LIC Money Back Calculator: Complete Plan 920 & 921 Financial Guide
When planning household financial security, balancing comprehensive long-term life cover with intermediate liquidity is one of the most vital imperatives for Indian families. Conventional endowment policies lock in capital until the end of the policy tenure; however, modern lifecycle goals—such as school admissions, milestone vehicle purchases, home renovations, or secondary education fees—demand dependable interim cashflow. This is where Life Insurance Corporation of India's (LIC) flagship participating Anticipated Endowment plans—LIC 20-Year Money Back Plan (Plan No. 920 / Table 920) and LIC 25-Year Money Back Plan (Plan No. 921 / Table 921)—serve as essential wealth instruments.
Our LIC Money Back Calculator provides an actuarially validated platform to simulate installment premiums, modal rebates, high sum assured discounts, 5-year survival milestone disbursements, accrued Simple Reversionary Bonuses, Final Additional Bonuses (FAB), and 100% tax-free maturity corpuses. If you want to evaluate your overall life coverage requirements, pair this tool with our Human Life Value (HLV) Calculator and compare base rates across traditional plans using the LIC Premium Calculator.
Simple Calculation Formulas for LIC Money Back Plans
Here are the straightforward formulas used to calculate premiums, survival benefits, and maturity returns:
Comprehensive Comparison: Plan 920 (20-Year) vs Plan 921 (25-Year)
Understanding the structural differences between LIC Plan 920 and Plan 921 ensures you align your insurance plan with your specific financial timeline:
| Policy Parameter | LIC 20-Year Money Back (Plan 920) | LIC 25-Year Money Back (Plan 921) |
|---|---|---|
| Policy Term | 20 Years | 25 Years |
| Premium Paying Term (PPT) | 15 Years (5 Years Premium-Free Window) | 20 Years (5 Years Premium-Free Window) |
| Minimum / Maximum Entry Age | 13 Years / 50 Years (Nearer Birthday) | 13 Years / 45 Years (Nearer Birthday) |
| Maximum Maturity Age | 70 Years | 70 Years |
| Minimum Basic Sum Assured | ₹1,00,000 | ₹1,00,000 |
| Maximum Basic Sum Assured | No Upper Limit (Subject to underwriting) | No Upper Limit (Subject to underwriting) |
| Survival Benefit Milestones | 20% SA at Years 5, 10, and 15 (Total 60% SA) | 15% SA at Years 5, 10, 15, and 20 (Total 60% SA) |
| Maturity Payout | 40% SA + Vested Bonuses + FAB | 40% SA + Vested Bonuses + FAB |
| Avg. Reversionary Bonus Rate | ~₹39 per ₹1,000 Sum Assured / Year | ~₹44 per ₹1,000 Sum Assured / Year |
| Final Additional Bonus (FAB) | Moderate (Up to ₹40/1k SA) | High (Up to ₹450/1k SA for 25-year duration) |
Survival Milestone Payout Schedules for ₹10 Lakhs Sum Assured
The table below illustrates the chronological timeline of guaranteed survival disbursements and final maturity returns for a policyholder choosing a ₹10,00,000 Basic Sum Assured:
| Policy Milestone | Plan 920 (20-Year Term, PPT 15 Yrs) | Plan 921 (25-Year Term, PPT 20 Yrs) |
|---|---|---|
| End of Year 5 | ₹2,00,000 (20% SA) | ₹1,50,000 (15% SA) |
| End of Year 10 | ₹2,00,000 (20% SA) | ₹1,50,000 (15% SA) |
| End of Year 15 | ₹2,00,000 (20% SA • Premium Payments End) | ₹1,50,000 (15% SA) |
| End of Year 20 | ₹4,00,000 (40% SA) + ₹7,80,000 Bonus + ₹40,000 FAB = ₹12,20,000 (Maturity) | ₹1,50,000 (15% SA • Premium Payments End) |
| End of Year 25 | Policy Closed at Year 20 | ₹4,00,000 (40% SA) + ₹11,00,000 Bonus + ₹4,50,000 FAB = ₹19,50,000 (Maturity) |
| Total Cash Inflow | ₹18,20,000 (182% of Basic SA) | ₹25,50,000 (255% of Basic SA) |
Full Non-Deduction Death Benefit Guarantee
A crucial protective feature of LIC Money Back policies is the Non-Deduction Death Benefit Principle.
