LIC New Money Back Plan (25 Years) Calculator
Official Table No. 721 / 921 / 821 (UIN: 512N278V02). Calculate 20-year limited premiums, 4 periodic 15% survival cashflow payouts (Years 5, 10, 15, 20), simple reversionary bonuses, FAB, and tax-free maturity.
LIC Plan 721 / 921 Benefit Summary
Coverage: ₹5,00,000 | Age: 30 Yrs | Term: 25 Yrs (PPT: 20 Yrs)
- Total Survival Payouts Received (Yrs 5, 10, 15, 20): ₹3,00,000
- Maturity 40% Basic Sum Assured (Year 25): ₹2,00,000
- Accrued Simple Reversionary Bonus (25 Years): ₹5,62,500
- Estimated Final Additional Bonus (FAB): ₹1,25,000
- Total Combined Plan Benefits (Survival + Maturity): ₹11,87,500
25-Year Policy Year-by-Year Cashflow, Cover & Loan Progression
Visualizing all 4 periodic survival disbursements (Years 5, 10, 15, 20), the 5-year premium holiday (Years 21 to 25), escalating normal/accidental death cover, and surrender/loan growth.
| Pol. Year | Age | Annual Premium (₹) | Total Invested (₹) | Survival / Maturity Payout | Cumulative Bonus (₹) | Normal Life Cover (₹) | Accidental Cover (₹) | Approx. Loan Value (₹) |
|---|
1. What is LIC New Money Back Plan 25 Years (Plan 721 / 921 / 821)?
LIC's New Money Back Plan – 25 Years (Table No. 721, updated to Table No. 921 under UIN: 512N278V02, historically Table No. 821) is a premier non-linked, participating, limited-premium payment life assurance plan. Engineered specifically for individuals who desire periodic liquidity to fund medium-term lifestyle and family goals without relinquishing comprehensive long-term financial security, Plan 721 provides a disciplined 20-year savings schedule with 25 full years of protective umbrella cover.
Unlike standard endowment plans like LIC New Endowment (Plan 714) where returns are locked until maturity, or LIC Jeevan Anand (Plan 915) where liquidity is absent during the policy term, Plan 721 introduces four liquidity intervals. Every 5 years, the policyholder receives an automatic, tax-free survival benefit equal to 15% of the Basic Sum Assured.
4 Guaranteed Survival Payouts
Receive 15% of Basic Sum Assured at the end of the 5th, 10th, 15th, and 20th policy years—releasing 60% of capital before final maturity.
5-Year Premium Holiday
Premiums are paid for only 20 years during a 25-year tenure. Years 21 through 25 require zero premium while full bonus accrual and risk cover continue.
Non-Deduction Death Benefit
Nominees receive 125% of Sum Assured + all accrued bonuses upon claim. Any survival benefits already collected are 100% retained by the family.
Tri-Benefit Tax Savings
Enjoy deductions up to ₹1,50,000 under Section 80C, tax-free survival payouts, and 100% tax-exempt maturity under Section 10(10D) of the Income Tax Act.
2. Key Plan Eligibility Parameters & Core Rules
Before calculating your premiums or establishing a long-term investment horizon, verify your eligibility parameters against the official underwriting standards specified by the Life Insurance Corporation of India:
| Parameter | Official Rule (Plan 721 / 921) | Notes & Guidelines |
|---|---|---|
| Policy Term | Fixed 25 Years | Guarantees 25 years of compounding bonus accumulation. |
| Premium Paying Term (PPT) | Fixed 20 Years | 5-year premium holiday from the end of year 20 to year 25. |
| Minimum Age at Entry | 13 Years (Completed) | Ideal for teenagers entering higher secondary schooling. |
| Maximum Age at Entry | 45 Years (Nearer Birthday) | Ensures policy matures before or upon turning 70. |
| Maximum Maturity Age | 70 Years (Nearer Birthday) | Age at entry + 25 years must not exceed 70. |
| Minimum Basic Sum Assured | ₹1,00,000 | Available in multiples of ₹5,000 thereafter. |
| Maximum Basic Sum Assured | No Upper Limit | Subject to financial underwriting and income proof (ITR). |
| Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH) | Yearly mode attracts an upfront 2% tabular rebate. |
| Riders Permitted | ADDB, Accident Benefit, Term Assurance, Critical Illness | Can be attached at inception or on subsequent policy anniversaries. |
3. Detailed Breakdown of Survival & Maturity Cash Flows
The financial architecture of LIC Plan 721 / 921 is divided into two distinct components: In-Term Periodic Liquidity (60%) and Terminal Wealth Accumulation (40% + Bonuses).
The 4-Stage Guaranteed Survival Payout Schedule
During the 25-year tenure, the policyholder receives guaranteed milestone payouts directly into their registered bank account via NEFT, provided all due premiums have been honored:
- End of 5th Policy Year: 15% of Basic Sum Assured (e.g., ₹75,000 on a ₹5,00,000 policy). Perfect for funding junior school admissions, overseas travel, or vehicle down-payments.
- End of 10th Policy Year: 15% of Basic Sum Assured (e.g., ₹75,000). Ideal for home renovation, intermediate tuition fees, or electronics upgrades.
- End of 15th Policy Year: 15% of Basic Sum Assured (e.g., ₹75,000). Timed perfectly for undergraduate degree enrollments or career milestone investments.
- End of 20th Policy Year: 15% of Basic Sum Assured (e.g., ₹75,000). Marks the completion of all premium payments and provides celebratory milestone liquidity.
