Guaranteed Returns with Periodic Payouts: 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.
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)
✅ 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).
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
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
✅ 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)
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
🔹 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.
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
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
