LIC New Money Back Plan 720
20 Years Premium Payment Term Calculator
Policy Details
Policy Summary
Year-wise Benefit Analysis
| Year | Age | Premium Paid (₹) | Survival Benefit (₹) | Cumulative Premium (₹) | Cumulative Benefits (₹) | Death Benefit (₹) |
|---|
Important Disclaimers:
- This calculator provides illustrative projections based on assumed bonus rates and may not reflect actual policy performance.
- Survival Benefits: 20% of Sum Assured paid at the end of 5th, 10th, and 15th policy years.
- Maturity Benefit: 40% of Sum Assured + Vested Bonuses + Final Addition Bonus (if any).
- Death Benefit: Sum Assured + Vested Bonuses or 105% of premiums paid, whichever is higher.
- Premium rates may vary based on age, sum assured, and medical underwriting.
- GST is applicable as per current tax laws and may change in the future.
- Actual bonus rates are declared by LIC annually and may vary from assumptions.
LIC New Money Back Plan 720 is a widely popular life insurance plan that offers both protection and savings benefits. It is designed to provide financial security to policyholders and their families by paying periodic survival benefits during the policy term and a maturity amount at the end of the term.
What is LIC New Money Back Plan 720?
LIC New Money Back Plan 720 is a non-linked, participating, limited premium, individual life assurance savings plan with a policy term of 20 years. The plan offers a combination of:
- Protection against death during the policy term
- Periodic payments (money back) on survival at specified durations
- Maturity benefit along with bonuses on surviving the full term
The policy is designed for people aged 13 to 50 years and requires premium payments for the entire 20-year term. It allows for additional riders for enhanced protection, such as accidental death or critical illness coverage.
Key Features of LIC New Money Back Plan 720
- Policy Term: 20 years
- Premium Payment Term: 20 years (equal to policy term)
- Minimum Entry Age: 13 years
- Maximum Entry Age: 50 years
- Minimum Basic Sum Assured: ₹2,00,000 (in multiples of ₹25,000)
- Money Back Benefits: 20% of the sum assured paid at the end of 5th, 10th, and 15th years
- Maturity Benefit: Remaining 40% of the sum assured plus vested bonuses after 20 years
- Death Benefit: Higher of 125% of basic sum assured or 7 times the annualized premium, plus bonuses
- Loan Facility: Available after 1 year of premium payment
- Flexibility: Option to add riders for extra coverage
How Does LIC New Money Back Plan 720 Work?
The plan pays 20% of the basic sum assured as a survival benefit at the end of the 5th, 10th, and 15th policy years. The remaining 40% of the sum assured along with the vested Simple Reversionary Bonuses and Final Additional Bonus (if any), is paid at maturity on completion of 20 years.
In the unfortunate event of the policyholder’s death during the policy term, the nominee receives the death benefit which is the higher of 125% of the basic sum assured or seven times the annual premium plus bonuses.
Benefits of LIC New Money Back Plan 720
The plan offers several benefits, making it attractive for policyholders looking for a balance between savings and protection.
- Periodic Money Back: Get 20% of the sum assured at regular intervals (5, 10, 15 years) to meet financial needs such as education or weddings.
- Life Cover: Financial security for your family with a lump sum death benefit during the policy term.
- Maturity Benefit: Receive the remaining 40% sum assured with bonuses after 20 years.
- Bonus Addition: Participate in LIC’s profit with annual Simple Reversionary Bonuses and a Final Additional Bonus.
- Loan Facility: Get a loan against the policy after 1 year for emergencies.
- Tax Benefits: Eligible for tax deduction on premiums paid under Section 80C of the Income Tax Act.
What is LIC New Money Back Plan 720 Calculator?
The LIC New Money Back Plan 720 Calculator is a handy online tool that helps you estimate the benefits you will receive from this plan based on your sum assured, age, and premium payment details. It calculates:
- Premium amount payable annually or monthly
- Survival benefits payable at the end of 5, 10, and 15 years
- Maturity amount including bonuses
- Death benefit in case of policyholder’s demise during the policy term
Using this calculator simplifies financial planning and helps you make an informed decision before purchasing the plan.
