In today's world, where the cost of living continues to rise, having a money back policy is essential, especially for your retirement years. That’s where money back policies come into play. A money back policy is a unique insurance plan that combines the benefits of life insurance coverage with periodic payouts, serving as both a safety net for your family and an investment plan to grow your wealth.
A money back policy is a life insurance plan that provides regular payouts, known as survival benefits, during the policy term. These payouts are a percentage of the sum assured and are made at specific intervals, providing liquidity throughout the policy duration. At the end of the policy term, the remaining sum assured, along with any accrued bonuses, is paid to the policyholder. If the policyholder passes away during the policy term, the full sum assured is paid to the nominee, regardless of any survival benefits already received.
Looking for a secure way to grow your savings while enjoying regular returns? The following money back plans provide a combination of guaranteed payouts and life insurance coverage, making them a great option for those seeking steady income and financial protection. These plans are designed to help you meet your financial goals while ensuring peace of mind for the future.
The HDFC Life Super Income Plan is a participating, non-linked money back insurance policy designed to provide regular income for a specified period. This plan allows you to choose a payout period ranging from 8 to 15 years after completing the premium payment term, making it a flexible choice for different financial needs.
Key Features:
Regular Income: The plan offers regular payouts starting from the 2nd policy year under the single-pay option.
Bonuses: You can earn reversionary and terminal bonuses based on the company’s profits and the policy’s performance.
Flexible Policy Term: Choose from policy terms of 16, 18, 20, 22, 24, or 27 years.
Loan Facility: Get a policy loan up to 80% of the surrender value after the policy acquires a surrender value.
Multiple Payout Options: Choose payout periods of 8, 10, 12, or 15 years based on your financial needs.
Life Coverage: Enjoy life insurance coverage throughout the policy term.
This plan is ideal for individuals who are looking for a regular source of income to meet future financial needs, such as education expenses or post-retirement planning.
LIC's New Money Back Plan (20 years) is a traditional, non-linked, participating life insurance plan. It offers a combination of life insurance protection along with periodic survival benefits at specified intervals. This plan is suitable for those who want a secure insurance option with guaranteed returns.
Key Features:
Survival Benefits: 20% of the basic sum assured is paid at the end of the 5th, 10th, and 15th years.
Death and Maturity Benefits in Instalments: Offers the flexibility to receive death and maturity benefits in instalments over a period of 5, 10, or 15 years, instead of a lump sum.
Loan Facility: Loan options are available up to 90% for active policies and 80% for paid-up policies.
Participation in Profits: The plan participates in the company's profits and is eligible for simple reversionary bonuses.
Optional Riders: Four additional rider options are available to enhance the coverage by paying an extra premium.
LIC's Money Back Plan is suitable for individuals who prefer a safe investment with regular payouts and the security of life insurance. It’s particularly appealing to those who want to receive periodic income during the policy term.
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The ICICI Prudential Cash Advantage Plan is a savings and protection-oriented policy that offers a guaranteed lump sum at maturity and monthly guaranteed cash benefits for 10 years. The plan also provides life insurance coverage, ensuring financial security for your family in case of an unforeseen event.
Key Features:
Guaranteed Cash Benefit: Offers 1% of the Guaranteed Maturity Benefit every month during the 10-year payout term.
Flexible Premium Payment Options: Choose from 5, 7, or 10 year premium payment options.
Advance Payouts: The guaranteed cash benefit is payable in advance, provided the policyholder is alive, and the premiums have been fully paid.
Loan Facility: Get a loan up to 80% of the policy's surrender value.
Tax Benefits: Tax deductions are available under Section 80C of the Income Tax Act.
This plan is suitable for individuals looking for a guaranteed income stream along with life insurance coverage. It is ideal for those who want flexibility in premium payment terms.
The Tata AIA Money Back Plus Plan is a limited premium-paying, participating, non-linked insurance policy that offers regular payouts and life cover. It provides three plan options, allowing you to choose the one that best aligns with your financial goals.
Key Features:
Life Cover: Enjoy life coverage throughout the policy term, even after receiving survival payouts.
Bonuses: The plan offers terminal bonuses and compounded reversionary bonuses (if declared), which can enhance your savings.
Inbuilt Accident Cover: Provides additional protection in case of accidental death.
Policy Loan Facility: Once the policy acquires a surrender value, you can take a loan up to 65% of the surrender value.
Optional Riders: Enhance your coverage with optional riders for critical illness or accidental death.
This plan is ideal for individuals seeking a flexible policy that offers both insurance coverage and assured income at regular intervals.
The Bajaj Allianz Cash Assure Plan is a traditional money back policy that provides a combination of protection and savings. The plan pays out a lump sum at regular intervals to help you meet your financial needs.
Key Features:
Special Premium Rates for Women: Female policyholders enjoy lower premium rates.
High Sum Assured Rebate: Offers a discount on premiums for higher sum assured amounts.
Guaranteed Money Back: Get up to 150% of the sum assured as guaranteed money back, depending on the policy term.
Loan Facility: Obtain loans up to 60% of the surrender value once the policy acquires a surrender value.
Optional Riders: Choose from five rider options to enhance the coverage.
This plan is suitable for individuals who want guaranteed money back at regular intervals and an option to borrow against the policy for emergencies.
To understand how a money back policy functions, consider an example:
Suppose Mr. Gupta buys a 20-year money back policy with a sum assured of ₹20 lakhs. The plan offers 20% survival benefits every 5 years. Therefore, Mr. Gupta will receive ₹4 lakhs at the end of the 5th, 10th, and 15th years. In the 20th year, he will get the remaining ₹4 lakhs along with any accrued bonuses, and the policy will terminate.
If Mr. Gupta unfortunately passes away in the 15th year, his nominee will receive the entire ₹20 lakhs, regardless of the ₹12 lakhs already paid as survival benefits.
Survival Benefits: Periodic payouts provide financial support for major expenses, such as education, vacations, or loan repayments.
Maturity Benefits: On maturity, the policyholder receives the remaining sum assured along with bonuses.
Death Benefits: In case of the policyholder’s death, the nominee receives the entire sum assured, even if survival benefits have already been paid.
Tax Benefits: Premiums qualify for tax deductions under Section 80C of the Income Tax Act.
Get guaranteed returns and life cover with top money back plans – Know More
Money back plans are ideal for individuals who want a combination of life insurance and regular returns. Here are some reasons to consider investing in a money back policy:
Guaranteed Returns: The policy provides assured payouts at regular intervals, making it a safe investment option.
Dual Benefits: Offers both life insurance coverage and a source of income through periodic payouts.
Financial Security: Ensures that your family is financially protected in case of your untimely demise.
Bonuses: Many money back plans offer additional bonuses, which increase the overall returns.
When selecting a money back policy, consider the following factors:
Policy Tenure: Choose a term that aligns with your financial goals, whether short-term or long-term.
Survival Benefit Schedule: Check the payout schedule and ensure it suits your financial planning.
Bonuses and Other Add-Ons: Look for plans that offer regular bonuses, which can enhance your returns.
Loan Facility: Consider if the policy allows you to take a loan against it, providing financial support in emergencies.
Premium Payment Options: Look for flexible premium payment terms to suit your budget.
Money back policies are a prudent choice for individuals seeking a secure investment option that provides both insurance coverage and regular payouts. The top 5 money back plans listed above offer various features to cater to different financial needs. Choose the best money back policy that aligns with your financial goals and secure your future today.
Invest in a money back policy now with OkBima and enjoy the peace of mind that comes with guaranteed returns and life coverage!
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