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5 Common Money Back Policy Exclusions

Money-Back Plan is an excellent choice for people seeking life insurance coverage, long-term investment, and a consistent source of income throughout their lives in a single plan. Unlike other plans, the benefits are paid during the plan period, and at maturity, the remaining Sum Assured amount is paid, together with any extra incentives. However, if you die during the plan's duration, the whole sum assured is paid to the policy's nominee, regardless of any Survival Benefits that have already been paid. The Money Back Plan is distinct from other existing plans due to its nature. In this article, we will go through some of the most frequent exclusions in Money Back Insurance Plans.

5 Common Money-Back Policy Exclusions

The following are frequent exclusions for which insurance policies do not offer compensation:

1. Activity That Endangers One's Life

Dangerous and adventurous activities are not covered by Money Back Plans owing to the high danger of death connected with these activities, thus they will not be covered. Rock climbing, paragliding, hang gliding, skydiving, and other comparable activities are examples of adventure activities.

Must Read: Are Money Back Plans Worth Investing Your Money In?

2. Pre-Existing Illnesses

The Money Back Guarantee Policy does not cover or compensate for death caused by a pre-existing illness. The policyholder has been suffering since the moment they applied for the coverage, or maybe even before they applied. Cancer, HIV/AIDS, and a variety of other diseases

3. Suicide

Money-back life insurance policy does not offer coverage or reimbursement in the case of suicide death. The majority of insurance does not cover this occurrence. Instead, if this occurs during the first two years of the policy's inception, no death benefit is given to the nominee; however, the nominee may receive up to 80% of the total premiums paid for the policy until death, depending on the terms and circumstances of the policy.

4. Participation In Illegal And Criminal Acts

Money-back life Insurance Policy and other insurance policies acquired from any insurer do not cover the risk created by involvement in any illegal or unlawful actions. Such illegal actions include driving after consuming alcohol, using drugs, and being injured in vehicle accidents while without wearing a seat belt.

5. Incidents Relating To War

Money Back Policy, like other insurance plans, does not offer coverage or reimbursement if the policyholder perishes as a result of war or war-related actions. The candidate will not receive death benefits under the policy. This is a regular exclusion in a life insurance policy that may have been less prevalent in the past.


Taking into account all of the mentioned exclusions under the Money Back Life Insurance Policy. Money Back Policy is a financial product that provides financial safety nets to your loved ones in the case of a tragedy. As a result, before purchasing a policy, every buyer should carefully study the terms and conditions and the whole document to determine what it gives and what it does not.

A money-back policy is ideal for risk-averse people who wish to save money through an insurance plan while still retaining a high level of liquidity. The insurance pays the nominee the whole sum promised without deducting the survival benefits in the unfortunate event of the insured's death.

Also Read: Difference Between Money Back Plans And ULIP

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.

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