New Money Back 720
New Money Back 720: LIC of India new plan launched on 18th. November 2024 which name is LIC New Money Back 720 (LIC Table no. 720) 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 720 20 years through credit card/debit card, net banking, upi and wallets on our LIC’s New Business Platform.
When we think of LIC (Life Insurance Corporation of India), the first thing that comes to mind is trust + security. For decades, Indians have relied on LIC for guaranteed returns, life cover, and milestone-based savings.
The LIC New Money Back Plan 720 is one such policy designed for those who want:
- ✅ Regular payouts at fixed intervals
- ✅ Financial protection through life cover
- ✅ Guaranteed lump sum at maturity
Unlike typical endowment plans where you wait till maturity for returns, this plan ensures that you receive money back at regular stages of life—whether for your child’s education, marriage, home needs, or retirement planning.
Let’s dive into the details of LIC New Money Back Plan 720, covering features, benefits, examples, premium charts, investor scenarios, analyst reviews, and FAQs.
What is LIC New Money Back Plan 720?
LIC New Money Back Plan 720 is a non-linked, participating, limited premium payment life insurance plan. It combines life insurance protection with periodic money back benefits and a lump sum maturity payout.
In simple words:
👉 You pay premiums for a limited term, get money back every 5 years, and still receive a big maturity benefit at the end + life cover throughout the term.
Key Features of LIC New Money Back Plan 720
| Feature | Details |
|---|---|
| Plan Name | LIC New Money Back Plan 720 |
| Plan Type | Non-linked, Participating, Limited Premium |
| Entry Age | 13 years – 50 years |
| Maximum Maturity Age | 70 years |
| Policy Term | 20 years |
| Premium Paying Term (PPT) | 15 years |
| Minimum Basic Sum Assured | ₹1,00,000 |
| Maximum Basic Sum Assured | No Limit (in multiples of ₹5,000) |
| Survival Benefits | 20% of Basic SA at 5th, 10th, 15th policy year |
| Maturity Benefit | 40% of SA + Bonus + Final Additional Bonus (FAB) |
| Death Benefit | SA on Death + Bonuses |
| Loan Facility | Available |
| Riders | Accident Rider, Disability Rider, Critical Illness Rider, etc. |
Benefits of LIC New Money Back Plan 720
1. Survival Benefit (Money Back Payouts)
The biggest attraction: 20% of Sum Assured every 5 years.
- At end of 5th year → 20% SA
- At end of 10th year → 20% SA
- At end of 15th year → 20% SA
2. Maturity Benefit
At the end of 20 years (policy term):
- 40% of Basic SA + Simple Reversionary Bonus + Final Additional Bonus (FAB).
3. Death Benefit
If policyholder dies during the policy term:
- Sum Assured on Death (125% of Basic SA or 7×Annualized Premium, whichever is higher) + Bonuses.
- Already paid survival benefits do not get deducted.
4. Participation in Profits
This plan participates in LIC’s profit sharing, meaning you get bonus additions.
5. Tax Benefits
- Premiums under Section 80C.
- Payouts under Section 10(10D) (subject to tax rules).
Example – Premium & Benefit Illustration
Case Study – Mr. Arjun (Age 30, Basic SA ₹5,00,000, PPT 15 years)
- Policy Term: 20 years
- Annual Premium: ~₹36,000 (approx.)
Expected Payouts
| Policy Year | Event | Payout |
|---|---|---|
| 5th year | Survival Benefit | ₹1,00,000 (20% of SA) |
| 10th year | Survival Benefit | ₹1,00,000 |
| 15th year | Survival Benefit | ₹1,00,000 |
| 20th year | Maturity Benefit | ₹2,00,000 + Bonus + FAB |
| Total Benefits | (excluding bonuses) | ₹5,00,000 + Bonuses |
👉 With bonuses, total payout can cross ₹8–10 lakh.
