What is the LIC 20 years money back policy?
The LIC New Money Back Plan 20 Years is a non-linked, participating individual life assurance savings plan that provides periodic payouts and life insurance cover.
Key Features & Eligibility
- Policy Term: 20 years.
- Premium Paying Term: 15 years.
- Entry Age: 13 years to 50 years (maximum maturity age is 70 years).
- Minimum Sum Assured: ₹200,000 (no upper limit). You can check official details on LIC India Money Back Plans.
Periodic Survival Benefits
If you survive the policy term, you receive a percentage of the basic sum assured at regular intervals:
What is the best LIC Money Back Plan for 20 years?
The best and official option for a 20-year term is the LIC New Money Back Plan 20 Years (Plan 720), which is a non-linked, participating individual life assurance savings plan.
Key Plan Details
- Policy Term: 20 years
- Premium Paying Term: 15 years (you pay premiums for 15 years while coverage and benefits continue)
- Entry Age: 13 to 50 years (maximum maturity age is 70 years)
- Minimum Sum Assured: ₹100,000 (no upper limit)
Benefits Breakdown
- Survival Benefits: You receive 20% of the basic sum assured at the end of the 5th, 10th, and 15th policy years.
- Maturity Benefit: At the end of the 20th year, you receive the remaining 40% of the basic sum assured plus accrued simple reversionary bonuses and final additional bonuses.
- Death Benefit: If the policyholder passes away during the term, the nominee receives the sum assured on death plus accumulated bonuses (guaranteed to be at least 105% of total premiums paid).
- Liquidity: Loan facilities are available after paying premiums for at least two full years.
What is the maturity amount of an LIC Money Back Policy for 20 years?
The maturity amount of an LIC 20-Year Money Back Policy is 40% of the Basic Sum Assured plus any accrued Simple Reversionary Bonuses and Final Additional Bonus declared by LIC.
How the Benefit Works
- Periodic Payouts (Survival Benefits): You receive 20% of the Basic Sum Assured at the end of the 5th, 10th, and 15th policy years (totaling 60% paid out during the term).
- Maturity Payout: At the end of the 20th year, you receive the remaining 40% of the Basic Sum Assured plus accumulated bonuses.
- Total Return: Because bonuses depend on LIC's annual profits and the chosen Sum Assured, the exact final cash value varies. For example, with a ₹4,00,000 Sum Assured, the final maturity payout typically hovers around ₹4,88,000 (including bonuses), alongside the periodic payouts you already received along the way.
You can check out the official LIC New Money Back Plan Brochure for more details.
How is the LIC money back amount calculated?
The LIC money-back amount is calculated using a set percentage of the Basic Sum Assured paid out at regular intervals (survival benefits), plus a final maturity payout consisting of the remaining Sum Assured combined with accrued Simple Reversionary Bonuses and any Final Additional Bonuses.
Types of Payouts in a Money-Back Policy
- Survival Benefits (Periodic Payouts): For a 20-year plan (like Plan 820/920), 20% of the Basic Sum Assured is paid out at the end of the 5th, 10th, and 15th policy years. For a 25-year plan (like Plan 821/921), 15% of the Basic Sum Assured is paid out at the end of the 5th, 10th, 15th, and 20th years.
- Maturity Benefit (Final Payout): At the end of the full policy term, you receive the remaining percentage of the Sum Assured (40% for both 20-year and 25-year plans) plus accumulated bonuses.
- Bonus Calculation: Simple Reversionary Bonuses are calculated per ₹1,000 of the Sum Assured for each year the policy is active, multiplied by the bonus rates declared annually by LIC of India.
- Death Benefit: If the policyholder passes away during the term, the nominee receives the full Sum Assured plus accrued bonuses, regardless of how much survival benefit was already paid out.
What is the LIC new money back plan for 25 years?
LIC's New Money Back Plan - 25 Years (Plan No. 721 / UIN: 512N278V03) is a non-linked, participating individual savings life insurance plan providing periodic survival payouts and life cover.
📌 Key Eligibility Details
- Entry Age: 13 to 45 years
- Policy Term: 25 years
- Premium Paying Term: 20 years
- Maximum Maturity Age: 70 years
- Minimum Sum Assured: ₹200,000 (no upper limit)
📊 Plan Benefits
- Survival Benefit: 15% of the Basic Sum Assured paid at the end of the 5th, 10th, 15th, and 20th policy years.
- Maturity Benefit: 40% of the Basic Sum Assured plus vested Simple Reversionary Bonuses and Final Additional Bonus.
- Death Benefit: Higher of 125% of the Basic Sum Assured or 7 times the annualized premium, plus accrued bonuses.
💡 Additional Features
- Loan Facility: Available after paying premiums for at least 1 full year.
- Grace Period: 30 days for yearly, half-yearly, or quarterly modes (15 days for monthly).
- Riders: Optional add-ons like Accidental Death and Disability or New Term Assurance.
LIC Money Back Plan 920 Details | 20-Year Policy Plan
Which LIC policy gives high returns?
Market-linked plans like LIC Index Plus and LIC Nivesh Plus generally offer the highest potential returns among LIC policies because they invest in equity and debt markets.
High-Return Market-Linked Plans (ULIPs)
- LIC Index Plus (Plan 873): Links your investment to market indices with flexible fund choices and life cover.
- LIC Nivesh Plus (Plan 749): A single-premium unit-linked plan (ULIP) that offers higher market-linked growth potential.
High-Return Traditional & Participating Plans
If you prefer steady, guaranteed, or bonus-backed traditional options rather than market risk, users on Quora generally reach a consensus that long-term participating endowment plans yield stable cumulative benefits:
- LIC Jeevan Labh (Plan 936): A limited-payment endowment plan offering strong reversionary bonuses and final additional bonuses over terms like 16, 21, or 25 years.
