What do you understand by Money Back Policy?

Many of us are looking for a financial solution which will be of dual benefit i.e. insurance with investment. ‘Money Back Policy’ is the best ever financial solution to secure your life with regular additional income. As the name suggests, Money back policy pays you back percentage of sum assured at regular intervals. These pay outs are drowned during plan tenure and on maturity, and the remaining sum assured is paid in the form of bonuses. If the policyholder dies during the tenure, the full sum assured is paid without considering the survival benefits already paid. Sum assured and survival benefits changes over plan to plan basis.

Features of Money Back Policy

As a part of survival benefits, insured person will get their money back (return) after a specific interval of time. Unique features of Money Back Policy are as follows:

  • Insurer just needs to pay premium over limited term of 8, 10 or 12 years.
  • Money back policy guarantees income after every year after period of 8, 10 or 12 years.
  • Insurer is protected financially throughout and after the payout period.
  • Insurer can pay premium flexibly i.e. monthly/quarterly/half-yearly/annual.
  • Insurer can also avail tax benefits over the money back plans.

Benefits of Money Back Policy

Money Back Policies starts paying after some year of the policy start and this payout interval continues till policy maturity period.

Survival benefits are given to the insurer till he / she is alive whereas death benefits are given to the beneficiaries according to full sum assured without cutting the survival benefits already paid to the insurer.

On the maturity of your money back plan insurer will be qualified for maturity benefits which consists of sum assured plus bonuses (which are calculated as per the performance of the company).

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