LIC Money Back Calculator
Calculate your returns under LIC traditional money-back schemes. Model total premium deposits, periodic survival money-back benefits, vested simple reversionary bonuses, final additional bonuses (FAB), and precise Internal Rate of Return (IRR) cash flows.
Section 10(10D) Compliant Status: Tax-Free Proceeds
Excellent. Your Sum Assured (₹5,00,000) is at least 10x your annual base premium (₹36,866). All survival benefits and maturity lump-sum payouts are 100% tax-free.
Estimated Total Payouts (Survival + Maturity)
₹9,40,000
Total Premiums Paid
₹5,66,255
For 15 Years PPT
Internal Yield (IRR)
5.48% p.a.
Accounting for payouts
Premium Payout Intervals (yearly)
1st Year Premium (+4.5% GST)
₹38,525 /yr
Renewal Years (+2.25% GST)
₹37,695 /yr
LIC Money-Back Survival USP
In case of unfortunate death during the term, the **Nominee receives 125% of Sum Assured + full vested bonuses**, and **none** of the survival payouts already received are deducted!
1st Money Back
₹1,00,000
20% of Basic SA
2nd Money Back
₹1,00,000
20% of Basic SA
3rd Money Back
₹1,00,000
20% of Basic SA
Final Maturity
₹6,40,000
40% SA + Bonuses + FAB
Maturity Payout
—
Plan 921 Exclusive
| Payment Frequency | Installment (No GST) | Annualized Gross Premium | Effective Discount / Loading | Total Lifetime Premiums Paid | Lifetime Savings |
|---|---|---|---|---|---|
| yearlySelected | ₹36,866 | ₹36,866 | 2.0% Yearly Rebate | ₹5,66,255 | + ₹37,081 |
| half yearly | ₹18,993 | ₹37,986 | 1.0% Half-Yearly Rebate | ₹5,83,456 | + ₹19,880 |
| quarterly | ₹9,781 | ₹39,124 | Tabular Loading (+4.0% load) | ₹6,00,940 | + ₹2,396 |
| monthly | ₹3,273 | ₹39,276 | Tabular Loading (+4.4% load) | ₹6,03,336 | Baseline (Worst) |
| Policy Yr | Age | Installment Contributed | Total Invested | Survival Payout | Yearly Bonus Vested | Est. Surrender Value | Death Coverage Benefit | Maturity Paid |
|---|---|---|---|---|---|---|---|---|
| Year 1 | 31 Yrs | ₹38,525 | ₹38,525 | — | ₹19,500 | No Cash Surrender | ₹6,44,500 | — |
| Year 2 | 32 Yrs | ₹37,695 | ₹76,220 | — | ₹39,000 | ₹25,942 | ₹6,64,000 | — |
| Year 3 | 33 Yrs | ₹37,695 | ₹1,13,915 | — | ₹58,500 | ₹44,969 | ₹6,83,500 | — |
| Year 4 | 34 Yrs | ₹37,695 | ₹1,51,610 | — | ₹78,000 | ₹82,780 | ₹7,03,000 | — |
| Year 5 | 35 Yrs | ₹37,695 | ₹1,89,305 | + ₹1,00,000 | ₹97,500 | ₹54,353 | ₹7,22,500 | — |
| Year 6 | 36 Yrs | ₹37,695 | ₹2,27,000 | — | ₹1,17,000 | ₹78,120 | ₹7,42,000 | — |
| Year 7 | 37 Yrs | ₹37,695 | ₹2,64,695 | — | ₹1,36,500 | ₹1,06,584 | ₹7,61,500 | — |
| Year 8 | 38 Yrs | ₹37,695 | ₹3,02,390 | — | ₹1,56,000 | ₹1,38,747 | ₹7,81,000 | — |
| Year 9 | 39 Yrs | ₹37,695 | ₹3,40,085 | — | ₹1,75,500 | ₹1,74,608 | ₹8,00,500 | — |
| Year 10 | 40 Yrs | ₹37,695 | ₹3,77,780 | + ₹1,00,000 | ₹1,95,000 | ₹1,64,167 | ₹8,20,000 | — |
| Year 11 | 41 Yrs | ₹37,695 | ₹4,15,475 | — | ₹2,14,500 | ₹2,03,924 | ₹8,39,500 | — |
| Year 12 | 42 Yrs | ₹37,695 | ₹4,53,170 | — | ₹2,34,000 | ₹2,47,380 | ₹8,59,000 | — |
| Year 13 | 43 Yrs | ₹37,695 | ₹4,90,865 | — | ₹2,53,500 | ₹2,94,534 | ₹8,78,500 | — |
| Year 14 | 44 Yrs | ₹37,695 | ₹5,28,560 | — | ₹2,73,000 | ₹3,45,387 | ₹8,98,000 | — |
| Year 15 | 45 Yrs | ₹37,695 | ₹5,66,255 | + ₹1,00,000 | ₹2,92,500 | ₹3,32,437 | ₹9,17,500 | — |
| Year 16 | 46 Yrs | Term Fully Paid | ₹5,66,255 | — | ₹3,12,000 | ₹3,63,520 | ₹9,37,000 | — |
| Year 17 | 47 Yrs | Term Fully Paid | ₹5,66,255 | — | ₹3,31,500 | ₹3,95,968 | ₹9,56,500 | — |
| Year 18 | 48 Yrs | Term Fully Paid | ₹5,66,255 | — | ₹3,51,000 | ₹4,29,780 | ₹9,76,000 | — |
| Year 19 | 49 Yrs | Term Fully Paid | ₹5,66,255 | — | ₹3,70,500 | ₹4,64,957 | ₹9,95,500 | — |
| Year 20 | 50 Yrs | Term Fully Paid | ₹5,66,255 | — | ₹3,90,000 | ₹6,40,000 | ₹10,65,000 | ₹6,40,000 |
Periodic Money-Back Survival Benefits
LIC Money Back policies are designed for individuals who require guaranteed periodic cash inflows to meet recurring life milestones (e.g. child education fees, business capital expansion) instead of a single maturity lump-sum.
