Life Insurance
A Money-Back Policy is a type of life insurance that provides periodic payouts during the policy term, making it suitable for those who want liquidity along with life coverage.
Key Features of a Money-Back Policy:
- Survival Benefits – A percentage of the sum assured is paid at regular intervals during the policy term.
- Maturity Benefit – At the end of the policy term, the remaining sum assured + bonuses (if applicable) are paid.
- Death Benefit – If the insured passes away, the full sum assured (irrespective of payouts made earlier) is given to the nominee.
- Bonus Addition – Many policies provide additional bonuses like reversionary and terminal bonuses.
- Low-Risk Investment – Safer compared to market-linked options like ULIPs or mutual funds.
Example of a Money-Back Plan:
- Sum Assured: ₹10,00,000
- Policy Term: 20 years
- Survival Benefits:
- 20% of Sum Assured at the end of the 5th, 10th, and 15th year (₹2,00,000 each time)
- The remaining 40% + Bonus paid at the end of the 20th year
- Death Benefit: ₹10,00,000 (full sum assured) + bonuses, even if survival benefits were already paid.