What Is LIC Money Back Policy 20 Years?

LIC money back policy is a simple 20 years plan. It is a kind of endowment plan which has scheduled 20 years of tenure of maturity time. During these 20 years, the policyholder will get a fixed amount according to their basic sum insured’s 20% at the end of every 5th, 10th, 15th and 20th years of the policy. Even this policy is having a lot of accidental and disability riders which are quite good for the policyholders to opt for. Therefore, the money-back policy of LIC is quite good and serving their policyholders with their best services. Now we will look forward to other features of the policy below.

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Important Points of LIC Money Back Policy

  • This plan is a traditional plan which is serving their customers every 5 years by providing 20% of their sum assured.
  • There are even Riders which act as a bonus in this money back policy.
  • Benefits being paid after 5 years are known as the survival benefit which plays an important role in insurance that the policy will continue.
  • 60% of the sum insured will be paid in three installments to the policyholder. Therefore at the end, 40% of the basic sum assured will be paid to the policyholder as a survival benefit along with any other bonus or the rider’s benefits.
  • Even though it has an option of choosing the nominee as if the policyholder dies before the maturity time of the policy then the sum assured will be paid to the nominee along with any other rider benefits.

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Benefits of LIC Money Back Policy 20 Years

  • The policy is having many bonuses and the rider’s benefits which act as an incentive for the policyholder.
  • It has a survival benefit under which 20% of the sum assured is being paid at an interval of the 5th policy year, 10th policy year and 15th year.
  • After that when the 20th policy year comes that is the maturity time. At that time the 40% of the sum insured along with the riders benefits and the bonuses will be paid to the policyholder in one go.
  • This policy also death benefits for both accidental death benefits and disability benefits.
  • Therefore the LIC money back policy of 20 years is working well to serve their policyholders with proper benefits and quality service.

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Why It Is Known As The Guaranteed Return Policy?

This is the only policy that has very little exclusion and the policy providers are ensuring that the money-back will be provided to the policyholder after the maturity time and at a fixed time interval. Even though this is the only plan which is providing the high returns on the investment is made by the policyholder. None of the other plans is providing so many benefits which this plan is doing.

What Are The Two Types of Bonus Amounts?

There are two types of Bonus plans namely reversionary bonus and additional bonus.

  • In the reversionary bonus plan, a percentage of the sum assured will be provided to the policyholder after every policy Year by the side of the company. The policyholder will be able to get this amount at maturity time.
  • The second is an additional bonus in which the company will eventually add a bonus according to the performance of the company. Even the loyalty of the customer is also being observed properly while adding the additional bonus.

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How LIC Money Back Policy Is Helping in Reducing The Tax Liabilities

Under this plan the tax deduction under 80c section Indian Income Tax policies, if the premium amount is less than 10% of the total sum assured then the policyholder can reduce their tax liabilities through this plan. The policyholders who want to go for a fixed plan with guaranteed Returns can opt for this plan.

Other Details of LIC Money Back Policy

  • What Is the grace period?

If in any case, the policyholder was unable to pay the premium on time then the 30 Days Grace period will be given to the policyholder to pay their premiums and after that, the policyholder will unable to pay the premium then the policy will lapse.

  • What is a policy termination benefit?

If the policy has survived for three policy years then after that if the policy lapsed due to unpaid premiums after the grace period then the policy could be revived within 2 years from unpaid premium pay-outs.

  • Freelook period

A period of 15 days is provided to the policyholder to decide whether they want to continue the policy for 20 years of the period or want to cancel the deal in the starting. This period is given to the policyholder to observe whether the policy is beneficial for them or not.

  • Inclusions under money back policy

The policyholder could opt for a loan after the successful completion of three policy years. The loan will be given to the policyholder based on the money-back policy.

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How To Get The LIC Money Back plan?

To purchase the LIC policy one can go to the official website of it and can look for the money-back policy form. From there you can opt for the money-back policy of 20 years. Before going further just go through all the terms and conditions to eliminate any future tribulation. Going through the terms and conditions will also help in knowing about the policy. Even you can call on the customer care number to get any information regarding the policy before purchasing it. Even after services provided by the LIC are very good and hence one can go for it too.


Therefore, we can say that the LIC policy money back plan is a risky plan for returns but can guarantee the returns if the company will perform well over the years. The best part of the plan is that they are providing additional benefits to their customers. Hence, opting for this plan is quite feasible for anyone who wants to earn good returns on their investments.

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