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Money Back Policy

Money-back plans are a type of life insurance plan that helps an individual complete their financial goals or their financial requirements at different stages of life. This plan is quite a unique life insurance policy that provides life cover and periodical payouts. Under it, death benefit shall be provided in case of an unforeseen demise of the life assured. A money back also provides payouts at regular intervals during the policy term known as ‘survival benefits’ which is equivalent to a percentage of the sum assured.

Money Back Plans in India 2024

Money back plans Policy term
Canara HSBC OBC Smart Stage Money Back Plan 15 years
Edelweiss Tokio Life Cashflow Protection Plan 10,15, 20 and 25 years
Future Generali Assured Money Back Plan 15, 17, 20 and 22 years
ICICI Pru Cash Advantage 15, 17 or 20 years
LIC Money Back Policy for Children 25 years

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Enjoy Life Cover, Assured Returns And Wealth Creation at Best Premium
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    Tax Benefit
    Up to 1,50,000**
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    45 Lacs+
    Happy Customers

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**Tax benefits are subject to changes in Income Tax Act.

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Best Investment Plans


It is a form of investment which gives you guaranteed returns mentioned while investing along with life coverage.

  • You Invest

    1 Lakh p.a.
    10 years
  • You GET Tax Free

    27.3 Lakh
    20 years
  • You Invest

    1 Lakh p.a.
    10 years
  • You GET Tax Free

    27.1 Lakh
    20 years

What is Money Back Insurance Plan?

Money-back plans provide the insured person with a specific percentage of the sum assured at regular intervals rather than giving a lump sum amount at the end of the term. An ideal choice for people who don’t want to take risks, a money-back insurance plan helps one build savings as well as maintain liquidity throughout. It is important to note that this plan pays out the maturity benefits in the form of several guaranteed “survival benefits". These survival benefits are arranged evenly throughout the policy course.

Example of Money-back Policy

Let us understand about money-back policy through the below illustration:

Mr. Ashutosh has bought a money-back policy for 16 years and the premium paying term is 10 years. In this case, you will receive payouts after the 5th, 9th, and 13th year. This payout is called the survival benefit and if you survive the policy term, then the remaining payout will be done after the 16th year which is called the maturity benefit. If Mr. Jain meets an unfortunate demise during the policy term, then a death benefit is given to the nominees which is equivalent to the sum assured along with the bonus.

Who Should Buy Money-back?

A plan can be a good option for several investors, so here are some groups of individuals who can consider investing in money-back:

  • Those individuals prefer getting payouts at regular intervals rather than getting them only during maturity.
  • Anyone who wants to invest in a plan that guarantees returns and helps create a corpus for the future can buy this type of plan.
  • If you want to protect your family in your absence, then you can invest in a money-back plan as it also offers death benefits.

How Does The Money Back Policy Work?

In addition to Maturity Benefits, a Money Back policy provides policyholders with Survival Benefits as well as investment options.
A normal money return policy with a 20-year term would therefore pay the insured a 'Survival Benefit' a few years after the policy began. Around 20% of the Sum Assured would be paid out on a regular basis, with the remainder paid out at policy maturity, together with any bonuses.
If the insured person does not live to the maturity date of the policy, the nominee will receive the Death Benefit (the total Sum Assured) and the policy will be canceled.

Features Of Money Back Policy

As listed below, the money return policy offers a number of unique features that set it apart from other life insurance products:

  • Money back plans offer low-risk investing opportunities as well as insurance coverage to policyholders.
  • For the duration of the policy, the plans give a steady flow of income in the form of 'Survival Benefits.'
  • The entire Sum Assured is paid out to the nominee if the policyholder dies during the policy term, regardless of the amount already paid out under the Survival Benefits.

