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Money Back Policy

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What is a Money Back Policy?

A money-back policy in simple words is a balanced combination of insurance and savings, respectively. In addition to insurance, one receives the dual benefit of cash redemption. The individuals looking for a steady income that comes to them at periodic intervals, a money-back policy is a highly advised plan to buy. Periodic pay-outs aid in creating wealth which is beneficial for meeting financial commitments at various important milestones of one's life. These types of plans also monetarily protect the policyholder's family in the unfortunate circumstance of his/her death or critical illness.

Unlike a standard insurance policy, which only pays at the end of the policy term at maturity, money back plans give out a 'survival benefit' amount throughout the tenure of the policy. This is paid out a few years from the inception of the plan and continues to do so for the remainder of the plan. Since it is called a survival benefit, this advantage is only levied to the insurer as a reward for his/her survival. In case of death in such a case, these pay-outs stop and the nominee or beneficiary is given the maturity amount as a lump sum at the term end of the purchased plan.   

Why Should One Invest in a Money Back Policy?

With costs to meet the skyrocketing lifestyles of today’s day and age, a money-back policy acts like a godsend to safeguard one’s financial requirements. Offering a regular flow income at pre-decided intervals is a unique feature helping one meets these surging expenses. This is one of the biggest reasons that one should invest in a money-back policy as it offers a lucrative blend of insurance and savings.

Those who have a low-risk appetite and are looking for a regular income to be able to meet all their expenses must invest in a money black plan to ensure that their financial requirements are met without having to compromise on insuring their daily lifestyles. Moreover, money back plans provide a guaranteed return on investment as well as opportunities to grow their money via investments. Low risk, lucrative and financial safeguarding are three of the key advantages of these policies. Today is as good a day as any to invest in money back policy so why wait?

Features and Benefits of Money Back Policies

Money-back policies offer a host of advantages to the investor, which include a guaranteed return plan along with a solid life insurance cover. A money-back policy will make periodic payments every few years which continues throughout the tenure of the policy, giving the conservative investor a valid reason to part with his money.  Insurance companies are always on the lookout to come up with newer and better solutions to inculcate in these plans, giving the purchaser more reasons to invest. Let's have a look at some of these key features and advantages of various money-back policies.

Key Features of Money Back Policies

Some of the key features of Money-back Policies are as follows:

Income throughout the Life of a Money Back Policy

A money-back plan, as the names suggest, is a type of policy that guarantees that the insured person will yield benefit from a specific amount every few years to help take care of the larger expenses in her/her life. This amount called the survival benefit' accrues every subsequent year and acts as an added income for the policyholder.

This amount can come to great use to the beneficiary for carrying out their expenses such as home or apartment deposit payments, children's educational fees, paying off loans or even using it for any personal purchase such as a luxurious vacation or buying a car.

This survival benefit gives money-back policies an edge over the other insurance plans available in the market as no other type of insurance plan offers this advantage. Those purchasing this as a life insurance policy should bear in mind that the survival benefit only accrues and paid out if the insured is alive and in good health.

In case of the unfortunate circumstance of the untimely passing of the policyholder, the amount that will then be payable is the sum assured along with the bonuses as the end of the policy term. This can be considered a way of encouragement towards the policyholder to keep good health and maintain a healthy lifestyle.

Assured Returns from a Money-Back Policy

Keeping it ahead of all other market-linked plans, the guaranteed money returns of money back policies is a unique feature. Providing an insurance cover along with guaranteed returns makes this type of policy a perfect vehicle for a conservative policy buyer who is seeking a secure and safe financial investment. Most of the other plans are not able to deliver high money back returns quite like money-back policies.

Non-money back plans are usually linked to the equity or debt markets which hold a comparatively larger risk when it comes to paybacks. Due to steady inflation and constant fluctuations in the market, other plans are not able to offer the assurance of a regular income quite like the money-back plans. More often than not, other plans may not perform well.

Income at Maturity of a Money-Back Policy

In addition to being a regular income throughout the policy, money back plans also act like regular insurance policies that give out a lump sum amount at the time of maturity of the selected plan. These returns are guaranteed and securely paid out to the policyholder as declared at the time of purchasing the plan. Almost all the insuring companies offer a varied range of sum assured amounts which sometimes can start with as little as Rs.50,000.

Convenient and fruitful for those with lower incomes and higher expensed, these policies provide insurance for all types of people. Smaller cover plans are apt for those who require a steady income at regular intervals providing secure safeguarding of their finances. All this is in addition to the maturity amount which will most definitely be paid out at the end of the tenure of the said policy. Many companies also give an option of no limit on the sum assured, which typically means that one can purchase the policy as per the amount affordable and feasible for them.

Accrued Bonus Costs in a Money-Back Policy

There are two types of bonuses associated with money back plans. These bonuses are termed reversionary bonuses and additional bonuses. Policyholders often find the total of both the bonuses added to their maturity sum assured amounts to be generous.

Reversionary Bonus

This is the bonus that is announced as a percentage of the sum assured amount with each year by the insuring company. These bonuses are added to the maturity amount and paid out together at the end of the policy term or even if an unfortunate incident of death occurs. These bonuses are added every year to the previous year amounts, which result in an impressive sum by the time of maturity.

Additional Bonus

A few of the companies offer an additional bonus which is often dependant on how well the company fares in the markets over the years. This is also quite dependant on the loyalty of customers by making timely payments of the premiums throughout the entire tenure of the money-back policy.

Income at the Time of Death of the Insured

In case of an unfortunate incident occurring with the policyholder, the nominee receives the sum assured as promised at the time of inception of the money-back policy. This amount is in addition to the bonuses, both additional bonus as well as a reversionary bonus, which applies to the family members of the policy.

