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
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
In case of death of the Life Insured, the nominee receives the Sum Assured in a lumpsum.
Being a pure protection plan, there is no Maturity Benefit under this plan.
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
Minimum |
Maximum | |
Sum Assured (in Rs.) | 50,000 | No Limit |
Policy Term (in years) | - | - |
Premium Payment Term (in years) | - | - |
Entry Age of Policyholder | 18 | 50 |
Age at Maturity | - | 65 |
Single Premium (in Rs.) | NA | NA |
Payment modes |
Yearly, Half-Yearly, Quarterly, Monthly, Salary Saving Scheme |
FAQs
If you stop paying the premiums after paying first years’ premium in full, the policy lapses and all benefits cease to exist.
There is no Surrender Value under this plan.
Loan facility is not available under this policy.