LIC New Money Back Plan 720 is a 20-year, with-profit money back policy where you pay premiums for 15 years. LIC returns 20% of the sum assured at the end of years 5, 10 and 15, and 40% plus bonuses at maturity. For a 30-year-old with ₹5 lakh cover, the yearly premium is about ₹38,705, with no GST on top.
New Money Back 720 Premium & Payout Calculator
Your estimate
40% of sum assured + bonus
- Premium per instalment
- ₹38,705
- Survival benefits (money back)paid at the end of years 5, 10 and 15
- ₹1,00,000
- Total premium paid
- ₹5,80,575
- Total bonus (estimated)
- ₹4,50,000
- Total returns
- ₹9,50,000
- Sum assured on deathplus bonuses accrued; money backs already paid are not deducted
- ₹6,25,000
- Approx. return (IRR)
- 5.29%
- Premium paying term
- 15 years
- Age at maturity
- 50 years
- Total premium paid₹5,80,57561%
- Net gain₹3,69,42539%
Money back schedule (bonus at the assumed rate)
| Policy year | Your age | Premium paid till then | Payout |
|---|---|---|---|
| 5 | 35 years | ₹1,93,525 | ₹1,00,000 |
| 10 | 40 years | ₹3,87,050 | ₹1,00,000 |
| 15 | 45 years | ₹5,80,575 | ₹1,00,000 |
| 20 | 50 years | ₹5,80,575 | ₹6,50,000 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC New Money Back Plan 720?
LIC New Money Back Plan 720 is a traditional life insurance policy that returns part of your money at fixed intervals instead of keeping it all until the end. It is a non-linked, with-profit plan, so returns do not depend on the stock market and the policy shares in LIC’s surplus through yearly bonuses.
The structure is simple. The policy runs for 20 years, you pay premiums for 15 years, and LIC pays back 20% of the basic sum assured after years 5, 10 and 15. The final 40%, together with bonuses, arrives at maturity. The plan is the current 20-year version of LIC’s New Money Back series (UIN 512N280V03) and is open for new policies.
If you want a longer plan with smaller, more frequent payouts, see the 25-year sibling, New Money Back Plan 721.
New Money Back 720 at a glance
| Feature | Details |
|---|---|
| Plan number / UIN | 720 / 512N280V03 |
| Plan type | Non-linked, with-profit money back |
| Policy term | 20 years (fixed) |
| Premium paying term | 15 years |
| Money backs | 20% of sum assured at end of years 5, 10 and 15 |
| Maturity | 40% of sum assured + bonuses |
| Death benefit | Higher of 125% of sum assured or 7× annual premium, plus bonuses |
| Premium modes | Yearly, half-yearly, quarterly, monthly |
| Status | Available for new policies |
Eligibility conditions
| Condition | Limit |
|---|---|
| Minimum entry age | 13 years (completed) |
| Maximum entry age | 50 years (nearest birthday) |
| Maximum maturity age | 70 years |
| Minimum basic sum assured | ₹2,00,000 (multiples of ₹25,000) |
| Maximum basic sum assured | No limit |
How the premium is calculated
The calculator follows the sample premiums LIC publishes in the plan’s sales brochure. For ₹2 lakh basic sum assured, the brochure quotes ₹15,896 a year at age 20, ₹16,082 at age 30, ₹16,846 at 40 and ₹18,679 at 50, and our calculator reproduces each of these exactly. From there:
- It works out the tabular rate per ₹1,000 sum assured for your age, interpolating between the brochure ages (ages 13–19 are extended from the 20–30 trend, so treat them as estimates).
- It deducts a high sum assured rebate of ₹3 per ₹1,000 when cover is ₹5 lakh or more.
- It applies the mode rebate on the tabular premium: 2% for yearly and 1% for half-yearly payment. Quarterly and monthly get no rebate.
- No GST is added. Individual life insurance premiums are GST-exempt from 22 September 2025; before that, LIC charged 4.5% in the first year and 2.25% after.
Worked example. A 30-year-old takes ₹5 lakh cover and pays yearly. The premium works out to about ₹38,705 a year, which is the amount actually payable because no GST applies. Over 15 years that is about ₹5,80,575 in premiums.
For ₹10 lakh cover the same person pays about ₹77,410 a year. The premium chart below the calculator shows other ages: roughly ₹76,480 at age 20 and ₹81,230 at age 40 for ₹10 lakh.
Tip: pay yearly if you can. On this plan the 2% yearly rebate is the largest mode discount, and you also avoid the small rounding that comes with 12 separate instalments.
