What Are Money Back Plans?

What Are Money Back Plans?

Money back plans are designed to provide a stable flow of money to the person who invests in them. In money back plans, the premiums can be paid in monthly, yearly or on a per quarter basis. A simple policy form has to be filled up to get such a plan. Details such as name, address, date of birth etc are needed to be provided. The agent will then take the form to the company for evaluation. After evaluation, the company will give a go ahead. In this plan no medical check up is needed. In general within 7 days a policy is issued.


Survival assistance: The sun assured along with loyalty additions and bonus are paid at maturity. The rate of loyalty addition is not fixed. It may vary from year to year. Depending on the performance of the company, a bonus is also declared.

On decline; On decline the sum assured is paid back to the nominee along with the additions and bonus accumulated. The nominee has to complete certain formalities for this purpose.


– In this policy, money is given on a regular basis. consequently in a policy with 15 year tenure, money will be disbursed at an interval of 3 years. consequently a child can assistance from this sort of policy. This will give him regular payouts at every stage of his life. He can go for higher education. The regular flow of funds permit him to rule a good life.

The policy has its disadvantages also. It is purely a debt scheme as per as investment is concerned. It doesn’t invest in equities and hence can’t give extraordinary returns. But by and large, it is a good insurance cum investment proposition.

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