LIC New Money Back Plan 721 is a 25-year, with-profit money back policy with a 20-year premium term. It pays 15% of the sum assured at the end of years 5, 10, 15 and 20, and 40% plus bonuses at maturity. A 30-year-old choosing ₹5 lakh cover pays about ₹29,933 a year, with no GST added.
New Money Back 721 Premium & Payout Calculator
Your estimate
40% of sum assured + bonus
- Premium per instalment
- ₹29,933
- Survival benefits (money back)paid at the end of years 5, 10, 15 and 20
- ₹75,000
- Total premium paid
- ₹5,98,660
- Total bonus (estimated)
- ₹5,62,500
- Total returns
- ₹10,62,500
- Sum assured on deathplus bonuses accrued; money backs already paid are not deducted
- ₹6,25,000
- Approx. return (IRR)
- 5.06%
- Premium paying term
- 20 years
- Age at maturity
- 55 years
- Total premium paid₹5,98,66056%
- Net gain₹4,63,84044%
Money back schedule (bonus at the assumed rate)
| Policy year | Your age | Premium paid till then | Payout |
|---|---|---|---|
| 5 | 35 years | ₹1,49,665 | ₹75,000 |
| 10 | 40 years | ₹2,99,330 | ₹75,000 |
| 15 | 45 years | ₹4,48,995 | ₹75,000 |
| 20 | 50 years | ₹5,98,660 | ₹75,000 |
| 25 | 55 years | ₹5,98,660 | ₹7,62,500 |
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 721?
LIC New Money Back Plan 721 is the 25-year member of LIC’s New Money Back family. It is a non-linked, with-profit, limited premium plan: you pay premiums for 20 years, the policy stays in force for 25 years, and LIC hands back part of the sum assured every five years while the rest keeps earning bonus.
Compared with the 20-year New Money Back Plan 720, Plan 721 makes four smaller payouts of 15% instead of three payouts of 20%, and the policy earns bonus for five more years. It is the version currently sold, replacing the earlier New Money Back 25 Years Plan 921 for new buyers.
New Money Back 721 at a glance
| Feature | Details |
|---|---|
| Plan number / UIN | 721 / 512N278V03 |
| Plan type | Non-linked, with-profit, limited premium money back |
| Policy term | 25 years (fixed) |
| Premium paying term | 20 years |
| Money backs | 15% of sum assured at end of years 5, 10, 15 and 20 |
| 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 | Minimum | Maximum |
|---|---|---|
| Entry age | 13 years | 45 years |
| Age at maturity | – | 70 years |
| Basic sum assured | ₹2,00,000 | No limit (multiples of ₹25,000) |
| Policy term / premium term | 25 / 20 years | Fixed |
How the premium is calculated
The calculator follows the sample premiums in LIC’s sales brochure for the plan. For ₹2 lakh basic sum assured the brochure lists ₹12,299 a year at age 20, ₹12,573 at age 30, ₹13,465 at 40 and ₹14,298 at 45, and our calculator reproduces each of them exactly. (The brochure’s heading says “₹1 lakh”, but the minimum cover is ₹2 lakh and its own benefit illustration at ₹12,573 shows ₹30,000 money backs and ₹2.5 lakh death cover, so the figures are for ₹2 lakh.) From these it:
- works out the tabular rate per ₹1,000 for your age, interpolating between the brochure ages (ages 13–19 are extended from the 20–30 trend, so treat them as estimates);
- deducts a high sum assured rebate of ₹3 per ₹1,000 when cover is ₹5 lakh or more;
- applies the mode rebate on the tabular premium: 2% for yearly and 1% for half-yearly, none for quarterly or monthly;
- divides the yearly premium by the number of instalments;
- adds no GST, because individual life insurance premiums are exempt from 22 September 2025. Older receipts show 4.5% in the first year and 2.25% after; that no longer applies.
Worked example. A 30-year-old buys ₹5 lakh cover and pays yearly. The premium is about ₹29,933 a year for 20 years, or ₹5,98,660 in total. For ₹10 lakh cover a 25-year-old paying monthly would pay about ₹5,037 a month.
The premium rises gently with age. For ₹10 lakh, the yearly premium is about ₹58,495 at age 20, ₹59,865 at 30, ₹64,325 at 40 and ₹68,490 at 45.
Tip: run both the 720 and 721 calculators before deciding. Plan 721 costs less per year at every age, but Plan 720 is paid off five years sooner and returns money earlier, so compare the totals and the timing, not just the yearly premium.
