LIC's New Money Back Plan - 20 Years

LIC New Money Back 20 Years Plan 920 Calculator is a helpful financial tool designed to estimate premium payments, survival benefits, bonuses, and maturity value under one of LIC’s most customer-friendly traditional insurance plans. The plan offers both savings and life cover, making it ideal for individuals seeking periodic income and long-term protection.

The LIC New Money Back 20 Years Plan (Table No. 920, UIN: 512N280V02) is a traditional, non-linked, participating life insurance plan introduced by the Life Insurance Corporation of India. It is designed to offer periodic money-back payouts along with life cover and maturity benefits that include bonuses. The plan ensures liquidity through survival benefits and secures the future with guaranteed maturity returns.

This plan was officially launched on 1st February 2020 and withdrawn on 18th November 2024.​

Key Features of LIC New Money Back 20 Years Plan 920

1. Type of Plan: Non-linked, Participating, Limited Premium, Money Back Plan
2. Policy Term: 20 years
3. Premium Paying Term: 15 years
4. Participation in Profits: Yes (eligible for Simple Reversionary Bonus and Final Additional Bonus)
5. Liquidity: Regular money-back every 5 years
6. Life Cover: Protection throughout the policy term
7. Guaranteed and Bonus Benefits: Provides both guaranteed returns and participation in LIC profits.​

Launch and Withdraw Dates

• Launch Date: 1st February 2020
• Withdrawn Date: 18th November 2024
  As per LIC official sources, this plan is now part of LIC’s withdrawn portfolio, meaning no new policy can be purchased after the mentioned withdrawal date.​

Objectives of the Plan

The main goal of LIC New Money Back 20 Years Plan is to:

• Provide financial protection to the family in case of the policyholder’s unfortunate death.
• Offer liquidity through survival benefits at regular five-year intervals.
• Build long-term savings with the help of bonuses to meet future financial goals such as education, marriage, or retirement.​

Eligibility Criteria

How LIC New Money Back Plan 20 Years Works

The working of the plan is simple. The policyholder pays premiums regularly for 15 years. In return, LIC provides money-back payments (survival benefits) at the 5th, 10th, and 15th years. Finally, at the end of the 20-year term, the maturity amount along with bonuses is paid to the policyholder if alive. If the policyholder dies during the policy term, the nominee receives the death benefit irrespective of earlier payouts.​

Example:

Suppose Mr. Rajesh, aged 30, buys the plan with a Basic Sum Assured of ₹5,00,000.

• He pays premiums for 15 years.
• After the 5th, 10th, and 15th policy years, he receives ₹1,00,000 (20% each time).
• On maturity (20th year), he gets ₹2,00,000 (40%) + accumulated Simple Reversionary Bonus + Final Additional Bonus (FAB).

LIC New Money Back 20 Years Plan Calculator

The LIC New Money Back 20 Years Plan 920 Calculator is an online tool developed to estimate:

• Premium amounts (monthly, quarterly, yearly)
• Survival benefits (money-back payouts)
• Maturity benefits (sum assured + bonuses)
• Death benefits

You can access LIC’s official calculator at: LIC Official Calculator , or use third-party calculators like LIC Calculator ​

Calculation Structure

The calculator estimates all the above based on the Basic Sum Assured, policyholder’s age, and chosen premium payment mode.​

Benefits of LIC New Money Back 20 Years Plan

Survival Benefit

At the end of every 5th, 10th, and 15th policy year, the policyholder receives 20% of the Basic Sum Assured. This ensures liquidity for financial needs such as education or loan EMIs.​

Maturity Benefit

On survival till the end of the policy term, the policyholder receives:
40% of Basic Sum Assured + Simple Reversionary Bonus + Final Additional Bonus​

Death Benefit

If death occurs during the policy term (after risk commencement):
The nominee gets Sum Assured on Death + Bonuses, where:
Sum Assured on Death = Higher of (125% of Basic Sum Assured or 7 times the annualized premium)
Minimum death benefit = 105% of total premiums paid.​

Bonus Facility

• Simple Reversionary Bonus (SRB): Declared annually based on LIC’s performance.
• Final Additional Bonus (FAB): One-time payout at maturity or death.​

Loan Facility

Once the policy acquires a surrender value (after paying at least two full years’ premiums), the policyholder can avail of a loan against the policy.​

Tax Benefits

Premiums are eligible for tax deduction under Section 80C, and maturity proceeds qualify under Section 10(10D) of the Income Tax Act, 1961.

Sample Illustration

Premium Payment Options

Premiums can be paid:

• Yearly
• Half-Yearly
• Quarterly
• Monthly (ECS mode available)
  The plan includes a 30-day grace period for yearly and half-yearly modes, and 15 days for monthly payments.​

Surrender Value

After payment of two full policy years’ premiums, the plan acquires a Guaranteed Surrender Value (GSV).
The surrender value is a percentage of total premiums paid plus accumulated bonuses.​

Optional Riders Available

Policyholders can enhance protection with the following optional riders (available on payment of extra premium):

• LIC Accidental Death and Disability Benefit Rider
• LIC New Term Assurance Rider
• LIC Accident Benefit Rider
  These riders add an extra layer of financial security to the plan.​

Exclusions

If the policyholder commits suicide within 12 months from policy commencement, the claim is limited to 80% of the premiums paid. For revival cases, similar conditions apply from the date of revival.​

Advantages of LIC New Money Back 20 Years Plan

1. Combines savings and protection.
2. Ensures periodic money inflow (money-back benefit).
3. Bonus benefits enhance returns.
4. Suitable for long-term investors looking for guaranteed benefits.
5. Policy loans available after 2 years of premium payment.​

Disadvantages

1. Returns are modest compared to market-linked plans.
2. Policy must be maintained long-term to maximize bonuses.
3. Withdrawn as of November 2024, so no new policies can be bought.​

Comparison with Other LIC Plans

Frequently Asked Questions (FAQs)

Final Thoughts

LIC’s New Money Back 20 Years Plan (920) was one of the most balanced offerings from LIC that combined regular cash flow, risk coverage, and profit participation. Although it has been withdrawn, existing policyholders continue to enjoy its benefits — especially the combination of liquidity and protection that caters perfectly to middle-income families.