LIC Money Back Plan 20 years

LIC Money Back Policy-20 years is withdrawn by the company and is no longer available for sale. LIC's New Money Back Plan 20 years is a policy that comes with a policy term of 20 years.This policy has a 20-year schedule of survival and maturity benefits to be paid. LIC’s Money Back Policy is a non-linked plan that gives payouts at specific intervals.

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LIC Money Back Plan 20 Years- An Overview

The LIC Money Back Policy 20 Years is a life insurance plan offered by the Life Insurance Corporation of India (LIC) that combines life insurance coverage with periodic money-back benefits. LIC 20 year plan is a traditional money-back plan with scheduled payments and a bonus facility. The plan was, however, withdrawn by the company, and launched LIC New Money Back Plan-20 years.

However, the company withdrew the plan and launched the LIC New Money Back Plan 20 years ago.

LIC Money Back Policy Key Features

  • It is a money-back plan that comes with a bonus option.

  • Premiums need to be paid for 15 years only while the policy continues for 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 remaining 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.

Eligibility Criteria of LIC Money Back Policy

Parameters  Minimum Maximum
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 Lakh No Limit

Benefits of LIC Money Back Policy- 20 years

Below are the benefits one can avail of with their LIC Money Back Policy-20 years. Take a look:

  • 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

  • Policy Loan: The plan allows the policyholders to avail loans against their policy, provided at least two year’s premiums have been fully paid. The maximum loans provided under the policy is:

    For in-force policies – up to 90% 

    For paid-up policies – up to 80%

  • 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

  • Rider Benefit for Enhanced Protection:: Accidental Death and Disability Benefit Rider is a rider benefit that can be availed by paying an additional premium. In case of the accidental death of the life assured, a benefit up to the sum assured will be paid to the nominee. Moreover, in case of permanent disability due to an accident, an amount equal to the accident benefit sum assured will be given for 10 days. Subsequently, the future premiums of the policy will be waived.

  • Availability of Bonuses:: The plan offers two types of bonuses. Firstly, the Simple Reversionary Bonus, determined based on the per thousand Sum Assured at the end of each policy year, provides guaranteed benefits. This bonus accumulates during the premium-paying term and is disbursed to the insured at the end of the policy term or as part of the death benefit, contingent upon the performance of the Life Insurance Corporation. Secondly, the Final Addition Bonus, paid out when the policy has been active for a minimum period upon death or maturity claims, providing an additional benefit to the policyholders.

How does the Money Back Policy work?

Let’s understand how a Money Back Policy works with an example. The below illustration will show how beneficial a money-back policy can be. 

Mr. Verma buys a Money Back Policy with the sum assured of Rs.10 lakhs. He buys this policy with 25 years tenure and pays the premium regularly. The plan assures survival benefits of 20% of the basic sum assured after every 5 years of the policy tenure. Mr. Verma will also receive 20% of the sum assured with the additional accrued bonuses on maturity.

Thus, Mr. Verma gets Rs.2 lakhs in the interval of every 5 years, i.e. 5th, 10th, 15th, and 20th year of the policy. At the end of the tenure, i.e. on the 20th year, Mr. Verma will receive Rs.8 lakhs. He will receive Rs.2 lakhs and the bonus on maturity, and the policy will cease.

If Mr. Verma dies in the 18th policy year, Rs.10 lakhs will be paid to his family along with the accrued bonuses.

Details About Premium of LIC Money Back Policy

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

Age Rs 5 Lacs Sum Assured Rs 10 Lacs Sum Assured
30 Years 37259 74518
40 Years 39146 78291
50 Years 43604 87209

Policy Details of LIC Money Back Policy-20 Years

  • Grace Period: 30 days grace period is allowed for premium payment. The policy lapses if the policyholder fails to make payment within the grace period.

  • 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 are not happy with the coverage or terms and conditions of the policy, you can cancel the policy within 15 days of receipt of the policy documents, provided there has yet to be a claim.

What is Not Covered in LIC Money Back Policy?

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 than 80% of premiums paid or acquired Surrender Value is paid.

Documents Required

The policyholder must fill up an ‘Application form/ proposal form’ with an accurate medical history, address proof, and other KYC documents may be required for Medical examination in some cases, based on the sum assured and the person's age.


  • Q: What is the policy term for the LIC Money Back Policy-20 years?

    Ans: The policy term for the LIC Money Back Policy-20 years is 20 years.
  • Q: How often will I receive money-back payouts under this policy?

    Ans: Under the LIC Money Back Policy-20 years, you will receive money-back payouts at the end of the 5th, 10th, and 15th policy years.
  • Q: What is the maturity benefit of the LIC Money Back Policy-20 years?

    Ans: If you survive the entire 20-year policy term, you will receive the remaining sum assured along with any accrued bonuses as the maturity benefit.
  • Q: Are there any bonuses associated with this policy?

    Ans: Yes, LIC may declare bonuses based on the performance of the policy. These bonuses can be in the form of simple reversionary bonuses and final additional bonuses.
  • Q: Can I surrender the policy before the completion of the 20-year term?

    Ans: Yes, you have the option to surrender the policy before its completion. The surrender value will depend on the number of premiums paid and the duration for which the policy has been active.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-
++Returns are 10 years returns of Nifty 100 Index benchmark

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