The money-back plan then acts as a normal insurance policy and aids the insured to financially safeguard his/her family in case something awful were to happen to him/her. Due to the guaranteed nature of the sum assured amount, the nominee would most definitely receive this amount. It is this guaranteed money back feature that makes a money-back plan a much better option as opposed to other riskier insurance policies.

A Plethora of Investment Riders for the Insured in a Money-Back Policy

Every insuring company provides an optional additional rider which can be ‘added on’ by the policyholder towards his policy. These add-on riders enhance the already promised cover by taking care of various factors which might occur unforeseeably. Medical conditions which include critical illnesses, injuries caused due to accidents as well many other such situations are covered by the purchase of these add-on rider benefits. Some riders one can get along with their money back policy is:

  • Accidental disability add-on rider
  • Critical illness add-on rider
  • Term rider
  • Waiver of premium rider
  • Accelerates sum assured rider
  • Hospital cash benefit rider

Many money-back insurance plans offer the benefit of continuing the term plan despite it having reached maturity. If one wishes to, he/she can continue this policy well after its maturity. 

It is imperative to study in detail the money-back policy one is willing to invest in. A good policy will provide a plethora of benefits such as tax savings, guaranteed returns, low-risk investments and add-on riders in addition to many other advantages. The features mentioned above are generic ones for money-back policies, but before investing, it is advised that the fine print be read and the terms and conditions of the policy are properly understood.  

Key Advantages of Money Back Policies

When looking for an insurance plan with assured financial returns, one need not look any further than a solid money back policy. Aggressive investors who like to use the stock and commodities market to grow their wealth can use the money-back plans as a backup investment option.

The assured returns which are paid out every few years during the policy term also attract the conservative investors as this also acts as an additional income. This also means that the returns offered are more than standard insurance plans making money-back policies, possibly the best type of plans to buy. There are a variety of advantages associated with money back plans. To make things clearer, these advantages are stated below:

Higher Money Value with a Money-Back Policy

One of the biggest benefits of a money-back policy is that it is an insurance cover which pays back a certain amount of cash every few years over the lifetime of the policy. It is not a pure-play investment plan, as many might misconstrue. There are three pay-outs towards the policyholder or his/her beneficiaries associated with this type of policy.

Firstly, the sum assured on maturity is a non-negotiable trait which will be fulfilled at the stipulated time.

Secondly, the survival benefit, which is paid out in pre-decided amounts every few years during the active policy term provided the policyholder is alive throughout.

Thirdly, bonus amounts such as the reversionary bonus and additional bonus are paid out over and above the sum assured as a straight-up profit to the policyholders as an appreciation of their loyalties towards the insurance company.

In addition to all these features of a money-back policy, the survival benefit in itself acts as an edge over other policies as the amount paid out is done so despite inflation or market fluctuations, minimizing any risk involved. Often people tend to think that the returns of money-back policy are not as good as other investment plans, but these key features of the policy prove them wrong.

Accrued Returns Every Few Years

The best benefit of money-back plans are the returns accrue only after a few years of the inception of the policy. In the case of long-term policies, this amount keeps adding up and creates quite a hefty package in total. Long term policies of 15-20 years are a good bed to keep feeling covered along with the advantage of accrued income. In addition to these amounts, the final maturity amount is paid over and above this amount. Insuring companies payout this advantage by dividing it into two distinct stages.

The first stage involves payment of the stipulated amount every couple of years from the time the policy goes active after purchase. The first and last periodic pay-outs are usually spread uniformly over the tenure of the policy. The second stage of payment comprises the final payment and is larger than the previously paid amounts.

This amount is given along with the maturity amount at the end of the policy term. These payments every few years are part of the survival benefit and are only applicable if the policyholder survives until the end of the plan. In case the policyholder passes away due to unfortunate circumstances, the survival benefit ceases to exist, and the nominee is paid the sum assured along with the accrued bonuses at the end of the policy term. The survival benefit is a way of encouraging people to maintain good health and live longer.  

Full Sum Assured Payable to the Insured at Maturity

All money back plans pay the full sum assured as a lump-sum at maturity of the policy regardless of the survival benefit amounts paid during the policy term. This benefit is in tune with all other insurance policy pay-outs wherein the policyholder or his/her beneficiaries or nominees get the maturity amount at the end of the policy tenure.

Money-back policies are a great investment option as they give out survival benefits over the years in periodic payments in addition to the maturity amount along with the accrued bonuses such as the reversionary bonuses and additional bonuses by the end of it. For those looking to receive a steady income in addition to a competent insurance cover, a money-back policy is the best option.

Insurance Cover with Investment Returns in a Money-Back Policy

Many insurance plans available in the market offer the benefit of a hefty lump sum pay-out at the end of the term in addition to added advantages. However, only in a money-back policy can one receive these benefits in addition to a steady income in the form of a survival benefit paid out over the years over and above the maturity amount.

A money-back policy typically has three main advantages, namely the maturity benefit, survival benefits and accrued bonus benefits. The combination of these three advantages gives money back plans an added allure in the world of investing. Acting as a four-fold advantage, the bonus amounts significantly increase the overall pay-out of the plan.

Most of the other plans only give out limited pay-outs with higher risks that involve market fluctuations and inflations. In money back plans, one can choose their minimum sum assured and enjoy the dual advantages of an insurance cover along with regular high investment returns.

Contests the Importance of Market-Linked Plans

The stock and commodity markets are highly volatile and subject to timely inflation and deflation. People who invest in these often run a high risk of loss. However, if the goods are in your favour, then the returns can also be extremely fruitful. Moreover, this is a risk and advised for those who have a higher risk appetite. One can safeguard their financial assets by investing in a money-back policy as even though the stock and commodities might render one with high losses, the money-back plan will provide steady returns on timely intervals. It is this reason why every portfolio should have at least one money back plan if not more, to be able to balance it out.

