New Money Back Plan 721
New Money Back Plan 721: LIC of India new plan launched on 31st. December 2024 which name is LIC New Money Back Plan 721 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 20 years while the policy continue for 25 years. Policy taken age between 13 to 45 years age for a fixed tenure of 25 years. You can buy now online LIC new money back plan 721 25 years through credit card/debit card, net banking, upi and wallets on our LIC’s New Business Platform.
In India, money-back insurance policies are extremely popular because they combine the dual benefits of life insurance + periodic money-back payouts. Unlike endowment plans where you receive the full amount at maturity, money-back plans return a portion of your sum assured at regular intervals, making them ideal for people who need liquidity during the policy term.
The LIC New Money Back Plan 721 is one such plan that has become a trusted financial product for families, professionals, and investors looking for both insurance protection and short-term cash flow.
In this detailed guide, we’ll explore:
- Features of LIC New Money Back Plan 721
- Benefits and payouts with tabular examples
- Investor suitability and scenarios
- Analyst insights and comparisons with other LIC plans
- Premium illustrations & real-life case studies
- FAQs to answer your common doubts
By the end of this article, you’ll clearly understand whether LIC Money Back 721 is the right investment choice for you in 2025.
What is LIC New Money Back Plan 721?
The LIC New Money Back Plan 721 (UIN: 512N334V01) is a non-linked, participating, individual, life assurance savings plan.
👉 In simple words:
- It is a regular premium plan.
- You get periodic money-back payments during the policy term.
- It provides life insurance cover throughout the term.
- At maturity, you also receive bonus + final additional bonus (if any).
It is ideal for those who want insurance security but also need liquid cash at intervals for expenses like children’s education, marriage, or other financial goals.
Key Features of LIC New Money Back Plan 721
| Feature | Details |
|---|---|
| Plan Name | LIC New Money Back |
| Plan Number | 721 |
| Type | Participating, Money-back, Regular premium |
| Policy Term | 20 years |
| Premium Payment Term | 15 years |
| Entry Age | 13 to 50 years |
| Maximum Maturity Age | 70 years |
| Sum Assured (Minimum) | ₹1,00,000 |
| Sum Assured (Maximum) | No limit (based on income) |
| Money-back Payouts | 20% of Sum Assured at 5th, 10th, 15th policy year |
| Maturity Benefit | 40% of Sum Assured + Bonus + Final Additional Bonus |
| Loan Facility | Available after 3 years |
| Surrender Option | Available after 3 years |
| Riders Available | LIC Accidental Death & Disability Rider, Term Rider |
Benefits of LIC New Money Back Plan 721
1. Survival Benefit (Money Back Payouts)
The biggest attraction is that you don’t need to wait till maturity. You get:
- 20% of Sum Assured at the end of 5th, 10th, and 15th year.
Example: If your Sum Assured is ₹10,00,000, you get:
- ₹2,00,000 at the 5th year
- ₹2,00,000 at the 10th year
- ₹2,00,000 at the 15th year
👉 Total ₹6,00,000 as money-back before maturity.
2. Maturity Benefit
At the end of 20 years, you get:
- Remaining 40% of Sum Assured + Bonus + Final Additional Bonus (if any).
So, in the above example, at maturity (20th year), you get:
- ₹4,00,000 + Bonus + FAB.
3. Death Benefit
If the policyholder dies during the policy term, the nominee gets:
- Sum Assured on Death + Bonus + FAB.
- Sum Assured on Death = Higher of 125% of Basic Sum Assured or 10× Annual Premium.
4. Loan Facility
After paying premiums for 3 years, you can avail a loan against your policy.
5. Tax Benefits
- Premiums qualify under Section 80C.
- Payouts are tax-free under Section 10(10D).
Example & Premium Illustration
Let’s understand with a real-life scenario.
Case Study:
- Policyholder Age: 30 years
- Policy Term: 20 years
- Sum Assured: ₹10,00,000
- Annual Premium: ₹46,000 (approx.)
