In today’s world, securing your financial future while ensuring life coverage is crucial. LIC (Life Insurance Corporation of India), the country’s leading insurance provider, offers a variety of plans catering to different needs. One such plan is the LIC New Money Back Plan 720, a unique combination of protection and savings.

To maximize benefits and plan your investments wisely, using an effective LIC New Money Back Plan 720 calculator becomes essential. This article will cover everything you need to know about this plan, the importance of the calculator, and how to use it effectively.

What Is LIC New Money Back Plan 720?

LIC’s New Money Back Plan 720 is a non-linked, participating life insurance plan that offers both protection and periodic cash benefits over a 20-year policy period. Launched in 2024, it is designed for individuals aged 13 to 50 years who seek regular payouts during the policy term and a lump sum at maturity.

Key Features

• Policy Term: 20 years
• Payouts: Money back at the end of 5, 10, and 15 years (each 20% of the sum assured)
• Maturity Benefit: 40% of the sum assured, bonuses, and final bonus
• Death Benefit: 125% of the sum assured along with bonuses
• Premium Payment: Regular, fixed payments for 20 years
• Entry Age: 13 to 50 years
• Sum Assured: Starting at ₹2,00,000, in multiples of ₹25,000

The plan aims to provide regular income during the policy tenure and life coverage, making it suitable for medium-term financial planning.

Why Use an LIC New Money Back Plan 720 Calculator?

A calculator helps you estimate the exact benefits you might receive based on your inputs, such as age, sum assured, premium amount, and policy tenure. It simplifies complex calculations, allowing you to visualize:

• Survival benefits
• Maturity amount
• Death benefits
• Premium budgeting

Using a calculator ensures better financial planning, enabling you to align your investments with your future financial goals.

How Does the LIC New Money Back Plan 720 Calculator Work?

The calculator works by asking for key details like:

• Age at entry
• Sum assured
• Premium amount
• Policy duration (fixed at 20 years for this plan)
• Payment frequency (monthly, quarterly, semi-annual, yearly)

Once the data is entered, it performs the following calculations:

• Periodic payouts: 20% at end of 5, 10, and 15 years
• Maturity benefits: 40% at the end of 20 years
• Accrued bonuses: Based on LIC’s declared bonuses
• Death benefits: 125% of the sum assured plus bonuses

This helps you see your expected returns, plan premium payments, and decide whether this plan suits your financial objectives.

Step-by-Step Guide to Using the LIC New Money Back Plan 720 Calculator

Enter Personal Details

Fill in your date of birth and gender to determine your age and risk profile.

Specify Sum Assured

Decide on the amount you wish to insure, keeping in mind the minimum (₹2,00,000) and maximum limits.

Select Premium Payment Mode

Choose how often you want to pay premiums: yearly, half-yearly, quarterly, or monthly.

Input Policy Term

For LIC New Money Back Plan 720, the term is fixed at 20 years.

Get Estimated Benefits

The calculator immediately displays:

• Total premiums paid
• Periodic money-back payouts
• Maturity amount
• Death benefit

Analyze and Plan

Use this estimated data to plan your premium budget, understand the payout schedule, and evaluate if the plan meets your financial needs.

Example Calculation: How Much Can You Expect?

Suppose Nitin, aged 25, invests ₹5,00,000 as the sum assured, paying premiums annually. Using the calculator, he might see:

• Money back of 20% of ₹5,00,000 = ₹1,00,000 at end of 5, 10, and 15 years
• Maturity benefit (40%) = ₹2,00,000 + bonuses at the end of 20 years
• Death benefit (125%) = ₹6,25,000 + bonuses if unfortunate demise occurs during policy tenor

This clear overview helps Nitin decide whether the scheme aligns with his future goals.

Benefits of LIC New Money Back Plan 720 Calculator

• Clarity in Payouts: Visualize when and how much money you’ll receive
• Budget Planning: Determine optimal premium amount
• Comparison: Easily compare scenarios for different sums assured.
• Decision Making: Helps decide whether to increase/decrease sum assured or choose different optional riders

Advantages of LIC New Money Back Plan 720

Benefit	Details	Source
Regular Cashbacks	Payouts at 5, 10, and 15 years	LIC India
Protection	Provides life cover for 20 years	LIC Comparative Offer
Bonus Accrual	Accrues reversionary bonuses and final bonuses	LIC Bonuses
Flexible Premium Modes	Yearly, half-yearly, quarterly, monthly	LIC Premium Modes

Frequently Asked Questions

Final Thoughts

The LIC New Money Back Plan 720 is an excellent choice for individuals seeking insurance coverage with the added benefit of periodic payouts. Using an online calculator simplifies the process, providing clarity on benefits, premiums, and payout timelines.