Investment Plans 688 views October 9, 2021

Money back insurance plan provides you with a combined benefit of life cover and investment. With a money back policy, you can earn income during the policy period. You’ll get a guaranteed return on your investment without the risk of market fluctuation, annual payouts upon survival and coverage for your family in case of your death. So, invest in your future with money back life insurance. Read this page and check out the money back plans and their offers.

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Key Features of Money Back Insurance Plans

You’ll get the following benefits when you are covered under money back insurance –

Survival Benefit – During the policy term, the insurer shall pay the survival benefit as a percentage of the base sum assured at different intervals, provided you are alive. With this, you can meet your financial needs without any hassle. So, plan your child’s future, retirement, etc. with the money back insurance.

Fixed Returns – You’ll receive the income based on a fixed sum assured as the rate won’t change regardless of the market scenario. The insurer shall pay an amount as specified in your policy schedule.

Life Cover – In case you die during the policy term, the money back benefit stops and the insurer shall pay the specified death benefit to your nominee.
Maturity Benefit – Upon survival till the end of the policy term, you’ll receive the last installment of money back payout along with the accrued bonuses (if any).

Rider Option – You’ll also get the option to customize the money back plan by which you can get 360 protection from any eventuality that might happen during the policy term. The rider options may vary from insurer to insurer.

How to Choose a Money Back Insurance Plan?

Several insurance companies offer you money back insurance, but how would you choose the right one? First, you’ll need to compare their offers and see which plan helps meet your financial needs. Check out the below factors that will help you choose the best money back insurance –

Check the Payout Period

You should choose a money back plan that offers you a long payout period and help you meet your financial needs.

Compare Premium Amounts of Plans

It’s important to compare premium rates of different plans and choose the one that offers you the ideal coverage for least premium. 

Go for High Sum Assured

Check the sum assured options offered by the insurer and choose the one that meets your needs and is sufficient to cover your family in the event of your death.

Check Maturity Benefits

You’ll get the last payout of your money back benefits at maturity, but see whether your insurer provides any additional benefits, such as a simple reversionary bonus, terminal bonus, etc.

Check for Rider Options

The insurance company also provides you the option to customize money back insurance as per your need. So, if you want coverage for critical illness, accidental death, disability, etc., choose a plan that offers you the same.

Check for Surrender Benefits

The insurance company pays an amount if you voluntarily cancel the policy before its maturity. Some insurers provide surrender value after the full payment of at least 3 annual premiums. And if your insurer provides the option of single premium payment, you can surrender the policy anytime during the policy term. So, see whether your insurer provides you the flexibility of easy surrender or not.

Compare the Best Money Back Insurance Plans

The following are some of the popular money back plans in India that will provide you with life cover and investment benefits. Let’s check, compare and choose…

Money Back InsurancePolicy Term (In Years)Survival BenefitSum Assured (In INR)Minimum Premium Amount (In INR)
SBI Life Smart Money Back Gold

15, 20 and 25110% of the Base Sum AssuredMinimum - 2 Lakh800 per month
Max Life Pay Money Back Plan16, 20 and 24110% of the Base Sum Assured--
ICICI Pru iProtect Smart Money Back10 to 30-ICICI Pru iProtect Smart - Minimum 25 Lakh and Maximum 10 Crore
ICICI Pru Savings Suraksha - 10X the Annual Paid Premium
-
HDFC Life Super Income PlanFor Limited Pay - 16, 18, 20, 22, 24, 27, 15, 20
For Single Pay - 15 to 27
100% of Sum Assured on MaturityLimited Pay - 76,198
Single Pay - 18,457
2,000 per month
HDFC Life Sanchay PlusGuaranteed Income - 10, 12, 20
Guaranteed Maturity - 11 and 13
Life Long Income - 6, 7, 11, 13
Long Term Income - 6, 7, 11, 13
As specified in the policy schedule -2500
PNB MetLife Guaranteed Income Plan10, 15 and 20Annual income ranging from 11% to 13% of Basic Sum AssuredFor 5 Pay - 4,00,000, 7 Pay - 2,00,000, 10 Pay - 1,50,000, 12 Pay - 1,50,000
Maximum sum assured subject to board approved underwriting
12,357 per annum
Max Life Monthly Income Advantage Plan10, 20 and 30 1/12th of 10% of Sum Assured payable after the ended of the premium payment term, up to 10 years.Minimum - 54,000 and maximum is subject to board approved underwriting 25,000 per annum

Money Back Insurance Bonuses

The insurance company shall declare bonuses during the policy term, and the same shall be payable along with the death benefit or the last money back installment. Check out the bonuses available under money back insurance –

Reversionary Bonus

A Simple Reversionary Bonus is declared at the end of each financial year by the company. And the same will be added to your policy as a percentage of the Sum Assured. Once this benefit is added to the policy, the bonus is guaranteed and is payable on maturity, provided all premiums are paid from your end. This bonus is not a guaranteed benefit and it may depend on the experience concerning the investment return, expenses, mortality rate, tax, etc. In case of death or surrender during the policy period, you’ll receive the interim bonus based on the bonus rates declared by the company.

Terminal Bonus

A Terminal Bonus is added to your policy, provided all due premiums are paid. It is based on the experience over the policy term and not a guaranteed benefit.

Money Back Insurance Premium Payment Option

You can pay your premium yearly, monthly, quarterly or yearly as per your preference. The premium amount is based on your age and chosen sum assured. Some insurer provides you two types of premium payment options –
Single Pay – If you choose the single pay option, you need to pay premium one-time only in a lump sum.

Limited Pay – By choosing a limited pay option, you can pay the premium at different intervals as per your choice – yearly, monthly, quarterly, etc.

How to Apply for Money Back Insurance?

You can compare money back insurance plans and choose the right one on Wishpolicy, a neutral online financial marketplace offering you unbiased insurance advisories. Follow the steps shown below to apply for money back insurance online –

  • Visit the official website of Wishpolicy
  • Select the ‘Investment Plan’ option
  • Select your gender
  • Enter name, mobile number, investment amount and age
  • Click on the ‘Start Investing’ button

What Documents Do You Need When Applying?

The following documents are required for a money back insurance plan –

  • Proof of age – Voter ID Card, Aadhaar Card, Passport, etc.
  • Proof of address – Electricity bill and Passport copy
  • Duly filled application form
  • Medical reports (if required)

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