In short (tl;dr)
A 25-year money back contract: 15% of the sum assured back four times, 40% at maturity, and bonus accruing on the full sum assured throughout.
About LIC New Money Back Plan - 25 Years
The New Money Back Plan - 25 Years (Plan 721) pays 15% of the Basic Sum Assured at the end of the 5th, 10th, 15th and 20th policy years, and the balance of 40% with all bonuses at maturity in year 25. Premiums are payable for 20 years.
The extra five years matter more than they look. Bonus accrues on the full Basic Sum Assured for the whole 25 years at a higher declared rate than the 20-year plan, and the Final Additional Bonus scale climbs steeply beyond 20 years. Total money returned across the life of a Plan 721 policy is typically well ahead of Plan 720 on the same sum assured.
The trade-off is the maximum entry age of 45, five years lower than the 20-year plan, because the policy must still mature by 70.
Key features
- 15% of the sum assured returned at the end of years 5, 10, 15 and 20
- Premiums payable for 20 years against a 25-year term
- Higher declared bonus rate than the 20-year money back plan
- Final Additional Bonus scale is materially better at 25 years
- Death benefit unaffected by survival payouts already made
New Money Back Plan - 25 Years at a glance
- Plan number
- 721
- Category
- Money Back
- Entry age
- 13 to 45 years
- Policy term
- 25 years
- Premium paying term
- 20 years
- Sum assured
- ₹2 Lakh and above
- Maximum maturity age
- 70 years
- UIN
- 512N278V03
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 - 25 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, with no deduction for survival benefits paid.
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
A younger buyer who can commit for 25 years and wants the periodic liquidity without giving up the long-term bonus accrual.
What to watch out for
Twenty years of premiums is a long commitment. Surrendering a money back policy midway is particularly poor value because the survival benefits already paid are recovered from the surrender value.
How this calculator works
New Money Back Plan - 25 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
- ₹65.00 per ₹1,000 at age 30, 25-year term, 20-year premium term
- Discount basis
- 6.54% a year, on LIC (2012-14) Ultimate mortality
- Reversionary bonus
- ₹45 per ₹1,000 sum assured a year, from LIC's 2023-24 valuation
- Final Additional Bonus
- ₹210 per ₹1,000 at a 25-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 - 25 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 - 25 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 - 25 Years sales brochure (PDF), Optional Rider Benefits clause.
LIC New Money Back Plan - 25 Years — frequently asked questions
What is the payout schedule of LIC's 25-year money back plan?
15% of the Basic Sum Assured at the end of years 5, 10, 15 and 20, then 40% plus vested bonuses and Final Additional Bonus at maturity in year 25.
What is the maximum entry age for Plan 721?
45 years, so that the policy matures no later than age 70.
How is the maturity amount calculated for a 25-year money back policy?
40% of the sum assured, plus the simple reversionary bonus at ₹45 per ₹1000 per year applied to the full sum assured for all 25 years, plus the Final Additional Bonus for a 25-year term. On ₹5 lakh that is ₹2 lakh plus roughly ₹5.6 lakh of bonus plus FAB.
Can I take a loan on a money back policy?
Yes, after the policy acquires a surrender value, which requires three full years' premiums. The loan is limited to a percentage of the surrender value, and any outstanding loan is recovered from survival benefits as they fall due.
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No. 72020% of the sum assured back in years 5, 10 and 15, and the rest at maturity.
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No. 947A high net worth money back plan, minimum sum assured ₹1 crore.
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No. 863Non-participating money back with guaranteed additions and a doubled death benefit at the end.
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No. 715Endowment savings that keeps paying life cover after the policy matures.
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