Are Money Back Policies Helpful? – A Complete Guide

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Are Money Back Policies Helpful? A Complete Guide

Are Money Back Policies Helpful? A Complete Guide
  • 4th Jul 2022 |
  • 3,606

Keywords: money-back policies, money back plan, best money-back policy, money-back insurance policy,

Money-back policies are one of the popular life insurance policies in India as they offer a certain lump sum amount in return. There are other good life insurance policies too, but they serve a different purpose. In the insurance dictionary, these plans often fall under endowment plans.

In this article, we will cover money-back policies and whether these are helpful or not. We would also cover what are these and help you understand the benefits.

What is a Money-Back Plan?

In a money-back plan, a policyholder is entitled to receive regular payouts as well as a death benefit. If you invest in these plans, you will keep receiving a small amount at regular intervals.

This insurance policy is the right choice for those who want a guaranteed return on their investment, while having the option of a regular payout. When opting for money-back insurance policy, one can get all this in addition to an insurance cover in the same premium amount paid for the plan.

Additionally, the best part about money-back policies is that they pay lump-sum amounts after maturity or in the event of the policyholder’s demise. Money-back plans start paying survival benefits over the lifetime of the plan, which is a great benefit. The survival benefit is only given if the policyholder survives the term, and the payment for it starts after a few years of starting the policy. After that, the policyholder keeps getting survival benefit until money-back plan reaches its maturity/p>

Top Features of a Money-Back Policy

Money-back policies have numerous benefits linked to them. For starters, investors can earn a guaranteed return on their investment along with a life insurance cover. Let’s take a look at the top benefits of investing in money-back policies:

1. Offers guaranteed returns

Money-back policy is an excellent option for those looking for a purely safe and secure investment. As it offers guaranteed returns in addition to insurance, it is great for buyers who prefer low-risk investments with good returns.

2. Acts as a second source of income

Money-back plans offer income at regular intervals after a certain period of policy term. This benefit is known as survival benefit. What is survival benefit though? Let us help you understand that with an example.

Survival benefit is offered by insurance policies that have different premium payment and policy terms. Let’s say you have invested in a money-back policy that has a policy term of 25 years. However, the premium payment term for this policy is 18 years. In this case, you will receive a survival benefit after 18 years.

3.Maturity payment

Money-back policies offer both insurance and guaranteed returns. The returns at maturity are secured and guaranteed. The policyholder gets the amount they were promised at the beginning of the policy. Maturity payment is paid to the policyholder if the policyholder survives the policy term

4.Payment in the event of death

A money-back policy works like traditional insurance too. Thus, in case of an unfortunate demise of the policyholder, the nominee gets the sum assured in addition to other bonuses (if any) that the company may pay to the family members (nominee). The death benefit reaches the nominee/spouse as a lump sum payout.

There are various other benefits and drivers linked to money-back policies and other saving plans. These policies are beneficial for those wanting guaranteed returns along with insurance. Understand your long-term financial requirements before you start investing in it. Money-back policies can be a good source of returns, especially if you invest in it early.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Difference Between Passive and Active Investing

Best One-Time Investment Plans in India

Which is a Better Investment - Mutual Funds Or ULIP?

3 Tips to Buy Guaranteed Savings Plan

How to Make Your Financial Portfolio?

How To Diversify Portfolio In 2022?

How Much Wealth Can You Create from ULIP in 10 years?

How to Plan Savings from Salary?

What are Some of the Safest Investment Options in India?

Can ULIP Help in Achieving Short-Term Financial Goals?

Endowment Plan vs Fixed Deposit?

ULIP as an Investment for Your Child

Which is Better – FD, Mutual Fund, SIP, or ULIP?

How To Track ULIP Performance?

Which are the Best Investment Plans for Indian Senior Citizens In 2022?

What are Deferred Savings Plans?

Basics of Guaranteed Savings Plan

Creating a second source of income with life insurance

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

What are the Best Short-Term Investment Plans with High Returns?

Importance of Portfolio Management

Top 6 Investment Plans Available in India

Do You Know the Difference Between Savings and Investment?

How to Fulfil Your Financial Goals in the Next 10 Years?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Asset Allocations in ULIP - Know the Top Benefits

How to Start Saving Money in 10 Simple Ways?

4 Benefits of ULIP Fund-Switching Feature

Planning Financial Goals and Objectives of Financial Planning

Things to Know Before Buying an Endowment Plan

Short Term and Long Term ULIP Plans for Wealth Creation

Planning for Your Child's Higher Education? Explore These Investment Options

How to Cancel ULIP Policy?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Why Do You Need A ULIP Plan - All You Need To Know

Difference Between Guaranteed Savings Plan and ULIP

What are the Best Investment Options for Beginners or Amateur Investors in India?

Investment Options for NRIs in India

ULIP Benefits You Can Avail from Early Investing

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Customising investments to manage your wealth

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Savings Plan for Grandchildren

Safe Investment Options with High Returns for FY 2018-19

What are the Best Investment Options for Students in India?

What is better - Guaranteed Savings Plan or Fixed Deposit?

ULIP vs FD - Which is Better and Why?

Best Investment Options in India in 2022

Top 5 Investment Options in 2022 for Healthy Returns

What is ULIP Renewal?

Investments Options to Buy a house in India

How Does an Endowment Plan Work?

Long Term Savings Plan - Best Savings Investment Plans in India

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

What are the Best Investment Options For Females?

4 Important Tips to Maximize Gains with ULIP Investments

Successful Financial Planning for Urban Women

Complete Savings Plan for Low Income Earners

Learn About Safe Investments with High Returns in India

Who Should Invest in Savings Plan?

Receiving regular payouts at various stages of life

Why Should Parents Invest in Endowment Plan?

Best Investment Options to Cover Your Child's Education

How to Manage Inheritance Money?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

What are Tax-Deferred Savings Plans?

How to Manage Your Portfolio Like a Professional?

Top 10 Investment Strategies to Create Wealth

What are the Best Investment Options for Young Adults?

How to Plan Your Child's Education - A Step by Step Guide

Why ULIP is Better Investment for Long-Term Wealth Creation?

What is a Savings Plan and What are is Benefits?

Learn About Safe Investments with High Returns in India

ULIP Plan as a Gift

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Are Gains from ULIP Sale Taxable?

Building wealth through regular investing

Top 5 Principles That Need to be Followed for Wealth Creation

How Do One-Time Investment Plans Work?

How is Compoud Annual Growth Rate (CAGR) Calculated in ULIP?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How to Plan your Investment to Achieve Periodic Financial Goals?

Early Investing and the Power of Compounding

Different Types of Endowment Plans

How to Increase Net Worth Along with Family Protection

Benefits of ULIP as a Child Insurance Plan

What is the Importance of Saving Money?

Why Should You Invest in Term Insurance And ULIP?