A Money Back Policy is a plan with a liquidity option. In this, the Survival Benefit (money) comes back to the Insured person after a fixed interval of time. Each installment is a pre-defined percentage of the sum assured. The remaining bit comes as Maturity Benefit at the end of the policy term.

However, on the demise of Life Insured during the policy tenure, then the Death Benefit would be paid to the nominee without deducting any survival benefit amount and no further money would be paid to him on the intervals.

The money back insurance policy gives the benefit of periodic payment in between the term of policy. The bonus is calculated on the full sum assured.

Let’s take an example to understand this policy.

Rahul Goel has opted for a Money Back Life Insurance Policy. His plan has a Sum Assured of 10 lakhs for a policy term of 20 years. He would need to pay premiums for 15 years. And he would get back a part of the Sum Assured at regular intervals. For example, for a policy of 20 years, he would get 20% of Sum Assured after the 5th, 10^th and15th year of the policy i.e. he gets 20 X 3 = 80% of the Sum Assured as Survival Benefit (i.e. 2 Lakh in 5th, 10^th and15th year of the policy). On Maturity of the policy he would get the remaining 40% of the Sum assured with Bonus and additional bonus if any.