LIC New Money Back Plan – 25 Years (Plan No. 921, latest UIN 512N278V03) is a par, non‑linked, individual savings‑cum‑protection plan with a 25‑year policy term and 20‑year premium‑paying term. It offers life cover for the full 25 years, survival (money‑back) benefits at 5‑year intervals, and a maturity benefit at the end of the term if the life assured survives.
Key features of LIC New Money Back Plan – 25 Years
- Participating, non‑linked money‑back plan with simple reversionary bonuses and potential final additional bonus.
- Limited premium: Pay premiums for 20 years; enjoy coverage and benefits for 25 years.
- Survival benefits: 15% of Basic Sum Assured each at the end of the 5th, 10th, 15th and 20th policy years.
- Maturity at 25 years: Remaining 40% of Basic Sum Assured plus bonuses payable at the end of the 25‑year term.
- Death benefit independent of money‑back payouts; nominee gets full Sum Assured on Death plus bonuses if death occurs during the term.
- Optional riders (e.g., Accidental Death & Disability, others) available as per current LIC rider list, for enhanced protection.
Eligibility and basic parameters
Indicative eligibility from current brochures and public sources:
- Policy Term: 25 years (fixed).
- Premium Paying Term: 20 years.
- Minimum Basic Sum Assured: ₹1,00,000.
- Maximum Basic Sum Assured: No stated upper limit; in defined multiples, subject to underwriting.
- Minimum entry age: 13 years (completed).
- Maximum entry age: Typically 45 years (last/nearer birthday) so that maturity age stays within LIC limits.
- Maximum maturity age: Usually 70 years (nearer birthday).
- Premium payment modes: Yearly, half‑yearly, quarterly, monthly (NACH/ECS) as per LIC rules.
You can lift the exact grid from LIC’s latest Customer Information Sheet and Sales Brochure while publishing.
Benefits at a glance
Survival (money‑back) benefits
If the life assured is alive and the policy is in force, LIC pays:
- 15% of Basic Sum Assured at the end of 5th policy year.
- 15% of Basic Sum Assured at the end of 10th policy year.
- 15% of Basic Sum Assured at the end of 15th policy year.
- 15% of Basic Sum Assured at the end of 20th policy year.
The policy and life cover continue even after these payouts.
Maturity benefit
If the life assured survives till the end of the 25‑year term and the policy is in force:
- 40% of Basic Sum Assured (Sum Assured on Maturity), plus
- Vested simple reversionary bonuses, plus
- Final additional bonus, if any,
are paid as the maturity benefit. LIC also allows, in newer versions, an option to receive this maturity amount in instalments (e.g., over 5/10/15 years) instead of lump sum, subject to conditions.
Death benefit
If the life assured dies during the 25‑year policy term, while the policy is in force, the nominee receives:
- Sum Assured on Death, plus
- Vested simple reversionary bonuses, plus
- Final additional bonus, if any.
Many current descriptions state Sum Assured on Death for Plan 921 as at least 125% of Basic Sum Assured (or as per latest product wording) and not less than 105% of total premiums paid (excluding taxes, extra premiums 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 – 25 Years?
- Individuals who want periodic cash flows every 5 years plus a final lump sum at 25 years, instead of a single maturity payout.
- Clients comfortable paying for 20 years but wanting cover and bonus‑based growth for a longer 25‑year horizon.
- Parents planning for staggered goals (higher education, marriage, home down payment) around years 10-25 while keeping life cover in place.
Example: A 30‑year‑old buys Plan 921 for ₹5 lakh Sum Assured; she pays premiums from 30-50, receives ₹75,000 each at the end of 5th, 10th, 15th and 20th years, and at 25 years gets ₹2 lakh plus bonuses, while her family stays covered throughout for Sum Assured on Death plus bonuses.
Important points and disclaimers related to LIC New Money Back Plan – 25 Years
- LIC’s New Money Back Plan – 25 Years is a participating, non‑linked plan; actual returns depend on future bonus declarations, so clients should examine a detailed illustration and IRR.
- Surrender value, paid‑up value, and loan facilities become available once the policy acquires a surrender value, as per LIC rules.
- Plan code/UIN (e.g., 921, 512N278V03) and rider options may be updated; always refer to the latest Sales Brochure, Customer Information Sheet and policy document when advising or publishing details.
- Tax benefits on premiums and benefits (for example under sections 80C and 10(10D) of the Income‑tax Act) are subject to conditions and may change; clients should seek personalised tax advice.