- LIC Jeevan Umang (Plan 945): A whole-life assurance plan that provides life cover up to age 100 alongside an annual survival benefit payout of 8% of the basic sum assured.
- LIC New Jeevan Anand (Plan 715): A popular endowment-cum-whole-life plan providing strong bonus rates and continuous risk coverage even after maturity.
Which LIC policy is best in India?
The best Life Insurance Corporation of India (LIC) policy depends on your financial goal, with LIC New Jeevan Anand ranking as the top choice for combined savings and lifelong protection.
Explore the official range of options on the LIC Insurance Plans page.
Top LIC Policies by Category
- Best for Savings & Lifetime Cover: LIC New Jeevan Anand (Plan 715/915)
- Type: Endowment Policy
- Why it’s great: Offers a maturity lump sum plus a lifelong risk cover that continues for free even after the policy term ends.
- Best for Pure Protection (Term Life): LIC Jeevan Amar or Tech-Term
- Type: Non-Linked Pure Term Plan
- Why it’s great: Provides high life cover at a very low, affordable premium rate with smoker/non-smoker distinctions.
- Best for Regular Lifetime Income: LIC Jeevan Umang (745) / Jeevan Utsav (771)
- Type: Whole Life Plan
- Why it’s great: Provides guaranteed annual survival payouts (8% to 10% of the sum assured) after the premium paying term up to age 100.
- Best for Long-Term Guaranteed Corpus: LIC Jeevan Labh (736)
- Type: Limited-Pay Endowment Plan
- Why it’s great: Requires premium payments for a shorter duration while building a large savings corpus with bonuses.
Is LIC better than fd?
Neither LIC (Life Insurance Corporation) nor an FD (Fixed Deposit) is universally "better"; they serve completely different financial purposes.
- Choose a Fixed Deposit if you want high liquidity, short-term parking of funds, and guaranteed, predictable interest.
- Choose an LIC savings or traditional policy only if you specifically need long-term life insurance coverage combined with forced savings.
Key Differences
| Feature | Fixed Deposit (FD) | LIC Traditional / Endowment Policies |
|---|---|---|
| Primary Purpose | Pure savings and wealth parking. | Life insurance protection + a modest savings component. |
| Returns | Fixed, guaranteed interest rate known upfront. | Lower or modest returns tied to bonuses, often yielding low XIRR (4%–6%). |
| Liquidity | High. You can break an FD anytime, though it may incur a small penalty. | Low. Heavy penalties or loss of capital if exited early; subject to long lock-in periods. |
| Tax Benefits | None, except for specific 5-year tax-saver FDs under Section 80C. | Premiums and maturity payouts may qualify for tax deductions under Section 80C and 10(10D). |
| Safety | Very safe, though bank FDs are insured up to ₹5 lakh by DICGC. | Highly secure as it carries sovereign backing from the Indian government. |
Which Should You Pick?
- When FD Wins: FDs are much better for short- to medium-term goals (1 to 5 years) or emergency funds because you can withdraw your money quickly without losing a large chunk of your principal.
- When LIC Wins: LIC provides a life cover payout to your family if something happens to you. Pure term insurance is vastly superior and cheaper for this, but traditional LIC plans bundle protection with a savings tool for disciplined, long-term investors.
- The Financial Consensus: Financial experts generally advise against mixing insurance with investment. It is usually wiser to buy a pure term insurance policy for protection and invest your surplus savings in higher-yielding options like Fixed Deposits or Mutual Funds rather than traditional LIC endowment plans.
Is the LIC money back policy good?
The LIC Money Back Policy provides low investment returns and modest life insurance coverage compared to keeping insurance and investments separate.
Key Features and Benefits
- Periodic Payouts: You receive survival benefits (a percentage of the base sum assured) at regular intervals during the policy term.
- Life Cover: Your nominee receives the full death benefit plus accrued bonuses if you die during the policy term, regardless of previous payouts.
- Tax Benefits: Premium payments qualify for deductions under Section 80C, and maturity payouts are generally tax-free under Section 10(10D).
- Low Risk: Returns are stable and not tied to stock market fluctuations.
Drawbacks and Criticisms
- Low Returns: The internal rate of return (IRR) is typically low (often around 4% to 5%), which lags far behind a combination of pure term insurance and mutual funds.
- Inadequate Cover: The life insurance coverage amount is usually too small to protect a family during a major emergency.
- Locked-in Capital: Withdrawing early or surrendering the policy before completing terms can lead to poor value or financial loss.
Many financial advisors on platforms like Holistic Investment suggest that mixing insurance with savings yields below-average growth. It may only suit risk-averse buyers who prioritize guaranteed nominal cash flows over high wealth generation.
How to check LIC money back amount?
You can check your LIC money back (survival benefit) or maturity amount by logging into the LIC Customer Portal.
Check Online via Customer Portal
- Visit the LIC Customer Portal and sign in with your user ID and password. If you are new, click New User Sign up and register using your policy number and installment premium amount.
- Go to the Policy Status or Premier Services section.
- Select your specific money-back policy number to view details.
- Look at Policy Claim History or download the policy summary to see processed survival benefits and payout amounts.
Alternative Methods
- WhatsApp: Send "Hi" to LIC's official WhatsApp number 8976862090 from your registered mobile number and follow the chatbot menu for policy services.
- SMS: Send an SMS in the format ASKLIC <Policy Number> STATUS to 56767877 or 9222492224.
- Unclaimed Dues: If you are checking for an old or unpaid payout, use the LIC Unclaimed Policy Dues Portal by entering your policy details.