Terminal Maturity Benefit at the End of Year 25
Upon surviving the full 25-year policy term, the policyholder receives a lump-sum maturity payout calculated as:
For instance, on a ₹5,00,000 Sum Assured policy with an estimated bonus of ₹45 per thousand SA and an FAB of ₹250 per thousand SA:
- Remaining 40% Basic Sum Assured = ₹2,00,000
- Simple Reversionary Bonus (₹45 × 500 × 25 yrs) = ₹5,62,500
- Final Additional Bonus (₹250 × 500) = ₹1,25,000
- Total Maturity Benefit = ₹8,87,500
- Grand Total Cashflow Received (₹3,00,000 Survival + ₹8,87,500 Maturity) = ₹11,87,500
4. Death Benefit Protection: The Non-Deduction Guarantee
One of the most critical customer-friendly aspects of LIC Plan 721 is the Non-Deduction Principle. In ordinary market loans or personal financing, previous withdrawals diminish the remaining balance. However, under LIC's actuarial guidelines for Money Back plans:
Upon death of the life assured during the policy term provided the policy is active:
Nominee Receives: "Sum Assured on Death" + Accrued Simple Reversionary Bonuses up to the date of death + Final Additional Bonus (if eligible).
Where "Sum Assured on Death" is strictly defined as the higher of:
- 125% of the Basic Sum Assured (e.g., ₹6,25,000 on a ₹5,00,000 policy), OR
- 7 times the Annualized Premium paid.
Additionally, the total death benefit payable shall not be less than 105% of the total premiums paid up to the date of demise.
5. Comprehensive Plan Comparison Matrix
Choosing the right LIC policy depends on whether your priority is periodic liquidity, maximum long-term corpus, or lifelong post-maturity risk cover. Examine the comparative analysis below:
| Feature | LIC Money Back 25 Yrs (Plan 721) | LIC Money Back 20 Yrs (Plan 720) | LIC Jeevan Labh (Plan 736) | LIC New Endowment (Plan 714) |
|---|---|---|---|---|
| Policy Term | Fixed 25 Years | Fixed 20 Years | 16, 21, or 25 Years | 12 to 35 Years |
| Premium Paying Term | 20 Years (5-Yr Holiday) | 15 Years (5-Yr Holiday) | 10, 15, or 16 Years | Equal to Policy Term |
| Survival Benefits | 15% at Yrs 5, 10, 15, 20 (60% Total) | 20% at Yrs 5, 10, 15 (60% Total) | Nil (Lump sum at maturity) | Nil (Lump sum at maturity) |
| Maturity Payout | 40% SA + 25-Yr Bonus + FAB | 40% SA + 20-Yr Bonus + FAB | 100% SA + High Bonus + FAB | 100% SA + Bonus + FAB |
| Liquidity Structure | Every 5th year guaranteed | Every 5th year guaranteed | Only via Policy Loan | Only via Policy Loan |
| Best Suited For | Families with recurring medium-term goals | 15-year career horizon milestones | Maximum guaranteed return seekers | Conservative long-term savers |
6. High Sum Assured Rebates & Modal Incentives
LIC rewards policyholders who opt for larger coverage amounts and streamlined yearly premium payments through built-in tabular premium discounts:
High Sum Assured Rebate Table (Plan 721 / 921)
- ₹1,00,000 to ₹1,95,000: Nil rebate
- ₹2,00,000 to ₹4,95,000: ₹2.00 deduction per ₹1,000 Basic Sum Assured
- ₹5,00,000 and above: ₹3.00 deduction per ₹1,000 Basic Sum Assured
Payment Frequency (Mode) Rebates
- Yearly Mode: 2% discount on tabular premium
- Half-Yearly Mode: 1% discount on tabular premium
- Quarterly & Monthly NACH: Nil rebate
7. Surrender Value, Loan Facility & Paid-Up Provisions
Policy Loan Facility
Policyholders can avail of loans against their Plan 721 policy once it has completed at least 2 consecutive years of premium payments.
- In-Force Policies: Up to 90% of the prevailing surrender value.
- Paid-Up Policies: Up to 80% of the prevailing surrender value.
- Interest rates on LIC policy loans are determined bi-annually by LIC (currently hovering between 9% to 9.5% p.a. payable half-yearly), significantly cheaper than unsecured personal loans.
Guaranteed Surrender Value (GSV) vs. Special Surrender Value (SSV)
If you choose to surrender the policy after 2 years:
- GSV: Equal to a percentage of total premiums paid (excluding taxes and rider premiums) less any survival benefits already encashed, plus a percentage of accrued bonuses.
- SSV: Actuarially calculated based on the Paid-Up Sum Assured, accrued bonuses, and prevailing discounting factors. LIC pays the higher of GSV or SSV.
8. Step-by-Step 100% Paperless Online Purchase Process
Through our direct digital portal and authorized LIC agent credentials, you can complete the onboarding of your LIC New Money Back 25 Years Policy without physical branch visits or paper applications:
- Calculate Your Premium: Utilize the interactive calculator above to select your Sum Assured, age, and payment mode.
- Connect with Verified Advisor: Click the WhatsApp button or call +91 8419943250 (Agent Code: LIC10031212, Branch: Lalkuan, Uttarakhand).
- Digital e-KYC Verification: Submit your Aadhaar, PAN card, and bank account details through secure digital verification.
- Direct Online Payment: Pay your initial premium directly via official LIC gateway (UPI, Net Banking, Credit Card) receiving an instant official LIC receipt.
- Instant Policy Bond Dispatch: Your official policy bond is generated with digital signature and dispatched to your DigiLocker and doorstep via speed post.