The LIC New Money Back 25 Years Plan 921 is a popular life insurance savings plan launched on February 1, 2020, which offers a combination of life protection and periodic survival benefits over a 25-year term. This plan requires premium payments for 20 years, while the benefits continue for 25 years, giving policyholders financial security along with periodic payouts. The plan was withdrawn on January 1, 2025, so new policies are no longer available but existing policies continue as per their terms.​

Introduction to LIC New Money Back 25 Years Plan 921

LIC’s New Money Back Plan 921 is designed to provide both insurance protection and savings growth through guaranteed survival benefits and maturity returns. It is a non-linked, participating plan meaning the returns combine guaranteed portions with bonuses based on LIC’s profits. The plan caters to individuals aged 13 to 45 years at entry, with a fixed policy term of 25 years and premium payment term of 20 years.​

Key Features and Benefits

Survival Benefits (Money Back)

The hallmark of this plan is the periodic survival benefit payments (money back) provided to policyholders at intervals during the policy term. It pays 15% of the basic sum assured to the policyholder at the end of the 5th, 10th, 15th, and 20th policy years. These survival payouts provide liquidity and financial support during the policy tenure while the coverage continues.​

Maturity Benefit

On survival till the end of the policy term (25 years), the policyholder receives the remaining 40% of the basic sum assured along with accumulated simple reversionary bonuses and final additional bonus (if any). This maturity benefit helps in building a strong corpus over the long term.​

Death Benefit

In case of the unfortunate demise of the life insured during the policy term, the nominee receives the sum assured which is the higher of:

• 125% of the basic sum assured, or
• Seven times the annualized premium,

along with vested simple reversionary bonuses and any final additional bonus. The death benefit is designed to provide financial security to the family.​

Bonus Participation

This plan participates in LIC’s profits through simple reversionary bonuses and a final additional bonus (FAB) which are declared annually by LIC. These bonuses enhance the overall return of the policy.licindia+1​

Surrender and Loan Facility

The policy acquires a guaranteed surrender value after paying premiums for at least two years. Policyholders can also avail loans against the policy once surrender value is available. This offers flexibility and liquidity during emergencies.​

Eligibility and Payment Terms

• Entry Age: 13 years (completed) to 45 years
• Policy Term: 25 years fixed
• Premium Payment Term: 20 years fixed
• Minimum Sum Assured: Rs 1,00,000 and in multiples of Rs 5,000
• Premium Payment Modes: Yearly, Half-Yearly, Quarterly, Monthly (NACH)

Premium payment is for 20 years whereas benefits including survival and maturity extend to 25 years.​

How the Plan Works

The policyholder pays premiums for 20 years. During this time, at the end of the 5th, 10th, 15th, and 20th years, LIC pays 15% of the basic sum assured as survival benefits. The policy continues till 25 years with the balance of 40% of the sum assured paid at maturity with bonuses. If death occurs any time during the term, a larger death benefit is paid immediately to the nominee.

This structure combines regular returns during the policy period with a lump sum at maturity, making it attractive for saving goals and risk protection.​

LIC New Money Back 25 Years Plan 921 Calculator Explained

The LIC New Money Back 25 Years Plan calculator enables potential policyholders and users to estimate premiums, survival benefits, death benefits, maturity values, surrender values, and loan eligibility based on inputs such as age, sum assured, premium payment mode, and tenure.

Typical Parameters Used in Calculator

• Age at entry
• Basic sum assured
• Premium mode (Yearly, Half-Yearly, Quarterly, Monthly)
• Policy term (fixed at 25 years)
• Premium payment term (fixed at 20 years)
• Rider options (if any, like accidental death benefit)

Outputs from Calculator

• Annual / periodic premium amount payable
• Survival benefit amounts at specified intervals
• Death benefit value including bonuses
• Maturity amount at the end of 25 years with bonuses
• Surrender value after 2 years
• Loan eligibility based on surrender value

These calculations use the official LIC premium rates and bonus declarations for accurate projections. Tax benefits under prevailing Income Tax laws can also be considered in planning.​

Example Illustration

Consider a policyholder who takes the plan at age 28 with a basic sum assured of Rs 4,00,000:

• Premium payment for 20 years,
• Survival benefit of 15% of sum assured (Rs 60,000) paid at the end of 5th, 10th, 15th, and 20th years,
• Remaining 40% (Rs 1,60,000) plus bonuses paid at maturity (25 years),
• In the event of death, Rs 5,00,000 (125% of sum assured) or 7 times annual premium whichever is higher, plus bonuses paid to nominee.

Approximate yearly premium could be around Rs 23,000 depending on age and mode.

This illustration reflects how the plan balances protection and liquidity along with long-term savings.​

Advantages of LIC New Money Back 25 Years Plan 921

• Periodic money back benefits for liquidity during the policy tenure
• Life cover throughout the term giving protection to family
• Bonus additions enhancing maturity value
• Fixed premium payment term of 20 years while benefits continue for 25 years
• Loan and surrender value facilities for emergencies
• Suitable for long-term financial goals like child education, marriage, retirement corpus
• Tax benefits under Sections 80C and 10(10D) of the Income Tax Act

Important Dates

• Launch Date: February 1, 2020
• Withdrawn Date: January 1, 2025 (No new policies accepted post this date)

Existing policyholders continue to enjoy benefits as per policy terms.​

External Useful Resources

To explore more about the LIC New Money Back 25 Years Plan 921, including detailed features, benefits, and premium calculators, please refer to:

• Official LIC India page (Sales Brochure): licindia.in
• Insurance comparison and calculator websites offering plan details and premium calculators
• LIC customer service for personalized quotations and policy servicing

Frequently Asked Questions

Conclusion

LIC New Money Back 25 Years Plan 921 is a disciplined, long-term insurance savings plan offering a dual benefit of regular survival payouts and a lump sum maturity amount along with comprehensive life cover. It suits individuals looking for systematic savings with protection for family and financial goals.

Though withdrawn for new business from January 1, 2025, the plan remains a good example of traditional money back policies by LIC for policyholders within the active tenure.