Formula
P = (T − R) × (1 − m) × S / 1000
I = P / f
T = A / (ä × (1 − λ))
M = G + (B × n + F) × S / 1000
P × Σt=0k−1 (1 + r)−t = Σt Ct (1 + r)−t + M (1 + r)−n
where
- P
- annual premium
- T
- tabular premium per ₹1,000 of sum assured, for your age, term and premium paying term
- R
- high sum assured rebate, ₹ per ₹1,000, from this plan's table (nil on smaller policies)
- m
- mode rebate: 2% yearly, 1% half-yearly, nil quarterly and monthly
- S
- Basic Sum Assured
- I
- each instalment
- f
- instalments a year: 1, 2, 4 or 12
- A
- present value, per ₹1,000 of sum assured, of everything the policy pays: death cover, survival benefits and maturity
- ä
- present value of ₹1 a year, paid at the start of each year of the premium paying term while you are alive
- λ
- expense loading, 13%
- M
- maturity amount
- G
- guaranteed maturity sum, 40% of S (the rest is paid out earlier as survival benefits)
- B
- simple reversionary bonus, ₹ per ₹1,000 of sum assured a year, as last declared
- F
- Final Additional Bonus, ₹ per ₹1,000 of sum assured, by term
- Ct
- survival benefit at the end of year t: 15% of S in year 5, 15% of S in year 10, 15% of S in year 15, 15% of S in year 20
- r
- annualised return: the rate that makes both sides equal
- n
- policy term, in years
- k
- premium paying term, in years
*Source LIC New Money Back Plan - 25 Years brochure (PDF), LIC Reversionary Bonus Rates, valuation as at 31 March 2021 (PDF), for the plans of 2021; not the source of the rates used
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.
Worked example: at 30, ₹5,00,000 of cover over 25 years costs ₹29,963 a year for 20 years and is projected to pay ₹8,67,500 at maturity, a return of 5.75% a year.
What is 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 bonus 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
We checked the plan number and UIN above against LIC's own page for this plan on 2026-09-09. Check it on licindia.in
Is it 721 or 921?
This plan is 721 with UIN 512N278V03, and that is what the current sales brochure carries. The V03 is a version marker: this is the third version. Plan 921 (UIN 512N278V02) ran from 1 February 2020 and was withdrawn on 1 January 2025, when this version replaced it, and LIC still lists 921 on its own withdrawn-plans page. If your policy document says 921, that document governs your policy; a later version does not change the terms yours was sold on.
What are the benefits of LIC New Money Back Plan - 25 Years?
What does LIC New Money Back Plan - 25 Years pay on death?
Sum Assured on Death, meaning the higher of 125% of the Basic Sum Assured and 7 times the annualised premium and never less than 105% of the total premiums paid, plus vested bonuses and Final Additional Bonus, with no deduction for survival benefits already paid.
What do you get at maturity?
40% of the Basic Sum Assured plus vested simple reversionary bonuses on the full sum assured plus Final Additional Bonus.
Who is LIC New Money Back Plan - 25 Years for?
A younger buyer who can commit for 25 years and wants the periodic liquidity without giving up the long-term bonus accrual.
What should you 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.
What does LIC New Money Back Plan - 25 Years cost?
Worked out on a 25-year term with premiums paid for 20 years. Change any of these in the calculator above for your own figures.
By sum assured, at age 30
| Sum assured | Premium a year | Total paid in | Projected maturity |
|---|---|---|---|
| ₹5,00,000 | ₹29,963 | ₹5,99,270 | ₹8,67,500 |
| ₹10,00,000 | ₹59,927 | ₹11,98,540 | ₹17,35,000 |
| ₹25,00,000 | ₹1,49,817 | ₹29,96,350 | ₹43,37,500 |
Premiums are modelled on this plan's own tabular rates; the maturity figure assumes LIC's current bonus rates hold for the full term, which is not guaranteed.
