New Moneyback 25 Years


Last updated on September 23rd, 2017 at 04:11 am

Compared with normal endowment insurance plans in which the survival or maturity benefits are given only at the end of the policy term, In LIC New Moneyback 25 Years it offers for periodic installments of partial survival benefits while in the term of the policy, obviously assuming that the policy holder is alive.

In case there is death of the insurance policy holder at any time during the policy term, the death benefit is the full sum assured with no subtracting any of the survival benefit amounts, which happen to have already been paid as money back parts.

Plan Features

  • 25 years Money Back Plan with TAX FREE returns every 5 years as survival benefits.
  •  Limited payment for 20 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 policy 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 25 years with payment for 20 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 45
Policy Term 25 years 20 years Premium Payment
Sum Assured 100000  No Limit


Money back 20 years insurance policy by lic

Benefit illustration

Illustration specially prepared for Mrs. Kanchan (age 27 years)
Benefits Illustration Summary
Sum Assured Rs. 2,00,000
Term 25 years with premium term of 20 years only
Premium Mrs Kanchan’s  Yearly premium under this policy is Rs. 12,173 for a period of 20 years only. In 20 years you will pay a total of Rs. 2,39,413.
Returns from LIC
Policy Year Guaranteed Money Back Bonus Description
5 30,000 Survival Benefit
10 30,000 Survival Benefit
15 30,000 Survival Benefit
20 30,000 Survival Benefit
25 80,000 2,65,000 Maturity
Total 2,00,000 2,65,000 Total : 4,65,000
Life cover In this policy her life cover will start at Rs. 2,58,800. By virtue of bonus getting added every year, her risk cover will grow to Rs. 5,15,000 when her age will be 52.
Liquidity She has  an option to surrender the policy & receive the cash value after payment of premiums for 3 years. Alternately, she can even avail of loan on this policy once the policy has acquired cash value.
Tax Saving Mrs. Kanchan can save a tax of Rs. 3,630 under Sec.80 CCE, against every premium paid Tax Savings on premiums will be @ 30.90 % u/s 80C

It generates a long-term savings possibility with a affordable rate of return, particularly since the payment is considered exempt from tax with the exception of under specific scenarios.

Risk Coverage 125% of basic sum assured

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