LIC New Money Back Plan - 25 years (Plan No. 721)
The LIC New Money Back Plan 721 (25 Years) is a life insurance plan from LIC that gives both insurance and savings. In this plan, you pay premiums for a limited time, but the policy runs for 25 years.
It gives you money at regular intervals during the policy period (survival benefits) and a lump sum amount at the end of the policy. This plan is good for people who want regular money along with life cover.
If the policyholder dies during the policy, the nominee will get the full sum assured plus bonuses. If the policy continues till the end, the policyholder will get the maturity amount with bonuses. The plan also gives tax benefits as per the income tax rules.
Eligibility Criteria for LIC New Money Back Plan (25 Years)
| Parameter | Criteria |
|---|---|
| Sum Assured | Min: Rs. 1 LakhMax: No Limit |
| Entry Age (Last Birthday) | Min: 13 yearsMax: 45 years |
| Maturity Age (Last Birthday) | Min: - Max: 70 years |
| Policy Term (PT) | 25 years |
| Premium Paying Term (PPT) | 20 years |
| Premium Paying Frequency | Monthly, Quarterly, Half-Yearly, Yearly |
Key Features of LIC New Money Back Plan 25 Years
- The plan gives extra protection options through riders, like accidental death and disability benefits.
- If the life insured dies during the policy, the full Sum Assured plus any bonuses is paid to the nominee as a Death Benefit.
- You pay premiums for 20 years, and the policy continues for a total of 25 years.
- If the person insured survives the 5th, 10th, 15th, and 20th year, 15% of the Basic Sum Assured is paid each time as a Survival Benefit, and the policy keeps going.
- At the end of the policy term, the remaining 40% of the Basic Sum Assured is paid along with all bonuses.
- The plan is a simple money-back plan with the option to receive bonuses declared by LIC.
Benefits of LIC New Money Back Plan - 25 Years
Survival Benefit
If you stay alive during the policy, you get some money back while the plan continues:
After 5 years: you get 15% of the insured amountAfter 10 years: you get 15%After 15 years: you get 15%After 20 years: you get 15%
Maturity Benefit:
If you stay alive till the end of 25 years:You get the remaining 40% of the insured amountYou also get an extra bonus of moneyAfter this, the policy ends
Death Benefit
If the policyholder dies during the plan:The nominee (family member) gets the insured amount + bonusThis is paid even if some money was already given earlier
The amount given will be the highest of these:125% of the insured amount, or10 times the yearly premium
Also, at least 105% of all the premiums paid will be given to the nominee.
Tax Benefits:
This plan helps you save tax. The money you pay as a premium can reduce your taxable income, so you pay less tax. Also, the money you receive from the policy (either at the end or in case of death) is usually tax-free, as per government tax rules.
Bonus:
The company may give you extra money, called a bonus. This is added to your policy over time. There are different types of bonuses, like a simple bonus (added every year) and a final bonus (given at the end). This increases the total amount you receive.
Additional Riders (Extra Benefits):
This plan allows you to add extra protection by choosing riders. These are optional benefits that give more coverage in special situations like accidents, serious illness, or death.
Accidental Death and Disability Rider:If the policyholder dies in an accident or becomes disabled due to an accident, this rider gives extra financial support to the family or the policyholder.Accident Benefit Rider:If the policyholder dies because of an accident, this rider gives an additional payout along with the main policy amount.New Term Assurance Rider:This rider provides extra life cover for a specific period. If the policyholder dies during this time, the family gets additional money.New Critical Illness Benefit Rider:If the policyholder is diagnosed with a serious illness (like cancer or heart disease), this rider gives a lump sum amount to help with medical expenses.
Note: You can choose only one rider from the first two options (Accidental Death and Disability Rider or Accident Benefit Rider), not both.
Policy Details of LIC New Money Back Plan (25 Years)
Grace Period
You get 30 extra days to pay your premium after the due date. If you do not pay within these 30 days, your policy will stop (lapse).
Policy Termination or Surrender Benefit:
If you do not pay even after the grace period, your policy will lapse. But you can restart (revive) it within 2 years from the date you missed your first payment. Also, if you have paid premiums for at least 3 full years, you can cancel (surrender) the policy and get some money back as per company rules.
Free Look Period
After buying the policy, you get 15 days to check all its details. If you are not happy, you can cancel it during this time. You will get your money back after a small deduction (charges) by the insurance company.
Loan Facility
With this plan, you can take a loan after you have paid premiums for at least 2 full years. The maximum loan you can get depends on your policy value:If your policy is active (in-force), you can get up to 90% of its valueIf your policy is paid-up (no more premiums being paid), you can get up to 80% of its value
LIC New Money Back Plan (25 Years) Premium Chart
This table shows how much you need to pay every year based on your age and the amount you choose:
Age Rs. 5 Lakh Cover (Yearly) Rs. 10 Lakh Cover (Yearly) 20 Years Rs. 27,900 Rs. 55,800 30 Years Rs. 28,611 Rs. 57,221 40 Years Rs. 30,815 Rs. 61,631 All amounts are yearly premiums (tax not included).
What Is Not Covered in LIC New Money Back Plan (25 Years):
If the policyholder dies by suicide within 12 months of starting the policy:Only 80% of the premium paid will be given to the nominee
If the policyholder dies by suicide within 12 months after restarting the policy (revival):The nominee will get either the surrender value or 80% of the total premiums paid (whichever is higher)
Disclaimer: Squareinsurance.in does not endorse or recommend any specific insurance company or insurance plan. For more details about this plan, please check the plan brochure or the policy document.
FAQs
It is a life insurance plan that gives you both savings and protection. You get money during the policy and also at the end.
The nominee will get the full sum assured plus bonus, even if some money was already paid earlier.
Yes, you can add riders (extra benefits) like accident cover or critical illness cover.
You get 15 days from the date the policy starts to check it. If you are not happy with the policy, you can cancel it. If you cancel, the insurance company will return your first premium after taking a small charge.
You can get a duplicate copy by sending a request form to the nearest LIC branch along with the required documents.
You can check the claim status online, or you can call LIC to know the status of your claim.