The life assured gets a percentage of the sum assured at regular intervals instead of receiving a lump sum of the amount in the end in a money-back plan. It provides many benefits like survival benefit, death benefit, liquidity, etc.
This policy is ideal for risk-averse people who want to save money through insurance while maintaining liquidity. The nominee receives the whole sum promised if the insured individual dies, and the survivor benefits are not subtracted. A money-back insurance plan provides the same maturity benefits in the form of multiple guaranteed “survival rewards” that are spaced equally over the policy’s duration. As a result, a money-back insurance policy is an endowment plan with regular liquidity.
These plans provide a guaranteed return on investment, as well as monthly pay-outs and insurance coverage, making them an excellent choice for anyone seeking both protection and income.
A money-back policy provides a policyholder with a maturity benefit as well as a regular income in the form of “survival benefits” during the term of the policy, in addition to the normal life insurance provided by regular plans.
Top 5 Money-Back Plans to Buy in 2021
- Kotak Premier Money-Back Plan
- Tata AIA Life Insurance Money-Back Plan
- ICICI Pru Cash Advantage Plan
- HDFC Life Super Income Plan
- Bajaj Allianz Cash Assure Plan
Hence, the money-back policy is an endowment plan that offers guaranteed returns over the policy’s term. The money-back plan’s maturity benefit may be slightly lower than that of an endowment plan. There are many plans to choose from. Before investing, the investor must compare different money-back options and benefits and pick a suitable one. In this article are some such plans to pick from.