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Salient Features Of Money Back Policy

Updated On Sep 13, 2021

One of the most popular life insurance products in India is the Money Back Policy. It is a savings plan that pays out a specific proportion of the sum guaranteed to the policyholder regularly throughout the plan's term in the form of survival benefits. The proportion of the money returned, the number of installments paid to the Policyholder, and the time between payments are all determined by the term and policy chosen by the Policyholder. People who want a guaranteed return on their investments should opt for the money-back policy. It is also suitable for individuals who want to earn regular payments in addition to insurance coverage. Unlike a traditional life insurance policy, which pays only at maturity, a money-back policy begins paying you with an amount in the form of a survivor benefit in addition to maturity benefits, plus any relevant bonuses.

Salient Features Of Money Back Policy

The following are the main characteristics of a money-back guarantee.

1. Money-Back Guarantee: A money-back guarantee is the greatest alternative for someone looking for a safe and secure investment. 

2. Survival Advantages: It is notably well-known for the survival benefits it provides to Policyholders. As previously stated, the insurance pays the investor a specific proportion of the insured money at set intervals every month. This is a one-of-a-kind characteristic not seen in other insurance policies. However, survival benefits are only paid to the assured party and are not awarded to his/her nominees in the event of his/her death during the tenure.

3. Promised Lump Sum on Maturity: The firm, like any other insurance cover, pays the maturity amount at the end of the specified policy duration. It is the safest investment since the returns are guaranteed and the promised amount is given to the individual when his policy matures.

4. Regular Income Payouts After The Death Of The Assured Person: This is another important aspect of the Money Back Policy. The money promised is paid to the Policyholder's nominees upon the death of the assured party. This adds up to the incentive given by the insurance company to the candidates. This characteristic attracts sensible individuals who, even if they are not there, prepare a safe and secure future for their families.

5. Lucrative Bonus Amounts: The Money Back Plan allows for two sorts of bonuses: 'a a reversionary bonus' and 'an additional bonus.'Another enticing feature of this plan is the reversionary bonus. Every year, the firm announces the proportion of the money insured that is provided as a bonus.
The additional bonus may be offered to the client as a sign of appreciation for his commitment to the firm and for timely payment of the premium during the Policy's term.

6. Add-on Riders: It has optional riders that may be added to improve the level of protection. These riders may have been involved in major illnesses, personal accidents, and so forth. 

7. Multiple Policy Terms: It allows the individual to select from a variety of multiple Policy term options based on the customer's demands and goals.


Before purchasing a Money Back Policy, the aforementioned aspects should be thoroughly examined. It is seen to be helpful and extremely valuable for the middle-class part of society because the insurance policy may be established with a minimum of Rs.50,000.It is safe and secure, and it ensures an agreed-upon return at the end of the insurance time.

Also read - Are Money Back Plans really Helpful?

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