Money Back & Maturity Chart
| Policy Year | Event | Money Back/Benefit |
|---|---|---|
| 5th Year | 20% of SA | ₹2,00,000 |
| 10th Year | 20% of SA | ₹2,00,000 |
| 15th Year | 20% of SA | ₹2,00,000 |
| 20th Year | 40% of SA + Bonus + FAB | ₹4,00,000 + Bonuses |
👉 Total payouts before maturity: ₹6,00,000.
👉 At maturity: ₹4,00,000 + Bonus (~₹3,00,000–₹5,00,000).
👉 Final Benefit: Around ₹12,00,000–₹14,00,000 (depending on LIC bonuses).
Analyst Opinions
- Insurance Experts: Consider LIC New Money Back Plan 721 as a safe + liquid option for families.
- Financial Advisors: Say it is best suited for middle-income households who need cash flow at intervals.
- Market Analysts: Returns are around 5.5% to 6.5% IRR—slightly better than FDs, plus you get insurance cover.
Investor Scenarios – Who Should Buy?
1. Parents Planning for Kids’ Education
Periodic money-back at 5th, 10th, 15th year aligns perfectly with school & college expenses.
2. Young Professionals
Good for professionals in their 20s–30s who want insurance + regular payouts.
3. Small Business Owners
Can use money-back payouts for business needs at regular intervals.
4. Conservative Investors
People who want guaranteed payouts with low risk.
Real-Life Investor Examples
Example 1: Ajay (Age 28, Banker)
- SA: ₹5,00,000
- Annual Premium: ₹23,000
- Gets ₹1,00,000 each at 5th, 10th, 15th year.
- At maturity: ₹2,00,000 + Bonuses (~₹1,50,000).
- Total returns: ₹5,50,000 (approx.)
Example 2: Meena (Age 40, Homemaker)
- SA: ₹8,00,000
- Premium: ₹36,800 per year
- Gets ₹1,60,000 each at 5th, 10th, 15th year.
- At maturity: ₹3,20,000 + Bonuses (~₹2,00,000).
- Total: ₹8,40,000 – ₹9,20,000.
Comparison with Other LIC Plans
| Plan | Type | Premium Mode | Best For | Returns |
|---|---|---|---|---|
| New Money Back 721 | Regular Premium, Participating | Annual/Monthly | Families needing cash flow | 5.5–6.5% |
| New Endowment 914 | Endowment (No periodic payout) | Regular Premium | Lump sum maturity | 6–7% |
| Jeevan Umang 945 | Whole Life, Regular Payout after 15 years | Regular Premium | Retirement income | 5–6% |
| Dhan Varsha 866 | Single Premium, Guaranteed | One-time | NRIs, Retirees | 5–6% |
Expert Insights
- Great for middle-class Indian families who want regular cash inflow for education/marriage.
- Ideal balance of insurance + liquidity.
- Not suitable for aggressive investors who prefer higher returns via equity or mutual funds.
FAQs on LIC New Money Back Plan 721
Q1. What is the premium paying term?
👉 15 years (for a 20-year policy term).
Q2. How often do I get money back?
👉 20% of Sum Assured at the 5th, 10th, and 15th year.
Q3. What happens if I die during the policy term?
👉 Nominee gets Sum Assured on Death + Bonus + FAB.
Q4. Can I take a loan on this policy?
👉 Yes, after paying 3 years of premiums.
Q5. Is the maturity benefit taxable?
👉 No, it’s tax-free under Section 10(10D).
Q6. Is this better than FD or PPF?
👉 Better than FD in terms of insurance + liquidity, but lower returns than PPF/Equity.
Final Thoughts
The LIC New Money Back Plan 721 is a perfect family-oriented plan for Indians who want insurance + liquidity + safe returns.
👍 It is especially suitable if you:
- Need cash flow at intervals (education, marriage, etc.)
- Want life cover with tax benefits
- Prefer stable, low-risk investment options
While returns are moderate (5–6.5%), the security, bonuses, and guaranteed money-back structure make it a dependable long-term plan for Indian households.
👉 If you’re looking for a balanced insurance-cum-investment plan, LIC New Money Back 721 can be a smart financial choice in 2025.
