Under a money back life insurance plan, you can start receiving the returns on the plan within a few years of the policy commencement. After a few years, a percentage of the sum assured is paid out to you, and as you get closer to the policy maturity, this percentage may increase, which translates to a higher survival benefit.

It is known that the value of money decreases over the years as a result of inflation.  However, since money back life insurance plans pay out survival benefits every few years instead of accumulating them until maturity, the value of the money will be more than if you were to receive the entire benefit only at maturity.

Apart from the percentage of the sum assured paid out to you throughout the policy term, the remainder of the sum assured will be paid out on maturity. This means you have the benefit of receiving survival benefits and maturity benefits or a death benefit, in case of your untimely demise.

As a type of savings plan, a money back policy offers life insurance with guaranteed money back benefits. Hence, this dual benefit of life insurance money back plans ensure that you can secure your financial needs and goals while protecting your family under a life insurance cover.

When you opt for a money back policy, you can choose from flexible premium payment terms, depending on your policy term, and also opt for an annual, semi-annual, or monthly premium payment term and modes. That way, you can ensure that your money back policy is customised as per your needs.

Money back policy premiums enable you to claim tax deductions under Section 80C of the Income Tax Act. Additionally, the death benefits and the maturity benefits are also subject to exemption from taxes under Section 10(10D) of the Income Tax Act provided the premium is less than 10% of the sum assured and all applicable conditions as per prevailing tax laws are fulfilled.

In a money back plan, a certain percentage of the sum assured is paid out to you, as the survival benefit, in regular intervals during the policy term until the plan matures. Depending on the policy tenure, after a few years, the payout percentage will be paid out along the policy term.

The death benefit offered to the policyholder’s nominee comprises the sum assured and declared bonuses accumulated until the policyholder’s demise. Any survival benefit that would have been paid out beyond the date of the demise is not deducted from the death benefit.

A major benefit of a money back policy is the maturity benefit which comprises of a lumpsum benefit and the bonuses declared by the provider’s company. Hence, in case the policyholder survives the term, they can avail of a massive maturity benefit.

The sum assured is the total cover of the policy. It is paid to the policyholder’s nominees as a death benefit or as a maturity benefit to the policyholder if they survive the policy term. Some percentage of the sum assured is paid out as the survival benefit through the policy term.

At the end of each year, the insurance company may declare a bonus on its insurance policies. When a simple reversionary bonus is declared each year, a percentage of the sum assured will be added to the money back policy until the maturity benefit or the death benefit is paid out.

The compound reversionary bonus⁺ is a percentage of the sum assured as well as the bonus from the previous year. This bonus is also paid as the maturity benefit or death benefit. If declared and added, the bonus amount for the upcoming policy year will be greater than the last year.

A terminal bonus may be declared by the insurance company if the policyholder stays invested in the plan and consistently pays all the premiums. 

• Age at Issue
  
  The policyholder or the insured should meet the age criteria for the money back policy. The minimum age at issue and maximum age at issue will differ from policy to policy or as per the plan option selected by you.
  
  
• Age at Maturity
  
  It is important to understand the minimum and maximum age at maturity. While the maturity age may vary across policies, the minimum and maximum age at maturity for the Tata AIA Life Insurance Money Back Plus is 18 years and 75 years, respectively.
  
  
• Documents
  
  When purchasing a money back policy, you will be required to provide proof of income. The proof of income document will indicate that you are able to pay the policy premiums as per the sum assured chosen by you.

Tata AIA Life Insurance savings plans enable you to build your wealth in the form of long-term savings over the policy period that offer guaranteed returns on maturity to fulfil your financial goals and a life cover to protect your dear ones.

Our Tata AIA Life Insurance term plans can help you secure the future of your loved ones through a pure life cover and protect them from the impact of uncertain events such as loss of income, death, medical emergencies, and more.

Tata AIA Life Insurance Unit-Linked Insurance Plans help you achieve your goals by creating and growing your wealth through investments, enabling you to enjoy the benefits of market-linked returns along with a secure life cover.

Being a savings plan, a money back life insurance policy helps you save for your future goals while also protecting your family from uncertain situations in your absence. The dual benefit of savings and insurance in life insurance money back policy make it a good option if you need more than a simple life cover.

The payouts of life insurance money back plans help you receive a steady source of income once you start getting the survival benefits a few years into the policy. With these survival benefit payouts, it becomes easier for you to plan your future expenses and also any additional expenses that need to be handled.

Unlike other savings plans, a money back policy starts offering the benefits after a few years from the commencement of the policy. Hence, you need not wait until the end of the policy term to access the saved funds. Along with these payouts, you can also get a maturity benefit at the end of the policy term, if eligible.

The sum assured that can be received by your nominee as a death benefit or by you as a maturity benefit includes guaranteed payouts. Even the payouts offered to you at regular intervals during the policy term are assured. Such guaranteed benefits make the money back policy an optimal choice for your needs.

A money back policy is not only useful for their survival benefit payouts but also for their maturity benefits and death benefits. The death benefit, comprising the accrued sum assured and bonuses up to the date of the demise, will be paid out, irrespective of the survival benefits already paid.

Money back policies are saving plans but work differently. Other savings plans accumulate the entire financial corpus until the end of the policy term, while money back policy start paying out the survival benefits during the course of the policy term. 

Before you invest in a money back plan, it is important to know how much financial support you will need for your goals, and only then will you be able to decide on a sum assured for the money back plan. This will also determine how much you will receive in the form of payouts during the policy term.

Money back plans have a unique feature, unlike other savings plans. For example, the death benefit under a money back policy is the sum assured and declared bonuses accumulated until the death of the policyholder, even though the survival benefit may have been paid out during those years.

The exclusions or what life insurance money back plans do not offer is an important component of any life insurance policy. For instance, pay attention to the various circumstances under which the company may not be obliged to pay out some of the plan benefits before you choose a money back policy.