Lic New Money Back Plan 93 Maturity Calculator

The LIC New Money Back Plan 93 is a non-linked, participating, individual, savings life insurance plan offered by Life Insurance Corporation of India. This plan provides a combination of life cover and savings benefits, making it an attractive option for investors looking for both protection and growth.

What is LIC New Money Back Plan 93?

The LIC New Money Back Plan 93 is a traditional life insurance policy that offers both protection and savings benefits. It is designed to provide financial security to the policyholder's family in case of the policyholder's untimely death, while also accumulating savings over time.

This plan is suitable for individuals who want to ensure their family's financial future while also building a corpus for future needs. The policy offers flexible premium payment options and a range of benefits that can be customized to meet the policyholder's specific needs.

How to Calculate Maturity Amount

The maturity amount of the LIC New Money Back Plan 93 can be calculated using the following formula:

Maturity Amount = (Annual Premium × (1 + Annual Interest Rate)^(Policy Term - 1)) + (Annual Premium × (1 + Annual Interest Rate)^(Policy Term - 2)) + ... + Annual Premium

This is essentially the sum of the present value of all future premiums, discounted at the annual interest rate.

The calculation involves determining the present value of each future premium payment, discounted at the annual interest rate. The sum of these present values gives the total maturity amount that will be paid at the end of the policy term.

Key Features

Provides life cover and savings benefits
Flexible premium payment options
Guaranteed addition benefits
Tax benefits under Section 80C of the Income Tax Act
Option to increase the sum assured during the policy term

The LIC New Money Back Plan 93 offers several key features that make it an attractive option for investors. These include life cover and savings benefits, flexible premium payment options, guaranteed addition benefits, tax benefits, and the option to increase the sum assured during the policy term.

Example Calculation

Let's consider an example to illustrate how the maturity amount is calculated. Suppose an individual invests ₹5,000 per year in the LIC New Money Back Plan 93 for 20 years, with an annual interest rate of 5%.

Maturity Amount = (5000 × (1 + 0.05)^19) + (5000 × (1 + 0.05)^18) + ... + 5000

This calculation results in a maturity amount of approximately ₹1,22,000.

In this example, the policyholder would receive a maturity amount of approximately ₹1,22,000 after 20 years, assuming an annual interest rate of 5%. This demonstrates how the LIC New Money Back Plan 93 can help individuals build a substantial corpus over time.

Frequently Asked Questions

What is the minimum and maximum policy term for LIC New Money Back Plan 93?: The minimum policy term is 15 years, and the maximum policy term is 30 years.
What is the minimum and maximum sum assured for this plan?: The minimum sum assured is ₹1,00,000, and the maximum sum assured is ₹1,00,00,000.
Are there any tax benefits associated with this plan?: Yes, premiums paid under this plan are eligible for tax deduction under Section 80C of the Income Tax Act.
Can the sum assured be increased during the policy term?: Yes, the sum assured can be increased during the policy term by paying additional premiums.
What are the guaranteed addition benefits in this plan?: The plan offers guaranteed addition benefits that provide additional financial security to the policyholder's family.