Benefits Of Money Back Insurance

Prime benefits of money back insurance include:

  • Provides Insurance: Money back policies are superior insurance instruments. Based on their specific requirements, customers can choose an ideal cover so that the financial requirements of their loved ones can be met without any concern.
  • Provides Sum Assured: Money back policies offer sum assured as a lump sum amount to the nominee in case of death of the policyholder. The sum can be used to cover the expenses of the nominee, allowing them to live a peaceful life free of financial worries. It is worth noting that if the insured lives to the end of the policy term, they will receive survival payments at policy maturity.The insured can use the sum assured amount received (survival benefit) to fulfill their financial goals like dream house, child’s education, retirement, and more.
  • Comes with Low-Profile Risk: Guaranteed returns are provided through money back plans at regular periods. Money back plans, unlike other investment products such as bonds, shares, mutual funds, and others, are untouched by market movements.Money back plan is an ideal choice for you if you are not the type to invest in a high-risk instrument.
  • Provides Returns Within a Few Years of Investing: Money back plans act as a regular source of income. Unlike a traditional life insurance plan, they offer a regular stream of money at regular intervals.
  • Provides Additional Bonuses: Every year, a bonus is added to the money-back policy. It is worth noting that this incentive is only paid out when the account reaches maturity.One of the best things about this bonus is that they help one in fulfilling their financial goals.
  • Provides Tax Benefits: Money back plans offer tax benefits as per Section 80C of the Income Act of 1961. The sum assured is also tax free under Section 10(10D) of the Income Tax Act of 1961.

Things to Know Before Buying Money-back Policy

The following are the things you should know before buying a money-back policy:

  • You need to first and foremost analyse your financial goals. The different money-back plan works in different ways and thus based on your financial situation, you should buy the right plan for yourself.
  • Next, you should also check the premium of the money-back plan you are buying. The premium of the money-back plan is based on different factors such as age, gender, term, etc.
  • Money-back is a medium-risk insurance plan, thus based on your risk appetite, you should choose the right plan for yourself.
  • You also need to check the terms and conditions and everything regarding the payouts so that the returns are aligned with your financial goals.
  • You should also check if the money-back plan offers additional benefits or not. For instance, if you can include riders in your plan or not or if it is offering additional bonuses or not.

Riders Available with Money-back Plans

There are a number of riders that you can include in your plan to enhance its benefits, some of them are listed below:

  • Waiver of Premium: With this add-on, your premiums will be waived off in case you suffer from any terminal illness.
  • Accidental Death Benefit Rider: In case the policyholder meets an accidental death, then the nominees receive a lump-sum amount.
  • Terminal Illness Rider: If the policyholder suffers from a terminal illness like paralysis, heart attack, etc, then this rider provides guaranteed returns.
  • Hosptalisation Rider: With this rider, you give financial assistance in case you are hospitalised during the policy term.

Why Choose InsuranceDekho?

Need reasons to choose us? Here are some:

  • Quick Policy Issuance: If you want your money back policy to be quickly issued, InsuranceDekho would be the best place. The process is simple and would require you to provide your personal details, compare the options, buy the best plan, and make the payment after submitting necessary documents.
  • Availability of Top Plans: InsuranceDekho in partnership with the best life insurance companies in India will provide you with a diverse range of money back policies to choose from.
  • Dedicated Customer Service: InsuranceDekho has a customer assistance team available 24x7 for the customers so that they get the best possible solution to all their money back policy concerns.

How To Buy Money Back Plans With InsuranceDekho?

.Follow these steps to buy money back plans with InsuranceDekho:

  • Submit Details: Provide your name, gender, date of birth and mobile number. Click on the ‘View Instant Quotes’ button to find the available quotes.
  • Comparison of Quotes: You will get different insurance quotes on the basis of details you provide. Compare the available plans based on the quotes.
  • Make The Payment: After you have chosen the ideal plan, adjust the sum assured as well as the policy term. Go ahead with the premium payment once everything is finalized. Use modes like netbanking or debit/credit card.
  • Submit Necessary Documents: Submit photo ID proof, address proof, age proof, and a passport size photograph in addition to required medical documents.

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FAQ About Money Back Policy

  • What is the meaning of money back policy?

    In simple words, a money back policy means a life insurance policy type that provides payments at regular intervals to the policyholder. 

  • Does a money back policy provide survival benefit?

    Yes! Money back policies provide the sum assured at regular intervals in the form of survival benefits as long as the policyholder survives.

  • What is the maturity amount of a money back policy?

    The maturity amount of a money back policy is 40% of the basic sum assured along with reversionary bonuses as well as the additional bonus amount.

  • Does a money back policy provide full sum assured on maturity to the policyholder?

    Yes! Under a money back policy, the policyholder gets full sum assured on maturity, regardless of the survival benefits and amount paid for the same. 

  • Will the premium paid for money back policy help in availing tax benefits?

    Yes! The policy premium paid towards a money back policy comes with tax benefits under Section 80C of the Income Tax Act. 

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