The LIC New Money Back Plan 721 is a popular life insurance savings plan designed to offer both financial protection and periodic money-back benefits to policyholders. It ensures survival benefits during the policy term and a maturity benefit at the end.

To help prospective buyers and policyholders understand their expected returns and benefits, an easy-to-use LIC New Money Back Plan 721 Calculator comes in handy.

What is LIC New Money Back Plan 721?

LIC’s New Money Back Plan 721 is a non-linked, participating, limited premium paying life insurance plan with a policy term of 25 years. It offers a balanced combination of protection and savings where the policyholder receives periodic payouts during the policy tenure and a lump sum on maturity. This plan suits individuals looking for regular financial returns along with insurance coverage.

Key Features of LIC New Money Back Plan 721

• Policy Term: 25 years
• Premium Paying Term: 20 years
• Survival Benefits: 15% of the Basic Sum Assured paid at the end of the 5th, 10th, 15th, and 20th policy years
• Maturity Benefit: Remaining 40% of the Basic Sum Assured plus bonuses at the end of the 25 years
• Death Benefit: Higher of 125% of the basic sum assured or 7 times the annualized premium, along with accumulated bonuses
• Bonuses: Simple Reversionary Bonus and Final Additional Bonus (if any)
• Loan Facility: Available after payment of premiums for a certain period
• Minimum Entry Age: 13 years
• Maximum Entry Age: 45 years
• Maximum Maturity Age: 70 years

Understanding LIC New Money Back Plan 721 Calculator

The LIC New Money Back Plan 721 Calculator is an online tool that helps you estimate premium amounts, survival benefits, maturity value, and death benefits based on your policy inputs such as age, sum assured, and premium mode.

Why Use the Calculator?

• Easy to Use: Just enter basic details like age, sum assured, and premium payment preference.
• Instant Results: Quickly get an estimate of the final maturity amount and periodic payouts.
• Financial Planning: Helps you plan your savings and insurance coverage effectively.
• Comparison: Compare different sum assured amounts or premium frequencies.

How to Use LIC New Money Back Plan 721 Calculator

1. Enter Age: Input your current age. The age must be between 13 and 45 years.
2. Enter Basic Sum Assured: This should be at least ₹2,00,000 and in multiples of ₹25,000.
3. Select Premium Payment Frequency: Yearly, half-yearly, quarterly, or monthly.
4. Calculate: The calculator will display details such as annual premium, total premiums paid, survival benefits, maturity value, and death benefit.

Example: For a basic sum assured of ₹5,00,000 for a 30-year-old, the calculator will show survival payout amounts every 5 years, the final maturity amount after 25 years, and premium details.

Benefits of LIC New Money Back Plan 721

• Periodic Survival Benefits: Receive 15% of the sum assured at every 5-year interval, ensuring liquidity during the plan.
• Comprehensive Death Coverage: Nominees get the higher of 125% of the sum assured or 7 times the annualized premium, providing financial security.
• Maturity Benefits: Along with 40% of the sum assured, accumulated bonuses enhance your final payout.
• Bonus Accumulation: Participates in LIC’s bonus declarations, boosting the plan’s value.
• Loan Facility: You can avail of loans against the policy in times of need.
• Tax Benefits: Eligible for tax deductions under Section 80C and tax-free maturity benefits under Section 10(10D) of the Income Tax Act.

Eligibility and Conditions

• Minimum entry age: 13 years
• Maximum entry age: 45 years
• Maximum maturity age: 70 years
• Minimum basic sum assured: ₹2,00,000
• Policy term fixed at 25 years
• Premium paying term fixed at 20 years

Illustrative Example Using the Calculator

Suppose you choose a sum assured of ₹5,00,000 at age 30.

• You pay premiums annually for 20 years (approximate premium calculated by the tool).
• Survival benefits of ₹75,000 (15% of 5,00,000) are paid at the end of 5th, 10th, 15th, and 20th year totaling ₹3,00,000.
• At maturity (after 25 years), you receive the remaining 40% of the sum assured, i.e., ₹2,00,000 plus accumulated bonuses.
• The total maturity and survival amount can be approximately ₹12,00,000 to ₹14,00,000 after considering bonuses.

Nominees receive the death benefit in case of the policyholder’s untimely demise during the policy term.

Advantages Over Other Plans

Feature	LIC New Money Back Plan 721	Other Money Back Plans
Policy Term	Fixed 25 years	Varies (10-20 years usually)
Premium Term	20 years	Usually equal to policy term
Survival Benefits	15% of sum assured every 5 years	Different percentages and intervals
Death Benefit	Higher of 125% of the sum assured or 7x annual premium	Varies based on plan and sum assured
Loan Facility	Available after premiums paid	Not always available
Bonuses	Eligible for Simple Reversionary & Final Bonus	May differ or not available
Tax Benefits	Applicable	Generally applicable

Important Points to Remember

• Regular premium payment is required to avail all benefits.
• Survival benefits provide cash flow during the policy term.
• The plan offers financial protection and savings simultaneously.
• Bonus rates are declared annually by LIC and impact maturity value.
• Loan availability gives policyholders financial flexibility.
• Use the LIC New Money Back Plan 721 Calculator before buying to estimate all benefits accurately.

Where to Find LIC New Money Back Plan 721 Calculator?

You can find the official LIC calculator for this plan on LIC India’s website or reliable online portals like LICCalculators.net and PolicyBazaar. These tools are user-friendly and trustworthy for accurate estimation.

Frequently Asked Questions

Conclusion

The LIC New Money Back Plan 721 is an excellent option for those seeking a mix of insurance protection along with regular money-back benefits and a handsome maturity payout. The LIC New Money Back Plan 721 Calculator empowers prospective policyholders to make an informed choice with clarity on expected premiums, survival benefits, and maturity amounts.