LIC Money Back Policy – A Complete Guide for Beginners

Introduction

Have you ever wondered if it’s possible to enjoy both insurance protection and regular payouts from your investment? That’s exactly what the LIC Money Back Policy offers—a unique blend of life insurance coverage and periodic returns. Unlike traditional insurance where you have to wait till maturity, a money back policy ensures that you get periodic returns while your coverage remains intact.

Think of it like planting a tree that grows fruits every few years, but still continues to provide shade. You don’t have to cut it down to benefit from it. That’s what makes the LIC Money Back Policy highly attractive, especially for individuals who want both security and liquidity in their financial planning.

In this guide, we’ll explore everything about LIC Money Back Policy, Money Back Policy benefits, and even how financial knowledge, such as enrolling in the Best Stock Market Course, can complement your insurance planning.

Discover LIC Money Back Policy—features, benefits, and maturity payouts. Learn about money back policy & Best stock market course for financial growth.

What is LIC Money Back Policy?

The LIC Money Back Policy is a life insurance plan that offers survival benefits at regular intervals during the policy tenure. Unlike a regular insurance policy where you need to wait until the end of the policy for a payout, here you receive partial returns while still being covered by insurance.

This makes it particularly useful for people who need liquidity at different life stages (education expenses, marriage, or medical needs).

Key Features of LIC Money Back Policy

• Survival Benefits: Periodic payout during the term.

• Insurance Cover: Full sum assured remains throughout the tenure.

• Bonus Facility: Participation in LIC’s profits through bonuses.

• Maturity Benefit: Balance payout along with bonuses at maturity.

• Loan Facility: You can avail a loan on the policy after a certain period.

How Does a Money Back Policy Work?

Imagine you take a policy of ₹10 lakh for 20 years. Instead of waiting 20 years for the maturity benefit:

• LIC will pay you at intervals (say every 5 years).

• Despite these payouts, your sum assured remains intact till the policy ends.

• If anything happens to the insured during the term, the nominee receives the full sum assured, regardless of survival benefits paid.

It’s like withdrawing a little from your savings without reducing your insurance security.

Types of LIC Money Back Policies

Some popular LIC Money Back policies include:

• LIC Money Back Plan - 20 years

• LIC Money Back Plan - 25 years

• LIC New Children’s Money Back Plan

• LIC Bima Shree

• LIC Jeevan Shiromani

Each policy is designed with unique features catering to different needs like children’s education, retirement planning, or high-value coverage.

Benefits of LIC Money Back Policy

5.1 Regular Income

You don’t have to wait till maturity; the periodic payouts act like a steady income source.

5.2 Risk Coverage

In case of any unfortunate incident, the family still gets the full sum assured.

5.3 Bonus Additions

LIC shares profits with policyholders, increasing returns.

5.4 Tax Benefits

Premiums qualify for deductions under Section 80C, and maturity proceeds are usually tax-free under Section 10(10D).

5.5 Liquidity

Helpful in meeting short-term and long-term financial needs.

Who Should Buy a Money Back Policy?

A money back policy is ideal for:

• Young parents planning children’s education.

• People wanting liquidity during different life stages.

• Conservative investors preferring guaranteed returns.

• Salaried professionals looking for tax-saving options.

LIC Money Back Policy vs Traditional Plans

Tax Benefits of Money Back Policy

• Premiums up to ₹1.5 lakh are eligible under Section 80C.

• Maturity proceeds are tax-exempt under Section 10(10D), provided conditions are met.

This makes it not just an insurance product, but also a smart tax-saving tool.

Things to Consider Before Buying

• Premiums are higher compared to term insurance.

• Returns are moderate compared to mutual funds or stock market investments.

• Best for risk-averse individuals.

How to Buy LIC Money Back Policy?

1. Visit the official LIC website or local branch.

2. Discuss eligibility, premiums, and policy term.

3. Submit required documents (KYC, medical test, etc.).

4. Start paying premiums to activate the policy.

Common Myths About LIC Money Back Policy

• Myth 1: Once money back is received, risk cover decreases.

• Truth: Risk cover remains unchanged.

• Myth 2: Returns are tax-free in all cases.

• Truth: Proceeds are exempt only if premium conditions are met.

LIC Money Back Policy & Financial Planning

This policy works best as a balanced financial planning tool. It gives you a mix of:

• Life cover for your family’s safety.

• Guaranteed payouts to manage short-term financial needs.

• Tax savings to optimize income.

Comparing Money Back Policy with Stock Market Investments

Both are financial instruments, but their purpose is different:

• LIC Money Back Policy: Safe, guaranteed, long-term plan.

• Stock Market Investments: High risk, potentially higher returns.

The wise approach is diversification—secure part of your money in LIC money back policy and learn to invest in stocks through the Best Stock Market Course available.

The Role of Best Stock Market Course in Wealth Creation

Insurance protects wealth, while the stock market helps multiply it. A Best Stock Market Course teaches:

• Basics of investing and trading.

• Risk management strategies.

• How to build wealth alongside safe insurance plans.

By combining both—LIC Money Back Policy + Stock Market Knowledge—you can achieve financial freedom faster.

Conclusion and Final Thoughts

To sum up, the LIC Money Back Policy is like a safety net that also provides timely financial support. It ensures your family’s protection while giving you periodic returns. However, don’t forget that for wealth creation, you may need to explore other options too, such as stock market investments.

A balanced financial plan would include the security of LIC Money Back Policy, the liquidity of regular payouts, and the growth potential of stock market learnings from the Best Stock Market Course.

FAQs on LIC Money Back Policy

1. What is the minimum policy term for LIC Money Back Policy?
Most plans offer terms of 20 or 25 years, depending on the product.

2. Do survival benefits reduce maturity benefits?
No, survival benefits are given in intervals, and maturity benefits are provided separately at the end.

3. Can I take a loan against my Money Back Policy?
Yes, LIC allows loans after the policy acquires surrender value.

4. Is Money Back Policy better than term insurance?
They serve different purposes. Term insurance is only for protection, while money back policy combines protection with survival benefits.

5. Can I combine a Money Back Policy with stock market investing?
Yes! This combination ensures safety through insurance and growth through investments, especially if you train with the Best Stock Market Course.