Money Back Policy

Payout Structure: In a money-back policy, the sum assured is divided into multiple payouts over the policy term. For example, a policy may provide 20% of the sum assured every 5 years during the policy term. These periodic payouts are known as survival benefits and are paid to the policyholder as long as the policy remains in force.

Survival Benefit: The survival benefits are payable to the policyholder at specific intervals during the policy term, even if the insured person is alive. These payouts can be used to meet various financial needs, such as funding education, covering expenses, or reinvesting for future goals.

Death Benefit: If the insured person passes away during the policy term, the full sum assured (minus any survival benefits already paid) is paid as a death benefit to the beneficiaries nominated by the policyholder. This provides financial protection to the family in case of the insured person’s untimely demise.

Maturity Benefit: If the policyholder survives the entire policy term, the remaining sum assured (after deducting survival benefits already paid) is paid as a maturity benefit. This lump sum payment is made to the policyholder at the end of the policy term and can be used for retirement planning, investments, or any other financial needs.

Premiums: The premiums for money-back policies are higher compared to term life insurance policies since they include the cost of providing both life insurance coverage and periodic payouts. The premium amount is typically determined based on factors such as the insured person’s age, health, sum assured, and policy term.