It helps to guard the policyholder against any income loss due to the assured returns. In addition to the definite return, he/she will also receive an insurance cover which will help secure the monetary aspect for him/her as well as his nominees in case of an unexpected death. The survival benefit payments with are given out every few years further act as a source of income and help in meeting large expenses such as home loans, children’s educations, reinvesting in other plans, taking luxurious holidays and just about anything the beneficiary of that amount desires to do.

Different Bonus Pay-outs Increase the Overall Amount

The additional bonus and reversionary bonus that accrues throughout the tenure of the policy term increases the pay-out quite significantly. The reversionary bonus is usually declared with every passing year on the sum assured. Almost all the money back plans provide a simple reversionary bonus which is announced at the end of each year and is added to the total sum assured, increasing the total amount payable at the end of the policy tenure. Another type of bonus in addition to the reversionary bonus is called the compound reversionary bonus.

In this type of bonus, the bonus from the previous year is added to the sum assured amount and the following year's bonus amount is added to this new sum assured. A lot of insuring companies give out a bonus as well. This is usually declared at the time of inception of the policy and is paid out along with the maturity amount at the end of the policy term.

It is often offered to long term policies that go on for 15-20 years, and this acts as a type of reward by the company towards the policyholder for his loyalty and business. All these bonuses get accrued to the final pay-out and significantly increase the overall amount.

Secure Investments with Money-Back Policies

A money-back policy is a sure way to reduce risks that one takes with other mediums. The guaranteed returns in the form of the survival benefit act as an added income and reduce the risk in the overall wealth portfolio of the policyholder. When invested in unison with stock market investments, mutual funds, etc. a money-back policy will help reduce the overall risk towards the policyholder's wealth management. Another quality of a money-back plan is that it helps to protect against risks related to funds which are needed towards future expenditures.  

Tax Saving Options with a Money-Back Policy

Premium payments that need to be made against the life insurance in a money-back policy qualify for tax deductions under the section 80C of the income tax act of India. *Tax benefit is subject to changes in tax laws. These deductions are valid for up to a certain limit and are only applicable if the premium amount is lesser than 10% of the sum assured.

The maturity amount at the end of the policy term is also exempted from tax payments, so this can also significantly reduce the tax liability of policyholders. However, the tax exemption for the maturity amount is only applicable if the sum assured is over five times the premiums that have been paid towards the policy. So now, people who want to avail the advantages of survival benefits, maturity benefits, accrued bonuses as well as a hefty tax exemption should opt for a money-back policy.

Survival Benefits of a Money-Back Policy

Insuring companies divide a percentage of the sum assured and spread them out evenly to be paid to policyholders every few years in the form of survival benefits. This amount is paid out to the beneficiaries of the policy over the years as decided during the inception of the policy.

These payments continue to be paid to the policyholder until the policy reaches maturity. The survival benefit is given to the policy owners as a token of appreciation from the insuring company. However, this benefit is only applicable if the policyholder is alive and in pristine health throughout the policy tenure. (“Standard terms and conditions apply”)

Maturity Benefits of a Money-Back Policy

The maturity benefit amounts to the total of three specific payments given to the policyholder at the time of the end of the policy term. These three payments are termed as:

Survival Benefit

Though the survival benefits of money-back policy are paid out at periodic time intervals throughout the active life of the policy, the remaining balance at the end is paid out at the time of maturity.

Sum Assured

This is the amount of the total cover of the policy that is chosen at the time of inception of the same. This amount can be upgraded over the years if need be. At maturity of the plan, this amount is paid out as a maturity benefit in addition to the others.

Accrued Bonuses

There are two bonuses namely, the reversionary bonus which is announced by the insuring company at the end of each year and the bonus, which is declared depending upon the performance of the company.  

Death Benefits of a Money-Back Policy

As is the case in most insurance policies, the death benefit is the money that is paid out to the nominee/s of the policy in case of death of the policyholder. The death benefit amount is deciphered as the total of the sum assured and the accrued bonuses. The death benefit does not include the survival benefits as they are only paid out during the active term of the policy and at maturity. In case the policyholder passes away, the survival benefit is not applicable.

Sum Assured of a Money-Back Policy

The sum assured is the amount of coverage on which the money-back policy is purchased. This amount will determine the premium payments to be made against this plan. The sum assured is paid out to the policyholder at the time of maturity of the policy or to the nominee in case of his/her death.

Best Money Back Policies

In today's faced-paced lifestyles, the liquidity of money is as important as insuring one's life. Money-back plans offer this liquidity with their survival benefits that are paid out in periodic intervals throughout the policy term. Moreover, at maturity, the surviving policyholder reaps the advantages of the balance survival benefits along with the maturity amounts. Whether you are a salaried individual or running a business, investing in a money-back policy along with other wealth assets is practically a must to keep afloat.

Various reputed insuring companies are offering money-back policies which one should research in detail before investing. Have a look at some of the best money-back plans available for purchase in the Indian markets below.