Money back schedule and maturity benefit
Here is what our ₹5 lakh example looks like year by year, at an assumed bonus of ₹45 per ₹1,000 sum assured:
| End of year | Payout | What it is |
|---|---|---|
| 5 | ₹1,00,000 | 20% survival benefit |
| 10 | ₹1,00,000 | 20% survival benefit |
| 15 | ₹1,00,000 | 20% survival benefit |
| 20 | ₹6,50,000 | 40% of sum assured (₹2,00,000) + bonus (₹4,50,000) |
Total receipts come to about ₹9,50,000 against ₹5,80,575 of premiums. The bonus portion is not guaranteed. LIC declares the simple reversionary bonus every year and may also add a final additional bonus at maturity. Lower the bonus field in the calculator to see a cautious case.
Death benefit
If the life assured dies during the 20 years, the nominee receives:
- the sum assured on death, which is the higher of 125% of the basic sum assured or 7 times the annualised premium, plus
- all bonuses accrued up to that point.
The payout is never less than 105% of the premiums paid up to the date of death. Importantly, money backs already received are not deducted. For ₹5 lakh cover, the sum assured on death is ₹6,25,000 plus bonus.
Loan, surrender and paid-up value
Once at least two full years’ premiums are paid, the policy gains a surrender value. You can then take a loan against it or surrender it, although early exit returns much less than you paid. If you stop paying after that point, the policy becomes paid-up with reduced benefits instead of lapsing completely. Check an estimate with our surrender value calculator before you decide.
Tax benefits
Premiums qualify for deduction under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (old tax regime). Survival benefits, maturity and death claims are generally tax-free under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)), provided the yearly premium stays within the prescribed limit relative to the sum assured and, for policies issued after 1 April 2023, total yearly premiums on such policies do not exceed ₹5 lakh.
Who should consider Plan 720?
Plan 720 suits you if you:
- want predictable lump sums at years 5, 10 and 15, for example for school fees, a vehicle or home repairs;
- prefer guaranteed payouts over market-linked returns;
- can commit to 15 years of premiums.
It is less suitable if your main need is a large life cover at low cost. A pure term plan gives many times more cover for the same money. It is also not built for high growth; returns are modest because part of the premium pays for insurance and early payouts.
Plan 720 vs Plan 721 vs the older Plan 920
| Plan 720 | Plan 721 | |
|---|---|---|
| Policy term | 20 years | 25 years |
| Premium paying term | 15 years | 20 years |
| Money backs | 20% × 3 (years 5, 10, 15) | 15% × 4 (years 5, 10, 15, 20) |
| Maturity | 40% + bonus | 40% + bonus |
| Entry age | 13–50 | 13–45 |
Plan 720 returns money sooner and in larger pieces. Plan 721 spreads payouts over a longer period and has a lower yearly premium, but you pay for five more years. Policyholders of the earlier New Money Back 20 Years Plan 920 keep their original terms; Plan 720 is the version on sale today.
How to use this calculator
- Enter your age and the sum assured you want.
- Pick a premium mode.
- Leave the bonus at ₹45 or try a lower figure for a conservative view.
- Read the yearly and instalment premium, the money back table, maturity estimate and death cover. All figures are approximate and exclude riders; your final premium comes from LIC.
For a side-by-side look at other money back policies, try the LIC money back policy calculator.
Frequently asked questions
How much money back do I get in LIC plan 720?
You receive 20% of the basic sum assured at the end of the 5th, 10th and 15th policy years, so 60% comes back before maturity. The remaining 40% is paid at the end of year 20 along with all bonuses. On ₹5 lakh cover that is ₹1 lakh three times and ₹2 lakh plus bonus at maturity.
What is the premium paying term of New Money Back 720?
The policy runs for 20 years but premiums are payable for only 15 years. Cover and bonus accrual continue for the last five years without any further premium.
What is the premium for ₹5 lakh in LIC 720?
Our calculator estimates about ₹38,705 a year for a 30-year-old paying yearly. Since 22 September 2025 individual life policies carry no GST, so that is the full amount due. The rate rises with age, so a 40-year-old pays about ₹40,615.
What is the maturity value of LIC 720 for ₹5 lakh?
Maturity is 40% of the sum assured plus accrued bonuses. At an assumed bonus of ₹45 per ₹1,000 a year, ₹5 lakh cover gives about ₹6.5 lakh at maturity. Add the three ₹1 lakh money backs and the total comes to about ₹9.5 lakh against ₹5.81 lakh of premiums.
Are money back payments deducted from the death claim?
No. If the life assured dies during the term, the nominee gets the full sum assured on death plus accrued bonuses, even if one or more survival benefits have already been paid.
Who can buy LIC New Money Back Plan 720?
Anyone aged 13 (completed) to 50 (nearest birthday) can apply, as long as the age at maturity does not exceed 70. The minimum basic sum assured is ₹2 lakh, in multiples of ₹25,000, with no upper limit.
Is LIC 720 better than a term plan plus mutual fund?
They serve different needs. Plan 720 gives guaranteed money backs with modest, bonus-linked growth. A term plan gives far more cover per rupee, and equity funds can grow faster with more risk. Choose 720 if you value certainty and fixed payouts.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.