LIC Mortgage Redemption Plan

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

Additional Features and Benefits of LIC Mortgage Redemption Plan

Riders – There are no Additional Riders available:

What happens if?

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.