholders get back under an LIC money back plan depends on the policy and its terms and conditions.
Ans: There are different policy terms for all the money-back policies of LIC. You can select the tenure in most cases as per your financial planning and requirements.