By age, on ₹5,00,000 of cover
Sum assured moves the premium almost in a straight line, so the table above is easy to read across. Age does not, and it is the input people most often want to test before filling anything in.
| Age at entry | Premium a year | Total paid in | Projected maturity | Age when it pays |
|---|---|---|---|---|
| 25 years | ₹29,854 | ₹5,97,083 | ₹8,67,500 | 50 |
| 30 years | ₹29,963 | ₹5,99,270 | ₹8,67,500 | 55 |
| 40 years | ₹30,657 | ₹6,13,140 | ₹8,67,500 | 65 |
The premium barely moves across the rows. Mortality is a small part of a savings premium and the savings part is the same at any age. What age changes is the last column: when the money arrives, and how old you are when it does.
LIC's own sample premium, from the brochure
From the sourceNot modelled: this is the table LIC prints in its own brochure (Sales brochure, section 6 Sample Illustrative Premium), at ₹2,00,000 of cover. LIC's brochure heads this grid “Basic Sum Assured of Rs 1 lakh”, but its own eligibility table on page 2 sets the minimum Basic Sum Assured for this plan at ₹2,00,000, so the policy that heading describes cannot be bought. The rupee figures themselves are consistent with ₹2,00,000 and not with ₹1,00,000, so they are shown here against ₹2,00,000. Our editorial and methodology policy sets out the arithmetic. Everywhere else on this page the premium is worked out for the sum assured you enter; here it is fixed at that figure, because that is what LIC published.
These figures are taken from the document linked below. Check them there.
| Age at entry | 20 years |
|---|---|
| 20 | ₹12,299 |
| 30 | ₹12,573 |
| 40 | ₹13,465 |
| 45 | ₹14,298 |
Priced on ₹2,00,000 of cover, exclusive of taxes, standard lives. Our own model is anchored on the age 30, 25-year term, 20-year premium term cell in this table; the other cells are the real test of the model, and the editorial and methodology policy publishes how far off they run.editorial and methodology policy publishes how far off they run.
Where the maturity figure comes from
Taken apart, on the ₹5,00,000 policy in the first table. Only the first line is guaranteed by the contract. Everything under it is bonus, declared a year at a time and assumed here to carry on at the rate this page uses.
- Basic sum assured (guaranteed)
- ₹2,00,000
- Vested reversionary bonus, 25 years at ₹45 per ₹1,000
- ₹5,62,500
- Final Additional Bonus, ₹210 per ₹1,000
- ₹1,05,000
- Paid at maturity
- ₹8,67,500
- Income paid before then, 4 payments of ₹75,000 from year 5
- ₹3,00,000
- Return a year on the premiums, if the bonus rate holds
- 5.75%
When does LIC New Money Back Plan - 25 Years pay for itself?
The grey line is what you have paid in by each policy year. The yellow line is what the policy has paid back by then. They cross in year 25, which is the point the policy has returned everything it cost.
That return counts everything the policy pays back, income included, against everything you put in, after the cost of the life cover it carried for 25 years. It is not a market return. Change the bonus rate and it changes with it.
Who can take LIC New Money Back Plan - 25 Years?
Age to start
- Minimum
- 13 years
- Maximum
- 45 years
Policy term
- Fixed term
- 25 years
Age when the policy matures
- Maximum
- 70 years
Your age at entry plus the policy term cannot come to more than 70.
Years you pay for
- Premium paying term
- 20 years
Sum assured
- Minimum
- ₹2,00,000
- Maximum
- No limit set by LIC
LIC caps this by what underwriting allows rather than with a printed figure. This calculator accepts up to ₹5 Crore.
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 2 of the New Money Back Plan - 25 Years sales brochure, linked in the form above.
Surrender value, paid-up value and loan
A 25-year commitment is a long one, and the question that follows a premium quote is usually what happens if you stop. Under the IRDAI rules in force since 1 October 2024, New Money Back Plan - 25 Years can be surrendered once the first policy year is complete and one full year's premium has been paid. Stop before that and the policy lapses with nothing to show for it.
