Money Back Policy - Compare Best Plans, Features, Benefits

A Money back policy is a type of life insurance policy that offers policyholders Survival Benefits as well as investment opportunities in addition to Maturity Benefits. A money back policy is preferred by those people who are looking for regular payouts during the policy period in addition to the death benefit.

What is Money Back Policy?

Money Back plans as the name suggests returns the money invested by the policyholder. In a money-back life insurance policy, the policyholder can get a certain percentage of amounts at regular intervals, instead of getting the lump sum amount at the end of the term. It can be termed as the Endowment plan with a liquidity option.

The money back plan also provides a sum assured at the time of death of the policyholder or on the maturity of the policy apart from the money withdrawn at regular intervals. A certain percentage of money is paid back to the policyholder at certain intervals of time under the Money back policy. In case the policyholder expires during the policy period the entire sum assured under the policy is paid to the nominee irrespective of the benefits paid during the policy period.

Features of Money Back Policy

  • Guaranteed Returns: Money back policy provides guaranteed returns as survival benefit after a set period. If in case of death of the policyholder, the nominee receives the amount guaranteed as well as any accumulated bonuses, if any.
  • Riders to Increase Cover: Every life insurance company in India offers an option to add riders to their life insurance policy. These riders may be related to medical conditions like life-threatening illnesses, personal accidents, term riders, etc. Some money back insurance policies also give the option to continue the life cover even after the policy has matured.
  • Income during the lifetime: The Money Back policy guarantees that the insured will get returns or will receive the sum assured every few years. The survival benefit is accumulated every few years and thus forms the second source of income to the policyholders.
  • Income on the maturity: Money back policy is an ideal choice for a person looking for a safe and secure savings option. It pays the sum assured or the maturity amount at the end of the policy tenure.
  • Income during the death of the insured person: In case of an unfortunate event of the policyholder, the nominee of the policy gets the sum assured and bonus if any.
  • Bonus Amounts: Money back policy offers two types of bonus amounts one is a reversionary bonus and another one is an additional bonus. Reversionary bonus declared as a percentage of the sum assured every year by an insurer. An additional bonus is dependent on the performance of the insurance company and is based on the loyalty shown by the customer by paying all premiums on time during the tenure of the policy.

Benefits of Money Back Policy

  • Survival Benefit: Survival benefit money is paid to the insured person every few years over the lifetime of the policy. These payments start after some years from the start of the money back policy and continue until maturity. Let us take an example, Aditya has chosen a money back policy with a sum assured of Rs. 5 lakhs over 20 years. He may receive 15% of the sum assured after the 5th, 10th, and 15th years of the policy, as a survival benefit, this is 15 X 3 = 45 % of the sum assured.
  • Death Benefit: In the event of unfortunate death of the insured person, the nominee will receive the death benefit. This includes the sum assured as well as any bonuses accumulated on the money back policy.
  • Maturity Benefit: The insured person receives maturity benefit when the money back plan matures. Maturity benefit includes sum assured and accumulated bonuses.
  • Tax Benefit: Money back life insurance policies are eligible for certain tax benefits. Under section 80C of the Income-tax act, life insurance premiums paid are eligible for tax exemption of up to Rs.1.5 Lac. The critical illness rider under your life insurance policy is eligible for tax deduction under section 80D up to Rs.60000. The claim amount received on the death of the policyholder is fully tax-exempt under Section 10(10D) of the income tax act.

Add-ons/Riders in Money Back Policy

Accelerated Sum Assured This rider provides you get a sum assured on being diagnosed with any of the specified illnesses. The rider is helpful as it gives you the sum assured without even having to pay the premium or wait for the policy term to end to receive the sum assured.
Waiver of premium Through this rider, the insured is not liable to pay the premiums of the endowment policy in case the policyholder suffers from a critical illness or is permanently disabled.
Critical Illness If the policyholder is diagnosed with a critical illness like cancer, heart attack, paralysis, kidney failure, etc. The policyholder will get a lump sum amount.
Accidental Death When the policyholder opts for this additional rider, the insurer will pay an accidental death benefit in addition to the Death Benefit to be given to the beneficiary.
Hospitalization Rider This provides you with daily allowance as well as post-hospitalization benefits, in case of hospitalization of the policyholder. You receive a daily allowance under this rider to cover your expenses related to treatment.

Who should Buy Money Back Policy?

Money back plans have the highest liquidity factor compared to any other life insurance policy. It is useful for people who are risk-averse and at the same time need regular payouts during different stages of policy period can prefer the money-back life insurance plans. The greatest advantage of a money-back policy is that it provides term insurance with survival benefits periodically in addition to the death benefit. In other endowment policies, the survival benefit is provided to the policyholder only after the policy period whereas in the money-back plan the survival benefit is provided periodically.

In case of an unfortunate event, the death benefit is paid to the nominee of the policyholder irrespective of the survival benefit paid to the policyholder. Hence the money back term insurance plans are costly compared to the other endowment plans due to the advantage of liquidity options.

