LIC Money-Back Plan - 20 Years Maturity Calculator

About LIC Money-Back Plan - 20 Years Maturity Calculator

It is an online tool offered by LIC that helps you calculate the benefits of the LIC Money-Back Plan - 20 Years plan. The maturity calculator uses the following criteria to calculate the benefits of the plan-

• In the case of this plan, the policy term is fixed at 20 years.

• Survival benefit is paid on completing 5, 10, and 15 policy years.

• On each of these years, policyholders get 20% of the sum assured.

• The remaining 40% is paid as maturity benefit along with bonus plus FAB (Final Additional Bonus).

Sample Benefit Illustration using LIC Money-Back Plan - 20 Years Maturity Calculator

Let’s take a sample to make it easier for you to understand. Assuming that you are 29 years of age in the year 2022. Now with the policy term at 20 years, you will receive the following benefits –

• First survival benefit after 5 years at the age of 34

• Second survival benefit after 10 years at the age of 39

• Third survival benefit after 15 years at the age of 44

• Final maturity amount in 20 years at the age of 49

Let’s look at the breakup of benefits based on the above scenario for a basic sum assured (BSA) of Rs. 10 Lakhs.

The above illustration is only applicable if you survive the entire duration of the policy i.e. for 20 years.

What happens if you die within the policy term? Here’s what your benefits will look like in such a case.

Death Benefit Illustration using LIC Money-Back Plan - 20 Years Maturity Calculator

Death benefit under LIC’s Money Back Plan - 20 Years is defined as –

(a) 125% of Basic Sum Assured, or

(b) 10 times the Annual Premium

If you die within the policy term of 20 years, you get whichever of the above amount is higher at the time of death.

Taking the above example where Basic Sum Assured was Rs. 10 Lakhs, you would have to pay Rs. 74,500 every year throughout the premium paying term. You can calculate the premium amount using LIC’s premium and maturity calculator.

Death benefit at any point within the policy term will be calculated as –

(a) 125% of Rs. 10,00,000 – Rs. 12.5 Lakhs

(b) 10 times Rs. 74,500 – Rs. 7,45,000

Thus, your nominee will get Rs. 12.5 Lakhs on your death because it is higher than 10 times the annual premium.

Let’s look at different scenarios and calculate the benefits.

1. Death occurs 3 years into the policy term

   Survival benefit – None

   Death benefit – Rs. 12.5 Lakhs

2. Death occurs 6 years into the policy term

   Survival benefit – 20% of Rs. 10,00,000 – Rs. 2 Lakhs

   Death benefit – Rs. 12.5 Lakhs

3. Death occurs 11 years into the policy term

   1st Survival benefit after 5 years – 20% of Rs. 10,00,000 – Rs. 2 Lakhs

   2nd Survival benefit after 10 years – 20% of Rs. 10,00,000 – Rs. 2 Lakhs

   Death benefit – Rs. 12.5 Lakhs

4. Death occurs 17 years into the policy term

   1st Survival benefit after 5 years – 20% of Rs. 10,00,000 – Rs. 2 Lakhs

   2nd Survival benefit after 10 years – 20% of Rs. 10,00,000 – Rs. 2 Lakhs

   3nd Survival benefit after 15 years – 20% of Rs. 10,00,000 – Rs. 2 Lakhs

   Death benefit – Rs. 12.5 Lakhs

Note that the above illustration is only for the basic understanding of the benefit breakup for LIC Money Back Plan - 20 Years. It does not factor in the bonus amount because it is neither fixed nor guaranteed.

Therefore, the final maturity benefit amount calculated by the LIC Money-Back Plan - 20 Years Maturity Calculator may be higher than what has been shown in the table above.

About LIC Money-Back Plan - 20 Years

As the name suggests, the policy offers a fixed percentage of the money back to the policyholder on surviving certain policy years within the policy term of 20 years. A notable feature of the LIC Money-Back Plan - 20 Years is that on the death of the life assured within the policy term, the nominees are entitled to the entire sum assured on death, irrespective of the survival benefits paid out.

Eligibility Criteria Of LIC New Money-Back Plan - 20 Years

In order to use the LIC Money-Back Plan - 20 Years maturity calculator and the premium calculator, you should be aware of the following eligibility criteria.

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