LIC New Money Back Plan 921 – 25 Years Guaranteed Returns + Life Cover
LIC of India launched the New Money Back Plan 921 on 1st February 2020, designed to offer a unique blend of protection, periodic survival benefits, and maturity bonuses. This is a traditional, non-linked, participating life insurance plan where the premium is paid for 20 years while the policy runs for 25 years.
It is ideal for individuals seeking regular payouts during the policy period, and a lump sum amount at maturity along with life cover throughout the tenure.
What is LIC Money Back Policy?
A Money Back Policy provides a portion of the Sum Assured at regular intervals (called Survival Benefits) and the remaining balance with bonuses at maturity. It also ensures financial security to your family in case of untimely death during the policy term.
In Plan 921, you get 15% of Sum Assured at the end of 5th, 10th, 15th, and 20th year, and the remaining 40% with bonuses at the end of the 25th year.
Key Features of LIC New Money Back Plan 921
| Feature | Description |
|---|---|
| Policy Term | 25 Years |
| Premium Payment Term | 20 Years |
| Survival Benefit | 15% of Sum Assured at 5th, 10th, 15th & 20th year |
| Maturity Benefit | 40% of Sum Assured + Bonuses |
| Death Benefit | 125% of Sum Assured + Bonuses |
| Bonus Additions | Simple Reversionary Bonus + Final Additional Bonus (FAB) |
| Loan Availability | After 2 years |
| Surrender | After 2 full years of premium paid |
| Rider Options | Accidental, Disability, Critical Illness, Term Rider |
| Settlement Options | In 5, 10, or 15-year installments |
| Tax Benefits | Premiums under Sec 80C, maturity under Sec 10(10D) |
Eligibility Criteria
| Parameter | Value |
|---|---|
| Minimum Entry Age | 13 Years (Completed) |
| Maximum Entry Age | 45 Years |
| Maximum Maturity Age | 70 Years |
| Basic Sum Assured | ₹1,00,000 and above (in multiples of ₹5,000) |
| Premium Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH) |
Premium Rebates
✅ Mode Rebate
| Mode | Rebate |
|---|---|
| Yearly | 2% |
| Half-Yearly | 1% |
| Quarterly / Monthly | Nil |
✅ High Sum Assured Rebate
| Sum Assured Slab | 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 |
Benefits in Detail
1. Survival Benefits (SB)
The life insured receives 15% of Basic Sum Assured at:
- End of 5th year
- End of 10th year
- End of 15th year
- End of 20th year
2. Maturity Benefit (25th Year)
On survival till end of the term:
- 40% of Basic Sum Assured
- + Accrued Simple Reversionary Bonuses
- + Final Additional Bonus (FAB)
🔸 Example: For ₹5,00,000 SA, you receive ₹2,00,000 + Bonuses at maturity.
3. Death Benefit
In case of death during the policy term:
- Higher of:
- 125% of Basic Sum Assured, or
- 7 times the Annualized Premium
- + Bonuses (SRB + FAB)
- Minimum: 105% of total premiums paid
In case of accidental death (with rider), an additional Sum Assured is paid to the nominee.
Bonus Structure
- Simple Reversionary Bonus (SRB): Declared annually and accumulates.
- Final Additional Bonus (FAB): One-time bonus paid at maturity or on death.
Other Features
| Feature | Description |
|---|---|
| Loan | Available after 2 full years of premium payments |
| Surrender | Possible after paying 2 full years |
| Paid-Up Value | If policy is discontinued after 2+ years, it becomes paid-up |
Paid-Up Value Formula:
Paid-up Value = Sum Assured × (No. of premiums paid / Total premiums payable)
Example – Mr. Ravi’s LIC Policy
Policy Details:
| Parameter | Value |
|---|---|
| Name | Mr. Ravi |
| Age | 25 Years |
| Policy Term | 25 Years |
| Premium Paying Term | 20 Years |
| Basic Sum Assured | ₹5,00,000 |
| Yearly Premium | ₹30,012 (1st Year), ₹29,366 (2nd Year onward) |
| Total Premium Paid | ₹5,87,966 |
Survival Benefits Received
| Year | Payout | Amount |
|---|---|---|
| 5th Year | SB | ₹75,000 |
| 10th Year | SB | ₹75,000 |
| 15th Year | SB | ₹75,000 |
| 20th Year | SB | ₹75,000 |
Maturity Benefit – 25th Year
| Component | Amount |
|---|---|
| 40% of SA | ₹2,00,000 |
| Estimated Bonuses | ₹6,62,500 (SRB + FAB) |
| Total Maturity (Approx.) | ₹8,62,500* |
*Excluding the ₹3,00,000 already paid as money-back.
Death Benefit Example
If Ravi dies in 2042 (at age 47):
- Total Premium Paid: ₹5,29,234
- Normal Death Claim: ₹11,51,000
- Accidental Death Claim (with rider): ₹16,51,000
- Money back already received: Not deducted from death claim.
Policy Revival, Riders & Clauses
| Feature | Description |
|---|---|
| Revival | Within 5 years from date of first unpaid premium |
| Riders Available | Accidental Death & Disability, Critical Illness, Term Rider |
| Suicide Clause | Within 12 months: 80% of premium returned. After 12 months: Full SA + Bonus |
| Free Look Period | 15 days from policy receipt date |
| Date Backing | Available |
| Proposal Form | No. 300 / 340 |
Tax Benefits
- Under Section 80C: Premiums paid qualify for tax deduction
- Under Section 10(10D): Maturity & Death claims are tax-free
Why Choose LIC New Money Back Plan 921?
✔️ Survival benefits every 5 years
✔️ Maturity bonus for long-term savings
✔️ Comprehensive death protection
✔️ Riders for extra security
✔️ Tax benefits under 80C & 10(10D)
✔️ Ideal for planned future expenses like education, marriage, retirement, etc.