Name of Money back policy Type of Money back policy Tenure of Money back policy Minim age at entry Maximum age at entry Age at maturity Minim sum assured amount
ABSLI Vision money back plus plan Traditional participating money-back insurance plan 20 years, 24 years and 25 years 13 years 45 years Not applicable Rs. 1,00,000
Aviva DhanSamruddhi plan Traditional money back plan 10 years, 15 years or 20 years 13 years 55 years 23 years – 70 years Rs. 1,00,000
Bajaj Allianz cash assure plan Traditional money back plan 16 years, 20 years, 24 years or 28 years 0 years 54 years 18 years – 70 years Rs. 1,00,000
Bharati AXA Life Child Advantage plan A traditional participating savings plan 11 years to 21 years 18 years 55 years 76 years for limited pay, 71 years for regular pay Rs. 25,000
Edelweiss Tokio Life Cashflow protection plan Non-linked participating money back plan 10 years, 15 years, 20 years, 25 years 91 days 55 years 0-100 years Rs. 2,00,000
Exide Life New Fulfilling life plan Traditional money back policy 85 years – the age at entry 15 years 50 years 85 years Rs. 75,642
Future Generali Assured money back plan Traditional money back plan 15 years, 17 years, 20 years and 22 years 18 years 50 years Not applicable Rs. 58,215
HDFC Life super income plan Traditional participating insurance plan with life coverage 16 years – 27 years 2 years for 16 years policy term and 30 years for 18-27 years policy term 48 years for 27 years policy term, 51 years for 24 years policy term, 53 years for 22 years policy term, 55 years for 20 years policy term, 57 years for 18 years policy term and 59 years for 16 years policy term.   18 years – 75 years Rs. 1,28,377
ICICI Pru Cash advantage Non-linked participating money-back insurance plan 15 years, 17 years or 20 years 0 years 60 years 80 years --------
IDBI Federal Incomesurance guaranteed money-back insurance plan Traditional money back plan 10 years 18 years 55 years 65 years ---------
Kotak Premier money back plan Traditional money back plan 16 years, 20 years, 24 years 2 years 59 years 75 years Rs. 1,50,000
Max Lifesuper Perfect partner Non-linked individual participating non-variable plan with life coverage 75 years 91 days 55 years 75 years Rs. 50,000
PNB MetLife money back plan Traditional money back plan 10 years 13 years 55 years 65 years Rs. 2,50,000
Pramerica Smart money back plan Participating money back plan 16 years – 20 years 8 years 49 years 65 years Rs. 1,20,000
Reliance Super money back plan Non-linked non-variable non-participating money back plan with life coverage 10 years, 20 years, 30 years, 40 years and 50 years 18 years 55 years 28 years – 80 years Rs. 1,00,000
Sahara Dhan Vriddhi Jeevan Bima plan Traditional money back plan 9 years, 12 years, 15 years 9 years 60 years 70 years Rs. 50,000
SBI Life Smart money-back Gold plan Savings plan with a life coverage 12 years, 15 years, 20 years and 25 years 14 years, 15 years as per tenure selected. (“Standard terms and conditions apply”) 55 years, 50 years and 45 years as per tenure selected. (“Standard terms and conditions apply”) 27 years – 70 years Rs. 75,000
Shriram Life New Akshay Nidhi plan Traditional money-back insurance policy 15 years – 25 years 30 days 60 years 18 years – 75 years Rs. 1,50,000
Star Union Da-ichi’s guaranteed money back plan Traditional money-back insurance policy 10 years, 15 years, 20 years 13 years 50 years 20-year term – 70 years, 15-year term – 65 years, the promptly10-year term – 60 years Rs. 3,00,000
TATA AIA Life insurance money back plus Money-back plan with participation in bonuses 16 years, 20 years, 24 years 2 years 51 years 18 years – 75 years Rs. 2,00,000
LIC money back policy Traditional participating anticipated endowment plan with money back option 20 years 13 years 50 years 70 years Rs. 1,00,000
LIC New children’s money-back policy Child plan 25 years 0 years 12 years 25 years (minimum/maximum) --------------

(**PaisaWiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.)

Types of Money Back Policies

There are several types of money back policies available in the market with different features for potential buyers. When considering investing in an insurance plan, it can often be confusing as to which one to buy. To help ease with this procedure, all money back plans have similar distinct advantages such as sum assured at maturity, guaranteed returns in the form of survival benefits and an amalgamation of the revisionary and additional bonuses.

Unlike other plans such as endowment plans and market-dependent investments, money back plans not only give a hefty sum at the end of the policy term but also give out timely pay-outs every year to create a steady income for the policyholder. This, in return, reduces the risk and helps maintain a steady wealth portfolio. Some of the most competent insuring companies provide good money back plans, as stated below:

Name of Plan

Type of Plan

Policy Term

Minimum Entry Age

Maximum Entry Age

Aegon Life regular money-back insurance policy

Money-back plan with life coverage

20 years

7 days

55 years

Canara HSBC OBC Smart Stage money back plan

Traditional participating money back life insurance plan

15 years

8 years

55 years

LIC money back policy for children

Child plan

25 years

0 years

12 years

Met Life money back plan

Traditional money back plan

10 years

13 years

55 years

 (**PaisaWiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.)

Exclusions of Money Back Policies

There are mainly only pros when it comes to investing in a money-back policy. Sum assured, accrued bonus amounts and the survival benefits make for a huge final pay-out during maturity meanwhile a percentage of the survival benefit that is paid out every few years during the active policy term acts as the largest advantage of a money-back plan. However, there are a few events which are not part of a money-back policy as mentioned here.

Death of the Policyholder

In case the policyholder dies in unfortunate circumstances, the survival benefit ceases to exist. This means that the amount of survival benefit that is paid out every few years stops at this time. Even at maturity, the nominee will receive the total of the sum assured and accrued bonuses if any minus the balance survival benefit. Companies offer this as an encouragement for their customers to maintain good health.

Death Due to Suicide

The death benefit can be hampered if the policyholder commits suicide within one year from the inception of the policy. In such a case, the policy will also stand to be revoked. (“Standard terms and conditions apply”)

Participation in Illegal Activities

No illegal activity is tolerated, such as involvement with drugs, war or other illicit crimes. It is important to read the fine print before purchasing any money back policy so that one knows his/her rights. Sometimes, the entire policy can also cease to lapse if any foul play is proven. (“Standard terms and conditions apply”)

Tax Benefits of Money Back Policy

One of the major advantages of investing in a money-back policy is the tax benefits one receives from it. Premium payments that are needed to be made promptly against the life insurance money back plan is exempted from tax deductions under section 80C of the income tax act of India. *Tax benefit is subject to changes in tax laws.

