Free Online Tool

LIC Money Back 20 Year Maturity Calculator

Calculate the maturity amount, survival benefits, and bonuses for your LIC Money Back 20-year policy (Plan 914). Enter your age and sum assured.

Your Age (Years)

Sum Assured (₹)

What is the LIC Money Back 20-Year Maturity Calculator?

The LIC Money Back 20-Year Maturity Calculator helps policyholders and prospective buyers estimate the total returns from LIC\'s Money Back Policy (Plan 914) with a 20-year term. This popular LIC plan stands out because it provides regular cash payouts during the policy term, unlike traditional endowment plans that pay only at maturity. The calculator takes your age and sum assured to compute: the survival benefits receivable at 5-year intervals, the final maturity payment including bonuses, and the estimated annual premium. This gives you a complete picture of the cash flows from the policy across its entire 20-year duration.

The Money Back 20-year policy is designed for individuals who want life insurance protection combined with periodic liquidity. The survival benefits at the end of years 5, 10, and 15 provide regular cash inflows that can be used for children\'s education milestones, home renovations, debt repayment, or reinvestment. At maturity, the remaining amount along with accumulated bonuses provides a substantial corpus. This structure makes it particularly attractive for individuals in their 30s and 40s who have predictable future expenses.

How to Use the Money Back Maturity Calculator

Using this calculator is quick and easy:

Enter Your Age: Provide your current age (18 to 50 years). The age helps estimate the annual premium.
Enter Sum Assured: Enter the desired life cover amount (minimum ₹1,00,000).
Click Calculate: View the complete payout breakdown including survival benefits, final maturity amount, total bonuses, and estimated annual premium.

The calculator assumes the policy term is fixed at 20 years and uses standard LIC premium rates and current average bonus declaration rates for Money Back plans.

Understanding the Money Back Payout Structure

The LIC Money Back 20-year policy has a unique payout structure. Over the 20-year term, you receive 15% of the sum assured at three intervals — at the end of the 5th, 10th, and 15th years. These survival benefits total 45% of the sum assured and are paid out during the term itself. At maturity at the end of the 20th year, you receive the remaining 55% of the sum assured along with all accrued Simple Reversionary Bonuses and any Final (Loyalty) Addition declared by LIC. The total payout across the policy term equals 100% of sum assured plus all bonuses and loyalty addition.

For example, with a sum assured of ₹5,00,000: Year 5 — ₹75,000 (15%), Year 10 — ₹75,000 (15%), Year 15 — ₹75,000 (15%), Year 20 — ₹2,75,000 (55%) + bonuses. If the average bonus rate is ₹40 per ₹1,000, total bonuses over 20 years would be ₹40 × 500 × 20 = ₹4,00,000. So the total payout would be survival benefits ₹2,25,000 + maturity ₹2,75,000 + bonuses ₹4,00,000 = ₹9,00,000.

Total Payout = (45% of SA as Survival Benefits) + (55% of SA + Bonuses + LA at Maturity)

Advantages of Money Back Over Endowment Plans

The Money Back policy offers several advantages over traditional endowment plans like Jeevan Anand. The periodic payouts provide liquidity during the policy term, which can be used for financial needs that arise before maturity. The death benefit remains the full sum assured plus bonuses regardless of survival benefits paid, so your family\'s protection is not reduced. The policy is ideal for those who need regular cash inflows for planned expenses such as children\'s school fees, college admissions, or periodic financial goals. Additionally, all payouts are tax-free under Section 10(10D), making the cash inflows completely tax-efficient. The loan facility provides further liquidity without surrendering the policy.

Is Money Back 20-Year Right for You?

The LIC Money Back 20-year policy is best suited for individuals who need life insurance along with regular cash payouts. It works well for parents who want to align policy payouts with children\'s educational milestones (at 5, 10, 15, and 20 years). It is also good for those who prefer having periodic liquidity rather than a single large corpus at maturity. However, if you do not need intermediate cash flows and prefer a larger lump sum at maturity with continued life coverage, Jeevan Anand (Plan 915) with its whole life coverage feature may be more appropriate. The Money Back plan does not offer coverage after maturity, so you would need to buy a new policy for continued protection.

Frequently Asked Questions

What is LIC Money Back Policy (20 Year)?

LIC Money Back Policy, officially known as LIC Money Back Plan (Plan 914), is a with-profit insurance plan that provides periodic survival benefits during the policy term along with life insurance coverage. In the 20-year variant, the policyholder receives 15% of the sum assured at the end of the 5th, 10th, and 15th years. At maturity (20th year), the remaining 55% of the sum assured is paid along with accrued bonuses. This periodic payout structure makes it popular among individuals who want regular cash inflows during the policy term.

How is the maturity amount calculated for LIC Money Back 20-year policy?

The maturity amount for LIC Money Back 20-year policy is calculated as: 55% of Sum Assured (final installment) + Accrued Simple Reversionary Bonuses + Final (Loyalty) Addition. During the policy term, 15% of sum assured is paid at the end of years 5, 10, and 15 as survival benefits. The total payout over 20 years = 15% (year 5) + 15% (year 10) + 15% (year 15) + 55% + bonuses (year 20). This totals 100% of sum assured plus all bonuses.

