Unlike ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period, this scheme provides for periodic payments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive.

An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full sum assured.

Money Back Plan is a special type of life insurance policy that falls under Endowment Plans. In Insurance language it is called Anticipated Endowment Plans and commonly known as Money Back Policies. It simply means that in Money Back Plans, the money comes back to the Life Insured after a specific interval of time as Survival Benefit. However, if the Life Insured dies during the policy term, then the Death Benefit would be paid to the nominee and the policy would be terminated and no further money would be paid to him on the intervals.

Thus, a Money Back Policy is an endowment with a liquidity benefit. The Maturity Benefit comes in installments instead of a lump sum at the end. It is called ‘Survival Benefits’. Each installment is a percentage of the sum assured. The remaining bit comes as Maturity Benefit at the end of the policy term.

Who should buy Money Back Insurance Policies?

Money Back Insurance Policies should be taken by someone who might require money at regular and specific intervals, like children’s education, etc. Also because the Death Benefit is guaranteed irrespective of the Survival Benefits already paid. Thus, if the Life Insured dies on the year of the policy maturity even after receiving 4 Survival Benefit, the nominee would get the entire Sum Assured and not a reduced one. You can also save tax as the premiums paid and the money received in installments are tax-free.

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Lic’s Money Back Plans

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