LIC Money Back Plans in Ulwe
A money back plan pays a part of the sum assured back to you at fixed intervals during the policy term, with the balance and any applicable bonuses at maturity. Families often like it for expenses that come up every few years. I'll help you see whether that structure suits your plans.
Money back plans may suit you if…
- You expect expenses every few years, not just at the end
- You prefer guaranteed-style structure to market-linked growth
- You want life cover alongside the savings
How a Money Back Plan Pays Out
Every money back plan has a schedule. For example, a plan might pay a percentage of the sum assured at the end of certain policy years — say every few years — and the remaining amount plus bonuses at maturity. The exact years and percentages are set by the plan you choose, so we'll write them down against your calendar before you decide.
What happens on death during the term
In many LIC money back plans, the death benefit is payable to the nominee without deducting the survival benefits already paid, as per plan terms. This is an important feature, but it differs from plan to plan, so please check it in the specific plan's brochure — I'll point it out when we go through the plan.
The trade-off
Because money comes back during the term, the premium for a money back plan is usually higher than an endowment plan for the same sum assured, and much higher than a term plan. The survival benefits are also money you're receiving back from your own premiums over time. It's a structure, not extra money.
Using survival benefits well
- Line up payouts with school-to-college transitions
- Use them for planned expenses like a vehicle or home renovation
- Or reinvest them, if you don't need the money at that time
Keep your bank details updated: survival benefits are paid to the bank account registered with LIC. If you've changed banks after moving to Ulwe, update your NEFT details in time. See policy service for how this works.
Money Back vs Endowment
General differences. Check the specific plan for exact terms.
| Point | Money back | Endowment |
|---|---|---|
| Payments during the term | Yes, at set intervals | Usually none |
| Maturity amount | Balance plus applicable bonuses | Sum assured plus applicable bonuses |
| Premium for the same sum assured | Higher | Lower than money back |
| Suits | Expenses spread over time | One goal at a fixed date |
Please note: LIC plan benefits, premiums, eligibility and applicable terms depend on the specific plan and prevailing LIC rules. Please verify the latest details and policy terms before making a decision.
Official LIC website →LIC Money Back Plans – FAQs
Common questions about how money back plans work.
It depends on the plan. Survival benefits are paid at specific policy years set out in the plan, with the balance at maturity.
In many LIC money back plans, the death benefit is paid without deducting survival benefits already paid, but this depends on the plan's terms. We'll confirm this for the specific plan you consider.
Survival benefits are paid as per the plan's schedule when the policy is in force. Bonuses, if the plan is participating, depend on LIC's declarations and aren't guaranteed in advance.
It can be, if the payout years match your child's education milestones. We can compare it with child-specific and endowment plans.
Get Money Back Plan Details
Share your age and expected expense years, and I'll show you how the payouts line up.