Everything about LIC Money Back Policy

LIC Money Back Policy the most sold policy. These policies are more popular in rural areas than in urban due to payout at a regular interval during the policy term. Since the inception of the LIC of India, these policies are available for sale with different features. There are many money back policy still serviced by LIC of India. Although we do not have any exact plan wise data, they can be 20-30% of LIC total policies (All money back policy included). LIC of India settled 11660912 money-back cases of amount Rs. 25542 Crores money-back payment during the financial year 2019-2020 (see the data here).

Let us see more details about various money back policy of LIC of India. Besides that, know more about what is the procedure of Money-back claim settlement by LIC. Similarly, know what you should do if you have LIC money back policy.

What is a LIC Money Back Policy?

A LIC Money Back Policy is a policy that gives a fixed amount return between the policy term at a regular interval. Amount paid in money-back policies is basically a certain percentage of the Sum Assured. The Interval of money back is different in different policies. It can range from every 3 years to 5 years to every year in the last policy term in some money-back policies. For example, LIC’s Bima Diamond policies give money back return after every four years during the policy term. Similarly, LIC’s Bima Bachat, which is a single premium policy, gives money back a regular interval of 3 years.

Money-Back policies are also sold as child career plans because they give money back after a regular interval. Return at a regular interval helps in the education of the child, which requires continuous payments. Currently available LIC money back policy for children is LIC’s Children Money Back Policy and LIC’s Jeevan Tarun.

Difference LIC Money Back Policy

Though there are many money back policies being serviced by LIC of India, only a few are currently available for sale. Money Back Policies which are available for sale are:

• LIC’s New Money Back – 20 Years (Plan No. 920)
• LIC’s New Money Back – 25 Years (Plan No. 921)
• LIC’s New Bima Bachat (Plan No. 916)
• LIC’s New Childen’s Money Back Plan (Plan 932)
• LIC’s New Jeevan Tarun (Plan No. 934)
• LIC Jeevan Shiromani (Plan No. 947)
• LIC’s Bima Shree (Plan No. 948)

What is the difference between Survival Benefit and Money Back in LIC policies?

If you have a money-back policy, then read the policy document and you will find an interesting fact. You will not find the word “Money Back” anywhere in the benefits. What you will see is “Survival Benefit”. Survival Benefit means, if the policyholder survives to the particular term, he will receive a certain percentage of Sum Assured. So, survival benefit and money back is basically the same thing. Although, payments in whole life plans with endowment elements are also called survival benefit, for example, LIC’s Jeevan Anand maturity proceeds.

Process of claim payment in LIC Money Back Policy

Every single month Life Insurance Corporation of India settles crores of Rupees of Survival Benefits/Money Back payments. Payment Process actually starts 3 months before the actual money back payment date. Lets see what is the the process of payment of money back in LIC Money back policy

1. LIC books the Survival Benefit/Money Back claims 3 months before the actual payment dates. Though is not done day by day. On the first of every month, LIC books due claim 3 months in advance. For example, for payment to be made in December, survival benefit/money back payment is booked on 01st September.
2. An intimation message is sent automatically to policyholders regarding future money back payment. The main purpose is to inform the policyholder and asking them to submit bank details to LIC of India, if not submitted earlier. Know more about How to register NEFT details in LIC online.
3. LIC claim department makes necessary corrections in the policy before making the actual payments.
4. After proper scrutiny, payment is made by LIC of India in money back policy. Though LIC makes payment well in advance, it only gets credited in policyholders account on or after the due date of claim. For example, suppose a claim in your policy is due on 28 December, but LIC has already made the payment on 15 Novemeber, however, it will be credited on 28 December only or after if 28 December is holiday.
5. This whole process is adopted by LIC to make payments on time to policyholders. If we see the last years data (see the data here), almost 87% of moneyback payments were settled on or before the due date. Rest

Do you have a LIC Money Back Policy? You must read this!

If you are reading this article, it is sure that you have a LIC money back policy or you are planning to buy one. So, here are some tips for you so that you can get your claim well on time:

• Update your contact details in your policy, if not done already. It will help you get the information on time directly on your mobile.
• Keep your bank account details updated in your LIC Money Back policy. It is really important because now LIC does not pay via cheques.
• If your bank accounts details/NEFT details not updated in your policy, then you must read this: How to register NEFT details in LIC online.
• Not comfortable with online stuff, don’t worry, you can give a request in any LIC branch. To update your NEFT details in LIC policy, just fill this LIC NEFT mandate form, attach a canceled cheque or attested copy of your bank passbook. Submit it to any nearest LIC office or LIC customer Zone.
• Keep your policy in force. Here is the tip to know LIC Policy status without going to the LIC office.
• If you have taken any loan in your LIC Money Back Policy, then loan interest and the loan amount will be deducted from the survival benefit/money back amount. If any amount left will be paid to you.

If you have any other questions related to LIC servicing then just mail us at [email protected]. You can also comment below. Share if you liked this information useful because Sharing is caring!