LIC Money Back Policy 20 Years - Policy Features & Benefits

The Life Insurance Corporation is one of the best insurance providers in the country. Given that it is a government owned organisation, it is one of the most trusted brands and has a coverage across the country like no other. With its brilliant plans rolled out to the general audience, it is only evident that people choose to go with LIC as their primary choice.

What Is the LIC Money Back Policy?

One of such plans is the LIC money back policy. It is one of the non-linked plans which has been known to offer a combination of benefits unlike other plans from the house of LIC. The LIC Money Back Policy 20 years is known to provide you death benefits and also provide a lump sum amount as the time of the maturity. Given that the plan has loan benefit options, one can also choose to get one at any point of time. Let’s have a look at the policy terms and benefits.


Survival Benefits is one of the best possible features of the LIC money back policy.

  • Survival benefits is a term which is used to describe the bonus amount that an insurance holder gets an extra benefit of certain percentage after a couple of years.
  • At the end of 5, 10 and 15 years, a sum of 20% of the sum assured is paid out. Additionally, after the plan has ended or when the plan reaches maturity, a revision bonus is added to the sum assured and is paid out as a whole sum amount.
  • Accidental death and disability benefits are a few clauses which make the LIC money back policy stand out among the rest. It can be chosen as a rider plan which offers you several other advantages. However, this calls for an additional premium which is always there when you are purchasing a rider plan. In case of accidental death, Accident benefit sum assured is paid out instantly as soon as a claim is filed. However, in case of accidental disability the sum assured is paid out over a period of 10 years and all future premiums are waived off for the right reasons.
  • Revision Bonus plan is yet another perk of the LIC money back policy. It is bonus which is calculated per thousand that comprises your base plan. It is accrued at the end of each term and you can see that in the annual statement. However, the pay-out is done only at the end when the policy has matured and it is time for the customer to withdraw it all. The bonus is subject to fluctuations and is decided based on the performance of the LIC.
  • The final bonus is just the icing on the cake when it comes to the LIC money back policy. The policy needs to run for a particular period before you can become eligible for that final bonus pay-out. It is declared during the claim made. It could be at the maturity of the LIC money back policy or the accidental death benefit which could be purchased as rider plan.
  • As part of the death benefit program, you get 10 times of the annual premium paid or 125% of the basic sum assured, the revision bonus, and the additional bonus. It could be exclusive of the amount that was paid out as part of the survival benefit program.
  • Maturity benefit for the LIC money back policy is something to watch out for. It is not an unheard fact that insurance holders tend to survive past the policy maturity date. In such cases, you become eligible for a 40% of the sum assured and extra allowances which are paid out as the revision bonus and final bonus.

What If You Want to Surrender the Plan?

In case you want to surrender the plan, you can do so after 3 years of the policy purchase given that you have been paying the premiums regularly during that time period. In case you have not been regular in paying the premium for the LIC policy money back plan. In case, there has been continuous premium pay-outs, you get a value which is equivalent to the sum accrued during the time period during which the policy was active. It is not necessarily the entire sum assured, but a part of the same which is due pay out!

How Do You Renew the LIC Money Back Policy?

It is common knowledge that the policy stands cancelled if you do not pay your premiums on time. It is simple and easy to do so given that the portal is online these days. As long as you have a valid user name, password, policy number in place, it is only convenient that you pay the premium amount online through the portal.

Nevertheless, it is possible that you forget to pay the premium amount on time. It could also happen that there are several financial constraints because of which you are not able to pay the premium amount. But does that mean your family stays unprotected or without a cover? Of course not!

The policy can be revived after two years of continuous non-payment of the premium. However, the process can be longer and can get exhaustive given that there are multiple approvals which have to be in place before the LIC money back policy becomes active again. LIC takes full responsibility to approve the request and inform the insurance holder after the process has been fulfilled.

In any case renewal isn’t that difficult and can be done easily when you have a proper process in place.

Eligibility for Purchasing the LIC Money Back Policy

The table below shows the eligibility criteria for purchasing the plan:


Permissible limit

Minimum Sum that can be assured

1.00,000.00 INR

Maximum sum that can be assured

There is no higher limit

Minimum Age for entry

13 years

Maximum for entry

50 years

Maturity age allowed(Maximum)

70 years

PoLICy duration

20 years

Premium to be paid for

15 years

Payment of premium

Can be one of the follows:

  • Monthly
  • Yearly
  • Quarterly
  • Half-yearly
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