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Advantages of Money Back Life Insurance Policy

Money Back Life Insurance Policy

Money Back Life Insurance Policy

If you have to buy an insurance policy and have cash requirements for your recent future, you must take a money back insurance policy. Survival benefits at regular interval of time make this money back insurance policy very popular among the policyholders. Insurance companies are further gold plating it with various riders to attract a larger population. Let’s see what this policy has in store for you.

No worries for future plan

People who buy insurance are the bread earner of the family and require funds to meet their and their family’s requirements. Having the sum assured payable at regular interval, this insurance policy puts a policyholder at ease. All you have to do is to match the payments with your cash requirement. These payments are not risky and premiums do earn interest.

Recommended Read : Why Money Back Policy is Popular among Life Insurances?

Reduce your tax liability

The regular payments of the sum assured are tax exempted. So if your investments are getting reduced because of the taxes you pay invest in this policy, get exempted from the premium payments and get the benefits in short term, don’t pay tax on them too. However, be cautious as if payment is more than 20% of the sum assured one looses the tax exemption.

Money, Money

If you think you’re not going to die, and which you must think, you will just see an influx of cash throughout the term. And even in the case of claim, the amount paid will the full sum assured irrespective of the payments already made as the survival benefits. Thus this policy rewards the death and survival alike. This policy is worth every money spent.

And the benefits

This insurance policy contains the additional facilities of traditional insurance products which include bonus participation and riders.

So, this insurance policy is a one stop solution to many financial problems and is good to invest in.

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Shubham Mishra is an Actuarial Analyst at Mercer Consulting Services India Ltd. Being an actuarial science graduate, he has a very deep knowledge about each and every aspect of insurance market. He has published a few research papers on insurance topics in the magazines of reputed insurance institutions.


  1. This type of policy is great for people who want to invest risk-free, but also want to be covered by insurance. It is a win-win situation, where you can be assured your family will be financially sound in the event of your death – but you also get some profit for survival, which you can enjoy instantly!

  2. Thanks for bringing this up Kitty Macalpine. A money back policy, to be frank is not more profitable than the endowment insurance but what it do provide is that cash at some interval throughout the term. The kind of image insurance sector has left on the people of India, like fraud, claim rejection and others, this policy makes people satisfied as they can see the money coming back to them in near future. It has also woed the population which requires cash at some intervals of life because of expenses related to marriage, shopping, school fee, college fee and others. Such customers now have one more option than mutual funds and FD/RD, a Money Back Insurance policy

  3. A money back insurance policy with benefits like tax exemption is surely a blockbuster among the policy holders. But will it cover emergencies too? What about the inflation rate? But the best part is it rewards the death and survival alike. This type of policies surely encourages the comman man.

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