This tax exemption is applicable if the premium payment amount is lesser than 10% of the sum assured. Not only the premiums but the maturity amount is also exempted from tax deductions. These tax deductions largely reduce the taxpaying liability that a policyholder usually has to bear if not investing in insurance or other mediums. However, this tax saving on the final maturity amount is only valid if the sum assured is more than five times the premium payments that have been made towards the plan.

What are the Steps to Purchase the Best Money Back Policy Online?

Buying a money-back policy online is quick and easy. One needs to first confirm which plan they want to buy. Before making any hasty decisions, it is advised that thorough research be done in advance so that you can make the right choice.

Factors to consider when investing in this type of insurance include the sum assured amount, risk appetite, maturity benefit receivable, survival benefits, rider options and various others. Once the money-back policy to be invested in is finalized, a successful online purchase can be completed with quick and easy steps. To buy a money-back policy online, one can follow the below-mentioned steps.

Step 1: The interested individual can visit the official website and follow the instructions to add all necessary details such as name, address, email id, phone number, etc.

Step 2: Click on the money-back policies tab that is displayed on the webpage.

Step 3: The individual can browse the available policies and select the one that is a perfect fit for his/her financial desires.

Step 4: Once the policy of choice has been finalized, the individual can start the purchase process by using the ‘buy policy’ option.

Step 5: The individual is required to complete the policy application form. Enter the authentic credentials of the applicant. Here, the candidate should pay attention to the personal details entered as these should be compatible with the documents that are going to be attached to the application.

Step 6: Fill the form and submit the same along with the documents as verification.

Step 7: Once all the above-mentioned steps are done, the application form submitted for the money-back policy will be verified by the provider insurance company, after which the policy will be active within 1-1.5 months.

Documents required to Buy Money-Back Policy

For purchasing the chosen money back policy, the documents mentioned below will need to be submitted:

Proof of Age

The valid documents here shall be the applicant’s passport, or their birth certificate, or secondary/senior secondary standard mark sheets.

Proof of Identification

The applicant may submit either their Passport or his/her Voter ID or PAN card. The applicant's Aadhar card may also serve as verification.

Proof of Address

The applicant can use amenities bills of the past 6 months like electricity bills, phone bills, or other documents like passport, driving licence, etc. may also be valid.

Proof of Income

This requires the applicant to submit salary associated documents such as TDS in Form 16 of the last financial year or a salary certificate.

Main Form

A completed policy application form as downloaded from the official website

How can One Compare the Different Money Back Policies?

To be able to purchase the right type of money-back policies to invest in, it is important to do thorough research and read the fine print before any final decisions are made. Due to the sheer variety of policy in the market to choose from, it is only natural to get confused regarding the same.

That is why there is now an array of insurance aggregators flourishing the World Wide Web that provide a detailed analysis and comparison of the features of several policies be it an investment, insurance or money-back. One can find all the information regarding the competent money-back policies offered by reputed insurance providing companies.

This helps ease the task of deciding whether to purchase a policy or not by providing a tabulated and systematic illustration showcasing the name of the plans, name of the insurance company, the key features, benefits, disadvantages, sum assured, premium payment instalments and many other details. Skimming through these options makes it easier to be able to come to a desirable choice and go ahead with investing in a money-back policy.

Comparing various money-back policies has been made a piece of cake by such insurance aggregator websites. To make matters even more customizable for investors, the websites offer an application that can be downloaded on the phone. Those people who require more in-depth research or wish to resolve any queries related to the same, they can use the helpline numbers or official email address for expert advice on the investment.

The investor can hire an agent and get all the necessary information he or she needs before buying any policy. Apart from that, these websites also ensure the featuring of only those policies that are active and running. So, an investor won’t get misguided and will be prevented from investing in a discontinued one. The websites help in increasing the accuracy of the decisions made by an investor.

Money-Back Policy Details

Some of the best money-back policies to invest in 2020 are mentioned below:

ABSLI Vision MoneyBack Plus Plan

This is a traditional non-participating money back plan. The maximum age at entry for this policy is 60 years, and the minimum sum assured to be paid towards the policy is 180 times the monthly base premium amount. This is a great money-back policy and has a host of features, the key ones of which are listed below:

  • The minimum sum assured is equal to 180 times the premium to be paid every month
  • A double accidental rider is offered with this plan
  • The policy gives a minim guaranteed addition rate
  • It is a traditional non-participating plan which means that it offers loyalties but no bonuses

Aviva Dhan Samruddhi Plan

Being a traditional life insurance policy, the Aviva Dhan Samruddhi plan allows saving for a specific period after which it starts paying back the survival benefit every five years. This policy permits one to save for both long term and short-term goals and also offers a hefty sum at maturity. Some of its key features are:

  • This plan participates in the bonuses
  • Guaranteed additions are incorporated to the sum assured to provide an enhanced benefit
  • Premium rebates are attracted in case of a higher sum assured
  • The policyholder can choose a suitable term at his/her convenience

Bajaj Allianz Cash Assure Plan

Blending in a mix of protection and savings, this is a traditional money back policy. Providing customers, monetary liquidity it offers a money-back at regular intervals. The tenure of this plan ranges from 16 years to 28 years and has a plethora of lucrative features as mentioned below;

  • Minimum sum assured is Rs. 1,00,000
  • It offers periodic payments at regular intervals
  • The plan gives an assured return of investment up to 150% of the sum assured
  • Policyholders can choose from four different policy terms – 16 years, 20 years, 24 years and 28 years
  • Special premium rates are offers to female policyholders

