New Money Back Plan 921
Discover LIC’s New Money Back Plan 921 – eligibility, benefits, premium chart, maturity returns, survival benefits, rider options, and real-life examples. Detailed analysis for Indian investors with FAQs & scenarios.
When it comes to financial security, Indian families trust Life Insurance Corporation of India (LIC) more than any other insurer. Over the years, LIC has introduced several money back plans that provide both protection and periodic cash inflows. One such popular offering is the LIC New Money Back Plan 921.
This plan is designed for those who want financial protection for their family, guaranteed returns, and periodic payouts during the policy tenure. Unlike pure endowment policies where benefits are received only at maturity, money back plans like 921 provide liquidity at regular intervals, making them a preferred choice for middle-class families in India.
In this article, we will cover:
- What is LIC New Money Back Plan 921?
- Features and benefits of the plan
- Eligibility and premium details
- Survival benefits and maturity benefits
- Investor scenarios with tabular data
- Analyst opinions and insights
- Real-life investor examples
- FAQs
By the end, you will know if Plan 921 is the right fit for your financial goals.
What is LIC New Money Back Plan 921?
LIC New Money Back Plan 921 is a non-linked, participating, money-back insurance plan. It combines:
- Life protection for your family
- Periodic survival benefits at regular intervals
- Loyalty additions for enhanced maturity
- Tax benefits under Indian Income Tax laws
It’s best suited for individuals who:
✔ Want liquidity during the policy tenure
✔ Prefer guaranteed returns with bonus participation
✔ Seek family protection + savings combo
Key Features of LIC New Money Back Plan 921
Here are the highlights:
- Type of Plan: Non-linked, participating, money-back plan
- Policy Term: Fixed – 20 years
- Premium Paying Term (PPT): 15 years
- Survival Benefits: Paid at regular intervals (every 5 years)
- Maturity Benefit: Sum Assured + Loyalty Additions at maturity
- Death Benefit: Highest of Basic Sum Assured or 7 times annual premium + bonuses
- Loan Facility: Available after 3 years
- Riders Available: Accidental Death & Disability Rider, Critical Illness Rider, Term Rider
- Tax Benefits: Premiums eligible under Section 80C, Maturity under Section 10(10D)
Eligibility Criteria
| Particulars | Details |
|---|---|
| Minimum Entry Age | 13 years (completed) |
| Maximum Entry Age | 50 years |
| Maximum Maturity Age | 70 years |
| Basic Sum Assured | ₹1,00,000 (min) |
| Maximum Sum Assured | No limit (in multiples of ₹5,000) |
| Policy Term | 20 years |
| Premium Paying Term | 15 years |
Survival & Maturity Benefits
1. Survival Benefits
- 20% of Basic Sum Assured (BSA) is paid at the end of:
- 5th year
- 10th year
- 15th year
- This ensures liquidity at regular intervals.
2. Maturity Benefit
- At the end of the 20th year (policy term), the remaining 40% of BSA + Loyalty Addition is paid.
3. Death Benefit
- If the policyholder dies during the policy term, nominee receives:
- Sum Assured on Death = Higher of (125% of BSA or 7 times annual premium) + Loyalty Additions (if any).
Example with Tabular Data
Let’s take an example:
- Age at Entry: 30 years
- Policy Term: 20 years
- PPT: 15 years
- Basic Sum Assured: ₹5,00,000
- Annual Premium: ₹23,500 (approx., excluding GST)
Survival Benefits
| Policy Year | Benefit Payout | Amount (₹) |
|---|---|---|
| End of 5th Year | 20% of BSA | 1,00,000 |
| End of 10th Year | 20% of BSA | 1,00,000 |
| End of 15th Year | 20% of BSA | 1,00,000 |
| End of 20th Year | Remaining 40% + Loyalty Additions | 2,00,000 + Bonus |
Analyst Opinions
- Liquidity Advantage: Analysts suggest that Plan 921 is a great choice for middle-income earners who want liquidity every 5 years without breaking long-term savings.
- Risk-Free Investment: Since it’s backed by LIC, it’s considered one of the safest investment instruments in India.
- Tax Savings: Along with survival benefits, investors enjoy tax deductions under 80C and tax-free maturity under 10(10D).
- Comparison with Mutual Funds/ULIPs: While mutual funds may offer higher returns, they carry market risk, whereas Plan 921 provides guaranteed + bonus-based returns with insurance coverage.
Investor Scenarios
Scenario 1 – Young Professional
Rohit, 25 years old, buys Plan 921 with ₹10 lakh Sum Assured.
- Gets ₹2 lakh every 5 years
- At maturity: ₹4 lakh + Loyalty Additions
- Family protected with life cover throughout.
Scenario 2 – Middle-Aged Parent
Priya, 40 years old, buys ₹7 lakh Sum Assured.
- Gets ₹1.4 lakh every 5 years
- Uses payouts for children’s education & household needs.
- At 20 years: ₹2.8 lakh + Bonuses for retirement corpus.
Scenario 3 – Retirement Planner
Rajesh, 48 years old, invests ₹5 lakh Sum Assured.
- Periodic payouts every 5 years help him manage retirement expenses.
- Ensures financial security for spouse in case of demise.
Investor Example with Table
| Particulars | Rohit (25 yrs) | Priya (40 yrs) | Rajesh (48 yrs) |
|---|---|---|---|
| Sum Assured | ₹10,00,000 | ₹7,00,000 | ₹5,00,000 |
| 5th Year Payout | ₹2,00,000 | ₹1,40,000 | ₹1,00,000 |
| 10th Year Payout | ₹2,00,000 | ₹1,40,000 | ₹1,00,000 |
| 15th Year Payout | ₹2,00,000 | ₹1,40,000 | ₹1,00,000 |
| 20th Year Payout | ₹4,00,000 + Bonus | ₹2,80,000 + Bonus | ₹2,00,000 + Bonus |
Advantages of Plan 921
✔ Regular liquidity every 5 years
✔ Insurance + savings combo
✔ Tax benefits under 80C & 10(10D)
✔ Safe investment with guaranteed returns
✔ Flexibility with riders
Disadvantages
❌ Moderate returns compared to equity/mutual funds
❌ Fixed policy term (20 years only)
❌ Limited liquidity (only at 5-year intervals)
Analyst Insights
- Best For: Families seeking periodic cash inflows + life cover
- Not Ideal For: Aggressive investors seeking high-risk, high-return instruments
- Return Expectation: 5%–6% (approx.) IRR with bonuses
- Long-Term Value: Reliable for education, marriage, retirement planning
FAQs – Google Friendly
Q1: What is the policy term of LIC New Money Back Plan 921?
👉 20 years (fixed).
Q2: When do I receive money back in Plan 921?
👉 At the end of 5th, 10th, 15th years (20% each) and balance 40% + bonus at 20th year.
Q3: Can I take a loan against this policy?
👉 Yes, after 3 years of premium payment.
Q4: What if I stop paying premiums?
👉 Policy becomes paid-up after minimum premiums are paid; benefits reduce accordingly.
Q5: Is maturity benefit tax-free?
👉 Yes, under Section 10(10D), subject to conditions.
Q6: Who should buy this plan?
👉 Salaried employees, parents planning for children’s future, and those who want safe + guaranteed returns.
Conclusion
The LIC New Money Back Plan 921 is a balanced insurance-cum-savings option. While it doesn’t provide the highest returns, it ensures financial security, regular payouts, and tax benefits, which makes it suitable for risk-averse Indian investors.
If you are looking for a safe plan with periodic liquidity and family protection, LIC New Money Back Plan 921 deserves a place in your portfolio.
