LIC 20-Year Money Back Policy (Plan 920) – A Complete Guide
When it comes to financial security and guaranteed returns, LIC (Life Insurance Corporation of India) has always been a trusted name. One of its popular plans, the LIC 20-Year Money Back Policy (Plan 920), is designed for individuals looking for periodic returns along with life cover. This plan provides financial security to the policyholder’s family while also offering liquidity at regular intervals. Let’s explore this plan in detail.
What is LIC 20-Year Money Back Policy (Plan 920)?
LIC’s 20-Year Money Back Policy (Plan 920) is a traditional, non-linked, participating plan that offers both savings and protection. This plan ensures that the policyholder receives money-back benefits at regular intervals while also providing life cover in case of an unfortunate event during the policy term.
Key Features of LIC 20-Year Money Back Plan 920
- Money-Back Benefits: The policyholder receives 20% of the Sum Assured at the end of the 5th, 10th, and 15th policy years.
- Maturity Benefit: At the end of 20 years, the remaining 40% of the Sum Assured along with accrued bonuses is paid to the policyholder.
- Death Benefit: In case of the policyholder’s demise during the policy term, the nominee will receive the full Sum Assured along with bonuses, regardless of the money-back amounts already received.
- Participation in Profits: This plan is eligible for Simple Reversionary Bonuses and Final Additional Bonuses, which enhance the overall returns.
- Tax Benefits: Premiums paid and benefits received are eligible for tax exemptions under Section 80C and Section 10(10D) of the Income Tax Act.
- Loan Facility: Policyholders can avail loans against the policy after paying premiums for a certain number of years.
- Rider Benefits: Additional riders like Accidental Death & Disability Benefit Rider can be added to enhance coverage.
Eligibility Criteria
| Criteria | Details |
|---|---|
| Minimum Age | 13 years |
| Maximum Age | 50 years |
| Policy Term | 20 years |
| Minimum Sum Assured | ₹1,00,000 |
| Maximum Sum Assured | No Limit |
| Premium Payment Term | 15 years |
Benefits of LIC 20-Year Money Back Policy
1. Regular Payouts for Financial Liquidity
One of the biggest advantages of this plan is that it provides liquidity through periodic money-back payments, making it ideal for meeting financial goals such as education, marriage, or other expenses.
2. Life Cover with Assured Benefits
Even after receiving periodic payouts, the nominee gets the full Sum Assured in case of the policyholder’s unfortunate demise, ensuring financial security.
3. Maturity Benefit with Bonus
On surviving the entire policy term, the policyholder gets 40% of the Sum Assured along with accumulated bonuses, ensuring a lump sum amount at maturity.
4. Tax Savings
Premiums paid towards this policy qualify for tax deductions under Section 80C, and the payout received is tax-free under Section 10(10D), making it a tax-efficient investment.
Who Should Buy LIC 20-Year Money Back Policy?
This plan is ideal for:
- Individuals looking for periodic returns along with insurance coverage.
- Those who want a disciplined savings plan with the added benefit of life protection.
- People planning for future financial milestones like children’s education or marriage.
- Investors looking for a low-risk investment with guaranteed returns.
How to Buy LIC 20-Year Money Back Policy?
You can purchase this plan through LIC’s official website, a registered LIC agent, or by visiting the nearest LIC branch. Make sure to compare benefits, assess your financial goals, and choose the appropriate Sum Assured before purchasing.
Conclusion
The LIC 20-Year Money Back Policy (Plan 920) is an excellent option for individuals who want the dual benefits of insurance coverage and periodic payouts. With assured returns, tax benefits, and a strong financial safety net for your family, this plan is a reliable choice for a secure future.
If you’re looking for expert guidance on LIC policies, feel free to contact us at LICFuture. We are here to help you make informed financial decisions!