Bharati AXA Life Child Advantage Plan

A traditional participating money-back policy, Bharati AXA Life child advantage allows policyholders to pick between two maturity benefits, endowment and money back. Any one of these will ensure good coverage for the insured child and secure his/her future. One of the key features of an insurance plan which is the premium waiver benefit is also offered with this plan. Some of the important features of this plan are:

  • Ensures guaranteed pay-outs over the recent most five years before the maturity
  • Policy term can be deciphered based on the age of the child
  • A non-ensured reversionary bonus is added to the plan and paid out with the maturity benefit provided all the premium payments have been made on time

Edelweiss Tokio Life Cashflow Protection Plan

A participating savings plan, this policy is designed to safeguard the policyholder until he/she reaches the age of 100 years! A good investment along with lucrative advantages, some key features of this policy are as stated under here:

  • A cash bonus will be paid every year at the commemoration of the policy after the premium instalment. This is a non-guaranteed advantage
  • Bonus will be paid depending on how well the fund fares in the markets and will be done so until the maturity of the policy or death of the insured
  • Reversionary bonus, which is a non-ensured accumulated benefit, shall be paid out at the time of maturity or death, whichever comes first

Future Generali Assured Money Back Plan

This policy gives the insured the option to choose from four premium payment terms. It typically helps those people who have an irregular source of income. A few of its key features are listed below;

  • At the end of the policy term, the maturity benefit is paid out to the insured
  • Loan facilities can be availed against this plan
  • A nomination as per approved tax exemptions is permitted
  • The insurer will receive 10% of the complete sum which is assured to the insured for nine years  

HDFC Life Super Income Plan

This is a great plan which makes for a solid investment, allowing the policyholder to live his/her life without the worry of future expenses. One can fulfil their financial goals and dreams with the aid of this plan. Listed below are some of the key features of this policy.

  • No medical examination needs to be undergone before investing in this plan
  • Assured returns will generate a regular source of income at periodic intervals
  • The policy term, as well as the premium payment instalments, is up to the perusal of the policyholder

ICICI Pru Cash Advantage Plan

As the name suggests, investing in this money back policy will offer a generous cash advantage. This pay-out starts from the year in which the premium payment ends. Have a look at some of the key features of this policy.

  • A lump sum payout is given to the policyholder, allowing him/her to secure their financial expenses in the future
  • The premium instalments can be paid as per the comfort levels of the policyholder
  • A bonus will also be paid out, if there is any, as declared by the insuring company
  • Investing in this plan ensures well-rounded security for the family, even if the policyholder is no longer alive

IDBI Federal Income Insurance Guaranteed Money Back Policy

Providing a guaranteed annual income in the form of survival benefits, this plan also offers a life cover. The policyholder only needs to ensure that he/she pays the premiums in full for the initial five years after which the life cover will be provided. A few of the main features of this money back policy is mentioned below:

  • Flexible premium payment options are available
  • Financial safeguarding is providing in net times of adversities
  • Assured cash returns will be provided in this policy
  • The premium amount only needs to be paid for a specific time
  • Life cover is provided with this plan
  • The policyholder can choose the amount of premium

Max Life Super Perfect Partner Plan

A good option for those looking to add to their income in their golden years after retirement, this traditional money back policy is a good investment. It helps with the planning of financial expenses along with a foolproof investment option. A few of the key features of the Max Life super perfect partner plan are stated below:

  • Bonus alternatives if applicable are available on this plan
  • One can secure his/her partner’s future by benefiting from add-on riders
  • Life insurance coverage is provided until the policyholder reaches the age of 75 years
  • The guaranteed annual money-back offers financial security and one need not rely on other sources to safeguard their expenses

Reliance Super Money Back Plan

This is a non-linked, non-variable, participating in traditional money back plan. It offers a life coverage within the tenure of the policy ranging from 10years - 50 years. Key features of this plan are listed here:

  • Minimum age of entry is 18 years
  • Maximum age of entry is 60 years
  • Minimum sum assured is Rs. 1,00,000/-
  • The money-back benefit is paid every five years until the policy reaches maturity
  • Once the premium payment term has ended, loyalty additions if any, will be payable
  • The term of premium payment is 50% of the policy term

TATA AIA Life Insurance Money Back Plus Plan

The benefits of this money back policy come in a dual form of savings along with a life cover. Offering an assured cash flow at regular intervals, investing in this policy will allow you to fulfil all your dreams and wishes without worrying about the expenses. A few important characteristics of this policy are:

  • Loan facility is available once the policy has acquired its surrender value
  • A terminal bonus, if applicable, is payable with this plan
  • At maturity, the insured will reap the benefits of the sum assured along with the reversionary and additional bonuses

Money-Back Plans with Lowest Premiums

Almost all the money back plans in India have been crafted, keeping in mind the financial safeguarding of its buyers. The idea behind money back plans is to offer its loyal customers a hefty maturity benefit, accrued bonuses and a survival benefit, which are paid out in instalments throughout the years as pre-decided during inception. There are several money back plans available in the market in which one can pay a lower premium as compared to many. The premium amounts are usually deciphered based on the minimum sum assured. Mentioned below are some of the money back plans with the minimum sum assured amounts so one can get a general idea of the premium amounts payable.

Name of Money Back Plan Minimum Sum Assured
Bharati AXA Life Child Advantage plan Rs. 25,000/-
Exide Life New Fulfilling life plan Rs. 75,642/-
Future Generali Assured money back plan. Rs. 58,215/-
Max Life LifeSuper Perfect partner Rs. 50,000/-
Sahara Dhan Vriddhi Jeevan Bima plan Rs. 50,000/-
SBI Life Smart money-back Gold plan Rs. 75,000/-

*PaisaWiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.


