What is Money Back Policy: A money back policy is a type of life insurance policy that provides regular payouts to the policyholder during the term of the policy. These payouts are typically a percentage of the sum assured, and they are paid out at specific intervals, such as every five years.
Unlike traditional life insurance policies, which pay out a lump sum to the beneficiary upon the policyholder’s death, a money back policy provides a combination of both savings and protection. In addition to the regular payouts, the policy also provides a death benefit, which is paid out to the beneficiary in the event of the policyholder’s death.
Money back policies are popular because they provide the policyholder with regular payouts that can be used for various financial needs, such as paying for education expenses, funding a business venture, or supplementing retirement income. Additionally, the policy provides a safety net for the policyholder’s beneficiaries in the event of their unexpected death.
It’s important to note that money back policies can be more expensive than traditional life insurance policies due to the added savings component and regular payouts. Policyholders should carefully consider their financial needs and goals before selecting a money back policy or any other type of life insurance policy.
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