LIC Mortgage Redemption Plan
LIC Mortgage Redemption Plan is a pure protection Term Plan as a cover for all the loans and debts. It means, that in this plan, if the life insured dies within the policy tenure, the lumpsum Sum Assured is paid to pay off all the outstanding loans and debts so that the family is not liable to pay any. However, if the life insured survives till the end of the policy tenure, then nothing is payable on the policy maturity.
Key Features of LIC Mortgage Redemption Plan
- This plan is a pure protection Term Plan with only Death Benefit and no Maturity Benefit.
- The Sum assured is paid in a lumpsum as Death Benefit.
- The Sum Assured keeps decreasing according to decreasing loan liability over the years.
- Premiums are payable for periods equal to 2/3 of the repayment period of the loan
- The cost of medical examination would be borne by the individual.
Benefits you get from LIC Mortgage Redemption Plan
Death Benefit – In case of death of the Life Insured, the nominee receives the Sum Assured in a lumpsum.
Maturity Benefit – Being a pure protection plan, there is no Maturity Benefit under this plan.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)
Eligibility conditions and other restrictions in LIC Mortgage Redemption Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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50,000
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No Limit
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Policy Term (in years)
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-
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-
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Premium Payment Term (in years)
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-
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-
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Entry Age of Policyholder
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18
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50
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Age at Maturity
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-
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65
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Single Premium (in Rs.)
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NA
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NA
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|
Payment modes
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Yearly, Half-Yearly, Quarterly, Monthly, Salary Saving Scheme
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Additional Features and Benefits of LIC Mortgage Redemption Plan
Riders – There are no Additional Riders available:
You stop paying the premium – If you stop paying the premiums after paying first years’ premium in full, the policy lapses and all benefits cease to exist.
You want to surrender the policy – There is no Surrender Value under this plan.
You want a loan against your policy – Loan facility is not available under this policy.
Alternate Decreasing Term Plans from different insurance companies
1. Bajaj Allianz iSecure Loan Insurance Plan
2. SBI Life Smart Shield Plan
3. AEGON Religare Decreasing Term Plan
Other Term Plans from Life Insurance Corporation of India
1. LIC Two year Temporary Assurance Policy
2. LIC Convertible Term Assurance
3. LIC Anmol Jeevan
4. LIC Amulya Jeevan