From then you are paid the higher of two figures. The special surrender value, what the reduced, paid-up policy is worth today rather than at maturity, is available from the end of the first year. The guaranteed surrender value needs two full years' premiums, and is a percentage of the total premiums paid, first year included: 30% in year 2, 35% in year 3, 50% from year 4 to year 7, then rising to 90% in the last two years. Which of the two comes out higher changes with duration, so the last column below is the one to read.
| Years paid | Total paid in | Guaranteed value | Special value | You would get |
|---|---|---|---|---|
| 1 year | ₹29,963 | ₹0 | ₹6,839 | ₹6,839 |
| 2 years | ₹59,927 | ₹17,978 | ₹14,840 | ₹17,978 |
| 3 years | ₹89,890 | ₹41,776 | ₹24,152 | ₹41,776 |
| 5 years | ₹1,49,817 | ₹92,402 | ₹47,388 | ₹92,402 |
| 10 years | ₹2,99,635 | ₹2,03,998 | ₹1,42,511 | ₹2,03,998 |
| 20 years | ₹5,99,270 | ₹5,36,070 | ₹6,44,429 | ₹6,44,429 |
On the ₹5,00,000 policy from the tables above, at age 30. Held to maturity the same policy is projected to pay ₹8,67,500, which is the number to read every row here against. Surrender values are modelled on the IRDAI 2024 basis, using the guaranteed surrender value grid printed in the New Jeevan Anand (715) brochure; a policy sold before 1 October 2024 runs on the older rules in its own document, and your own policy schedule is what governs.
Paid-up value: the other way to stop
You do not have to take the money out. Stop paying after at least one full year's premium and the policy continues at a reduced sum assured instead, keeping the cover and the bonuses already vested. The reduction is worked on the premium paying term, not the policy term, which is the point most calculators get wrong: on this policy the denominator is 20, so 10 years paid out of 20 leaves 50% of the sum assured standing, plus the bonus already vested.
Loan against the policy
Once the policy has a surrender value it can also be borrowed against, which is worth knowing before you surrender in a hurry. LIC lends a percentage of the surrender value rather than of the sum assured, and sets a different percentage for an in-force policy and a paid-up one. Those percentages sit in the policy conditions, so ask your servicing branch for the figure that applies to yours. On New Jeevan Anand (715), for example, the brochure allows 50% of the surrender value before two full years' premiums and 75% after, or 40% and 65% on a paid-up policy.
To run these figures on your own policy, use the LIC surrender value calculator, which takes the premium and the years paid off your own policy document. If you are weighing it up rather than pricing it, we have written about whether surrendering an LIC policy is worth it.
Tax on LIC New Money Back Plan - 25 Years
Two provisions do the work, and both turn on the size of the premium rather than on the plan. The Income-tax Act, 2025 renumbered both from 1 April 2026 without changing the rules, so each is given here under its old number and its new one.
Section 80C, now Section 123, on what you pay in
Premiums count towards the ₹1.5 lakh limit, in the year they are paid, if you are on the old regime. The deduction is restricted where the annual premium is more than 10% of the sum assured.
Section 10(10D), now Schedule II, on what comes back
Maturity proceeds are exempt where the premium in every year stays inside 10% of the sum assured, and, for a policy issued on or after 1 April 2023, where the premiums on all such policies together stay inside ₹5 lakh a year. Death proceeds are exempt either way.
Where this policy sits
The ₹5,00,000 policy priced above costs ₹29,963 a year, which is 6.0% of the sum assured. That is inside the 10% test, on both provisions. A larger sum assured moves the ratio down.
GST
Nil. Individual life insurance premiums have been exempt since 22 September 2025, so the instalment the calculator shows is the amount that leaves your account.
None of this is tax advice. Which regime you are on, what else you hold and when the policy was issued all change the answer, so confirm your own position with a tax adviser before you rely on it.
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, meaning the death benefit in each policy year, every survival payout and the maturity value, then 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
- ₹64.15 per ₹1,000 at age 30, 25-year term, 20-year premium term
- Discount basis
- 6.62% a year, on LIC (2012-14) Ultimate mortality
- Reversionary bonus
- ₹45 per ₹1,000 sum assured a year, believed to be LIC's 2023-24 rate for this term; we have not found an LIC document that publishes it. Later declarations, which pay higher rates on larger sums assured, are not reflected, so the figure may be low.
- 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, and 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.