  • Q1. In case I change my mind after purchasing the policy, can I get a refund and cancel the same?

    Ans. Most insuring companies that deal with money-back policies offer something called a free look period. This means that after purchase, if you change your mind for some reason and wish to have your policy revoked, you can do so in 15 days from the date of purchase provided no claims have been made in that time frame. This is a great offer for those who would like a time-frame to rethink their decision.

  • Q2. Can I buy child money back policy offline in case I am not comfortable with the online platforms?

    Ans. You can purchase money back policy offline with ease as well. All the insurance companies have branches in several areas close to the neighbourhood you live in. When purchasing a plan offline, you will need to physically go to one of these branches in person with all the necessary documentation along with you. Once there, you can meet with a customer care executive who will guide you through the entire process of filling in the forms in person along with submitting the paperwork.

    In addition to this, many independent insurance agents can also come to your house and help you do the same in the comforts of your own home. Moreover, the helpline numbers of Policybazaar Insurance Brokers Private Limited (**Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.) are always easily reachable where the designated agent will help you with the needful as well.

  • Q3. What happens if I forget to pay the premium on the due date of my money back policy?

    Ans. All the money-back policies offer a grace period of 1 month from the due date of the said premium payment. Within this period promptly, you can make the premium payment without any late payment charges. This grace period is very generous and will permit the policy to stay active despite missing a premium payment. It is imperative to note that if the payment is not made even by the due date of the grace period, then you might be charged a late fee and if this pattern continues, in some cases, the policy might even be cancelled.

  • Q4. What are the benefits of the term rider?

    Ans. This rider is only available if opted for at the time of inception of the policy. The advantage of this rider will be available during the entire term of the policy. In case you choose this rider, an amount which is equal to the term assurance rider sum assured will be paid out at the time of death of the life assured, if such an unfortunate event occurs.

  • Q5. Can I pay the premiums in instalments or do I have to do so in one go?

    Ans. This largely depends on you and in some cases, on the insuring company you select. The premiums can be made in a lump sum at the time of purchase of the policy should you choose to do so or you can pay them in monthly, quarterly, bi-annual and annual instalments. To avoid missing premium payment due dates and the consequences that come with, you should link your bank accounts to the policy so that the direct debit mode takes the money right out of your account and make timely payments towards the policy of the stipulated date.

  • Q6. In case I miss making a premium payment even after the grace period, can I revive the policy?

    Ans. In case you miss making the payment even despite the grace period offer, the money-back policy will lapse. However, you can revive this policy within a time-frame of five consecutive years from the date of the first unpaid premium payment and before the maturity of the policy. This revival of policy will depend on the discretion of the insuring company, and the premium payments henceforth might be as per the current market scenario at the time. You might also need to submit additional documents at the time if the company asks for them. In case you have purchased the waiver premium rider, then your policy will not lapse, to begin with, despite missing due premium payments. (*Standard terms and conditions apply)

  • Q7. Is it risky to invest in a money-back policy?

    Ans. Any market-based investment comes with some percentage of risk. Having established that, a money-back policy has lesser risk as compared to other types of insurance policies such as endowment plans. A money-back policy in addition to holding lesser risk also assures guaranteed returns, giving it an edge over other plans.  

  • Q8. What is the difference between a beneficiary and a nominee in terms of policy?

    Ans. In policy wordings, a nominee3 is the appointed person of the policy who is usually a trusted by the policyholder to take charge of all the financial assets and records in case he/she dies during the policy term. The nominee will ensure that all the legal earnings of this policy are rightfully given to the rightful legacy in case a discrepancy ensues. The term beneficiary, on the other hand, is referred to as a relative or sometimes any other authority. Nominees and beneficiaries can be the same person in many policies. It is not uncommon.

  • Q9. How can I figure out which money back policy to invest in?

    Ans. As is the case in any investment option, a good money-back plan should suit your needs to the tee. Key factors and benefits are necessary to consider along with the various rider benefit options before making the purchase. A money-back policy gives you the liberty of choosing the sum assured and also assured returns every few years, which is a great way to add a steady income to your wealth portfolio. The Policybazaar Insurance Brokers Private Limited *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. The website has all the best money-back policies, along with the pros and cons mentioned. This will help you to make an informed and right decision which will prove to be beneficial to you as well as your family.

  • Q10. How exactly does the survival benefit work?

    Ans. Survival benefit is one of the primary reasons why people choose to buy money back plans. This benefit is a great way of being on the receiving end of dual benefits of insurance and investment. A survival benefit is paid out in generous amounts every few years to the owner of the policy. This amount can be used for various purposes such as repaying loans, children's educational costs, reinvestments or even something personal as taking luxurious vacations with the family. This not only keeps you insured but adds to your overall income.

    Named the ‘survival benefit’, this is only paid out to the policyholder if he is alive and in good health. In case he/she dies due to unforeseen circumstances, this benefit ceases to exist. In case of maturity, the balance amount in the survival benefit is paid in addition to the sum assured and accrued bonuses. This clause can be considered as the goodwill of the insuring company towards the policyholder in the form of a monetary motivation that he/she keep pristine health. (*Standard terms and conditions apply)

  • Q11. Is it possible to ordain a minor as a nominee on a money-back policy?

    Ans. Yes. One can appoint a minor as a nominee on a money-back policy. However, there is a condition to select an adult in-charge who shall be responsible for looking after the policy-related activities in accordance should the need arise until the minor is of legal age. When the minor reaches adulthood, the appointee won't have any control over the actions to be taken, nor will he/she read any benefits. If a claim is raised while the nominee is still a minor, the proceedings from the claim shall be given to a legal heir. This will only occur if there is an absence of the appointee.

  • Q12. How can I check the claim status of my money back policy?

    Ans. The claim status of your money back policy can be checked online with ease. Alternatively, the policyholder can call the helpline number of the insuring company and also know about the claim status of the policy in question.

  • Q13. Do the returns from money back plans offer any tax benefits?

    Ans. In money back plans, the premium payments are tax-free as well as the maturity benefits. However, this is only if the maturity benefit is ten times the sum assured, and the premium amount is lesser than 10% of the sum assured. This tax exemption can be claimed under section 80C of the income tax act.  *tax benefit is subject to changes in tax laws.

  • Q14. Can I apply for a duplicate copy of my policy? If so, how?

    Ans. For getting a duplicate copy of your existing insurance, you will need to make a formal request to the insuring company. This will require you to take all the necessary documents that have been asked by the company and take a trip to the company branch. Once you are there, the customer care executive will guide you through the procedure.

  • Q15. What type of person is most suitable for a money-back policy?

    Ans. Any person who wishes to make investments through lower-risk instruments and wants both wealth creation and a life insurance cover make for an ideal candidate to purchase money back plan. Additionally, someone who needs a steady income in timely intervals to meet his/her expenses would benefit from investing in this type of policy.

  • Q16. Is it necessary to appoint a nominee for a money-back policy?

    Ans. Legally, it is not mandatory to name a nominee for your policy, but it is advised that you do. A nominee is a trusted person who will ensure that the financial gains of this policy will be handed over to the rightful owner. In case the policyholder dies, and the beneficiary is a minor, a nominee of sound age will be the person in charge of making all the decisions and making sure that he/she offers the legal heir his/her due.  A nominee is usually a close personal friend or a family member and in any case, also the beneficiary of the same plan.

  • Q17. What is the meaning of an add-on rider?

    Ans. Add-on riders are additional covers that can be purchased along with the main policy to enhance the policy further. Benefits such as term riders, accidental disability benefit riders, premium waiver benefit, accidental death rider, and alike are some of the types of add-on riders you can opt for. Usually, whichever one you want to buy is done at the time of the inception of the original policy. However, some of them can also be purchased at other times of the active policy term. (*Standard terms and conditions apply)

  • Q18. What are the documents required to purchase a money-back policy online?

    Ans. When an investor is buying a money-back policy online, he/she will be mandated to present their completed KYC (know your customer)-related documents. The other documents essential to complete the application shall be included under the policy wordings. Thus, an investor shall be denied a policy purchase if he/she is unable to showcase KYC documents. It is advised to complete the KYC procedure before investing. This is a non-negotiable clause declared by the Indian government. The following documents will be needed for the same:

    • Duly filled and attested policy form
    • Proof of identification –The applicant may submit either their Passport or his/her Voter ID or PAN card. The applicant's Aadhar card may also serve as verification.
    • KYC and related papers
    • Proof of age – The valid documents here shall be the applicant's passport, or their birth certificate, or secondary/senior secondary standard mark sheets.
    • Proof of address – The applicant can use amenities bills of the past 6 months like electricity bills, phone bills, or other documents like passport, driving licence, etc. may also be valid.
  • Q19. Which website can I refer to for accurate information if I am looking to invest in money back policy?

    Ans. A lot of reputed companies offer a wide range of money-back policies, and it is only but natural to get confused when trying to make a decision. Policybazaar Insurance Brokers Private Limited has an official website which houses all the relevant information in easy tabular and listicles formats to make all the advantages and disadvantages clear for your perusal. You can refer to this website and skin through all the features of the policies and make a rather informed decision. *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

  • Q20. What documents are required to submit when making a claim?

    Ans. The following stated documents will need to be submitted while raising a claim:

    • Filled and duly signed claim form
    • All relative doctors’ and medical treatment documents
    • The authentic initial policy papers
    • All prescriptions that are given by the doctor
    • All relative diagnostic reports
    • Certificate of death (if applicable)
    • PM report of the policyholder under a circumstantial death that has occurred due to unnatural causes
    • An attested copy of the police FIR if available
    • Required information related to bank, to facilitate an NEFT mode of bank transfer
    • Nominee’s KYC credentials
    • Policyholder’s KYC papers
  • Q21. In case I miss a premium payment due date, can I choose to opt for a direct debit payment mode?

    Ans. You can link your policy to your bank account of your choice and choose to opt for a direct debit mode of payment. This is a great way to ensure that all your payments are made promptly without the hassle of reminding yourself to do so. Any late payment charges are also avoided, and your policy will never lapse.

  • Q22. What all is covered under the critical illness add-on rider?

    Ans. The critical rider is an important add-on benefit as it safeguards the insured against a variety of illnesses and diseases that might occur. In this rider, in case the insured undergoes a bad illness, a guaranteed amount is payable which he/she can put towards the expenses borne due to such circumstances. Some of the common illnesses that are included in this benefit are:

    • Cancers of different types
    • Kidney failure
    • Renal failure
    • Organ transplant procedures such as kidney transplant, heart transplant, etc.
    • Paralysis that leads to a permanent disability
    • Stroke that might culminate into a permanent handicap
    • Coronary diseases such as bypass surgeries and cardiac arrests
  • Q23. If my policy has matured and I want to renew it, can it be done?

    Ans. Yes. All the insuring companies have options of renewal in case of policy lapse as well as after the end of the policy term. If you have survived the policy until maturity and want to continue it, you can contact the insurer and renew the same. For this, you might need to submit some medical certificates along with additional documents which will be informed to you by the agent helping you with the same. For further details on the same, you can contact the Policybazaar Insurance Brokers Private Limited helplines. The customer care executives will give you an entire detailed process and also help you along with it. (**Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.)

Written By: Paisawiki - Updated: 12 April 2021