LIC New Money Back Plan 721
25 Years Term Plan | Plan No. 721
Money-Back Schedule (15% of BSA)
The LIC New Money Back Plan 721 is a well-known life insurance savings scheme that provides both financial security and regular money-back payouts to policyholders. Along with survival benefits during the policy period, it also offers a lump sum maturity benefit at the end of the term.
To help customers estimate their returns, bonuses, and overall policy benefits, the LIC New Money Back Plan 721 Calculator serves as a simple and useful planning tool.
What is LIC New Money Back Plan 721?
LIC New Money Back Plan 721 is a non-linked, participating life insurance policy with a limited premium payment option and a total policy duration of 25 years. The plan is designed to provide a combination of insurance protection and long-term savings. During the policy term, policyholders receive regular money-back payouts, while a lump sum amount along with bonuses is paid at maturity. It is a suitable option for individuals seeking periodic returns together with life cover.
Main Features of LIC New Money Back Plan 721
- Policy Duration: 25 years
- Premium Payment Term: 20 years
- Survival Benefits: 15% of the Basic Sum Assured is paid at the end of the 5th, 10th, 15th, and 20th policy years
- Maturity Benefit: Remaining 40% of the Basic Sum Assured along with applicable bonuses is paid at the end of the policy term
- Death Benefit: Higher of 125% of the Basic Sum Assured or 7 times the annualized premium, along with vested bonuses
- Bonus Facility: Eligible for Simple Reversionary Bonus and Final Additional Bonus, if declared
- Loan Availability: Policy loan facility is available after completion of the required premium payment period
- Minimum Entry Age: 13 years
- Maximum Entry Age: 45 years
- Maximum Maturity Age: 70 years
LIC New Money Back Plan 721 Calculator Explained
The LIC New Money Back Plan 721 Calculator is an online utility that helps policy buyers estimate premium amounts, maturity value, survival benefits, and death coverage based on details such as age, sum assured, and premium payment mode.
Advantages of Using the Calculator
Simple and User-Friendly
Users only need to enter basic information such as age, desired sum assured, and premium frequency.
Instant Benefit Estimation
The calculator quickly provides estimated premium amounts, survival payouts, and maturity benefits.
Better Financial Planning
It helps users understand future returns and plan insurance and savings more efficiently.
Easy Comparison
Different sum assured values and premium payment options can be compared to choose the most suitable plan.
How to Use LIC New Money Back Plan 721 Calculator
Step 1: Enter Your Age
Provide your current age. The eligible entry age ranges from 13 to 45 years.
Step 2: Enter Basic Sum Assured
Choose the desired Basic Sum Assured, starting from ₹2,00,000 and available in multiples of ₹25,000.
Step 3: Select Premium Payment Mode
Choose the premium frequency — yearly, half-yearly, quarterly, or monthly.
Step 4: View Calculation Results
The calculator will display estimated premium details, total premium payable, survival benefits, maturity amount, and death benefits.
Example
For a 30-year-old individual selecting a Basic Sum Assured of ₹5,00,000, the calculator can estimate periodic survival payouts every 5 years, maturity proceeds after 25 years, and premium payment details.
Benefits of LIC New Money Back Plan 721
Regular Survival Benefits
The plan provides 15% of the Basic Sum Assured at every 5-year interval, helping maintain liquidity during the policy term.
Strong Financial Protection
In case of the policyholder’s death, nominees receive a substantial death benefit along with bonuses for financial security.
Attractive Maturity Returns
The final payout includes 40% of the Basic Sum Assured along with accumulated bonuses, increasing the overall maturity value.
Bonus Participation
Since the policy is participating in nature, it qualifies for LIC bonus declarations, which can significantly enhance returns.
Loan Facility
Policyholders can avail themselves of loans against the policy during emergencies or financial requirements.
Tax Advantages
Premiums paid may qualify for tax deductions under Section 80C, while maturity proceeds may be eligible for tax exemption under Section 10(10D) of the Income Tax Act, subject to prevailing tax laws.