For instance, if you have a money back policy for 15 years then you can opt for periodic installments every 5 years and if you expire within the policy period then the death benefit will be paid irrespective of the survival benefit. If the money back option opted was Rs.50k and the death benefit opted is Rs.15Lacs, after the second installment if the policyholder expires then a total of Rs.1 Lac + Rs.15 Lacs would be received by the policyholder and his/her nominee.

Best Money Back Policies in India

1. Aviva Dhan Samruddhi:

It is a traditional life insurance plan that gives money back every 5 years to meet short and long-term needs.

Key Features:

  • Entry age: 18 years to 55 years
  • Premium: Rs. 60,240
  • Sum Assured: Rs. 11 lacs
  • Policy terms: 10,15,20 years

2. Aegon Life Regular Money Back Insurance Plan:

AEGON Life’s Regular Money Back Insurance Policy provides you guaranteed pay-outs for 10 years and a life cover beyond the Premium Payment Term.

Key Features:

  • Entry age: 7 years to 55 years
  • Sum Assured: Rs. 1 lac
  • Policy terms: 20 years
  • Premium Payment: Monthly, quarterly, and yearly.

3. LIC’s New Money Back Plan

This plan offers combinations of protection against death throughout the term of the plan with the periodic payment on survival benefits during the term.

Key Features:

  • Entry age: 13 years to 50 years
  • Sum Assured: Rs. 1 lac
  • Policy terms: 15, 20 years
  • Premium: Rs. 5000/- per Month
  • Premium Payment: Monthly, quarterly, and half-yearly, yearly.

4. HDFC Life Super Income Plan:

HDFC Life Super Income Plan is to build regular income for 8 to 15 years, flexibility to choose premium payment frequency, and insurance coverage throughout the policy plan.

Key Features:

  • Entry age: 18 years to 75 years
  • Policy terms: 15 to 27 years
  • Benefits: Survival, Maturity, death benefits, and policy loan
  • Premium Payment: Single, yearly.

5. SBI Life Smart Money Back Gold

This insurance plan covers periodic income to meet your financial needs.

Key Features:

  • Entry age: 14 years to 75 years
  • Policy terms: 12,15,20,25 years
  • Premium: 9500/- per year
  • Premium Payment: Monthly, quarterly, and half-yearly, yearly.

6. Reliance Nippon Life Super Moneyback Plan

This Plan helps you provide a regular income and protection for your family in case of any unforeseen eventuality. The guaranteed monthly income increases every year while the guaranteed periodic lump sums enable you to invest in your business or fulfill your family's goals.

Key Features:

  • Entry Age: Minimum 18 to Maximum 55 years ( For death benefit option A), Minimum 45 to Maximum 55 years ( For death benefit option A)
  • Maturity Age: Minimum 28 to Maximum 80 years
  • Policy Term: 10,20,30,40,50
  • Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly
  • Sum Assured: Rs. 1,00,000/- to No limit
  • Premium Payment Term: Half of the policy term

7. Edelweiss Tokio Life Cashflow Protection Plus

Cashflow Protection Plus is a protection plan that provides guaranteed income and financial protection for up to 100 years. This plan offers a money-back, Reversionary Bonus, discounts on high sum assured value, loan availability, and tax benefits.

Key Features:

  • Entry age: 91 days to 55 years
  • Maturity Age: 100 years
  • Policy terms:10,15,20,25 years
  • Sum Assured:2 Lacs
  • Premium Payment: Monthly, quarterly, and half-yearly, yearly.

8. Shriram Life New Akshay Nidhi:

This plan is to cover your family which gives you financial support at regular intervals.

Key Features:

  • Entry Age: 30 days
  • Maturity Age: 70 years
  • Premium Payment: yearly, half-yearly, quarterly, monthly.
  • Premium: Rs. 1 lakh
  • Policy Term: 15/20/25 years
  • Sum Assured: Rs. 1 lakhs

How to Buy Money Back Policy?

The process of buying money back life insurance policy online has become simple with PolicyBachat. For buying money back plan online please visit our website Following are steps to compare money back plans online in our portal.

  • Visit the PolicyBachat Website and select the ‘Life’ tab.
  • Enter your Name, Date of Birth, and Mobile Number.
  • Click on the ‘View Plans’ button.
  • Just Answer 5 Simple Questions.
  • Select your ‘Gender’.
  • Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
  • Select your ‘Annual Income’.
  • Select your ‘Education Qualification’.
  • Choose your ‘Occupation Type’.
  • Enter your ‘Email Address.
  • Then click on ‘Start Saving Money.
  • Premium Quotes of top term life insurance plans will be displayed as per data entered by you and which are suits your requirement.
  • You can edit policy details, sum insured value, policy terms and you can choose your preferred company.
  • Purchase the best money back life insurance policy using online payment.


Choosing the right money-back life insurance policy is an important decision that will affect the financial security of your family. It is essential to make sure that you are selecting a policy that meets your needs and provides the coverage you need for your loved ones. Compare life insurance quotes at PolicyBachat now to grab the best money-back policy at an affordable price.

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