LIC’s New Money Back Plan-20 years

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LIC’s New Money Back Policy-20 years

LIC’s New Money Back Plan-20 years is a simple participating anticipated endowment plan. Thus, it is a traditional money back plan with scheduled payments and bonus facility. This plan being a 20 years tenure has 20 year schedule of survival and maturity benefits to be paid.

LIC money Back Policy Key Features

  • This is a Participating Traditional Plan
  • Simple money back plan with bonus option
  • Premium needs to be paid for a period of 15 years only while the policy continues for a period of 20 years
  • If the Life Insured is alive at the end of the 5th, 10th and 15th years, 20% of the Basic Sum Assured is paid as Survival Benefit and the policy continues
  • The rest of the 40% of the Basic Sum Assured is paid on survival at the end of the policy tenure along with the accrued bonuses
  • If the life insured dies within the policy tenure, the entire Sum Assured + accrued Bonuses would be paid to the nominee as Death Benefit

Benefits of LIC Money Back Policy- 20 years

  • Bonus: This policy participates in the bonuses of the company and the policy accrues Simple Reversionary Bonuses and Final Additional Bonus
  • Survival Benefit: On survival, 20% of the Sum Assured is paid to the policyholder as Survival Benefit and the policy continues:
    • Payable at the end of the 5th Policy Year
    • Payable at the end of the 10th Policy Year
    • Payable at the end of the 15th Policy Year
    • Maturity Benefit: On survival till the end of the policy tenure, the remaining 40% of the Basic Sum Assured + accrued bonuses are paid to the policyholder as Maturity Benefit and the policy terminates
    • Death Benefit: if the Life Insured dies within the policy tenure, then the Sum Assured on Death + accrued Bonuses would be payable to the nominee irrespective of the amounts paid earlier as survival benefit. Sum Assured on Death is defined as higher of:
      • .125% of the Basic Sum Assured as chosen at the policy inception or
      • 10 times of annualized premium as being paid
      • Subject to a minimum of 105% of the total premiums paid as on date of death
      • Additional Rider available: LIC’s Accidental Death and Disability Benefit Rider
      • There is mode discount for yearly and half-yearly premium payments
      • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

LIC Money Back Policy- Product Specification




Entry Age (Last Birthday)

13 years

50 years

Maturity Age (Last Birthday)


70 years

Policy Term (PT) in years

20 years

Premium Paying Term (PPT) in years

15 years

Premium Paying Frequency

Annual, half-yearly, quarterly and monthly

Sum Assured

Rs 1 Lac

No Limit

Details About Premium of LIC Money Back Policy

The annual premium is mentioned in Rupees. Basic Premium is mentioned below (Tax not included)


Rs 5 Lacs Sum Assured

Rs 10 Lacs Sum Assured

30 Years



40 Years



50 Years



Policy Details

Grace Period: 30 days’ grace period is allowed for premium payment. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: The Policy lapses after the end of the Grace Period but it can be revived within 2 years from the first unpaid premium due date. Surrender Benefit is available after premium payment of 3 full years’ according to a table.

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.


  • Loan is available in this plan after the policy acquires a surrender value after 3 policy years
  • The Policy can be paid up after paying at least 3 years’ premiums but the Paid Up Sum Assured reduces proportionately


In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. LIC may be required Medical examination in some cases, based on the sum assured and the age of the person.