State insurer Life Insurance Corporation of India (LIC) offers 'New Bima Bachat' plan—a participating non-linked savings cum protection plan, where the premium is paid in a lump sum at the outset of the policy. This money-back plan provides financial protection against death during the policy term with the provision of payment of survival benefits at specified durations during the policy term.
In addition, on maturity, the single premium is returned along with loyalty addition, if any. This plan also takes care of liquidity needs through its loan facility.
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There are three choices of policy term offered to investors depending on their age and requirements—9, 12 and 15 years, among which applicants must choose at the time of application. It requires a single premium only.
The minimum entry age is 15 years, while the maximum is 50 years for term 9, 12 and 15 years.
Here are different types of benefits offered by this plan: Death benefits
On death during the first five policy years, the sum assured is payable. On death after completion of five policy years, the sum assured along with loyalty addition, if any, is payable.
It is payable as given below in case of the life assured surviving to the end of the specified duration:
For policy term 9 years: 15 percent of the sum assured at the end of each of 3rd and 6th policy year
For policy term 12 years: 15 percent of the sum assured at the end of each of 3rd, 6th and 9th policy year
For policy term 15 years: 15 percent of the sum assured at the end of each of 3rd, 6th, 9th and 12th policy year
Payment of single premium (excluding taxes and extra premium, if any) along with loyalty addition is payable, if any, in case of the life assured surviving to the end of the policy term.
Depending upon the corporation's experience the policies will participate in the profits and will be eligible for loyalty addition. The loyalty addition, if any, is payable on death after completion of five policy years and on policyholder surviving to maturity, at such rate and on such terms as may be declared by the corporation.
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