New Money Back Plan 920
LIC of India new plan launched on 1st. february 2020 which name is LIC New Money Back 920 (LIC Table no. 920) is a traditional life insurance policy which offers guaranteed return and bonus with savings.In this plan Premium needs to be paid for a period of 15 years while the policy continue for 20 years. Policy taken age between 13 to 50 years age for a fixed tenure of 20 years. You can now buy online LIC new money back plan 920 20 years through credit card/debit card, net banking, upi and wallets on our LIC’s New Business Platform.
In India, where families look for safety, guaranteed income, and long-term wealth protection, money back policies have always been a favorite. Among them, LIC New Money Back Plan 920 stands out as one of the most trusted insurance-cum-investment products.
This plan is designed for individuals who want:
✔ Periodic survival benefits (money back payouts) during the policy term.
✔ Life insurance coverage to protect the family.
✔ Guaranteed lump sum maturity benefit at the end of the term.
✔ Tax benefits under Income Tax Act, 1961.
With LIC’s reputation of trust and strong financial backing, this plan has become a go-to choice for middle-class and upper-middle-class families who want a balance of security and liquidity.
What is LIC New Money Back Plan 920?
- Type: Non-linked, Participating, Money Back Insurance Plan.
- Nature: Combines life insurance + periodic payouts + maturity benefit.
- Target Group: Individuals seeking short-term liquidity + long-term protection.
Key Features of LIC New Money Back Plan 920
- Money Back Benefits: 20% of Basic Sum Assured (BSA) is paid at regular intervals during the policy term.
- Life Insurance Cover: Provides risk cover for the entire policy term.
- Maturity Benefit: At maturity, remaining Sum Assured + Bonuses are paid.
- Reversionary Bonuses: Eligible for Simple Reversionary Bonus + Final Additional Bonus.
- Loan Facility: Available after paying premiums for 2 years.
- Tax Benefits: Premiums eligible under 80C, payouts exempt under 10(10D).
- Rider Options: LIC’s Accidental Death & Disability Benefit Rider, Critical Illness Rider, Term Rider, Premium Waiver Rider.
Eligibility Criteria
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age | 13 years | 50 years |
| Policy Term | 20 years | 25 years |
| Premium Paying Term | 15 years (for 20 yrs PT), 20 years (for 25 yrs PT) | – |
| Basic Sum Assured | ₹1,00,000 | No Limit |
| Premium Payment Modes | Yearly, Half-yearly, Quarterly, Monthly | – |
Benefits of LIC New Money Back Plan 920
1. Survival Benefits (Money Back Payouts)
At specific policy years, the policyholder receives 20% of BSA.
- For 20-year term: Payouts in 5th, 10th, 15th year.
- For 25-year term: Payouts in 5th, 10th, 15th, 20th year.
2. Maturity Benefit
At maturity:
- Remaining 40% of BSA + Simple Reversionary Bonus + Final Additional Bonus.
3. Death Benefit
If policyholder dies during term:
- Sum Assured on Death (10x annual premium or BSA, whichever higher) + Bonuses are paid.
- Money Back payouts already received are NOT deducted.
4. Loan Facility
Available after 2 years of premium payments.
5. Tax Benefits
- 80C Deduction on premiums.
- 10(10D) Exemption on payouts.
Example – LIC New Money Back Plan 920 Premium & Benefits
Case:
- Age: 30 years
- Basic Sum Assured: ₹10,00,000
- Policy Term: 25 years
- Premium Paying Term: 20 years
- Premium Mode: Yearly
Premium Chart
| Mode | Approx. Premium (₹) |
|---|---|
| Yearly | 45,000 – 47,000 |
| Half-Yearly | 23,000 – 24,000 |
| Quarterly | 11,500 – 12,000 |
| Monthly (NACH) | 3,800 – 3,950 |
Survival Benefits (Money Back)
- At 5th Year: ₹2,00,000
- At 10th Year: ₹2,00,000
- At 15th Year: ₹2,00,000
- At 20th Year: ₹2,00,000
Total Survival Benefit before maturity = ₹8,00,000
Maturity Benefit
At 25th Year:
- 40% of BSA = ₹4,00,000
- Plus Accrued Bonuses (₹6–7 lakh approx.)
- Plus Final Additional Bonus (₹1–2 lakh approx.)
👉 Total Maturity Value ≈ ₹11–13 lakh
Death Benefit Example
If death occurs in 12th year:
- Sum Assured on Death = ₹10,00,000 or 10x premium (whichever higher)
- Accrued Bonuses
- 👉 Already received payouts (₹4,00,000 till 10th year) are NOT deducted.
This ensures full protection for family.
Analyst Opinions
Strengths
- Regular liquidity (money back installments).
- Full death benefit protection.
- Bonuses enhance maturity returns.
- Great for salaried professionals needing mid-term payouts.
Weaknesses
- IRR (returns) approx. 5.5–6.5%.
- Not suitable for investors seeking high growth.
Expert Verdict:
LIC New Money Back 920 is best for conservative investors who want guaranteed survival benefits and family protection, rather than market-linked high returns.
Investor Scenarios
Scenario 1 – Young Professional (Age 28, 25-year term)
- Pays ₹45,000 yearly for 20 years.
- Receives ₹2,00,000 every 5 years.
- Gets ₹12 lakh+ at maturity.
👉 Acts as retirement corpus + liquidity plan.
Scenario 2 – Parent for Child Education (Age 35, 20-year term)
- Policy term matches child’s higher education timeline.
- Receives payouts at 5, 10, 15 years (education expenses).
- Lump sum at 20 years for marriage or higher studies.
Scenario 3 – Businessman (Age 40, 25-year term)
- Uses periodic payouts for business reinvestment.
- Keeps maturity for retirement safety.
Real Investor Experiences
- Ankit (Delhi): “I liked the regular payouts, they helped me during my daughter’s college years.”
- Ravi (Mumbai): “The best part – even after receiving money back, my death cover remains intact.”
- Kavita (Bangalore): “It’s a good balance between investment and protection.”
Analyst Insights – How LIC 920 Compares to Other Plans
- Vs. Endowment Plans: 920 provides liquidity at intervals, while endowment gives lump sum at end.
- Vs. ULIPs: ULIPs offer higher returns but market risk; 920 ensures guaranteed safety.
- Vs. Term Plans: Term plans give pure risk cover, but 920 adds investment + periodic income.
FAQs – LIC New Money Back Plan 920
Q1. What is the minimum sum assured?
👉 ₹1,00,000.
Q2. What is the maximum entry age?
👉 50 years.
Q3. Are money back payouts taxable?
👉 No, exempt under Section 10(10D).
Q4. Can I take a loan on LIC 920?
👉 Yes, after 2 years of premium payments.
Q5. What riders are available?
👉 Accidental Death & Disability, Critical Illness, Term Rider, Premium Waiver Rider.
Q6. Is it good for retirement?
👉 Yes, periodic payouts + maturity benefit make it retirement-friendly.
Final Thoughts – Should You Buy LIC New Money Back Plan 920?
✔ Ideal for those who want liquidity + insurance protection.
✔ Good for education, marriage, or milestone expenses.
✔ Best for conservative investors & families.
✔ LIC’s trust + bonus benefits add value.
⚠️ However, don’t expect very high returns (like equity or ULIPs). This is a low-risk, steady return plan.
Conclusion:
LIC New Money Back Plan 920 is one of the most balanced insurance-cum-investment products in India. It secures your family, provides periodic liquidity, and ensures a decent maturity value. For Indians who value guaranteed benefits + safety, this plan is a perfect fit.