Investor Scenarios
Scenario 1 – Child Education Planning
Parents invest when their child is 5 years old. At 10, 15, and 20 years of age, money-back payouts coincide with school, college, and higher studies expenses.
Scenario 2 – Milestone Funding
A professional invests at age 30. By age 35, 40, 45, he gets 20% SA payouts, which can be used for business investments, EMIs, or vacations.
Scenario 3 – Safe Investment for Risk-Averse Investors
Retired individuals (or conservative investors) who want regular guaranteed returns + safety prefer this plan over mutual funds or stocks.
Analyst Opinions & Expert Insights
- Insurance Advisors: “LIC New Money Back Plan 720 is ideal for families with recurring financial needs. It keeps liquidity high while still providing insurance protection.”
- Financial Planners: “Though IRR (return rate) is ~5.5–6.5%, the risk-free nature, bonus participation, and guaranteed survival benefits make it attractive.”
- Market Experts: “Compared to bank FDs, this plan provides life cover + tax-free payouts, which improves overall value.”
Comparison – New Money Back 720 vs Other LIC Plans
| Plan | Term | Payout Pattern | Best For |
|---|---|---|---|
| New Money Back 720 | 20 years | 20% SA every 5 years + 40% SA + Bonus at 20 yrs | Medium-term milestone needs |
| New Money Back 721 | 25 years | 20% SA every 5 years + 40% SA + Bonus at 25 yrs | Long-term goals |
| Jeevan Umang 745 | Whole Life | 8% SA annually after PPT till 100 yrs | Retirement income |
| Jeevan Utsav 771 | Whole Life | Guaranteed income (flexible/regular) for life | Lifetime income seekers |
| Endowment 914 | 12–35 yrs | Lump sum at maturity | Long-term savings |
Real-Life Investor Examples
Example 1 – Young Investor (Age 25, SA ₹10 lakh, PPT 15 yrs)
- Annual Premium: ~₹70,000
- Survival Benefit: ₹2 lakh each at 5th, 10th, 15th year
- Maturity: ₹4 lakh + Bonus + FAB
- Total Returns: ₹15–18 lakh approx.
Example 2 – Mid-Age Investor (Age 40, SA ₹7 lakh, PPT 15 yrs)
- Annual Premium: ~₹55,000
- Survival Benefit: ₹1.4 lakh each at 5th, 10th, 15th year
- Maturity: ₹2.8 lakh + Bonus + FAB
- Total Returns: ₹10–12 lakh approx.
Strengths & Limitations
Strengths ✅
- Regular payouts every 5 years.
- Insurance protection till maturity.
- Bonus participation increases returns.
- Liquidity through loans.
- Suitable for milestone-based needs.
Limitations ❌
- Moderate returns (better than FD, lower than equities).
- Requires long commitment (20 years).
- Not suitable for those seeking high growth.
FAQs – LIC New Money Back Plan 720
Q1. When will I receive payouts in New Money Back Plan 720?
👉 At 5th, 10th, and 15th years (20% SA each time) + maturity at 20th year.
Q2. What happens if I die during the policy?
👉 Nominee gets Sum Assured on Death + Bonuses, regardless of earlier payouts.
Q3. Is this better than Jeevan Umang?
👉 Jeevan Umang is for retirement-style annual income, whereas New Money Back 720 is for milestone-based payouts.
Q4. Can I take a loan under this plan?
👉 Yes, after the policy acquires surrender value.
Q5. What is the IRR (return rate)?
👉 Around 5.5–6.5% depending on age, term, and bonuses.
Final Thoughts
The LIC New Money Back Plan 720 is perfect for Indians who want:
- Regular payouts at intervals
- Life cover throughout policy
- Bonus additions at maturity
- Tax-free benefits
It may not match stock market or mutual fund returns, but it offers peace of mind, guaranteed liquidity, and family protection.
👉 If you’re a family-oriented saver with recurring financial needs (education, marriage, EMIs, lifestyle milestones), this plan fits like a glove.
