LIC Plan 720 (Money Back Plan) Details

LIC Plan 720 is a participating, non-linked money-back policy that provides periodic survival benefits along with life coverage. It is designed to offer regular payouts during the policy term, making it suitable for those who need liquidity at intervals.

Key Features of LIC Plan 720 (Money Back Plan)

Policy Term: 20 years

Premium Payment Term (PPT): 15 years

Survival Benefits: 20% of Sum Assured paid at 5th, 10th, and 15th policy years

Maturity Benefit: 40% of Sum Assured + Bonus (if any)

Death Benefit: Sum Assured on Death (SAOD) + Bonus (if any)

Bonus: Simple Reversionary Bonuses (declared annually) + Final Bonus (if applicable)

Loan Facility: Available after 3 years

Surrender Value: Available after 2 years

Example Calculation (Sum Assured ₹10,00,000)

Survival Benefits:

5th year: 20% of ₹10,00,000 = ₹2,00,000

10th year: 20% of ₹10,00,000 = ₹2,00,000

15th year: 20% of ₹10,00,000 = ₹2,00,000

Maturity Benefit (20th year): 40% of ₹10,00,000 = ₹4,00,000 + Bonus

Total Survival + Maturity Payouts: ₹2,00,000 (5th) + ₹2,00,000 (10th) + ₹2,00,000 (15th) + ₹4,00,000 (20th) = ₹10,00,000 (excluding bonus)

Death Benefit: Full Sum Assured (₹10,00,000) + Bonus (if any)

Eligibility

Minimum Entry Age: 13 years

Maximum Entry Age: 50 years

Minimum Sum Assured: ₹1,00,000

Maximum Sum Assured: No limit (subject to underwriting)

Who Should Invest?

Those who need periodic cash inflows (e.g., for education, marriage, or expenses).

Investors looking for life cover + regular returns.

Risk-averse individuals who prefer LIC’s guaranteed payouts.