Life Insurance · Savings · Periodic Benefits
Money-Back Plans
Life insurance plans that combine protection with scheduled survival benefits and a maturity benefit, subject to policy terms.
Periodic Payouts
Scheduled survival benefits during the policy term.
Life Protection
Death benefit during the policy term.
Maturity Benefit
Benefit may be payable on survival to maturity.
Potential Bonuses
Participating plans may receive declared bonuses.
Planned Liquidity
Payouts can support planned financial needs.
Overview
What Are Money-Back Plans?
Money-back plans combine life insurance protection with periodic survival benefits and a maturity benefit. The survival benefits are paid at predetermined intervals if the life insured survives to the applicable dates and the policy remains in force.
How It Works
During Term
Regular premiums are paid according to the selected payment schedule.
Survival Benefits
Specified benefits may be paid at predetermined intervals during the policy term.
Maturity
If the life insured survives, the applicable maturity benefit may become payable.
Eligibility
Who Can Buy a Money-Back Plan?
- Individuals meeting the insurer's eligibility requirements
- Entry and maximum maturity ages vary by product
- Policy and premium payment terms vary
- Sum assured and income requirements may apply
- Medical and financial underwriting may be required
Documents
Documents Required
- PAN, Aadhaar or other accepted identity proof
- Address proof
- Age proof such as birth certificate or passport
- Income proof where required
- Bank statements or business income documents, where applicable
- Medical information or tests, where required
Key Benefits
Why Consider a Money-Back Plan?
- Life insurance protection during the policy term
- Periodic survival benefits at predetermined intervals
- Maturity benefit on survival, subject to policy terms
- Potential bonus benefits in participating policies
- Scheduled payouts can support planned financial requirements
Survival Benefits
How Do the Periodic Payouts Work?
Predetermined Payments
The amount, timing and conditions of survival benefits are specified in the policy. Payments depend on the life insured surviving to the relevant dates.
Planned Liquidity
Scheduled payouts may help with education, family expenses, loan commitments, major purchases or other planned goals.
Periodic survival benefits form part of the overall policy benefit structure and should not be viewed as separate investment returns.
Life Protection
Understand the Death Benefit
If the life insured dies while the policy is in force, the applicable death benefit may be payable to the nominee or beneficiary, subject to the policy terms and claim conditions.
The benefit may depend on
- Sum assured
- Guaranteed benefits
- Vested bonuses, where applicable
- Riders or additional benefits
Important
Do not assume every money-back policy pays the same death benefit or that previously paid survival benefits are treated identically. Always check the policy document.
Maturity
What Can the Maturity Benefit Include?
Guaranteed
Guaranteed Benefits
Depending on the product, the maturity benefit may include guaranteed amounts or other specified benefits.
Additional
Bonuses
Participating policies may include vested or terminal bonuses, where applicable.
Bonuses
Guaranteed vs Non-Guaranteed Benefits
Some money-back plans may be participating policies. Bonuses such as reversionary or terminal bonuses may be declared according to the policy terms.
Future bonuses should not be assumed to be guaranteed unless the policy document specifically describes them as guaranteed.
Returns
Is There a Fixed Rate of Return?
Money-back plans do not have one universal rate of return. Overall benefits depend on the premium, policy term, survival benefits, maturity benefit, guaranteed benefits and bonuses where applicable.
Review the benefit illustration carefully and distinguish guaranteed benefits from projected or non-guaranteed benefits.
Tax
Tax Benefits
Premiums paid towards eligible life insurance policies may qualify for tax benefits under Section 80C, subject to applicable conditions and limits.
The tax treatment of survival benefits, maturity benefits and other amounts depends on the applicable provisions, including Section 10(10D).
Where to Buy
Insurers & Authorised Intermediaries
Money-back plans can generally be purchased through life insurance companies, authorised agents, registered brokers and other authorised intermediaries.
Review the official product brochure and benefit illustration before purchasing.
IRDAI Information →Liquidity
Understand Surrender & Paid-Up Provisions
Early Surrender
If the policy is surrendered or discontinued early, the amount received may be lower than the total premiums paid, especially during the initial years.
Check Before Buying
Review guaranteed surrender value, special surrender value, paid-up value, missed-premium consequences and revival options.
Things to Know
Before You Buy
- Money-back plans involve a long-term premium commitment
- Understand exactly when and how survival benefits are paid
- Do not treat periodic payouts as separate investment returns
- Death benefit structure varies between policies
- Past bonuses do not guarantee future bonuses
- Early surrender may result in a lower amount than total premiums paid
- Review guaranteed and non-guaranteed benefits carefully
Need help choosing a money-back plan?
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