Money Back Plan
Enjoy money in hand periodically — regular payouts throughout the policy term with complete life cover.
About Money Back Plan
LIC's Money Back Plan (New Money Back Plan 20/25 Years) is a unique participating insurance plan that provides financial liquidity at regular intervals during the policy term. Unlike endowment plans where you get the full sum at maturity, the money back plan pays you a percentage of the sum assured at periodic intervals during the policy term — while maintaining the full life cover throughout. If death occurs during the policy term, the full sum assured is paid to the nominee regardless of the survival benefits already paid. This feature makes the Money Back Plan ideal for those who need access to funds at regular intervals for specific planned expenses — school fees, home renovation, vacations, or business investments.
Quick Benefits
- Periodic survival benefits every 5 years
- Full life cover throughout term
- Death benefit regardless of survival benefits paid
- Bonus additions on full sum assured
- Tax benefits under Section 80C
- Loan facility on policy
Who Should Take This Plan?
People who need liquidity at regular intervals while maintaining insurance protection.
Parents who want funds available at specific ages for children's education expenses.
Individuals who prefer getting returns during the policy term rather than waiting until maturity.
Business owners who need predictable periodic funds for business reinvestment.
Those planning major expenses at specific future dates (home renovation, travel, etc.).
Risk-averse investors who want guaranteed returns at multiple points in time.
Key Features
Periodic Payouts
Receive 20% of sum assured every 5 years during the policy term, providing regular liquidity.
Full Death Benefit
If death occurs, the nominee receives the full sum assured plus bonuses regardless of survival benefits already paid.
Bonus on Full Sum Assured
Bonuses are calculated on the full sum assured, not the reduced amount — maximizing your returns.
Financial Planning Tool
Plan major expenses for specific future dates by aligning them with the plan's payout schedule.
Loan Facility
After the policy acquires surrender value, take a loan against the policy for emergency needs.
Multiple Term Options
Choose between 20-year or 25-year term based on your financial planning horizon.
Save Taxes While You Protect
Premiums are eligible for Section 80C deduction up to ₹1.5 lakh. The survival benefits (periodic payments) and maturity amount are tax-free under Section 10(10D) if the annual premium does not exceed 10% of the sum assured. The death benefit is always fully tax-exempt.
Why This Plan Stands Out
Vs FD
Money Back Plan gives insurance coverage along with guaranteed periodic returns — FDs give no insurance.
Vs RD
Unlike RDs, money back plans provide life cover and the payout structure is optimized for planned expenses.
Vs Term Plan
Money Back Plan gives you returns periodically; term plans give nothing if you survive the term.
Vs Endowment
Endowment gives a lump sum at end; Money Back gives both periodic payouts AND a final payout.
Guaranteed Liquidity
Unlike market investments, the periodic payout dates are fixed and guaranteed.
Death Benefit Advantage
Even if survival benefits have been paid, the full death benefit remains payable to nominee.
Interested in Money Back Plan?
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