Comparison of Old Money Back Plan 93 to New Money Back Plan 821

Friday, January 17, 2014

Comparison of Old Money Back Plan 93 to New Money Back Plan 821

LIC launches New Money Back plan for 25 Years - Table no 821. As per the rule of IRDA most of the LIC plans are revised.Call us on 93 600 80 622 or kspgeetha@yahoo.co.in for more details

Below are the list of changes done in new Money Back Plan 821 compared to old Money Back Plan 93.

	Money Back Plan -25 years (Plan No. 93)	New Money Back Plan – 25 years (Plan No. 821)
Maturity Benefit	40% of the Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if Any.	No Change
Death Benefit	Sum Assured(SA) along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.	Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death .
Survival Benefit	15 % every 5 years	No Chnage
Paid-up value	Paid-up value per thousand Sum Assured	Paid –up value shall be equal to [(Number of premiums paid/ Total Number of premiums payable)x Basic Sum Assured less total amount of Survival Benefits paid under the policy
Age at entry	13 to 45 years	13 to 45 years
Age at Maturity	Maximum  70 years	Maximum  70 years
Policy Term	25 Years	20 Years
Premium mode	Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)	Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured	50,000 and above	1,00,000 and above ( In multiples of 5000)
Rebate	3% of tabular Premium for Yearly premium 1.5% of tabular premium for Half-Yearly premium	2% of tabular premium for Yearly premium 1% of tabular premium for Half-Yearly premium
Loan	Available after payment of 3 full years premiums. Loan granted shall be 90% of the Surrender Value in case of inforce policies and 85% of the Surrender Value  in case of Paid-up policies. Foreclosure action shall be  initiated on default of 2 or more half-yearly  loan interest installments.	Available after payment of 3 full years premiums The maximum amount of loan that can be granted as a percentage of Surrender Value be  as under: For inforce and fully paid-up policies – upto  90% For paid-up policies – 80% Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is default of loan interest.
Guaranteed Surrender Value (GSV)	Available after payment of 3 full years premiums Before Payment of Survival Benefit: GSV shall be equal to 30% of the total premiums paid less First Year Premium and  extra premium, if any. After Payment of Survival Benefit: GSV shall be 30% of the premiums paid after the due date on which last SB was paid less extra premium, if any.	Available after payment of 3 full years premiums. GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders, if opted for. Less any Survival Benefits already paid. Examples of GSV factors applicable for total  premiums paid Policy Year ~ GSV factor          3   =   30%          5   =   50%        t -1  =   80% (t=Policy Term)
Special Surrender Value (SSV)	Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses. The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.	Surrender Value shall be  the discounted  value of the Paid-up Sum Assured and vested simple reversionary bonuses. The discount factors shall be special surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
Main Changes	A  Policy may be revived within a period of 5 years from the date of first unpaid premium. Taxes, if any , were borne by the Corporation.	A  Policy may be revived within a period of 2 years from the date of first unpaid premium. Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
NO Changes in	Back Dating Grace Period Assignment/Nomination	Back Dating Grace Period Assignment/Nomination