If the life assured passes away at any time during the policy tenure (e.g., in Year 18 after having already received multiple survival payouts), the nominee receives the Full 100% Sum Assured on Death (125% of Basic Sum Assured or 7 times annualized premium) + Full Accrued Simple Reversionary Bonuses + Final Additional Bonus (FAB). None of the previously paid 5-year survival benefits are deducted from the death claim settlement.
Comprehensive Worked Financial Case Studies
Explore four worked financial case studies illustrating policyholder outcomes across different age groups and sum assured choices:
Case Study 1: Young Professional – 20-Year Plan 920 (Age 25, ₹5 Lakhs SA)
Rahul (Age 25) invests in LIC Plan 920 with a ₹5,00,000 Sum Assured to support his short-to-mid term career milestones:
- Policy Term / PPT: 20 Years / 15 Years.
- Annual Premium (Incl. GST): ~₹37,800/yr for 15 years (Total Invested: ~₹5,67,000).
- Guaranteed Survival Cashflows:
- End of Year 5: ₹1,00,000 (Used for higher certification).
- End of Year 10: ₹1,00,000 (Used for car down payment).
- End of Year 15: ₹1,00,000 (Used for home upgrade).
- Maturity Payout at Year 20: ₹2,00,000 (40% SA) + ₹3,90,000 (Reversionary Bonus @ ₹39/1k) + ₹20,000 (FAB) = ₹6,10,000.
- Total Inflow Received: ₹3,00,000 (Survival) + ₹6,10,000 (Maturity) = ₹9,10,000 (100% Tax-Free).
Case Study 2: Family Breadwinner – 25-Year Plan 921 (Age 30, ₹10 Lakhs SA)
Amit (Age 30) chooses LIC Plan 921 with a ₹10,00,000 Sum Assured to systematically fund his newborn child's educational milestones:
- Policy Term / PPT: 25 Years / 20 Years.
- Annual Premium (Incl. GST): ~₹57,500/yr for 20 years (Total Invested: ~₹11,50,000).
- Periodic Cashflows Received: ₹1,50,000 every 5 years (Years 5, 10, 15, and 20) totaling ₹6,00,000.
- Maturity Payout at Year 25: ₹4,00,000 (40% SA) + ₹11,00,000 (Bonus @ ₹44/1k) + ₹4,50,000 (FAB @ ₹450/1k) = ₹19,50,000.
- Total Cash Realization: ₹6,00,000 (Milestones) + ₹19,50,000 (Maturity) = ₹25,50,000 (100% Tax-Free).
Case Study 3: Mid-Career Manager – 20-Year Plan 920 (Age 35, ₹15 Lakhs SA)
Kavita (Age 35) opts for ₹15 Lakhs Sum Assured under Plan 920 with high sum assured rebates:
- High SA Rebate Applied: ₹2.00 per ₹1,000 SA discount.
- Survival Cashflows: ₹3,00,000 at Years 5, 10, and 15 (Total ₹9,00,000).
- Maturity Payout at Year 20: ₹6,00,000 (40% SA) + ₹11,70,000 (Bonus) + ₹60,000 (FAB) = ₹18,30,000.
- Total Benefit: ₹27,30,000.
Case Study 4: Senior Executive – 25-Year Plan 921 (Age 40, ₹25 Lakhs SA)
Rajesh (Age 40) secures ₹25 Lakhs life cover under Plan 921 to anchor retirement wealth:
- Periodic Cashflows: ₹3,75,000 at Years 5, 10, 15, and 20 (Total ₹15,00,000).
- Maturity Corpus at Year 25 (Age 65): ₹10,00,000 (40% SA) + ₹27,50,000 (Bonus) + ₹11,25,000 (FAB) = ₹48,75,000.
- Total Return on Investment: ₹63,75,000 (Tax-Free).
