Money Back Plans
LIC's New Money Back Plan - 20 Years (720)
20-year money back plan: 20% of sum assured every 5 years plus maturity with bonus
- Entry age
- 13 years (completed) to 50 years (nearer birthday)
- Policy term
- 20 years
- Premium paying term
- 15 years
- Min. sum assured
- ₹2,00,000
Plan overview
LIC's New Money Back Plan-20 Years is a participating savings plan with a 20-year term and 15 years of premium payment. It pays back 20% of the Basic Sum Assured at the end of the 5th, 10th and 15th years, and the remaining 40% with bonuses at maturity, while giving life cover throughout. It suits people who want regular lump sums for planned goals along with insurance protection.
New to money back plans? Read our simple guide: Money Back Plans Explained in Simple Words →Key benefits
- Survival benefit of 20% of Basic Sum Assured at the end of the 5th, 10th and 15th policy years
- Maturity benefit of 40% of Basic Sum Assured plus vested bonuses at the end of 20 years
- Death cover of at least 125% of Basic Sum Assured, plus bonuses, throughout the term
- Pay premiums for 15 years only, for a 20-year policy
- Participates in LIC's profits through Simple Reversionary and Final Additional Bonus
- Mode rebate and High Sum Assured rebate available
- Loan facility and option to take death or maturity benefit in instalments
Eligibility at a glance
- Plan number
- 720
- UIN
- 512N280V03
- Plan type
- Par, Non-Linked, Life, Individual, Savings Plan
- Entry age
- 13 years (completed) to 50 years (nearer birthday)
- Maximum maturity age
- 70 years (nearer birthday)
- Policy term
- 20 years
- Premium paying term
- 15 years
- Minimum sum assured
- ₹2,00,000
- Maximum sum assured
- No limit
- Premium payment modes
- Yearly, Half-yearly, Quarterly, Monthly (NACH only), Salary deduction
How the plan works
LIC's New Money Back Plan-20 Years is a participating, non-linked savings plan. The policy term is 20 years and premiums are paid for the first 15 years. A part of the Basic Sum Assured is paid back at regular intervals while you are alive, the balance is paid at maturity with bonuses, and life cover continues for the full term.
| Eligibility | Details |
|---|---|
| Entry age | 13 years (completed) to 50 years (nearer birthday) |
| Maximum maturity age | 70 years (nearer birthday) |
| Policy term | 20 years |
| Premium paying term | 15 years |
| Basic Sum Assured | Minimum ₹2,00,000; no maximum; in multiples of ₹25,000 |
Risk cover starts immediately on acceptance. For a minor, the policy vests in the life assured on the policy anniversary on or after age 18.
Death benefit
If the policy is in force, the nominee receives the Sum Assured on Death plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Sum Assured on Death is the higher of 125% of the Basic Sum Assured or 7 times the annualised premium. The death benefit is never less than 105% of total premiums paid up to the date of death.
Survival benefits
If the life assured is alive and all due premiums are paid:
| End of policy year | Amount paid |
|---|---|
| 5th | 20% of Basic Sum Assured |
| 10th | 20% of Basic Sum Assured |
| 15th | 20% of Basic Sum Assured |
Maturity benefit
On surviving to the end of the 20-year term with the policy in force, the Sum Assured on Maturity, equal to 40% of the Basic Sum Assured, is paid along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
The policy shares in LIC's profits while in force. Simple Reversionary Bonuses are declared yearly based on LIC's experience and, once declared, become part of the guaranteed benefits. Bonus rates are not fixed. Final Additional Bonus is not paid on paid-up policies.
You can opt to receive the maturity amount in instalments over 5, 10 or 15 years (Settlement Option), by choosing at least 3 months before maturity.
Optional riders
Available on payment of extra premium (either of the two accident riders, plus the term rider):
- LIC's Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC's Accident Benefit Rider (UIN: 512B203V03)
- LIC's New Term Assurance Rider (UIN: 512B210V02), at inception only
Total premiums for all life insurance riders cannot exceed 30% of the base plan premium.
Loan, surrender & revival
Loan: Available after the first policy year if one full year's premium is paid, within the surrender value.
| Policy status | Before two full years' premiums | After two full years' premiums |
|---|---|---|
| In-force | 50% of surrender value | 75% of surrender value |
| Paid-up | 40% of surrender value | 65% of surrender value |
The brochure states 9.5% p.a. (compounding half-yearly) for loans sanctioned from 1 May 2024 to 30 April 2025; this is reviewed yearly.
Surrender: Possible after the first policy year if one full year's premium is paid. Guaranteed Surrender Value needs at least two full years' premiums; Special Surrender Value is available after one year. You get the higher of the two. Survival benefits already paid are deducted from the Guaranteed Surrender Value.
Paid-up: After at least one full year's premium, the policy continues with reduced death and maturity benefits; future survival benefits are not paid separately (they are built into the reduced maturity amount) and the policy stops earning new bonuses.
Revival: A lapsed policy can be revived within 5 consecutive complete years from the first unpaid premium, but before the maturity date, by paying arrears with interest and meeting underwriting requirements.
Other key terms
- Grace period: 30 days for yearly, half-yearly and quarterly; 15 days for monthly premiums.
- Free-look period: 30 days from receipt of the policy document.
- Death benefit in instalments: All or part can be paid over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
- Mode rebate: Yearly 2% and half-yearly 1% of tabular premium; nil for quarterly, monthly and salary deduction.
- High Sum Assured rebate: Nil for ₹2,00,000 to ₹4,75,000; ₹3 per ₹1,000 Basic Sum Assured for ₹5,00,000 and above.
- Sample premium (₹2 lakh Basic Sum Assured, yearly, excluding taxes): age 20: ₹15,896; age 30: ₹16,082; age 40: ₹16,846; age 50: ₹18,679.
- Suicide exclusion: Within 12 months of risk start, 80% of total premiums paid is payable.
Who should buy LIC's New Money Back Plan - 20 Years?
- People who want periodic lump sums every 5 years for goals such as education, a vehicle or home needs
- Earners who prefer finishing premium payment in 15 years while keeping cover for 20 years
- Families wanting life cover combined with disciplined savings in a traditional bonus-earning plan
- Parents buying for a teenager aged 13 or above
Frequently asked questions
How much money back does LIC New Money Back Plan-20 Years (Plan 720) give?
20% of the Basic Sum Assured at the end of the 5th, 10th and 15th policy years, and 40% plus vested bonuses at maturity after 20 years.
What is the entry age?
Minimum 13 years (completed) and maximum 50 years (nearer birthday). The maximum maturity age is 70 years.
How many years do I pay premiums?
Premiums are paid for 15 years, while the policy term is 20 years.
What does the family get if the life assured dies during the term?
The Sum Assured on Death (higher of 125% of Basic Sum Assured or 7 times the annualised premium) plus vested bonuses and any Final Additional Bonus. It is at least 105% of total premiums paid.
What is the minimum sum assured?
₹2,00,000, in multiples of ₹25,000, with no upper limit.
Can I take a loan on this policy?
Yes, after one full year's premium is paid. In-force policies can get up to 50% of surrender value before two years' premiums and 75% after.