New Money Back Plan 721

Guaranteed Returns with Periodic Payouts

🏦 Introduction

LIC New Money Back Plan 721, launched on 31st December 2024, is a traditional, non-linked life insurance policy that offers guaranteed returns, life cover, and periodic money-back payouts. It is ideal for individuals who prefer periodic survival benefits during the policy term along with lump sum maturity benefits and bonus earnings.

This plan offers insurance protection, liquidity through survival benefits, and savings—all in a single comprehensive product.

🧾 Key Highlights of LIC Money Back Plan 721

Feature	Description
🔄 Policy Term	25 Years
💸 Premium Payment Term	20 Years
💰 Survival Benefit	15% of Sum Assured every 5 years
🎯 Maturity Benefit	40% of Sum Assured + Bonuses
🛡️ Death Benefit	125% of Sum Assured + Bonuses
👤 Age at Entry	Min: 13 years
📜 Maximum Maturity Age	70 Years
🧾 Premium Modes	Yearly / Half-Yearly / Quarterly / Monthly (NACH)
📊 Tax Benefits	Premium under Sec 80C & Maturity under Sec 10(10D)

🎯 Key Features at a Glance

✅ Money-back of 15% of Sum Assured at the end of 5th, 10th, 15th, and 20th year.
✅ Remaining 40% of Sum Assured + Bonus + Final Additional Bonus at maturity (25th year).
✅ 125% Death Benefit of Sum Assured + Bonuses if death occurs within policy term.
✅ Riders Available: Accidental Death & Disability Rider, Term Rider.
✅ Loan & Surrender facilities after 1 full year of premium payment.
✅ Settlement Option for Death and Maturity Benefit (in 5/10/15-year installments).

📋 Eligibility & Plan Parameters

Criteria	Details
Minimum Entry Age	13 Years (Completed)
Maximum Entry Age	45 Years
Maximum Maturity Age	70 Years
Policy Term	25 Years
Premium Paying Term	20 Years
Minimum Sum Assured	₹2,00,000 (in multiples of ₹25,000)
Loan Availability	After 1 policy year
Surrender Eligibility	After 1 year of premium payment

💸 Premium Rebates & Discounts

1. Mode Rebate

Payment Mode	Rebate on Premium
Yearly	2%
Half-Yearly	1%
Quarterly/Monthly	NIL

2. High Sum Assured Rebate

Sum Assured Range	Rebate per ₹1000 BSA
₹2,00,000 – ₹4,75,000	NIL
₹5,00,000 and above	₹3 per ₹1,000 BSA

🏆 Benefits of LIC Money Back 721

✅ Survival Benefit

15% of Sum Assured is paid at:
- End of 5th Year
- End of 10th Year
- End of 15th Year
- End of 20th Year

✅ Maturity Benefit

If the policyholder survives the policy term (25 years), the following will be paid:

Maturity Benefit = 40% of Sum Assured + Vested Bonuses + Final Additional Bonus (FAB)

✅ Death Benefit

If death occurs during the policy term:

Death Benefit = 125% of Sum Assured + Accrued Bonus + FAB (if any)
Minimum Death Benefit: 105% of total premiums paid.

In case of accidental death, an additional Sum Assured is payable under rider (if opted).
The death benefit is higher of:
- 125% of Sum Assured
- 7 times the annualized premium
  (Subject to 105% minimum of total premiums paid)

🔁 Surrender, Loan, and Paid-up Value

Facility	Details
Surrender	Allowed after 1 year of premium payment
Loan Facility	Available after 1 full policy year
Paid-up Value	If premium is paid for at least 2 years and stopped, policy acquires paid-up value
Paid-up Formula	Paid-up = (Sum Assured × No. of premiums paid) ÷ Total premiums due

👨‍💼 LIC Money Back 721 – Real-Life Example

🔹 Policyholder: Ravi

Age: 25 Years
Sum Assured: ₹5,00,000
Policy Term: 25 Years
Premium Payment Term: 20 Years
Annual Premium: ₹30,012 (1st year), ₹29,366 (2nd year onward)

🔹 Survival Benefits (Money-Back)

Year	Policy Year	Survival Benefit
2025	End of 5th	₹75,000
2030	End of 10th	₹75,000
2035	End of 15th	₹75,000
2040	End of 20th	₹75,000

🔹 Maturity (Year 2045)

Age at Maturity	Total Premium Paid	Maturity Benefit (Approx.)
50 Years	₹5,87,966	₹8,62,500 (Excluding SB)

⚰️ Year-wise Death Benefit Illustration

If Ravi dies in the year 2042 (at age 47):

Year	Total Premium Paid	Death Benefit (Normal)	Death Benefit (Accidental)
2042	₹5,29,234	₹11,51,000	₹16,51,000

Note: All death benefits are tax-free and independent of previously paid survival benefits.

📌 Additional Information

Feature	Description
Revival Period	5 years from first unpaid premium
Suicide Clause	Within 1 year – 80% of premiums returned; After 1 year – full benefits payable
Cooling-off Period	30 days from policy receipt
Proposal Form Used	Form No. 300 / 340
Date Backing	Allowed within the same financial year
Riders Available	Accidental Death & Disability Rider, Term Rider
Settlement Option	Maturity/Death benefits can be taken in 5/10/15 year installments

✅ Why Choose LIC New Money Back Plan 721?

Feature	Benefit
💰 Periodic Returns	Money back every 5 years to fulfill short-term goals
🛡️ Long-term Protection	Life cover throughout the policy term
📈 Bonus Accumulation	Earned on full Sum Assured, even after money-back payouts
🔒 Tax Benefits	U/Sec 80C for premiums & U/Sec 10(10D) for maturity
🔄 Flexibility	Loan, surrender, revival & rider options