Comparison with Other Major Savings & Insurance Plans
Review how LIC Money Back policies compare with other signature life insurance structures:
| Comparison Feature | LIC Money Back (920/921) | LIC Jeevan Labh (936) | New Endowment (914) | LIC Kanyadan (933) |
|---|---|---|---|---|
| Plan Type | Anticipated Endowment | Limited Pay Endowment | Regular Endowment | Child Milestone Endowment |
| Interim Cashflow | Guaranteed Every 5 Years | Nil (Lump sum at end) | Nil (Lump sum at end) | Annual Income on Demise |
| Premium Paying Term | Limited (Term − 5 Yrs) | Ultra-Short (10, 15, 16 Yrs) | Equal to Policy Term | Limited (Term − 3 Yrs) |
| Death Benefit Rule | No deduction of past payouts | Sum Assured + Bonuses | Sum Assured + Bonuses | 10% SA/yr + Maturity Sum |
| Tax Exemption | Section 10(10D) 100% Tax-Free | Section 10(10D) Tax-Free | Section 10(10D) Tax-Free | Section 10(10D) Tax-Free |
Surrender Values & Policy Loan Provisions
LIC Money Back policies build guaranteed financial liquidity and borrowing power:
- Guaranteed Surrender Value (GSV): Payable after paying at least 2 full policy years' premiums. GSV is calculated as
[Total Premiums Paid (Excl. Taxes/Riders) × GSV Factor] − Survival Benefits Already Paid. - Special Surrender Value (SSV): More advantageous than GSV, representing the actuarially discounted paid-up sum assured and accrued reversionary bonuses. Check surrender rules using our LIC Surrender Value Calculator.
- Policy Loan Facility: Policyholders can obtain loans up to 90% of the surrender value for in-force policies (80% for paid-up policies) at competitive interest rates (~9% p.a.). Calculate loan limits with our LIC Loan Calculator.
Tax Advantages under Section 80C & Section 10(10D)
Money Back plans enjoy complete sovereign tax shielding supervised by the Income Tax Department of India:
- Section 80C Tax Deduction: Annual premium payments qualify for tax deductions up to ₹1,50,000 per financial year under the Old Tax Regime.
- Section 10(10D) Complete Tax Exemption: All 5-year survival cashflow disbursements, maturity proceeds, and death claim benefits are 100% tax-free without TDS deductions, provided annual premium is within 10% of the basic sum assured.
Frequently Asked Questions (FAQs)
What is the difference between LIC Money Back Plan 920 and Plan 921?
LIC Plan 920 has a 20-year policy term with a 15-year premium paying term (PPT) and pays 20% of Sum Assured at the end of the 5th, 10th, and 15th years, with the remaining 40% + bonuses at the 20th year. Plan 921 has a 25-year policy term with a 20-year PPT and pays 15% of Sum Assured at the end of the 5th, 10th, 15th, and 20th years, with the remaining 40% + bonuses at the 25th year.
Are survival benefit payouts deducted from the death claim amount?
No. In the unfortunate event of the policyholder's demise during the policy term, the full Sum Assured on Death (125% of Basic Sum Assured or 7 times annualized premium) plus vested bonuses is paid to the nominee without deducting any previously paid survival benefits.
What are the survival benefit payout percentages in LIC Money Back policies?
Under Plan 920 (20-Year), you receive 20% of Basic Sum Assured at the 5th, 10th, and 15th policy year (total 60% SA as survival benefits). Under Plan 921 (25-Year), you receive 15% of Basic Sum Assured at the 5th, 10th, 15th, and 20th policy year (total 60% SA as survival benefits).
What are the latest declared bonus rates for LIC Plan 920 and Plan 921?
Historically, LIC Plan 920 accrues Simple Reversionary Bonuses around ₹39 per ₹1,000 Sum Assured per year, while Plan 921 accrues higher bonuses around ₹44 per ₹1,000 Sum Assured per year due to its longer 25-year term. In addition, Plan 921 offers substantial Final Additional Bonuses (up to ₹450/1k SA) at maturity. Check bonus records with the LIC Bonus Calculator.
Are survival payouts and maturity returns tax-free under Section 10(10D)?
Yes. All periodic 5-year survival money-back payouts and final maturity proceeds are 100% exempt from income tax under Section 10(10D) of the Income Tax Act, provided annual premiums do not exceed 10% of the Basic Sum Assured. Annual premiums paid qualify for deduction under Section 80C up to ₹1.5 Lakhs.
Can I take a policy loan against my LIC Money Back policy?
Yes. Policy loans are available after 2 full policy years' premiums have been paid. For in-force policies, loan amounts up to 90% of the surrender value can be availed at competitive interest rates (typically ~9% to 9.5% p.a.).
What happens if I miss paying premiums on my Money Back policy?
A grace period of 30 days (15 days for monthly mode) is provided. If premiums remain unpaid after grace period, the policy acquires a Paid-Up status if at least 2 full years have been paid. The policy can be revived within 5 consecutive years from the First Unpaid Premium (FUP) date by paying arrears with interest.