How Do I Get My Insurance Premium Back Under Money-Back Plan?

Money-back plans are a unique kind of life insurance product. This plan provides instalments at regular intervals during the policy term. The periodical payouts are equal to a fixed percentage of the sum assured. This plan also provides a death benefit in case of an unforeseen demise of the life assured during the policy term. Money-plans also offer a maturity benefit in case the life assured survives the entire policy term. 

Money-back plans provide your insurance premium back to you at different life stages allowing you to fulfill your financial requirements and goals. This type of plan also provides financial protection to your family in case of an unforeseen event. To understand how you can get your insurance premium back from money-back, you need to understand how a money-back plan works.

What is a Money-Back Plan?

Money-back plans provide your invested money as instalments at regular intervals during the policy term. The instalment amount is equal to a fixed percentage of sum assured, and these payouts are known as survival benefits. In case the life assured passes away during the policy term, the family of the life assured will receive a death benefit regardless of periodical payouts made earlier during the policy term. Money-back plans also provide maturity benefits in case the life assured survives the entire policy term. The maturity benefit under this type of plan is provided after deducting the amount of total periodical payout made earlier during the policy term.

As money-back policies are participating policies, the life assured is entitled to receive some bonus at the time of plan maturity along with the maturity benefit.

How Does a Money-Back Plan Work?

Money-back plans are insurance cum investment plans wherein you get the life cover and you are provided with survival benefits i.e. regular instalments at different stages of life. The periodical payouts are made at a fixed interval and the amount is equal to a pre-decided percentage of the sum assured. 

In case of an unfortunate demise of the life assured during the policy term, the family of the life assured will receive a death benefit regardless of periodical payouts already made during the policy term. In case the life assured survives the entire policy term he/she will receive a maturity benefit after deducting the amount of periodical payouts made earlier. At the time of plan maturity the life assured may receive bonus if any, as money-back plans are participating in nature. 

How Can You Get Your Insurance Premium Back Under Money-Back Plans?

It is very clear from above statements that under money-back plans you receive regular instalments during the policy term. These regular instalments are premiums that you have been paying for the money-back policy. During the policy term you receive fixed amounts of survival benefits which are a percentage of the total premiums paid towards the money-back plan, in a way you are receiving the money you invested in the insurance plan. 

Other than survival benefits, this plan also offers additional bonuses if any. This plan helps you fulfill your financial needs during different life situations.

Also read - Are Money Plans Good?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.