What is LIC New Money Back Plan (25 Years)?
LIC New Money Back Plan – 25 Years (Plan No. 721) is a participating, non-linked money back plan that provides four periodic survival benefits during the 25-year policy term. With payouts at every 5-year interval, this plan offers more frequent liquidity compared to the 20-year variant, making it ideal for long-term financial planning with regular cash flows.
Survival Benefit Schedule
The 25-year plan provides 4 survival benefit payouts — one more than the 20-year variant:
Total payout over 25 years: 15% + 15% + 15% + 15% + 40% = 100% of SA + Accrued Bonus + FAB
Key Features
- 4 Survival Payouts: Get 15% of SA at 5th, 10th, 15th, and 20th year — more frequent payouts than the 20-year variant
- Bonus: Simple Reversionary Bonus at approximately ₹50 per ₹1,000 SA per year
- Final Additional Bonus (FAB): One-time bonus at maturity for qualifying policies
- Full Life Cover Throughout: Life cover for full Sum Assured continues throughout the 25-year term, even after survival benefit payouts
- Tax Benefits: Premiums qualify for Section 80C deduction. Maturity/survival proceeds tax-free under Section 10(10D)
- Loan Facility: Loan available after policy acquires surrender value (3 years)
Eligibility Criteria
- Minimum Entry Age: 13 years (completed)
- Maximum Entry Age: 40 years (nearest birthday)
- Maximum Maturity Age: 65 years
- Minimum Sum Assured: ₹1,00,000
- Maximum Sum Assured: No upper limit
- Policy Term: 25 years (fixed)
- Premium Payment: Regular — 25 years (same as policy term)
Maturity Benefit
At Maturity = 40% of SA + Accrued Bonus + FAB
(Plus 15% SA already received at 5th, 10th, 15th & 20th year)
Example: For ₹10,00,000 SA, age 25, 25-year term:
- Survival Benefits (5th + 10th + 15th + 20th year): ₹1,50,000 × 4 = ₹6,00,000
- Maturity (40% SA): ₹4,00,000
- Accrued Bonus (₹50 × 1000 × 25): ₹12,50,000
- Final Additional Bonus: ~₹2,50,000
- Total Estimated Payout: ~₹25,00,000
Death Benefit
- During policy term: "Sum Assured on Death" + Accrued Bonus + FAB (if applicable). Sum Assured on Death = Higher of (10 × Annual Premium) or (1.25 × Basic SA) — irrespective of any survival benefits already paid
- Important: Death benefit is not reduced by survival benefits already paid out. Full death benefit is payable.
Premium Payment Modes
- Yearly: Base rate (no loading)
- Half-Yearly: ~51.3% of annual premium
- Quarterly: ~25.8% of annual premium
- Monthly (ECS/NACH): ~8.7% of annual premium
Money Back 25 vs Other LIC Plans
- vs Money Back 20 (720): The 20-year plan has 3 survival benefit payouts of 20% SA each vs 4 payouts of 15% SA each in the 25-year plan. The 20-year plan has higher annual premiums but shorter commitment. Choose 25 years for more frequent (4 vs 3) but smaller payouts.
- vs Jeevan Anand (715): Jeevan Anand pays everything at maturity as a lump sum and provides unique post-maturity life cover. Money Back 25 provides 4 periodic payouts but no post-maturity cover.
- vs Jeevan Umang (745): Jeevan Umang is a whole-life plan with 8% SA annual survival benefit after premium paying term. Money Back 25 gives larger payouts but only at 5-year intervals for 25 years.
Who Should Buy Money Back Plan (25 Years)?
- Those who need regular periodic income every 5 years over a long period
- Young professionals planning for milestone expenses — education, marriage, home, retirement
- People who want 4 guaranteed payouts instead of waiting for lump-sum maturity
- Conservative investors seeking guaranteed, tax-free returns with life cover for 25 years
- Parents investing for children's long-term needs (entry age from 13 years)