LIC Money Back Policy Guide | Benefits & Plans Explained

 


LIC Money Back Policy: A Complete Guide for the General Public

Introduction

When it comes to financial planning, most of us are caught in two minds: Should I invest in the stock market for quick returns, or should I play it safe with insurance policies? That’s where Life Insurance Corporation of India (LIC) comes in as a household name. One of their most popular insurance plans is the LIC Money Back Policy. Unlike plain insurance or pure investment, this plan is like a two-in-one combo meal—it offers financial protection and returns at regular intervals during the policy term.

In this article, we’ll break down everything you need to know about the LIC Money Back Policy, including the LIC Children Money Back Policy, while also exploring how this fits with other financial options like stock market courses near me for those looking to diversify their knowledge and investments.

Discover LIC Money Back Policy, LIC Children Money Back Policy, and "stock market courses near me." Complete guide with FAQs, benefits & tips.

What is LIC Money Back Policy?

A LIC Money Back Policy is a type of life insurance plan that combines protection with periodic returns during the policy duration. Unlike a standard insurance policy where the benefit comes only at maturity or in case of death, this plan gives you money back at regular intervals. Think of it like a fixed deposit that not only safeguards your family’s future but also ensures liquidity.

Key Features of LIC Money Back Policy

  • Survival Benefits: Regular payouts during the policy tenure.

  • Life Coverage: Protection for the policyholder’s family in case of untimely death.

  • Maturity Benefit: Remaining sum assured is paid at maturity, along with bonuses.

  • Loan Facility: The policy can be used to take loans if needed.

  • Flexible Terms: Policyholders can choose from different maturity periods depending on needs.

Benefits of Choosing a Money Back Policy

Why is this policy so popular among Indians? Let’s break it down:

  • Liquidity Advantage: Regular cash inflows help manage financial needs like children’s education, marriage, or emergencies.

  • Risk-Free Returns: Unlike the stock market, it’s safe and regulated.

  • Double Benefit: Security + investment returns.

  • Peace of Mind: Knowing both you and your family are covered.

How Does LIC Money Back Policy Work?

Imagine you sign up for a 20-year LIC Money Back Policy. After every 5 years, you may get 20% of the sum assured. At the end of 20 years, you still get the remaining amount plus bonuses. If something happens to you before the term ends, your family gets the entire sum assured, regardless of earlier payouts.

Types of LIC Money Back Policies

LIC offers multiple variants:

Each suits different age groups and financial goals.

LIC New Money Back Plan – An Overview

This is one of the most popular plans, available in 20-year and 25-year terms. It offers:

  • Regular payouts.

  • Bonus additions.

  • Financial protection.

  • Suitable for individuals who want liquidity throughout the policy duration.

LIC Children Money Back Policy Explained

Children’s education and future often put the biggest pressure on parents. The LIC Children Money Back Policy is specially designed to ease this stress.

Highlights:

  • Covers a child’s educational milestones.

  • Provides survival benefits at key ages (such as 18, 20, 22 years).

  • Offers maturity benefit when needed most (higher education/marriage).

  • Parents can ensure financial independence for their child, even if something unexpected happens.

Eligibility, Premiums, and Terms

  • Age Limit: Usually from 13 years to 50 years (varies by plan).

  • Sum Assured: Starts from ₹1,00,000 onwards.

  • Premium Options: Can be yearly, half-yearly, quarterly, or monthly.

  • Policy Term: Typically 20–25 years.

LIC Money Back Policy vs Traditional Endowment Plans

  • Money Back Plan: Offers liquidity at intervals.

  • Endowment Plan: Lump sum payout only at maturity.

If you need periodic financial support, a money back policy is better. If you want a big lump sum after a period, an endowment plan may suit you.

Tax Benefits of LIC Money Back Policy

Under Section 80C of the Income Tax Act:

  • Premiums are tax-deductible (up to ₹1.5 lakh).

  • Maturity proceeds are usually tax-free under Section 10(10D), subject to conditions.

How to Buy LIC Money Back Policy Online or Offline

  • Offline: Visit any LIC branch or authorized agent.

  • Online: LIC’s official website lets you calculate premiums, apply, and purchase in a few clicks.

Common Misconceptions About LIC Policies

  • "Money Back Plans are Only for Rich People" – False; premiums are flexible for middle-class families.

  • "Returns Are Too Low" – While not as high as equities, the safety + life cover gives unmatched value.

  • "Too Complicated" – In reality, LIC agents or online calculators make it simple.

Stock Market vs LIC Money Back Policy: Where Should You Invest?

Here’s a quick comparison:

  • Stock Market: High risk, high returns, requires knowledge and monitoring.

  • LIC Money Back Policy: Low risk, moderate returns, life cover included.

For balanced financial planning—why not learn about the stock market while keeping an LIC backup plan for guaranteed safety?

Stock Market Courses Near Me: Learning to Diversify Finances

If you’ve ever searched for “stock market courses near me”, you’re already exploring growth beyond insurance. These courses teach:

  • Basics of trading and investment.

  • Risk management.

  • How to diversify portfolios.

  • Building wealth with discipline.

A LIC Money Back Policy ensures security, while stock investing can be your path to wealth creation. Together, they form a balanced wealth strategy.

Conclusion

The LIC Money Back Policy is not just an insurance plan—it’s a financial companion that supports you at different life stages while protecting your loved ones. If you’re a parent, the LIC Children Money Back Policy can ensure a secure and independent future for your kids.

On the other hand, if you’re keen on increasing your wealth, you can always complement LIC plans with knowledge gained from stock market courses near me. Remember—financial success isn’t about one strategy; it’s about a well-rounded approach.

FAQs

Q1. What is the main advantage of LIC Money Back Policy?
The major advantage is that it provides both life protection and periodic payouts, ensuring liquidity throughout the policy term.

Q2. Is the LIC Children Money Back Policy good for education planning?
Yes, it’s tailored to support major educational milestones of your child while also offering life cover.

Q3. How much return can I expect from LIC Money Back Policy?
Returns depend on the sum assured, bonuses, and policy term. It’s not as high as equities but is stable and safe.

Q4. Can I buy LIC Money Back Policy online?
Yes, you can directly purchase it through LIC’s official website or visit a nearby branch/agent.

Q5. Should I choose LIC policy or stock market investment?
Both can be part of your portfolio—LIC ensures safety and guaranteed returns, while stock market offers growth through calculated risks.

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