Lic Money Back Plan Calculator

A LIC Money Back Plan is a type of non-linked, non-participating, individual, savings life insurance plan offered by the Life Insurance Corporation of India. It provides financial security to the policyholder by paying a lump sum amount at the end of the policy term, along with regular maturity benefits.

How LIC Money Back Plan Works

A LIC Money Back Plan is designed to provide financial protection and savings for the policyholder. The policyholder pays regular premiums, and in return, the insurer promises to pay a lump sum amount at the end of the policy term, along with regular maturity benefits.

Key Components

Policy Term: The duration for which the policy is active.
Premium Payment Term: The period during which the policyholder pays premiums.
Sum Assured: The amount that will be paid at the end of the policy term.
Maturity Benefits: Regular payments made during the policy term.

The policyholder can choose the policy term and premium payment term based on their financial goals and needs. The insurer calculates the sum assured and maturity benefits based on the premium amount and the policy term.

Key Features of LIC Money Back Plan

LIC Money Back Plans offer several key features that make them attractive to policyholders:

Financial Security

The policy provides a lump sum amount at the end of the policy term, which can be used for various purposes such as education, marriage, or retirement.

Regular Maturity Benefits

Policyholders receive regular payments during the policy term, which can be used to meet their financial needs.

Flexible Premium Payment

Policyholders can choose the premium payment term based on their financial situation and can pay premiums regularly or in a lump sum.

Tax Benefits

Premiums paid under a LIC Money Back Plan are eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

How to Calculate Your Returns

Calculating your returns from a LIC Money Back Plan involves understanding the policy term, premium payment term, sum assured, and maturity benefits. The calculator on the right can help you estimate your returns based on these factors.

Formula Used

The sum assured (SA) can be calculated using the following formula:

SA = P × (1 + r)^n

Where:

P = Premium amount
r = Rate of interest (annual)
n = Policy term (years)

The maturity benefit (MB) can be calculated using the following formula:

MB = SA × (1 + r)^m

Where:

m = Number of years since the last premium payment

By using the calculator, you can input your premium amount, policy term, and premium payment term to estimate your sum assured and maturity benefits.

Worked Example

Let's consider an example to understand how the LIC Money Back Plan works.

Example Scenario

Policyholder pays a premium of ₹10,000 annually for 10 years. The policy term is 15 years, and the rate of interest is 5% per annum.

Using the formula:

SA = 10,000 × (1 + 0.05)^10 = ₹16,288.90

The sum assured at the end of the policy term will be ₹16,288.90.

For the maturity benefit, if the policyholder has paid premiums for 5 years, then:

MB = 16,288.90 × (1 + 0.05)^5 = ₹20,807.40

The maturity benefit after 5 years will be ₹20,807.40.

This example illustrates how the LIC Money Back Plan provides financial security and savings to the policyholder.

Frequently Asked Questions

What is the minimum and maximum policy term for a LIC Money Back Plan?: The minimum policy term is 15 years, and the maximum policy term is 30 years.
What is the minimum and maximum premium payment term?: The minimum premium payment term is 10 years, and the maximum premium payment term is 30 years.
What is the sum assured for a LIC Money Back Plan?: The sum assured is the amount that will be paid at the end of the policy term, which is calculated based on the premium amount and the policy term.
What are the maturity benefits under a LIC Money Back Plan?: Maturity benefits are regular payments made during the policy term, which are calculated based on the sum assured and the policy term.
Are there any tax benefits under a LIC Money Back Plan?: Yes, premiums paid under a LIC Money Back Plan are eligible for tax deductions under Section 80C of the Income Tax Act, 1961.