What is Money Back policy

What is Money Back policy

There are few life insurances, other than the typical life insurances that gives you return in the form of death benefit, that have some extra investment options embedded with them. Money Back policy is one such life insurance product that creates a reliable income source in predetermined intervals as well as offers insurance coverage.

The premium can be increased and a surplus amount is invested in other sectors along with policyholder’s added stake. It generates a regular income source and in case of death of the policyholder during the policy term the entire amount can be claimed notwithstanding the benefits earned during the term

While purchasing a money back policy the buyer has to give his/her consent to some terms and conditions.




Premium Term and Policy Term

The money back policy term defines the period during which the policyholder’s life is insured and premium term defines the period during which the premium has to be paid.

However, in most instances both the term are same. The policyholder earns the assured sum in regular intervals and at the end of the term there is no balance money to be paid off by the insurer. In certain cases the policy term is longer than premium term. The buyer pays till certain time and enjoys the benefit till the end of the term.

Premium and Assured Money:

The premium paid refers to the total assured sum of money. There are policies that offer assured sum in the last few years of the policy with higher premiums and bonuses and short term.

On the other hand there are policies that pay back the assured sum in regular intervals.

There are numerous companies in the money market that offer this particular product and they come with unique features. Life Insurance Company of India, ICICI Pru Cash Advantage, PNBMetLife India, HDFC Life Super Income Plan are few of such companies.