Step-by-Step Guide to Using the LIC New Money Back Plan 720 Calculator
- Enter Your Age: The calculator usually requires you to input your age at the time of buying the policy (between 13 and 50 years).
- Enter Basic Sum Assured: Choose the amount of insurance coverage you want (minimum ₹2,00,000).
- Select Premium Payment Mode: Options include yearly, half-yearly, quarterly, or monthly.
- Calculate Premiums and Benefits: The calculator computes the payable premium and expected survival benefits, maturity amount, and death benefits.
- Review Detailed Benefit Schedule: The tool provides a breakdown of money-back payouts at 5, 10, and 15 years, and maturity payouts after 20 years.
Example Calculation
Suppose a 30-year-old policyholder buys the LIC New Money Back Plan 720 with a basic sum assured of ₹5,00,000. The premiums are paid yearly.
- Survival Benefit: ₹1,00,000 at the end of the 5th, 10th, and 15th years (20% of ₹5,00,000).
- Maturity Benefit: ₹2,00,000 (remaining 40% of sum assured) + bonuses at the end of 20 years.
- Death Benefit: The higher of 125% of the sum assured (₹6,25,000) or 7 times the annual premium plus bonuses.
This example clearly shows how you receive periodic money back and a lump sum amount on maturity while keeping your family protected.
Why Choose LIC New Money Back Plan 720?
- Trusted by Millions: LIC is one of the oldest and most trusted insurance providers in India.
- Balanced Savings and Protection: Combines life insurance with periodic financial returns.
- Flexibility: Multiple premium payment modes and optional riders.
- Additional Bonuses: The plan participates in LIC’s profits, enhancing overall returns.
- Loan Facility: Helps in emergencies without policy surrender.
Important Tips Before Buying
- Calculate your premium carefully using the LIC New Money Back Plan 720 Calculator.
- Review all terms, benefits, and exclusions carefully.
- Consider adding riders for extra coverage if required.
- Make sure to pay your premiums on time to keep the policy in force.
- Consult with a LIC agent or financial advisor for personalized advice.
Where to Find the LIC New Money Back Plan 720 Calculator?
Various trusted websites and LIC’s official portals provide an easy-to-use calculator for this plan. Some popular sources include:
- LIC India official website (licindia.in)
- Reliable insurance comparison platforms such as PolicyBazaar and BuyPolicy
These platforms allow you to input your details and get instant benefit estimates, helping you plan your investments wisely.
Frequently Asked Questions
What is LIC New Money Back Plan 720?
LIC New Money Back Plan 720 is a 20-year non-linked, participating life insurance plan that offers periodic survival benefits, life cover, and maturity benefits with bonuses.
Who is eligible to buy this plan?
Individuals aged between 13 and 50 years can purchase this plan, with a minimum basic sum assured of ₹2,00,000.
What are the money-back benefits under this plan?
Policyholders receive 20% of the basic sum assured as survival benefits at the end of the 5th, 10th, and 15th policy years.
What happens if the policyholder dies during the policy term?
In case of death during the policy term, the nominee receives the higher of 125% of the basic sum assured or 7 times the annualized premium plus vested bonuses.
How long do I need to pay premiums for this plan?
Premiums must be paid for the entire 20-year policy term.
Can I take a loan against this policy?
Yes, the policyholder can avail of a loan against the policy after paying premiums for at least one year.
Are there any tax benefits with this plan?
Yes, premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, and maturity benefits received are tax-free under Section 10(10D), subject to conditions.
What are the maturity benefits in this plan?
At maturity (after 20 years), the policyholder receives the remaining 40% of the sum assured along with accrued bonuses.
Conclusion
The LIC New Money Back Plan 720 is an ideal choice for those who want a secure financial future with periodic returns and life cover. With the help of the LIC New Money Back Plan 720 Calculator, anyone can easily estimate the benefits and premiums before making an investment.
This plan provides financial support at regular intervals during the policy term and a lump sum at maturity. Combined with LIC’s strong legacy, bonuses, and flexibility, it is highly recommended for long-term wealth creation and family protection.