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Key Features Of A Money Back Policy

Published On Oct 08, 2021

The Money Back Policy is one of the most popular life insurance policies in India. It is a savings plan that pays out a certain percentage of the sum guaranteed to the policyholder on a regular basis during the duration of the plan in the form of survival benefits. The term and policy set by the Policyholder define the proportion of the money returned, the number of installments paid to the Policyholder, and the period between payments. People who seek a guaranteed return on their investments should go with the money-back guarantee. It is also appropriate for those who wish to earn a monthly income in addition to insurance coverage. Unlike a typical life insurance policy, which pays only at maturity, a money-back policy begins paying you with a survivor benefit in addition to maturity benefits and any related extras.

Major Features Of A Money-Back Guarantee

The basic characteristics of a money-back guarantee are as follows.

1. Money-Back Plans With Guaranteed Returns

A money-back guarantee is an excellent choice for anyone searching for a low-risk investment. The existence of a money-back guarantee is dependent on the policyholder's survival. However, if the policyholder dies, the nominee receives the guaranteed value as well as any earned bonuses.

2. Survival Benefits

It is well-known for the survival benefits it offers Policyholders. As previously indicated, the insurance pays the investor a certain percentage of the covered amount at regular times throughout the month. This is a unique feature not seen in other insurance packages. Survival benefits, on the other hand, are solely given to the assured party and are not provided to his or her nominees in the case of his or her death during the tenure.

3. Promised Lump Sum On Maturity

The firm, like any other insurance policy, pays the maturity amount at the conclusion of the policy period. It is the safest investment since the earnings are guaranteed and the individual receives the specified amount when his policy expires.

4. Regular Income Payouts

Following the Death of the Assured Person: This is an essential feature of the Money Back Policy. Following the death of the guaranteed party, the money pledged is paid to the Policyholder's nominees. This adds up to the insurance company's incentive for the candidates. This trait attracts smart people who, even if they are not present, are preparing a safe and secure future for their families.

5. Profitable Bonus Amounts

The Money Back Plan provides for two types of bonuses: "a reversionary bonus" and "an extra bonus." The reversionary bonus is another appealing element of this plan. Every year, the company publishes the percentage of the money insured that is given as a bonus. The additional incentive may be provided to the customer as a token of appreciation for his dedication to the firm and timely payment of the premium during the period of the Policy.

6. Add On Riders

It has optional riders that may be added to increase the amount of protection. These riders may have been engaged in serious diseases, personal accidents, or other incidents.

7. Multiple Policy Terms

It enables the individual to choose from a number of different Policy term alternatives based on the customer's needs and goals.


The aforementioned elements should be properly studied before acquiring a Money Back Policy. Because the insurance coverage may be acquired with a minimum of Rs. 50,000, it is viewed as very beneficial and important for the middle-class segment of society. It is secure and safe, and it guarantees the agreed-upon return at the conclusion of the insurance period.

You may also like to read - Why Do You Need To Buy A Money Back Plan?

How to Choose a Good Money Back Insurance Policy?

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

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