About Money Back Policy

What is Money Back Policies ?

Money back Policy is a life insurance policy which covers risk and offers reward to policy holders. As the name suggest, the money back policy pays the policy holders back at regular interval of time, the guaranteed amount of survival benefits for surviving. In a traditional insurance plan, the lump sum amount used to be assured for covering the financial interest of family in case of mishappenings to bread earner of family. However, in money back plan, the sum assured are evenly distributed to the policy holder throughout the term of policy as long as policy holder is surviving in the form of "Survival benefits". Upon the maturity of policy, policy holder receives maturity benefit along with survival benefit and additional bonus, as applicable. If, however, the policy holder dies before the policy matures, the nominee will receive the maturity amount, the whole sum insured, along with the bonus if accrued.

Different Benefit under Money Back Policies

The money back policy provides various benefits like survival benefit, maturity benefit, death benefit along with bonus in addition to the sum insured.

Survival Benefit: It is the benefit paid to policy holder as long as policy holder is surviving. The payment gets started afer some years of the start of policy and continues until maturity. Policy holder are paid in regular intervals, every few years depending upon the insurer to insurer.

Maturity Benefit: It is the amount paid to policy holders on the maturity of the policy term. This amount comprises of the sum assured and bonus accrued during the policy. Maturity benefits are paid to policy holders for completing the tenure of policy, hence, it is not paid if policy are surrenderd before maturity. 

Death benefit: It is the amount paid to nominee on the death of the insured person. It will include the sum assured at the time of purchase of policy and bonus accumulated in the policy. Death benefit however, does not include survival benefit as they are given only to policy holder when they are alive.

Bonus: Money Back policy involves the sum assured and bonus component. Bonus component is mostly based on the companies performance where you are buying the policy from. Bonus is paid in addition to Survival benefit, maturity benefit and death benefit.