MONEY BACK POLICY

Money back policy is a policy in which a particular amount is paid to the insured by the insurance company at regular interval. This policy provides good returns on your investment and is mostly taken by professionals and businessman. Money is available at regular intervals for various purposes like children’s education and marriage. This policy has dual benefits as it provides money to the insured at regular intervals and also insurance protection for the family in case of death. This policy is basically available for a term of 20-25 years. The premiums for this policy can be paid quarterly, half-yearly or even yearly whichever is comfortable to you.

The major advantage of Money Back policy is that in the event of insureds death, the entire sum assured is paid to the nominee without considering the amount paid at regular intervals as money-back. For example suppose an individual takes a Rs.200000 policy for 20 years at the end of 5th and 10th year he will receive Rs.40000. In an unfortunate event if he dies in the 14th year, the nominee will get full sum of Rs.200000 without considering the earlier benefits of Rs.80000. By having money-back policy one can gain income regularly to meet specific expenses and also provide risk cover. The minimum age required to avail this policy is of 12 years. The one disadvantage of this policy is that there are no loans provided under these policies.