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What All Is Not Covered Under A Money Back Policy

Published On Mar 02, 2022

Money Back Life Insurance Policy is a participating, non-linked individual Life Insurance plan. This plan meets the needs of you and your family during critical times. It offers you with the dual benefits of life insurance as well as a regular source of income at regular intervals to accumulate wealth in order to meet financial constraints during difficult times. Money-Back Life Insurance Policy is one of the most popular and highly rated products.

Money Back Plan is an excellent choice for those seeking a life insurance cover, long-term investment, and a consistent source of income throughout their lives in a single plan. Unlike other plans, the benefits are paid throughout the plan duration, and at maturity, the remaining Sum Assured amount is paid, together with any additional incentives. If, however, you die within the plan's term, the entire amount assured is paid to the policy's nominee, regardless of any Survival Benefits that have previously been paid. The Money Back Plan is distinct from other available plans due to its nature. In this article, we'll go over some of the features that aren't covered by the Money Back Guarantee.

What All Is Not Covered Under A Money Back Policy

Common Exclusions of Money Back Plans

There are the following common exclusions for which policies do not provide compensations : 

  • Life-Threatening Activity 

Dangerous and adventure activities are not covered by Money Back Plans due to the significant life risks involved with these activities, hence they will not be covered. Rock climbing, paragliding, hang gliding, skydiving, and other related activities are examples of adventure activities.

  • Pre-Existing Diseases 

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

  • Suicide 

The Money Back Life Insurance Policy does not provide coverage or compensation in the event of suicide death. The majority of plans do not cover this occurrence. However, if this occurs within the first two years of the policy's inception, no death benefit is paid 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.

  • Participation in Criminal and Illegal Acts 

Money Back Life Insurance Policy and other insurance policies purchased by an insurer do not cover the risk presented by involvement in any criminal or unlawful acts. Such illegal acts include driving after drinking alcohol, using drugs, and being injured in automobile accidents while not wearing a seat belt.

  • War-Related Incidents

Money Back Policy, like other insurance plans, does not offer coverage or compensation if the policyholder perished as a result of war or war-related activity. The candidate will not receive death benefits under the policy. This typical exclusion in a life insurance policy may have been less common in the past than it is now.


Taking into account all of the aforementioned exclusions under the Money Back Life Insurance Policy. Money Back Policy is a financial product that offers financial safety nets to your loved ones in the event of a disaster. As a result, before purchasing a policy, every buyer should carefully study the terms and conditions and the complete document to understand what it gives and what it does not offer.

Also read- How To Compare and Purchase Money Back Policy Online

Consider Factors Before Buying A Money-Back Plan

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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