What they cost
On the ₹5,00,000 policy priced above, at age 30. Each cover rider is quoted here for the same ₹5,00,000 of rider cover, or its own ceiling if that is lower; the premium waiver rider is quoted against the base premium it would waive. The plan brochure does not print these rates, so they come from each rider's own brochure instead.
| Rider | Quoted on | Premium a year |
|---|---|---|
| AD & DB RiderAccidental death and disability | ₹5,00,000of rider cover | ₹600interpolated |
| AB RiderAccidental death cover | ₹5,00,000of rider cover | ₹250LIC's stated rate |
| Term RiderExtra life cover | ₹5,00,000of rider cover | ₹1,535interpolated |
Priced on the limited premium basis, because that is how New Money Back Plan - 25 Years is paid for. LIC prints a separate rate table for each basis, and the same rider costs materially more on a limited premium policy than on a regular premium one. Where LIC publishes a sample grid rather than a rate for every age and term, the figure between grid points is interpolated and marked as such above. The 30% cap works out at ₹8,989 a year on this policy.
Tick a rider in the calculator above and enter the cover you want, and the result page prices it on your own age, term and sum assured rather than on this reference policy.
Rate sources: AD & DB Rider, AB Rider, Term Rider sales brochures.
Source: New Money Back Plan - 25 Years sales brochure (PDF), Optional Rider Benefits clause.
How LIC New Money Back Plan - 25 Years compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| New Money Back Plan - 25 YearsNo. 721 · this page | 25 years | 20 years | ₹2 Lakh | Four payouts of 15% across 25 years, with the highest money back bonus rate. |
| New Money Back Plan - 20 YearsNo. 720 | 20 years | 15 years | ₹2 Lakh | 20% of the sum assured back in years 5, 10 and 15, and the rest at maturity. |
| Jeevan ShiromaniNo. 947 | 14, 16, 18, 20 years | Term minus 4 years | ₹1 Crore | A high net worth money back plan, minimum sum assured ₹1 crore. |
| Dhan RekhaNo. 863 | 20, 30, 40 years | 10, 15, 20 years | ₹2 Lakh | Non-participating money back: payouts keyed to the term, guaranteed additions from year six, and the full sum assured at maturity. |
| New Jeevan AnandNo. 715 | 15 to 35 years | The full term | ₹2 Lakh | Endowment savings that keeps paying life cover after the policy matures. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
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 first policy year once one full year's premium has been paid, on the IRDAI rules that apply to policies sold from 1 October 2024. The loan is limited to a percentage of the surrender value, and any outstanding loan is recovered from survival benefits as they fall due.
Can the maturity or death benefit be taken in instalments instead of a lump sum?
Yes, on both, under LIC's Settlement Option, and it has to be arranged in advance rather than chosen after the event. The maturity benefit can be spread over 5, 10 or 15 years by exercising the option at least three months before the maturity date. The death benefit can be spread over the same periods if the policyholder or the life assured sets it up while the policy is running. Minimum instalments are ₹50,000 yearly, ₹25,000 half-yearly, ₹15,000 quarterly or ₹5,000 monthly, and if the net claim amount is too small to meet those it is paid as a lump sum instead. LIC pays interest on the deferred amount at a rate it revises annually against the 10-year government bond yield.
Is this plan 721 or 921?
Both numbers refer to the same product at different times. Plan 921 (UIN 512N278V02) ran from 1 February 2020 until it was withdrawn on 1 January 2025, and the current version is Plan 721 (UIN 512N278V03). The calculator on this page prices the current version. If your policy document says 921, that document governs your policy and its terms are the ones you were sold, whatever a later version says.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against New Money Back Plan - 25 Years before deciding.
New Money Back Plan - 20 Years
No. 72020% of the sum assured back in years 5, 10 and 15, and the rest at maturity.
Open calculatorJeevan Shiromani
No. 947A high net worth money back plan, minimum sum assured ₹1 crore.
Open calculatorDhan Rekha
No. 863Non-participating money back: payouts keyed to the term, guaranteed additions from year six, and the full sum assured at maturity.
Open calculatorNew Jeevan Anand
No. 715Endowment savings that keeps paying life cover after the policy matures.
Open calculator