New Moneyback 20 Years


LIC Money Back Policy – 20 years is a very simple Money Back Plan or an endowment policy. This is certainly a non unit-linked insurance conventional plan in which the money back is paid as pre-decided intervals. It is actually a regular Plan with Bonus option. In this particular plan, premium is required to be paid till the end of the Insurance policy period. On the other hand, in case the policyholder dies within the policy tenure, the whole Sum Assured would be paid as death benefit together with accumulated Bonus, no matter what the amount previously paid.

Plan Features

  • 20 years Money Back Plan with TAX FREE returns every 5 years as survival benefits.
  • Limited payment for 15 years only
  • LIFE COVER to the extent of 1.25 times of Sum Assured + Bonus + Final Additional Bonus (as applicable).
  • Maturity : On completion of the term, full Sum Assured + Bonus + Final Additional Bonus (as applicable) will be paid.
  • Optional Benefit: LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider for 20 years with payment for 15 years only
  • Premium paid are Tax Exempted u/s 80 C & the Maturity amount is Tax Free u/s 10 (10) (D)

Eligibility Conditions

Parameter Min Max
Entry Age (Yrs) 13 50
Policy Term 20 years 15 years Premium Payment
Sum Assured 100000  No Limit


Money back insurance policy in India

Benefit illustration

Illustration specially prepared for Mr. Sumit (age 24 years)
Benefits Illustration Summary
Sum Assured Rs. 8,00,000
Term 20 years with premium term of 15 years only
Premium Mr Sumit’s Yearly premium under this,policy is Rs. 62,080 for a period of 15 years only. In 15 years he will pay a total of Rs. 9,15,996.
Returns from LIC
Policy Year Guaranteed Money Back Bonus Description
5 1,60,000 Survival Benefit
10 1,60,000 Survival Benefit
15 1,60,000 Survival Benefit
20 3,20,000 6,56,000 Maturity
Total 8,00,000 6,56,000 Total : 14,56,000
Life cover In this policy his life cover will start at Rs. 10,31,200. By virtue of bonus getting added every year, his risk cover will grow to Rs. 16,56,000 when his age will be 44.
Liquidity He has an option to surrender the policy & receive the cash value after payment of premiums for 3 years. Alternately, he can even avail of loan on this policy once the policy has acquired cash value.
Tax Saving Mr Sumit,can save a tax of Rs. 18,512 under Sec.80 CCE, against every premium paid. Tax Savings on premiums will be @ 30.90 % u/s 80C

Maturity Benefit

The leftover amount of Sum Assured together with bonus is paid as maturity benefit and paid to the insurance policy holder on surviving of the life insured till the end of the policy period.

Risk Coverage 125% of basic sum assured

Death Benefit

In the event of death of the policyholder, the nominee gets the full Sum assured amount in spite of what money back has already been paid to the policy holder together with accumulated Bonus


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