What are the survival benefits in Money Back 20-year policy?

In the LIC Money Back 20-year policy, survival benefits are paid as follows: at the end of the 5th policy year — 15% of the sum assured; at the end of the 10th policy year — 15% of the sum assured; at the end of the 15th policy year — 15% of the sum assured; at the end of the 20th policy year (maturity) — 55% of the sum assured plus accrued bonuses. These benefits are payable to the policyholder who survives each specified milestone.

What is the entry age for LIC Money Back 20-year plan?

The minimum entry age for LIC Money Back 20-year plan is 18 years (completed), and the maximum entry age is 50 years (nearer birthday). The policy term is fixed at 20 years, with the premium paying term also being 20 years. The minimum sum assured is ₹1,00,000, and the maximum is subject to underwriting. The sum assured must be in multiples of ₹10,000 or such higher amount as specified by LIC.

How are bonuses calculated in Money Back 20-year policy?

LIC Money Back policy participates in LIC's profits through Simple Reversionary Bonuses. Bonuses are declared annually per ₹1,000 sum assured. For example, if the declared bonus rate is ₹40 per ₹1,000 for a ₹5,00,000 policy, the annual bonus is ₹20,000. Over 20 years, total bonuses would be ₹4,00,000. However, since 45% of the sum assured is paid out during the term (15% × 3), bonuses are calculated on the full sum assured throughout the term. A Final (Loyalty) Addition may also be payable at maturity.

What is the death benefit under Money Back 20-year policy?

If the policyholder dies during the 20-year term, the nominee receives the full sum assured (regardless of survival benefits already paid) plus all accrued bonuses. The death benefit is not reduced by the survival benefits that have already been paid. This ensures that the family receives the complete financial protection even if death occurs after some survival benefits have been taken. On death after maturity, the sum assured is payable if the death occurs within the extended cover period.

Can I surrender my LIC Money Back 20-year policy?

Yes, you can surrender your LIC Money Back 20-year policy after paying at least 2 full years of premiums. The surrender value is the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV). GSV is a percentage of premiums paid (ranging from 30% after 2 years to 70% after 10+ years). SSV is calculated based on paid-up value and surrender value factor. Surrender before 5 years means you lose the survival benefits.

What are the tax benefits of Money Back 20-year policy?

LIC Money Back 20-year policy offers multiple tax benefits. Premiums qualify for deduction under Section 80C up to ₹1,50,000 per year. The survival benefits and maturity proceeds are tax-free under Section 10(10D) provided the premium does not exceed 10% of the sum assured. The death benefit is also tax-free. This makes the Money Back policy a tax-efficient investment with regular tax-free cash inflows during the term.

How does Money Back 20-year differ from Jeevan Anand 20-year?

The key difference is the payout structure. Money Back provides regular payouts (15% every 5 years) while Jeevan Anand pays the entire amount at maturity. Money Back does not offer whole life coverage after maturity (coverage ends at maturity or earlier death), while Jeevan Anand provides whole life cover until age 100. Money Back is better for those needing periodic cash flows; Jeevan Anand is better for those wanting lump sum at maturity with continued life cover.

Can I take a loan against my Money Back 20-year policy?

Yes, you can take a loan against your LIC Money Back policy after it acquires surrender value (typically after 2-3 years). The loan amount is up to 85-90% of the surrender value at 9-10% interest per annum. The loan can be taken even after receiving survival benefits. The policy continues with full benefits during the loan period. This feature provides liquidity without surrendering the policy.

What happens if I stop paying premiums for Money Back policy?

If you stop paying premiums after at least 2 full years, the policy becomes paid-up. The reduced sum assured is calculated as (Premiums Paid / Total Premiums) × Original Sum Assured. Accrued bonuses remain attached. The survival benefits and maturity amount will be based on the reduced sum assured. If you stop within 2 years, the policy lapses with no benefits. It is recommended to continue premium payments to get the full survival benefits.

Who should buy LIC Money Back 20-year policy?

LIC Money Back 20-year policy is ideal for individuals who want life insurance coverage along with periodic cash inflows. It suits those who need regular payouts for planned expenses such as children's education at specific intervals, or for supplementing retirement income. It is also good for conservative investors who prefer guaranteed payouts with bonus potential. However, for those needing a single large corpus at maturity, Jeevan Anand may be more suitable.

How to calculate Money Back 20-year policy maturity value?

To calculate the maturity value of your Money Back 20-year policy: Add up all survival benefits (15% × 3 = 45% of SA received in years 5, 10, 15). At maturity (year 20), you receive 55% of SA + total accumulated bonuses + loyalty addition. Total payout = 100% of SA + total bonuses + loyalty addition. Our calculator does this automatically. For example, ₹5,00,000 SA: you receive ₹75,000 at years 5, 10, 15, and ₹2,75,000 + bonuses at year 20.

What is the extended cover in Money Back policy?

LIC Money Back policy does not provide whole life coverage like Jeevan Anand. The coverage is limited to the policy term of 20 years. If the policyholder survives the term, the policy matures and coverage ends after the maturity proceeds are paid. For continued life insurance after 20 years, you would need to purchase a new policy. This is an important distinction from Jeevan Anand which provides coverage until age 100.