Survival benefits, maturity, premium — the complete side-by-side comparison.
Last updated: June 30, 2026 · 6 min read
LIC Money Back plans are designed for people who want periodic payouts (called "survival benefits") during the policy term, in addition to the maturity benefit at the end. The two flagship plans are:
Both plans have identical structures except for the term length and the number of survival benefit payments. In this guide, we break down both plans, show real examples, and help you choose the right one for your family.
A Money Back plan pays you a percentage of the Sum Assured at specific intervals during the policy term. These are called "survival benefits" because they are paid as long as the policyholder is alive. At the end of the term, the remaining Sum Assured is paid as the "maturity benefit".
For example, in Plan 720 (20 years), the survival benefit schedule is:
Total: 100% of Sum Assured is paid out across 4 payments, plus accumulated bonus + FAB.
| Feature | Money Back 720 (20-yr) | Money Back 721 (25-yr) |
|---|---|---|
| Policy Term | 20 years | 25 years |
| Survival Benefit Payouts | 4 (at 5, 10, 15, 20 years) | 5 (at 5, 10, 15, 20, 25 years) |
| Survival Benefit % of SA | 20% + 20% + 30% + 30% (maturity) | 15% + 20% + 25% + 30% (at 20) + 10% (maturity at 25) |
| Premium Paying Term | 20 years (or limited 15 yrs) | 25 years (or limited 20 yrs) |
| Entry Age | 13-50 years (max maturity 70) | 13-45 years (max maturity 70) |
| Min Sum Assured | ₹1,00,000 | ₹1,00,000 |
| Bonus Rate (per ₹1,000 SA p.a.) | ~₹43-46 | ~₹41-44 |
| Death Benefit | Sum Assured + Bonus (higher of 125% SA or total premiums paid) | Same as 720 |
| Loan Available | Yes (after 3 years) | Yes (after 3 years) |
| Tax Benefit (80C) | Yes (on premium paid) | Yes (on premium paid) |
| Tax on Survival Benefits | Tax-free (if 10(10D) eligible) | Tax-free (if 10(10D) eligible) |
| Tax on Maturity | Tax-free (if 10(10D) eligible) | Tax-free (if 10(10D) eligible) |
| Suitable For | Child's graduation (15-18 yrs), medium-term goals | Child's higher education, wedding, retirement |
| Year | Event | Payout | Amount |
|---|---|---|---|
| 5 | Survival Benefit | 20% of SA | ₹2,00,000 |
| 10 | Survival Benefit | 20% of SA | ₹2,00,000 |
| 15 | Survival Benefit | 30% of SA | ₹3,00,000 |
| 20 | Maturity | 30% of SA + Bonus + FAB | ₹3,00,000 + ~₹9,40,000 + ~₹1,20,000 = ~₹13,60,000 |
| Total Payouts Over 20 Years | ~₹20,60,000 | ||
| Total Premium Paid (Indicative) | ~₹12,50,000 | ||
| Effective Return (CAGR) | ~5.1% | ||
| Year | Event | Payout | Amount |
|---|---|---|---|
| 5 | Survival Benefit | 15% of SA | ₹1,50,000 |
| 10 | Survival Benefit | 20% of SA | ₹2,00,000 |
| 15 | Survival Benefit | 25% of SA | ₹2,50,000 |
| 20 | Survival Benefit | 30% of SA | ₹3,00,000 |
| 25 | Maturity | 10% of SA + Bonus + FAB | ₹1,00,000 + ~₹10,80,000 + ~₹1,50,000 = ~₹13,30,000 |
| Total Payouts Over 25 Years | ~₹22,30,000 | ||
| Total Premium Paid (Indicative) | ~₹15,00,000 | ||
| Effective Return (CAGR) | ~5.2% | ||
Choose Plan 720. The 15-year survival benefit (30% of SA) will be available exactly when your child is 15-16 and about to start college. The remaining maturity benefit at year 20 covers post-graduation.
Why not 721? Because the survival benefits of Plan 721 are lower in years 5, 10, 15 (15% + 20% + 25% = 60% of SA) compared to Plan 720 (20% + 20% + 30% = 70% of SA). If your need is in year 15, Plan 720 gives you more.
Choose Plan 721. The 20-year survival benefit (30% of SA) is the largest in the plan and aligns perfectly with MBA funding. The maturity benefit at year 25 covers wedding or further studies.
Why not 720? Plan 720 ends at year 20, so you get your final benefit (30% + bonus) at year 20. That's good, but you've already exhausted the policy. Plan 721 gives one more survival benefit at year 25.
Choose Plan 721. With a 25-year term, you start getting survival benefits at age 35, 40, 45, 50 and the maturity at 55. The annual income from survival benefits can supplement your retirement planning.
Money Back plans are not ideal for short-term goals. Consider a bank FD or debt fund instead. Or choose Plan 720 with limited premium (15 years) so you have paid off the premiums by then.
Choose Plan 721 for more frequent income. The 5 survival benefits (every 5 years) provide periodic income you can use for vacations, gadgets, or to top up investments.
Money Back is a hybrid plan (protection + periodic income), while Endowment is a pure endowment (lump sum at maturity). Choose Money Back if:
Choose Endowment if:
If your family needs money at multiple points in time (not just one big chunk at the end), LIC Money Back plans are an excellent choice. Choose Plan 720 for 20-year goals and Plan 721 for 25-year goals.
For maximum returns, however, consider this strategy:
But if you want the discipline, guarantee, and tax benefit of a single LIC plan, Money Back is a solid choice. Use our LIC Premium Calculator to see exact premium, and Maturity Calculator for total benefits.
