Lic New Money Back Plan 20 Years Calculator
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Reviewed by Calculator Editorial Team
This calculator helps you determine the maturity value of LIC New Money Back Plan after 20 years. The LIC New Money Back Plan is a non-linked, participating, individual, savings life insurance plan offered by Life Insurance Corporation of India (LIC).
What is LIC New Money Back Plan?
The LIC New Money Back Plan is a savings-oriented life insurance policy that provides both protection and savings benefits. It's designed for individuals who want to build a corpus while ensuring their loved ones are financially secure in case of their untimely demise.
Key features of the plan include:
- Participating policy with bonus benefits
- Flexible premium payment options
- Partial withdrawals allowed
- Maturity benefits on survival
Note: The actual benefits and features may vary based on the specific policy terms and conditions provided by LIC.
How to Calculate Maturity Value
The maturity value of the LIC New Money Back Plan can be calculated using the following formula:
Maturity Value = (Annual Premium × (1 + Annual Bonus Rate) × (1 + Annual Interest Rate)^(Term - 1)) + (Annual Premium × (1 + Annual Interest Rate)^(Term - 1))
Where:
- Annual Premium - The amount paid annually
- Annual Bonus Rate - The bonus rate offered by LIC
- Annual Interest Rate - The interest rate applied to the corpus
- Term - The policy term in years (20 years in this case)
The formula accounts for both the bonus component and the interest component that grows your investment over time.
Example Calculation
Let's say you invest ₹50,000 annually with an annual bonus rate of 5% and an annual interest rate of 6% for 20 years.
Maturity Value = (50,000 × (1 + 0.05) × (1 + 0.06)^19) + (50,000 × (1 + 0.06)^19)
Maturity Value ≈ ₹2,450,000
This example shows how your investment grows over 20 years with the combined effect of bonuses and interest.
Key Features
The LIC New Money Back Plan offers several benefits:
- Participating policy with bonus benefits
- Flexible premium payment options
- Partial withdrawals allowed
- Maturity benefits on survival
- Death benefit to nominees
For a more detailed comparison, refer to the table below:
| Feature | Description |
|---|---|
| Entry Age | 18-50 years |
| Policy Term | 15-20 years |
| Premium Payment | Annual, semi-annual, quarterly, or single premium |
| Withdrawal | Partial withdrawals allowed |
| Maturity Benefit | Sum assured plus bonuses |
Frequently Asked Questions
What is the minimum investment required for LIC New Money Back Plan?
The minimum investment amount varies based on the policy term and premium payment mode. Typically, it ranges from ₹5,000 to ₹10,000.
Can I withdraw money from the LIC New Money Back Plan?
Yes, partial withdrawals are allowed under certain conditions. The policyholder can withdraw a portion of the corpus while keeping the policy active.
What happens if I die before the policy term ends?
In case of the policyholder's death, the sum assured plus any accumulated bonuses will be paid to the nominees.
Is the LIC New Money Back Plan a participating policy?
Yes, it's a participating policy, meaning it offers bonus benefits based on LIC's performance.