Money back schedule and maturity benefit
For the ₹5 lakh example, at an assumed bonus of ₹45 per ₹1,000 sum assured:
| End of year | Payout | Made up of |
|---|---|---|
| 5 | ₹75,000 | 15% survival benefit |
| 10 | ₹75,000 | 15% survival benefit |
| 15 | ₹75,000 | 15% survival benefit |
| 20 | ₹75,000 | 15% survival benefit |
| 25 | ₹7,62,500 | 40% of sum assured (₹2,00,000) + bonus (₹5,62,500) |
Total receipts are about ₹10,62,500 against ₹5,98,660 paid. The last money back at year 20 arrives just as premium payments end. The bonus is not guaranteed. LIC declares it every year and may add a final additional bonus at maturity; lower the bonus rate in the calculator to test a weaker scenario.
Death benefit
If the life assured dies before maturity, 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. The amount is never less than 105% of premiums paid up to death, and money backs already paid are not subtracted. On ₹5 lakh cover the sum assured on death is ₹6,25,000 plus bonus.
Loan, surrender and paid-up value
After at least two full years of premiums, the policy acquires a surrender value. You can then borrow against it or surrender it. Surrendering early usually returns much less than you paid, so treat it as a last resort. If premiums stop after that point, the policy becomes paid-up with a reduced sum assured and keeps the bonus already attached. Estimate an exit value with the LIC surrender value calculator.
Tax benefits
Premiums are deductible under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) in the old tax regime. Money backs, 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)), as long as the premium stays within the allowed share of the sum assured and, for policies issued from 1 April 2023, total yearly premiums on such policies do not exceed ₹5 lakh.
Who should buy Plan 721?
Plan 721 fits people who:
- want a lower yearly premium than Plan 720 and can pay it for 20 years;
- want regular cash every five years for 20 years, for example to match school, college and wedding milestones of a child;
- are happy to commit to 20 years of premiums in return for guaranteed payouts.
It is a poor fit if you want maximum life cover for the money or market-level growth. A term plan gives far bigger protection, and returns here are modest because part of every premium funds the early payouts.
Plan 721 vs Plan 720
| Plan 721 | Plan 720 | |
|---|---|---|
| Policy / premium term | 25 / 20 years | 20 / 15 years |
| Money backs | 15% at years 5, 10, 15, 20 | 20% at years 5, 10, 15 |
| Entry age | 13–45 | 13–50 |
| Yearly premium, age 30, ₹5 lakh | about ₹29,933 | about ₹38,705 |
| Total premium paid | about ₹5,98,660 | about ₹5,80,575 |
| Total receipts at ₹45 bonus | about ₹10,62,500 | about ₹9,50,000 |
Plan 721 asks for a smaller yearly premium and slightly more in total, and it earns bonus for five more years, so the absolute payout is higher. Plan 720 finishes sooner and ties up less money.
How to use this calculator
- Enter age and sum assured.
- Choose the premium mode.
- Adjust the bonus rate if you want a cautious or optimistic view.
- Read the yearly and instalment premium, the four money backs in the table, the maturity amount and the death cover. All figures are estimates; the final premium comes from LIC and may differ slightly.
Frequently asked questions
How does the money back work in LIC plan 721?
LIC pays 15% of the basic sum assured at the end of the 5th, 10th, 15th and 20th policy years, which adds up to 60%. The balance 40% is paid at the end of the 25th year together with all accrued bonuses and any final additional bonus.
What is the premium for ₹5 lakh in LIC New Money Back 721?
For a 30-year-old paying yearly, our calculator estimates about ₹29,933 a year for 20 years, about ₹5.99 lakh in total. Individual life policies carry no GST from 22 September 2025, so this is the full amount due.
What is the maturity value of plan 721?
At maturity you get 40% of the sum assured plus bonuses. With an assumed bonus of ₹45 per ₹1,000 a year, ₹5 lakh cover gives about ₹7.63 lakh at year 25. Including the four ₹75,000 money backs, total receipts are about ₹10.63 lakh.
What is the maximum entry age for LIC 721?
The maximum entry age is 45 years (nearest birthday) and the minimum is 13 years. The age at maturity cannot exceed 70, which is why the 25-year term caps entry at 45.
Which is better, LIC 720 or LIC 721?
Plan 720 runs 20 years, you pay for 15, and it returns 20% three times. Plan 721 runs 25 years, you pay for 20, and it returns 15% four times with bonus added for five extra years. Plan 721 has the lower yearly premium at every entry age (about ₹59,865 against ₹77,410 for ₹10 lakh at age 30), but you pay it for five more years.
Is the death benefit reduced after money backs are paid?
No. On death during the term the nominee receives the sum assured on death, the higher of 125% of basic sum assured or 7 times the yearly premium, plus accrued bonuses. Survival benefits already paid are not deducted.
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.