How Money Back Works
Unlike endowment plans that pay everything at maturity, Money Back plans give you periodic cash during the term:
Year 5
💰
Payout 1
% of SA
Year 10
💰
Payout 2
% of SA
Year 15
💰
Payout 3
% of SA
Year 20
💰
Payout 4
721 only
Maturity
🎉
40% SA
+ Bonus + FAB
✅ Important: Life cover stays at full SA throughout the term — even after you receive survival payouts. If death occurs after receiving 3 payouts, nominee still gets full death benefit (1.25× SA + bonus). Payouts are NOT deducted.
Plan 720 — New Money Back 20 Years
| Plan Number | 720 |
| Term | 20 years (fixed) |
| Entry Age | 13 to 45 years |
| Survival Benefits | 20% SA at yr 5, 20% at yr 10, 20% at yr 15 |
| Maturity (Year 20) | 40% SA + Bonus + FAB |
| Bonus Rate | ~₹52 per ₹1,000 SA/year |
| Premium (Age 25) | ~₹58 per ₹1,000 SA |
Plan 721 — New Money Back 25 Years
| Plan Number | 721 |
| Term | 25 years (fixed) |
| Entry Age | 13 to 40 years |
| Survival Benefits | 15% SA at yr 5, 15% at yr 10, 15% at yr 15, 15% at yr 20 |
| Maturity (Year 25) | 40% SA + Bonus + FAB |
| Bonus Rate | ~₹50 per ₹1,000 SA/year |
| Premium (Age 25) | ~₹48 per ₹1,000 SA |
Plan 720 vs 721 — Which to Choose?
| Feature | 💰 Plan 720 (20 Yr) | 💰 Plan 721 (25 Yr) |
|---|
| Term | 20 years | 25 years |
| No. of Payouts | 3 payouts | 4 payouts ✅ |
| Each Payout | 20% SA ✅ | 15% SA |
| Maturity Payout | 40% SA + Bonus | 40% SA + Bonus |
| Premium/₹1000 (Age 25) | ~₹58 | ~₹48 ✅ Lower |
| Total Bonus (₹10L SA) | ~₹10.4L (20 yrs) | ~₹12.5L ✅ (25 yrs) |
| Best For | Bigger payouts, shorter term | More payouts, higher total |
Worked Example — ₹10L SA, Age 25
💰 Plan 720 — ₹10L SA
Annual Premium: ~₹58,000
Total Paid (20 yrs): ~₹11.6L
Payouts Received:
Year 5: ₹2,00,000 (20%)
Year 10: ₹2,00,000 (20%)
Year 15: ₹2,00,000 (20%)
Maturity: 40% + Bonus + FAB
= ₹4L + ~₹10.4L + ~₹42K
Total Received: ~₹20.4L
💰 Plan 721 — ₹10L SA
Annual Premium: ~₹48,000
Total Paid (25 yrs): ~₹12.0L
Payouts Received:
Year 5: ₹1,50,000 (15%)
Year 10: ₹1,50,000 (15%)
Year 15: ₹1,50,000 (15%)
Year 20: ₹1,50,000 (15%)
Maturity: 40% + Bonus + FAB
= ₹4L + ~₹12.5L + ~₹53K
Total Received: ~₹22.5L
*Approximate estimates. Bonus at ₹52/1000/yr for Plan 720, ₹50/1000/yr for Plan 721. FAB approximate. Actual amounts depend on LIC's declared rates.
✅ Choose Money Back If
- Need periodic cash flow — children's school fees, milestones
- Want liquidity — money comes back every 5 years
- Planning for goals at different life stages
- Don't want all eggs in one basket
❌ Not Ideal If
- Want maximum maturity — endowment gives higher total
- Don't need periodic payouts — money stays invested longer in endowment
- Budget-conscious — MB premium is higher than endowment
💡 Expert Tip (Haresh Hirapara): Money Back plans are perfect for parents planning for children's milestones — buy when the child is born, receive payouts at ages 5, 10, 15, 20 for school, college, and marriage. I recommend Plan 721 (25 yr) for younger buyers — the lower premium and 4 payouts make it more versatile. One important thing most people don't know: life cover does NOT reduce after payouts — your family stays fully protected for the full SA. Consult a financial advisor for the right SA and plan based on your family's goals.
🧮 Plan 720 Calculator🧮 Plan 721 Calculator
Frequently Asked Questions
What is LIC Money Back Plan?+
Plans that pay a % of SA every 5 years as survival benefits + remaining SA with bonus at maturity. Plan 720 (20 yr): 3 payouts of 20%. Plan 721 (25 yr): 4 payouts of 15%. Both pay 40% + bonus at maturity. Full life cover throughout.
What is the payout schedule for Plan 720?+
20% SA at year 5, 20% at year 10, 20% at year 15, and 40% + Bonus + FAB at year 20 (maturity). For ₹10L SA: ₹2L, ₹2L, ₹2L, then ~₹14.4L at maturity. Total: approximately ₹20.4L. These are approximate estimates.
Does life cover reduce after payout?+
No! Life cover stays at full SA throughout the term. Even after receiving all 3-4 payouts, if death occurs, nominee gets the full death benefit (1.25× SA + bonus). Payouts are not deducted from death benefit.
Which is better — 720 or 721?+
720: Bigger payouts (20%), shorter term, higher premium. 721: More payouts (4), lower premium, higher total returns. Choose 720 for bigger payouts, 721 for more payouts and lower cost. Consult a financial advisor.
Is Money Back better than Endowment?+
Endowment gives
higher total maturity (all money stays invested). Money Back gives
periodic cash flow. Choose MB for regular payouts, Endowment for max maturity. See our
detailed comparison. Consult a financial advisor.
What is the premium for ₹10L SA?+
Plan 720, Age 25: ~₹58,000/yr + GST. Plan 721, Age 25: ~₹48,000/yr + GST. 721 is cheaper per year but runs 5 years longer. Use our calculators for exact estimates. These are approximate rates.
⚠️ Disclaimer
This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. Premium rates, bonus rates, and payout amounts are approximate estimates based on publicly available information. Actual amounts depend on LIC's declared rates. For official information, visit licindia.in.
This is not financial advice. Please consult a certified financial advisor before purchasing any insurance policy.