Eligibility and Conditions for LIC New Money Back Plan 721
The following table explains the eligibility requirements and policy conditions for LIC New Money Back Plan 721:
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age (completed/nearest birthday) | 13 years | 45 years |
| Maturity Age (nearest birthday) | — | 70 years |
| Policy Term | 25 years (fixed) | 25 years (fixed) |
| Premium Paying Term | 20 years (fixed) | 20 years (fixed) |
| Basic Sum Assured | ₹2,00,000 | No upper limit (in multiples of ₹25,000) |
Example Illustration Using LIC New Money Back Plan 721 Calculator
Assume a 30-year-old individual selects a Basic Sum Assured of ₹5,00,000 under the LIC New Money Back Plan 721.
- Premiums are paid annually for 20 years based on the calculated premium amount.
- Survival benefits of ₹75,000 each (15% of ₹5,00,000) are paid at the end of the 5th, 10th, 15th, and 20th policy years.
- Total survival benefits received during the policy term amount to ₹3,00,000.
- At maturity after 25 years, the policyholder receives the remaining 40% of the Basic Sum Assured, which equals ₹2,00,000, along with accumulated bonuses.
- After including bonuses, the total maturity and survival value may range between approximately ₹12,00,000 and ₹14,00,000.
- In case of the policyholder’s unfortunate death during the policy term, the nominee receives the applicable death benefit along with bonuses.
Advantages of LIC New Money Back Plan 721 Compared to Other Plans
| Feature | LIC New Money Back Plan 721 | Other Money-Back Plans |
|---|---|---|
| Policy Term | Fixed 25 years | Usually varies between 10–20 years |
| Premium Payment Term | 20 years | Often equal to the policy term |
| Survival Benefits | 15% of the sum assured every 5 years | Different payout percentages and intervals |
| Death Benefit | Higher of 125% of the sum assured or 7 times annual premium | Depends on the plan structure |
| Loan Facility | Available after required premiums are paid | Not available in every plan |
| Bonus Eligibility | Eligible for Simple Reversionary Bonus and Final Additional Bonus | Bonus structure may vary |
| Tax Benefits | Available as per applicable tax laws | Generally available |
Important Things to Know About LIC New Money Back Plan 721
Regular Premium Payments Are Necessary
Timely premium payment is important to continue enjoying all policy benefits without interruption.
Survival Benefits Improve Liquidity
The periodic money-back payouts help policyholders meet financial needs during the policy term.
Insurance Plus Savings
The plan offers life insurance protection along with long-term savings benefits in a single policy.
Bonuses Affect Final Returns
LIC declares bonus rates periodically, and these bonuses significantly influence the maturity amount.
Loan Facility Provides Flexibility
Eligible policyholders can avail themselves of loans against the policy during financial emergencies.
Use the Calculator Before Purchase
Using the LIC New Money Back Plan 721 Calculator helps estimate premiums, maturity benefits, and payouts accurately before purchasing the plan.
Where Can You Use LIC New Money Back Plan 721 Calculator?
The LIC New Money Back Plan 721 Calculator is available on the official LIC website as well as trusted insurance portals such as PolicyBazaar and LIC-related financial planning websites. These calculators are designed to provide quick and accurate benefit estimates based on user inputs.
Frequently Asked Questions (FAQs)
What is LIC New Money Back Plan 721?
LIC New Money Back Plan 721 is a 25-year limited premium payment insurance plan that provides life cover, periodic survival benefits, and a lump sum maturity amount along with bonuses.
How are survival benefits paid in this plan?
The policy pays 15% of the Basic Sum Assured at the end of the 5th, 10th, 15th, and 20th policy years.
What will the policyholder receive at maturity?
At maturity, the remaining 40% of the Basic Sum Assured along with vested bonuses is paid to the policyholder.
Who can purchase LIC New Money Back Plan 721?
Individuals aged between 13 and 45 years are eligible to buy this policy, subject to LIC’s terms and conditions.
Are tax benefits available under LIC Plan 721?
Yes, premiums may qualify for deductions under Section 80C, while maturity proceeds may be exempt under Section 10(10D) of the Income Tax Act, subject to applicable tax regulations.
Conclusion
LIC New Money Back Plan 721 is a suitable insurance and savings solution for individuals seeking regular money-back benefits along with long-term financial protection. The plan combines periodic payouts, bonus benefits, and life cover to provide balanced financial security. By using the LIC New Money Back Plan 721 Calculator, users can better understand premium commitments, expected returns, survival benefits, and maturity payouts before making a decision.
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