A Win-Win Insurance: Unveiling the Advantages of Money Back Policies

Life insurance is an important financial tool that can help you protect your loved ones in any unexpected event of yours. However, life insurance is also an excellent way to save money and generate income. Money back policies are a type of life insurance that offers the best of both the worlds. They provide you with insurance coverage and also pay you back a portion of your premiums in regular instalments.

How do money-back policies work?

Money back policy is an essential endowment plan with a life insurance component. The policyholder pays a fixed amount in the form of premiums for a specific time period. In return, the insurer agrees to pay back a portion of the premiums in regular instalments, which is known as survival benefit. The remaining amount is received at the end of the policy term, known as maturity benefit. The money-back market is expected to grow at a CAGR of 12% to reach INR 2.7 trillion by 2027.

The amount of survival benefit you receive will depend on the terms of your policy. Some policies pay out a fixed percentage of the premiums every year, while others pay out a variable amount based on the performance of the underlying investments.

Advantages of money back policies

There are many benefits of choosing a money back policy. Some of them are discussed below:

  • Financial protection 

Money money-back policy provides you with life insurance coverage, which means that your loved ones will receive a financial benefit in the event of your demise. This can help to ensure that they are financially secure if anything unexpected happens to them.

  • Regular income

Money back policy also pays you back a portion of your premiums in regular instalments. This can provide you with a steady income that you can use to meet your financial goals, such as retirement planning or paying for your child’s education.

  • Tax benefit 

The premiums you pay for the money-back policy are eligible for tax deductions under section 80C of the Income Tax Act, 1961. This helps in the reduction of taxable income.

  • Flexibility 

Money back policy offers a lot of flexibility. You can choose the amount of premiums you want to pay, the time period of the policy term, and the frequency of the survival benefits. This makes it a perfect fit for people with different financial goals and needs.


Money-back policies offer a unique combination of financial protection and investment returns. They can be a good option for people who are looking for a way to protect their loved ones and also save for their future. If you are interested in learning more about money-back policies, you should talk to a financial advisor. They can assess your individual needs and recommend the right policy for you.   



Workers’ Comp: Charles Spinelli Speaks on Program with its Two-Way Benefits for Employees and Employers

Studies show that a whopping 4.5 million workers experience work-related injuries every year in the States. Thankfully, workers’ comp, a federally imposed insurance plan is in place to protect both employees and employers. According to Charles Spinelli, the insurance plan helps employees who get injured or sick at work seek instant medical intervention, wage replacement, […]

Read More

Kavan Choksi Wealth Advisor Talks About How the Federal Reserve Fights Recession

The Federal Reserve, commonly known as the Fed,  is the Central Bank of the United States. It has a dual mandate, to work to achieve low unemployment, as well as to maintain stable prices throughout the economy. During the recession, unemployment goes up and the prices may fall in a process known as deflation. As […]

Read More

A Simple Guide to Trustee Roles in Pacific Offshore Trusts

You can streamline your estate planning with Pacific offshore trusts provided by esteemed wealth management firms like Ora Partners Limited. The trustee assumes a pivotal role in safeguarding your financial legacy, ensuring its security throughout the years. Guardian of your assets Think of a trustee as the guardian of your assets within the Pacific offshore […]

Read More