LIC New Money Back Plan – 20 Years (Plan No. 920, latest UIN 512N280V03) is a par, non‑linked, individual savings plan with a fixed 20‑year term and 15‑year premium‑paying term. It offers life cover during the entire 20‑year policy term, survival benefits (money‑back) at regular intervals, and a maturity payout at the end of 20 years if the life assured survives.
Key features
- Participating, non‑linked money‑back plan with bonuses; no market‑linkage.
- Limited premium: Pay premiums for 15 years, enjoy cover and benefits for 20 years.
- Periodic survival payouts: 20% of Sum Assured paid at the end of 5th, 10th and 15th policy years.
- Maturity benefit at 20 years: Remaining 40% of Sum Assured plus bonuses.
- Life cover throughout the 20‑year term; death benefit is independent of survival payouts.
- Surrender value, loan and paid‑up options available after the policy acquires a surrender value as per LIC rules.
Eligibility and basic parameters
Key eligibility conditions from current brochures and public sources:
- Minimum Basic Sum Assured: ₹1,00,000.
- Maximum Basic Sum Assured: No upper limit; in multiples of ₹5,000, subject to underwriting.
- Policy Term: 20 years (fixed).
- Premium Paying Term: 15 years.
- Minimum entry age: 13 years (completed).
- Maximum entry age: 50 years (nearer birthday).
- Maximum maturity age: 70 years (nearer birthday).
- Premium modes: Yearly, half‑yearly, quarterly, monthly (NACH/ECS), as per LIC rules.
Benefits at a glance
Survival (money‑back) benefits
If the life assured is alive and the policy is in force, LIC pays survival benefits as follows:
- 20% of Basic Sum Assured at the end of the 5th policy year.
- 20% of Basic Sum Assured at the end of the 10th policy year.
- 20% of Basic Sum Assured at the end of the 15th policy year.
The policy continues even after these payouts, and life cover remains in force till the end of the 20‑year term.
Maturity benefit
If the life assured survives till the end of 20 years and the policy is in force:
- 40% of Basic Sum Assured, plus
- Vested simple reversionary bonuses, plus
- Final additional bonus, if any,
are paid as maturity benefit.
Death benefit
If the life assured dies during the 20‑year term and the policy is in force, the nominee receives:
- Sum Assured on Death, plus
- Vested simple reversionary bonuses, plus
- Final additional bonus, if any.
In many descriptions, Sum Assured on Death is defined as a multiple of Basic Sum Assured/annualised premium (e.g., at least 125% of Sum Assured or 10 times annualised premium) and is subject to a minimum of 105% of total premiums paid (excluding taxes, extra and rider premiums) up to date of death. Survival benefits already paid are not deducted from the death benefit.
Who should consider LIC New Money Back Plan – 20 Years?
- Individuals who want periodic cash flows (every 5 years) plus a final lump‑sum, instead of a single maturity payout.
- Earners who like limited‑pay (15 years) but want life cover and bonuses to continue for 20 years.
- Parents planning for staggered education or family goals at roughly 5‑year intervals while retaining protection.
Example: A 30‑year‑old buys this plan with ₹5 lakh Sum Assured; she pays premiums from 30–45, receives ₹1 lakh each at the end of 5th, 10th and 15th years, and at 20 years gets ₹2 lakh plus bonuses as maturity, while her family stays covered throughout.
Important points and disclaimers
- This is a participating, non‑linked plan; actual returns depend on future bonus declarations, so clients should review a detailed illustration/IRR before investing.
- Surrender, paid‑up value and loan facilities become available once the policy acquires a surrender value, as per LIC rules.
- LIC has indicated New Money Back 20 Years (920) as a withdrawn plan in the “Withdrawn Plans” list for FY 2024‑25; check LIC’s current active‑plan list when advising new proposals and clearly mention current availability on your website.
- Always refer to the latest LIC Sales Brochure, Customer Information Sheet and policy document for exact definitions, conditions and rider rules.
- Tax benefits on premiums and payouts (e.g., under sections 80C and 10(10D) of the Income‑tax Act) are subject to conditions and may change; clients should seek personalised tax advice.