- •Plan 920 (20 Years): Pay premiums for **15 Years**. Receive **20% of the Basic Sum Assured** at the end of Policy Years **5, 10, and 15**. Maturity receives **40% of SA + Bonuses**.
- •Plan 921 (25 Years): Pay premiums for **20 Years**. Receive **15% of the Basic Sum Assured** at the end of Policy Years **5, 10, 15, and 20**. Maturity receives **40% of SA + Bonuses**.
- •Maturity Additions: Simple Reversionary Bonuses vest annually on the **full** Sum Assured throughout the term, and a Final Additional Bonus (FAB) is added at maturity.
Non-Deducted Death Benefits (Sovereign Shield)
The premium unique selling proposition (USP) of LIC Money Back Plans lies in its unparalleled risk protection structure:
- •125% Risk Cover: In the event of death during the policy term, the nominee receives the **Death Sum Assured (125% of Basic SA)** + all accrued vested bonuses.
- •No Payout Deductions: Any survival money-back benefits already paid out to the policyholder during their lifetime are **not deducted** from the death claim proceeds.
- •Lapse Protection: Policies preserve partial benefits after 2 active premium years, converting to reduced Paid-Up status if premiums are stopped.
Dynamic IRR Yield compounding
Calculating the return of a Money Back plan manually is exceptionally difficult due to intermediate payouts. Here is how our solver compiles the precise net CAGR yield:
The calculator models premium installments as negative cash flows (outflows) and survival benefits plus maturity lump-sums as positive cash flows (inflows). It solves for the precise interest rate (IRR) that equates Net Present Value (NPV) to zero.
Because money-back plans pay out cash periodically, they sacrifice slightly lower compound interest growth (typical IRR 4.6% to 5.4%) compared to pure endowment plans (typical IRR 5.2% to 6.2%). However, you gain valuable periodic liquidity.
Section 80C & 10(10D) Tax Shields
Sovereign-guaranteed money-back products enjoy strong tax advantages in India:
- •100% Tax-Free Money Backs: All survival money-back payouts received every 5 years are **fully tax-exempt** under Section 10(10D).
- •10x Rule Auditing: The tax exemption remains valid only if the basic Sum Assured is at least 10 times the annual base premium. The calculator tracks and alerts you about this dynamically.
- •Section 80C Deduction: Annual premiums contributed during the PPT are deductible from your taxable income up to a maximum cap of **₹1,50,000** annually.
LIC Money Back Plans Comparison & Rules
Review official eligibility rules and parameter slabs applicable to Plan 920 and Plan 921.
| Parameter Slabs | 20-Year Term (Plan 920) | 25-Year Term (Plan 921) | Applicable Rule Limit |
|---|---|---|---|
| Minimum Entry Age | 13 Years Old | 13 Years Old | Strict Actuarial Limit |
| Maximum Entry Age | 50 Years Old | 45 Years Old | Maximum Entry Limit |
| Premium Paying Term (PPT) | 15 Years | 20 Years | Limited Pay Durations |
| Survival Payout Slabs * | 20% SA (Yr 5, 10, 15) | 15% SA (Yr 5, 10, 15, 20) | Lifetime Cash Payouts |
Frequently Asked Questions (FAQ)
Are the survival money-back benefits deducted from the death claim benefit?
No. This is a primary actuarial advantage of LIC Money Back policies. If the policyholder dies during the term, the nominee receives the full Death Sum Assured (125% of the basic Sum Assured) + accrued reversionary bonuses. Any survival benefits that have already been paid out to the policyholder over the years are completely ignored and are not deducted from the claim proceeds.
What is the compounding frequency of the reversionary bonuses in money back plans?
LIC declares Simple Reversionary Bonuses annually. These are calculated as simple additions based on the basic Sum Assured (e.g. ₹39 or ₹45 per ₹1,000 Sum Assured). They accumulate inside your policy ledger and are paid out together at maturity (along with the remaining 40% basic Sum Assured and any Final Additional Bonus).
Is there a tax on the 5-yearly survival money-back payouts under GST?
No. All survival benefits paid out every 5 years are completely tax-exempt under Section 10(10D) of the Income Tax Act, provided the Sum Assured is at least 10 times the annual premium. First-year premiums carry a 4.5% GST surcharge, which is reduced to 2.25% in all renewal years.
Can I stop paying premiums after 2 years and keep the policy active?
Yes. Once you pay premiums for 2 consecutive full years, the policy acquires a 'Paid-Up' value. If you stop paying premiums thereafter, the policy is not terminated. Instead, the Sum Assured is proportionally reduced based on the number of premiums actually paid. You will still receive survival and maturity benefits based on this reduced paid-up value.
Can I take a loan against my Money Back policy?
Yes. You can borrow up to 90% of the accrued cash surrender value in active policies (85% in paid-up plans) after the completion of 2 full policy years. The interest on such loans is calculated as simple reducing interest and can be easily adjusted against your future money-back payouts or maturity claims.
What happens if I miss a premium payment installment?
LIC grants a 30-day grace period for yearly, half-yearly, and quarterly modes, and a 15-day grace period for monthly modes. If you fail to pay within the grace period, the policy lapses. However, you can revive it within a 5-year revival window from the date of the first unpaid premium by paying outstanding dues + interest surcharges.
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