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

Introduction

Life is full of uncertainties, right? We work hard, save money, and yet constantly think about the future—our kids’ education, retirement, or an emergency that might pop up. That’s where LIC money back policies come into play. Unlike regular insurance—which only pays at the end—this plan returns money at intervals during the policy term, giving you financial breathing space.

Imagine planting a tree that not only bears fruit at harvest but also gives you seasonal yields in between. That’s exactly how a money back policy works.

In this article, we’ll cover everything you need to know about LIC’s money back policies, calculators, children plans, and even how stock market coaching ties into long-term wealth creation. By the end, you’ll have a clear picture of whether this policy is right for you.

Learn about LIC money back policy, LIC money back policy calculator, LIC children money back policy & even stock market coaching in one guide.

What is LIC Money Back Policy?

A money back policy is a type of life insurance offered by LIC where you don’t have to wait till maturity to reap the benefits. You receive payouts at fixed intervals during the policy term, making it different from traditional endowment or term insurance plans.

It’s like a paycheck system—only from your own insurance, ensuring you don’t feel financially stuck.

Key Features of LIC Money Back Policies

Here are the highlight benefits:

• Periodic payouts during the policy term.

• Insurance coverage throughout the term.

• Bonus additions declared by LIC.

• Maturity benefits along with survival payouts.

• Optional riders such as accidental death benefit.

How Does a Money Back Policy Work?

Let's say you buy a 20-year LIC money back policy with a sum assured of ₹10 lakh. Every few years, LIC returns a part of that to you—say 20% after 5 years, another 20% after 10 years, and so on. At the end, you still get a lump sum along with bonuses.

This ensures that instead of locking away money for decades, you can use it for immediate goals like your child’s education, vacation, or medical expenses.

LIC Money Back Policy Calculator: Importance & Use

The LIC money back policy calculator is an online tool to figure out how much you’ll pay as premium and how much you’ll get back in return.

To use it, you typically input:

• Age of proposer

• Policy term

• Sum assured

• Premium payment mode (monthly, quarterly, yearly)

The calculator then shows your expected payouts, maturity amount, and bonus.

Benefits of Using a Calculator

• Helps in planning finances better.

• No surprises—you know the return in advance.

• Allows comparison with alternate investments.

• Makes it easier to choose between plans like LIC children money back policy or general money back schemes.

LIC Children Money Back Policy: A Parent’s Relief

One of LIC’s most loved products is the Children Money Back Policy. Designed specifically for kids, it ensures funds are available at crucial milestones—like school admissions, college fees, or even starting a career. Parents can breathe easy knowing that children’s future is financially secured.

Premiums are affordable and you can choose the maturity age of your child (18, 21, or 25), making it super flexible.

Think of it as creating stepping stones for your child’s journey into adulthood.

Premiums, Riders & Add-Ons in Money Back Plans

Premiums vary based on your age, sum assured, and policy tenure. Riders include:

• Accidental Death Rider: Additional sum assured in case of accidental death.

• Critical Illness Rider: Helps if diagnosed with major illnesses.

These riders make your money back policy a safety net + savings plan rolled into one.

Advantages & Disadvantages of LIC Money Back Policy

Advantages:

• Regular payouts at fixed intervals.

• Risk-free since LIC is backed by the Government of India.

• Life cover throughout policy term.

Disadvantages:

• Returns are lower compared to stock market or mutual funds.

• Premiums are higher than term insurance plans.

Difference Between Money Back and Other LIC Plans

• Term Insurance: Only death benefit, no returns.

• Endowment Plans: Lump sum at end, no periodic payouts.

• Money Back Plans: Both periodic survival benefits + final maturity.

LIC Money Back Policy vs Stock Market Coaching

Here’s where an interesting contrast comes in. While money back policies are safe and predictable, stock market coaching prepares you for higher, market-linked returns.

For instance:

• LIC Policy = Safety, Guaranteed Returns.

• Stock Market (with coaching) = Higher Potential, Higher Risk.

Many smart investors do both—have LIC plans for safety and learn investing to grow wealth faster.

Who Should Buy a Money Back Policy?

• Parents planning for child’s future.

• Individuals who want periodic cash for life events.

• Risk-averse people preferring assured returns.

• Those who want insurance + savings in one product.

Tax Benefits of LIC Money Back Plans

Yes, LIC money back policy premiums qualify for Section 80C deduction (up to ₹1.5 lakh per year). Also, the maturity amount is usually tax-free under Section 10(10D).

So it’s not just protecting you—it’s saving you money in taxes too!

Common Myths About Money Back Policies

• Myth 1: Returns are always very high.

• Reality: They’re stable, not explosive.

• Myth 2: It’s only for older people.

• Reality: Young earners benefit the most since premiums are lower.

Tips for Choosing the Right Policy

• Use the lic money back policy calculator before buying.

• Compare with LIC children money back policy if planning for kids.

• Decide whether you want safety or also some market exposure (in which case, consider stock market coaching on the side).

Final Thoughts & Conclusion

The LIC money back policy is a tried-and-tested plan for people who want regular return intervals, insurance protection, and peace of mind. While it may not make you super-rich like stock market investing, it guarantees stable support throughout life’s stages. Pairing it with stock market coaching can give you a balanced financial strategy—safety + growth.

Remember: A strong financial plan isn’t built on a single product but on a balanced basket of savings and investments.

FAQs

1. What is the minimum term of a LIC money back policy?
Usually 20 years, although some children’s plans are shorter.

2. Is the survival benefit taxable?
Typically, survival benefits are tax-free under current rules.

3. Can I calculate my premium online using the LIC money back policy calculator?
Yes, LIC provides an online calculator for quick estimates.

4. Is LIC children money back policy available for toddlers?
Yes, it can be purchased for children as young as 0 years old.

5. Should I choose LIC policy or stock market investing?
Ideally both—LIC for assured safety, and stock market coaching for high-growth opportunities.