LIC New Money Back Plan 920 – 20-Year Savings + Insurance Plan
LIC of India launched the New Money Back Plan 920 on 1st February 2020, aimed at customers seeking guaranteed returns, regular money-back payouts, and life protection in one complete insurance package.
This policy is perfect for individuals who want to enjoy short-term liquidity through survival benefits and ensure long-term maturity with bonus additions.
Plan Overview
- Plan Name: LIC New Money Back Plan – 20 Years
- Plan Number: 920
- UIN: 512N280V02
- Type: Traditional, Non-Linked, Participating Plan
- Nature: Money-Back + Bonus + Life Cover
What is a Money Back Plan?
A money-back plan is a life insurance policy that pays out a percentage of the sum assured at regular intervals during the policy term, and pays out the remaining sum assured along with bonuses on maturity or earlier death. You stay protected and get cash in hand at regular stages.
Key Features of LIC New Money Back 920
| Feature | Description |
|---|---|
| Policy Term | 20 years |
| Premium Paying Term | 15 years |
| Survival Benefit | 20% of Sum Assured paid at 5th, 10th, and 15th year |
| Maturity Benefit | 40% Sum Assured + Bonuses |
| Death Benefit | 125% Sum Assured + Bonuses |
| Bonus | Simple Reversionary Bonus + Final Additional Bonus (FAB) |
| Loan | Available after 2 years |
| Surrender | Possible after 2 years of premium payment |
| Riders | Available (Accidental, Critical Illness, Term Rider) |
| Tax Benefits | Premium under 80C, Benefits under 10(10D) |
Eligibility Criteria
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 13 Years | 50 Years |
| Maturity Age | – | 70 Years |
| Basic Sum Assured | ₹1,00,000 | No Limit (in multiples of ₹5,000) |
| Policy Term | 20 Years | |
| Premium Paying Term | 15 Years | |
| Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH/SSS) |
Benefits of LIC New Money Back Plan 920
1. Survival Benefits
The policyholder receives 20% of the Basic Sum Assured at the end of:
- 5th Year
- 10th Year
- 15th Year
This helps meet short-term financial needs like education, marriage, or EMIs.
2. Maturity Benefit
If the policyholder survives till the end of 20 years, the maturity payout will include:
- 40% of Basic Sum Assured
- + Accrued Simple Reversionary Bonus
- + Final Additional Bonus (FAB)
🔹 Example:
For ₹5,00,000 Sum Assured, you receive ₹2,00,000 (40%) + Bonuses.
3. Death Benefit
If the policyholder dies during the policy term:
- Sum Assured on Death = Higher of:
- 125% of Sum Assured
- 7 times of annualized premium
- + Accrued Bonuses (SRB + FAB)
- Minimum payout = 105% of total premiums paid
If accidental death occurs, additional Sum Assured is paid (if rider opted).
Bonuses Explained
Simple Reversionary Bonus (SRB)
Added yearly during the policy term, declared by LIC based on performance.
Final Additional Bonus (FAB)
One-time bonus paid at maturity or death, based on policy term and Sum Assured.
Rebates on Premium
Mode Rebate
| Mode | Rebate on Premium |
|---|---|
| Yearly | 2% |
| Half-Yearly | 1% |
| Quarterly & Monthly | Nil |
High Sum Assured Rebate
| Basic Sum Assured | Rebate per ₹1000 SA |
|---|---|
| ₹1,00,000 to ₹1,95,000 | Nil |
| ₹2,00,000 to ₹4,95,000 | ₹2 |
| ₹5,00,000 and above | ₹3 |
Loan, Surrender & Paid-Up Options
| Feature | Availability |
|---|---|
| Loan | After 2 full years of premiums paid |
| Surrender | After 2 years of full premiums |
| Paid-Up | Available after 2 years of full premiums |
Paid-Up Value Formula:
Paid-up Value = Sum Assured × (Premiums Paid ÷ Total Premiums Payable)
Example Illustration – Mr. Nitin’s Policy
Policy Details:
| Parameter | Value |
|---|---|
| Name | Mr. Nitin |
| Age | 25 Years |
| Policy Term | 20 Years |
| Premium Paying Term | 15 Years |
| Sum Assured | ₹5,00,000 |
| Yearly Premium | ₹39,179 (1st Year), ₹38,335 (2nd Year onwards) |
| Total Premium Paid (15 years) | ₹5,75,869 |
Money Back Schedule
| Policy Year | Benefit | Amount |
|---|---|---|
| 5th Year | Survival Benefit | ₹1,00,000 (20%) |
| 10th Year | Survival Benefit | ₹1,00,000 (20%) |
| 15th Year | Survival Benefit | ₹1,00,000 (20%) |
Maturity Benefit (20th Year)
| Component | Amount |
|---|---|
| 40% of Sum Assured | ₹2,00,000 |
| Estimated Bonuses | ₹4,10,000 (approx) |
| Total Maturity Amount | ₹6,10,000* (Excluding money-back) |
*Estimates may vary based on LIC’s declared bonus rates.
Death Claim Example
If Mr. Nitin dies in the 17th policy year at age 42:
- Total Premium Paid: ₹4,60,864
- Death Sum Assured: ₹6,25,000 (125% of ₹5,00,000)
- Bonuses: ₹3,70,000 (assumed)
- Death Claim Amount:
- Normal Death: ₹9,95,000
- Accidental Death: ₹14,95,000 (with ADB rider)
Money-back already received is not deducted from the death claim.
Rider Options
Add protection by including optional riders:
- Accidental Death & Disability Benefit Rider
- Critical Illness Benefit Rider
- Term Assurance Rider
Additional Policy Information
| Feature | Description |
|---|---|
| Revival | Within 5 years from the first unpaid premium |
| Free Look Period | 15 days to return the policy |
| Suicide Clause | Within 12 months – 80% of premiums refunded |
| Date Backing | Available within financial year |
| Proposal Forms | Form 300 / 340 |
Tax Benefits
- Section 80C: Premiums eligible for tax deduction
- Section 10(10D): Maturity & Death benefits are tax-free
Summary – Why Choose LIC New Money Back 920?
✅ Money Back at 5th, 10th & 15th Years
✅ Lump sum maturity with bonuses
✅ Guaranteed Death Benefit
✅ Loan & Surrender facility
✅ Tax-free returns
✅ Trusted LIC backing
