In short (tl;dr)
A 20-year money back plan. It returns 20% of the sum assured at the five, ten and fifteen year marks, and the full sum assured stays at risk throughout.
About LIC New Money Back Plan - 20 Years
The New Money Back Plan - 20 Years (Plan 720) runs for a fixed 20-year term with premiums payable for 15. At the end of the 5th, 10th and 15th policy years it returns 20% of the Basic Sum Assured. The remaining 40%, plus every rupee of vested bonus and the Final Additional Bonus, is paid at maturity.
The feature people miss is that the death benefit never reduces. Even after all three survival payouts have been taken, a death claim still pays the full Sum Assured on Death plus bonuses. The money you have already received is not deducted. That is what distinguishes a money back policy from simply withdrawing from a savings plan.
Bonuses also accrue on the full Basic Sum Assured for all 20 years, not on the declining balance. This is why the maturity value of a money back plan looks larger than the 40% residual suggests.
Key features
- 20% of the sum assured returned at the end of years 5, 10 and 15
- Premiums payable for 15 years against a 20-year term
- Death benefit stays at the full sum assured even after survival payouts
- Bonus accrues on the full sum assured for the whole 20 years
- Participating, with Final Additional Bonus payable at maturity
New Money Back Plan - 20 Years at a glance
- Plan number
- 720
- Category
- Money Back
- Entry age
- 13 to 50 years
- Policy term
- 20 years
- Premium paying term
- 15 years
- Sum assured
- ₹2 Lakh and above
- Maximum maturity age
- 70 years
- UIN
- 512N280V03
LIC publishes a page for this plan. It does not state the plan number or UIN on the page itself, so treat those two rows here as unconfirmed. Check it on licindia.in
Benefits under New Money Back Plan - 20 Years
Death benefit
Sum Assured on Death — the higher of 125% of the Basic Sum Assured and 10 times the annualised premium, never less than 105% of premiums paid — plus vested bonuses and Final Additional Bonus. Survival benefits already paid are not deducted.
Maturity benefit
40% of the Basic Sum Assured plus vested simple reversionary bonuses on the full sum assured plus Final Additional Bonus.
Who it suits
Someone with recurring five-yearly commitments — school transitions, vehicle replacement, a periodic family expense — who wants the policy to fund them.
What to watch out for
A money back plan costs more per ₹1000 than a plain endowment because LIC is paying you back early and still carrying the full risk. If you do not actually need the interim cash, an endowment usually matures higher.
How this calculator works
New Money Back Plan - 20 Years is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule — the death benefit in each policy year, every survival payout, and the maturity value — and discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- ₹80.75 per ₹1,000 at age 30, 20-year term, 15-year premium term
- Discount basis
- 6.78% a year, on LIC (2012-14) Ultimate mortality
- Reversionary bonus
- ₹42 per ₹1,000 sum assured a year, from LIC's 2023-24 valuation
- Final Additional Bonus
- ₹90 per ₹1,000 at a 20-year term
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:New Money Back Plan - 20 Years on licindia.inLIC valuation and bonus declarationsIRDAI regulations
What this premium does not include
The figure above is the premium for the base policy. LIC allows 3 optional riders on New Money Back Plan - 20 Years, each a separate contract with its own sum assured, term and premium. Take one and you pay more than the figure above — the base premium itself does not change.
- LIC's Accidental Death and Disability Benefit Rider (AD & DB Rider)UIN 512B209V02
- LIC's Accident Benefit Rider (AB Rider)UIN 512B203V03
- LIC's New Term Assurance Rider (Term Rider)UIN 512B210V02
Premiums for all the life insurance riders put together cannot exceed 30% of the premium under the base plan. That cap is the useful number to hold an agent to: whatever riders are proposed, the total should stay inside it.
Why we do not price them. A rider premium follows from the rider's own sum assured and term, so it cannot be worked out from a tick-box — and LIC does not publish rider rates in the plan brochure, which tells you to read the rider brochure or ask a branch. We would rather name the riders and their UINs, which you can check, than show a number we cannot source.
Source: New Money Back Plan - 20 Years sales brochure (PDF), Optional Rider Benefits clause.
LIC New Money Back Plan - 20 Years — frequently asked questions
How much do I get back in LIC's 20-year money back plan?
20% of the Basic Sum Assured at the end of the 5th, 10th and 15th policy years, then 40% plus all bonuses at maturity. On a ₹5 lakh sum assured that is ₹1 lakh three times, then ₹2 lakh plus bonuses.
Does the death benefit reduce after money back payments?
No. The full Sum Assured on Death plus bonuses is payable on a death claim at any time during the term, regardless of how many survival benefits have already been paid out.
What is the premium paying term for Plan 720?
15 years, against a policy term of 20. The last five years are cover and bonus accrual with no premiums due.
Is the money back amount taxable?
Survival benefits and maturity proceeds are exempt under Section 10(10D) provided the annual premium stays within 10% of the sum assured, and for policies issued on or after 1 April 2023, provided total annual premiums across your non-ULIP policies do not exceed ₹5 lakh.
Which is better, the 20-year or the 25-year money back plan?
The 25-year plan (Plan 721) pays 15% four times instead of 20% three times, runs five years longer and carries a higher bonus rate, so it usually projects a larger total return. The 20-year plan gets your money moving sooner and has a lower maximum entry age of 50.
Related calculators
Plans people usually weigh up against New Money Back Plan - 20 Years before deciding.
New Money Back Plan - 25 Years
No. 721Four payouts of 15% across 25 years, with the highest money back bonus rate.
Open calculatorJeevan Tarun
No. 734A child plan with four payout patterns, funding ages 20 to 25.
Open calculatorBima Ratna
No. 864Guaranteed additions that step up over time, plus two payouts before maturity.
Open calculatorNew Jeevan Anand
No. 715Endowment savings that keeps paying life cover after the policy matures.
Open calculator