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Features and Benefits of LIC Money Back Plan 20 Years

Published On Jun 23, 2021 11:00 AM By InsuranceDekho

When it comes to purchasing any insurance plans LIC is the most prefered choice by millions of people in India. LIC is such an insurance company that offers their customers a plethora of options according to their needs. Money Back Plans provide twin benefits of investment and insurance to their policyholders. This plan is similar to endowment plans with an advantage of liquidity. Money Back Plan is an ideal solution for those who are looking for a plan that can offer a minimum risk facility with the feature of liquidity. 

What is the LIC Money Back Plan - 20 years? 

LIC Money Back Plan for 20 Years offers regular payouts of the sum assured at periodic intervals with bonus facility during the policy tenure. The policyholder can avail loan under this policy. The plan is for 20 years whereas premiums need to be paid for 15 years only. 

The Minimum Sum Assured under the plan is Rs 1 Lakh whereas there is no limit for Maximum Sum Assured. The eligibility age for this plan is between 13 to 50 years. Premiums need to be paid yearly, monthly, half-yearly and on a quarterly basis.

The main goal of this plan is to provide financial protection, full sum assured as a lump sum amount and accrued bonuses to the family of policyholders if in case of an unfortunate situation that leads to death of the policyholder during the policy tenure.

LIC Money Back Plan offers a wide range of rider options apart from the basic benefits such as death benefits, maturity benefits, survival benefits and many more. 

In this Article, we will discuss some benefits and features of the LIC Money Back Plan for 20 years to make you have a clear and a better understanding of the whole plan. 

Benefits of LIC Money Back Plan 20 Years

Following are some of the key benefits enjoyed by the policyholders of LIC Money Back Plan - 

  • Death Benefit

    Death benefit is payable in case of death of the policyholder during the policy tenure. Death Benefits include Sum Assured along with accrued Simple Reversionary Bonus and Additional Bonus provided to the nominee of the policy excluding the amount paid earlier as survival benefit. However, sum assured provided on Death is defined as higher than 125% of the Basic Sum Assured amount or 7 times of Total premium. Death benefit shall not be less than 105% of the total premiums paid till the date of death.
  • Survival Benefits

    In case of the policyholder is survived to the end of the specified period provided all due premiums have been paid, 20% of the Sum Assured is paid to the policyholder at the end of each of 5th, 10th & 15th
    policy year. 
  •  Maturity Benefit

    In case of insured surviving to the end of the policy term, 'Sum Assured on Maturity' equal to 40% of the Sum Assured along with accrued Simple Reversionary Bonus and additional bonuses if any are paid to the policyholder on maturity of the policy. 
  • Participation in Profits

    Under this policy, policyholders shall participate in profits of the Insurance Company and shall be eligible to receive Simple Reversionary Bonuses declared as per the performance of the Insurance Company. Additional Bonus may be declared when a claim is made either by death or maturity. 

Additional Bonus is not payable under paid-up policies. The actual distribution to policyholders, out of the excess emerging from the actuarial investigation, shall be as approved by the Central Government in accordance with prevailing laws in this regard under LIC Act, 1956.


LIC Money Back Plan 20 Years is an ideal plan for those policyholders who are looking for triple privilege of death benefit, maturity benefits, and survival benefits along with bonus facilities all at a single place. This plan offers the policyholders with multifaceted riders during the policy tenure by paying some extra amount. Accidental Death and Disability Benefit Rider, New Term Assurance Rider, Critical Illness Rider, etc are some of the Riders that can provide the policyholder with financial safety nets during difficult times that you as a policyholder can enjoy by purchasing this policy. 

Also Read: Tips to Choose Best Money Back Plan

Money Back Plans V/S Other Life Insurance Plans

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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