LIC New Money Back — 20 Years (Plan 920) answers the most common complaint against endowment plans: "Why should my money stay locked for 20 years?" With plan 920, LIC pays you back 20% of Sum Assured every 5 years — while the full risk cover stays intact.
How Plan 920 Pays You
| When | What You Get (₹10L SA) |
|---|---|
| End of year 5 | ₹2,00,000 (20%) |
| End of year 10 | ₹2,00,000 (20%) |
| End of year 15 | ₹2,00,000 (20%) — premiums also stop here |
| End of year 20 | ₹4,00,000 (40%) + bonus ≈ ₹7,80,000 + FAB ≈ ₹25,000 |
Total inflows ≈ ₹18,05,000 against premiums of roughly ₹11.6 lakh (₹75,300/yr × 15 yrs, before GST) — plus 20 years of ₹12.5 lakh death cover (125% of SA).
Three Features Buyers Love
- Cash-back doesn't cut cover: even after receiving all 60%, the death benefit remains 125% of full SA + bonus.
- Premium holiday: pay for 15 years, stay covered and earn bonus for 20.
- Tax-free liquidity: each survival benefit is exempt under 10(10D) — unlike FD interest which is fully taxable.
Plan 920 vs Plan 921 vs Bank FD
| Feature | 920 (20 yr) | 921 (25 yr) | Bank FD |
|---|---|---|---|
| Cash-back | 20% × 3 | 15% × 4 | Interest payouts |
| Life cover | ✅ 125% SA | ✅ 125% SA | ❌ None |
| Returns (approx.) | ~5.3% | ~5.5% | 6.5–7% (taxable) |
| Post-tax (30% slab) | 5.3% tax-free | 5.5% tax-free | ~4.6–4.9% |
| Bonus upside | ✅ FAB | ✅ Higher FAB | ❌ |
Verdict
Plan 920 suits disciplined savers in higher tax brackets who value periodic liquidity + insurance + tax-free returns over maximum growth. If you can lock in longer, plan 921 edges ahead on maturity value. Run both on our calculators: