Money - Back Plans

• Definition:Money-back plans are a type of life insurance policy that offers periodic payouts during the policy term along with a lump sum amount at maturity.
• Periodic Payouts: The policyholder receives a percentage of the sum assured at regular intervals, such as every 3 or 5 years, providing financial support at different stages.
• Maturity Benefits: At the end of the policy term, the policyholder receives a lump sum amount that includes the remaining sum assured and any applicable bonuses.
• Death Benefits: If the insured dies during the policy term, the nominee receives the death benefit, which is the sum assured plus any bonuses, even if periodic payouts have been made.
• Premiums: Premiums for money-back plans are generally higher compared to term insurance because they provide both periodic payouts and a lump sum at maturity.
• Cash Value: The policy builds up a cash value over time, which can be accessed through policy loans or withdrawals if needed.
• Bonuses: Money-back plans may offer bonuses based on the performance of the insurer, which can enhance the overall returns and benefits of the policy.
• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act, and the maturity proceeds are usually tax-free under Section 10(10D).
• Flexibility: Money-back plans offer flexibility in financial planning by providing regular payouts that can be used for various needs such as education, marriage, or emergencies.
• Financial Security: These plans provide financial security by combining insurance coverage with regular cash flows, helping policyholders manage their expenses while ensuring a lump sum at maturity.


back to services