LIC’s new plans 2014-New Moneyback Plans (No.820 and No.821)

Today LIC launched two new money back plans. One is New Moneyback Plan of 20 Yrs (No.820) and another is New Moneyback  Plan of  25 Yrs (No.821). These two are the new versions of old plans Moneyback Plan 20 Yrs (No. 75) and Moneyback Plan 25 Yrs (No.93). Below are the features of the same.

1) New Money Back Plan 20 Yrs (No.820)

New Money Back Plan 20 Yrs (No.820)

2) New Money Back Plan 20 Yrs (No.821)

New Money Back Plan 25 Yrs (No.821)

What are the changes?

  • Death Benefit
  • Paid Up Value
  • Premium Paying Term
  • Minimum Basic Sum Assured
  • Rebate on premium paying mode
  • Rebate on higher Sum Assured
  • Loan availability
  • Guaranteed Surrender Value definition
  • Revival concession on lapsed policies
  • Taxes

But the major changes all looking at will be, whether these are costlier to older plans or what? The answer is, as of now we are unable to judge. We will come to know within a few days about this.

 

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Comments

  1. Satnam Singh says

    Hi Basavaraj…Could u tell me pros n cons of ths policies (Endowment & Money back plan) in details so that we cn cm to know about that fact why r u saying Stay Away from these coz I ws also interested in Money back Plan…Could u suggesst Any good Term Plan. .. i am looking for a policy which cover mu life as well as give me good investment. Could u suggesst me anyone?
    Thanks in Anticipation

    • says

      Satnam-Why you buy insurance? To cover your life sufficiently thinking that if death occurs then your nominees will live a life as they are today. Why you invest in any product (especially for long term)? To get good return (again definition of good return varies as 8% to 25%). But the ideal investment for long term should be to beat inflation (also called real return). So in case of endowment and money back plans both these requirements not get fulfilled. Because you can’t buy insurance cover for yourself to the tune of around 15-20 times of your yearly income (set as 15-20 times because at least for next 15-20 years your dependent may survive with current income flow). Return from such policies will be around 6% where as inflation rate itself now 6% to 8%. So how you sustain in long run??
      The ideal solution is NEVER MIX YOUR INSURANCE NEED WITH INVESTMENT NEED. Now choice is your’s.

  2. MAKRAND PANDE says

    Dear Sir,

    Glad to see your site,there are very people who feels Need Based Approach is very significant in sales process.I called it Process,as actually it is not far different than treatment given by a doctor to patient after diagnosis of disease.
    I’ll be in touch with you to exchange knowledge.

  3. raj k says

    dear sir,
    finally what is your conclusion shall we proceed with this policy as per your last post of endowment policy you hav recomend to stay away,
    and another querry of or still we wait & watch for new products.at what period we hav to wait for reviews.

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